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IN THIS ISSUE THE FUTURE OF MANUFACTURING / TOURISM MINISTER EDWARD ZAMMIT LEWIS ON IMPROVING MALTA’S TOURISM PRODUCT / RETAIL INDUSTRY FIGURES SHOW SUBSTANTIAL GROWTH / REPORT ON FLEXIBLE WORK ARRANGEMENTS / THE DEBATE: IS OUR ECONOMY MANAGING TO CREATE ENOUGH NEW JOBS? / NSO DIRECTOR GENERAL DISCUSSES THE STATISTICAL OFFICE’S RE-DIMENSIONED ROLE / THE LATEST BUSINESS NEWS
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38 DESIGN TRENDS WHERE TRADITION MEETS CONTEMPORARY ARTISTIC EXPRESSION
10 COVER STORY
Sarah Micallef talks to Monica Audrey Galea of Galea&Galea Architects about a collaborative endeavour in the rural village of Mgarr.
THE FUTURE OF THE MANUFACTURING INDUSTRY Sarah Micallef looks into the manufacturing industry locally and within the EU, gaining insight on what should be done to maintain competitiveness and address the declining role of industry in Europe.
18 INTERVIEW THE RISE AND RISE OF MALTA’S TOURISM INDUSTRY Minister for Tourism Edward Zammit Lewis discusses the soaring statistics in Malta’s tourism industry and the quality of our tourism product with Martina Said.
77 PROPERTY COMMERCIAL PROPERTY: A LOCAL SUCCESS STORY?
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Jo Caruana discusses the commercial property sector with Federation of Estate Agents president Ian Casolani.
33 IN FIGURES
90 INTERVIEW
THE RETAIL SECTOR IN MALTA… IN NUMBERS
NUMBERS TO KNOWLEDGE
A look into the figures related to Malta’s retail sector.
24 THE DEBATE IS MALTA’S ECONOMY CREATING ENOUGH NEW JOBS? Martina Said finds out if Malta’s low unemployment levels are enough to satisfy concerns about increased levels of unemployment in the foreseeable future.
34 HUMAN CAPITAL ACHIEVING A BETTER WORK-LIFE BALANCE Martina Said reviews a report on the outcome of the Malta Chamber’s benchmarking event on flexible work arrangements.
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110 MEET THE ARTIST THE NEWSPAPER MAN Martina Said meets Matthew Kassar, the artist behind the memorable newspaper collages of Mdina and Valletta landscapes.
stablished in 1947, The Commercial Courier is the official magazine of the The Malta Chamber of Commerce, Enterprise and Industry. It is the leading business magazine, having one of the best distribution channels in the sector. The publication is distributed for free to the members of the The Malta Chamber of Commerce, Enterprise and Industry. It is also distributed with The Malta Business Weekly as well as delivered to leading business people on the island.
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Director General of the National Statistics Office Michael Pace Ross describes the statistical office’s growth and re-dimensioned role within the EU with Sarah Micallef.
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ON THE COVER Detail of a laser-cut metal screen at Il-Barri Restaurant by Galea&Galea Architects. Photo by Monica Audrey Galea.
Malta chamber’s silver collaborating partner
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Malta chamber’s bronze collaborating partners JUNE / JULY 2014
CC Editorial
Family friendly measures Family Friendly Measures (FFMs) is a subject that is often discussed in national consultative bodies such as MCESD and the Jobs Plus Committee. It is also a matter which was included in the recently launched National Employment Policy. FFMs were the topic of a recent benchmarking session organised by the Malta Chamber’s Human Resources Committee and the focus of a Linking Enterprise event at Vodafone. Flexible working arrangements are, of course, pivotal in supporting workers achieve a healthy work-life balance but, in reality, their implementation requires careful planning to make them a win-win situation.
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he Malta Chamber has debated the matter actively in the past and has also presented its position before the Parliament’s Standing Committee on Family Affairs. All throughout, it insisted that if FFMs are to be extended, they need to be at best cost neutral to business. In this regard, a number of solutions were recommended.
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The Malta Chamber maintains that FFMs are efficient instruments to help the economy grow by stimulating greater participation in the labour market and assist firms in retaining valuable human resources, that would otherwise opt to work less or not at all. However, FFMs need to be implemented with caution. Extending the
“The Malta Chamber strongly believes that measures required at company level should remain at the discretion of business.” 07
CC Editorial
“It is proposed that the authorities implement extension of school hours, support to promote childcare centres and banking of hours on a wider scale.�
scope of FFMs in business is a balancing act between achieving macro/micro gains and incurring losses in competitiveness due to business disruption and financial cost. FFMs cannot be viewed in isolation but within the framework of cost competitiveness, as an integral component of labour costs with pensions and COLA, amongst others. Authorities cannot wrongly assume that business is always in a position to absorb further costs. Costs, irrespective of size, must always be justified. The Malta Chamber insists that nationwide measures should precede those at enterprise level. National policy needs to place national competitiveness at the top of its priorities. In so doing it needs to place particular emphasis on measures that promote increased work and productivity and have a nation-wide effect. Whilst improvements in certain areas are acknowledged, it is proposed that the
authorities implement extension of school hours, support to promote childcare centres and banking of hours on a wider scale. These measures minimise the need for additional FFMs to be adopted at enterprise level and which would exert negative side effects on business. The Malta Chamber strongly believes
that measures required at company level should remain at the discretion of business. It also proposes that Government provides appropriate incentives to the private sector to encourage take-up of voluntary measures. Fiscal and other incentives could fully or partially offset the costs incurred by business in the introduction of new FFMs. cc
CC cover story
The future of the manufacturing industry Sarah Micallef talks to the experts about the current state of affairs of the manufacturing industry locally and within the EU, and what should be done to maintain competitiveness in Malta as well as to address and reverse the declining role of industry in Europe.
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he local manufacturing sector, according to Minister for the Economy, Investment and Small Business Chris Cardona, has evolved with time, and as the country developed economically, it has attracted “a different kind of manufacturing industry than what we traditionally understood by the term.” Minister Cardona notes that while Malta has always attracted high-value manufacturing in precision engineering, this year saw the country attracting an important player in the manufacturing of robotic arms from Germany: IBG Automation. He goes on to highlight other important developments, citing digital gaming among them. “Did you know that Malta is now home to Angry Birds? Exient, developers of the Angry Birds games and apps, have opened a studio in Malta. There are about 20 such studios in Malta right now, with Codemasters, one of the world leaders in digital game development, being the latest to open shop here. We are swiftly becoming a digital hub not only in the region but also in Europe,” he asserts. “I think that the results of the work and effort that we are employing to stimulate manufacturing in Malta will show in a few years’ time,” he continues, adding, “last year 10
Malta Enterprise approved a record number of projects; the indications for the first quarter of this year are very encouraging.” It is GWU President Victor Carachi’s belief that the manufacturing industry in Malta seems to be passing through a stable phase of consolidation, especially in the pharmaceutical sector. “Whilst there have been very few job losses recently, there has however been little appetite for investment and growth in the last few years,” he states. On his part, Playmobil CEO Matthias Fauser draws on internal qualitative, business sentiment data which shows that manufacturing in Malta is currently going through a challenging period. “This is corroborated by the erratic patterns in official figures on industrial production,” he maintains, asserting “investor confidence is currently suffering due to high operating costs. The situation has been brought about by a gradual decline in local competitiveness which in turn has resulted from improved competitiveness overseas and the imminent termination of the EU’s regional aid regime applicable to Malta for large undertakings.” Asked about the challenges the manufacturing industry is facing, Minister Cardona maintains that aside from challenges
arising due to Malta’s limited space and human resources, there are also challenges due to the economic climate. Having said this, he believes that challenges can also bring opportunities, saying that “the eurocrisis posed a serious challenge to maintain productivity since in times of crisis there is usually a decline in demand. On the other hand, it also presented us with opportunities, as industries were eager to relocate from crisis-ridden countries and settle here where we could offer a more stable economic environment. Now that the crisis seems to be abating, this gives rise to new challenges. Countries that were hit hard have undergone several changes which might mean that they have become potentially more competitive.” Moving forward, Mr Carachi explains that in order to maintain competitiveness “we must plan ahead, target new niche markets and ensure that costs compare favourably with our competitors. We must also invest in both capital and human resources to increase productivity.” Arguing that while Malta performed relatively well during the financial crisis, a home-grown problem was created when utility tariffs were increased drastically. Mr Fauser is in agreement, advising, “the country in general must give greater JUNE / JULY 2014
CC cover story priority to industrial competitiveness. Entities responsible for all policy areas need to respond to the needs of industry in a more timely and effective manner.” Extending this to a European level, BusinessEurope President Emma Marcegaglia maintains that while the European economy is improving, it has not yet regained the ground lost since 2008. “While we were repairing our economic system our competitors made structural reforms, invested in infrastructure, machinery, skills and innovation. In the meantime we, in Europe were not always able to take all the necessary measures to give a better future to European companies and citizens. Europe is walking, when the rest of the world is running.” The BusinessEurope president goes on to assert that while there is talk of increasing the share of manufacturing industry in the EU GDP to 20 per cent by 2020, “we shy away from policy changes to reach that goal. It is time for Europe to become much less defensive, much more ambitious and much more future-oriented. Many entrepreneurs are keen to develop their companies’ potential but they need a supportive environment to be successful.” Asked about the main determining factors to consider for the local manufacturing industry’s strategic development in the coming years, Minister Cardona maintains that the fluidity of economic, social and political events means that new challenges emerge with new contexts. He expands, “let’s take the issue of labour cost: we compare relatively well with the rest of Europe; we’re
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not amongst the cheapest but the nature of our manufacturing industry allows us some breathing space to sustain the current level of wages in the sector. Can we reduce production costs? Of course; that’s why government is committed to reduce the energy tariffs by an average of 25 per cent next year. However, there are other important factors that we need to sustain in order to keep and improve our manufacturing output: education and training, especially to develop skills useful for industry; logistics and communications, etc.” One aspect that Government would like to emphasise, according to Minister Cardona, is the creation of clusters of industry. “Clustering is not simply having similar industries housed next to each other but actually creating a link between different industries to service each other,” he explains. “We also want to boost innovation and R&D. For this purpose we are creating synergies with the University of Malta and MCAST.” In Mr Carachi’s view, “it is imperative that the ‘Made in Malta’ brand is recognised both locally and at an international level to improve our competitiveness so that exports continue to grow and employees are rewarded with better compensation,” he maintains. As head of the Manufacturers and Other Industries Economic Group at the Malta Chamber, which is making
recommendations aimed at enhancing industrial competitiveness, Mr Fauser outlines the main determining factors in relation to the industry’s development as “a skilled labour force at competitive wages; stable energy at competitive rates; investment support; efficient and competitive transportation links; internationalisation support; access to finance; better regulation, and reasonable factory occupancy rates.” He goes on to maintain that Malta is “not doing very well on these counts at the moment.” Citing the fact that Malta currently has the second highest energy tariffs for industry in the EU, Mr Fauser also mentions that Malta is gradually losing competitiveness in terms of labour costs, which typically represent around 30 per cent of turnover for manufacturing firms. “While employee compensation levels were kept in check in other European countries, in Malta we continued to experience an unrealistic yearly increase in labour cost, arising from a COLA which fails to incorporate a measure of productivity besides numerous add-ons stemming from collective agreements which are out of synch with the economic realities today,” he asserts. “We need to bear in mind the substantial salary cuts that certain European member states needed to take to ensure recovery. We
“Last year Malta Enterprise approved a record number of projects; the indications for the first quarter of this year are very encouraging.” Minister for the Economy, Investment and Small Business Chris Cardona
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CC cover story are not advocating cuts in salaries but we are recommending – amongst other measures – an urgent revision of the COLA formula to incorporate a measure of productivity besides inflation,” he continues. Speaking in terms of the EU as a whole in relation to business competitiveness factors, Ms Marcegaglia maintains that in order to win the competitiveness battle, a strong and innovative manufacturing base and highly performing related services are needed. “Europe must support companies in their efforts to increase their market share in the global economy, otherwise we will not achieve higher growth and more jobs. Outside Europe, companies carry a much lighter weight of regulatory and tax constraints,” she asserts. It is for this reason that BusinessEurope believes that European institutions and member states urgently need to agree on an Industrial Compact for Europe, she continues: “this Compact must provide competitive conditions that facilitate the growth of the more than ever interlinked European industry and services, drive investment and trade, support dynamic enterprises and enable the development and commercialisation of innovative technologies.” Minister Chris Cardona maintains that Malta has built an industrial tradition which dates
“We must plan ahead, target new niche markets and ensure that costs compare favourably with our competitors.” GWU President Victor Carachi
“Europe needs to make significant strides in innovation to be at the forefront of a new digital revolution that will transform and contribute to manufacturing through productivity gains, growth and job creation.” Playmobil CEO Matthias Fauser
back to pre-independence times, stating that “the fact that industries that opened shop in the 60s and 70s are still among us vouches for this.” Yet how can these industries be safeguarded and strengthened?. “We need to invest more in human resources; particularly not to waste skills and talents that might not be tapped into at school. We used to have the dockyard, which was a talent pool of highly skilled workers and is now lost to the country. Industrially speaking, that was a big loss. We need to make up for it.” Indeed, while GWU President Victor Carachi considers manufacturing to be one of the primary sectors in the economy that provided socio-economic stability, he comments, “unfortunately, with the loss of the textile industry, most of the employees with basic skills who lost their jobs had no other option but to take precarious employment. It is therefore imperative that the manufacturing industry starts to grow again and this can only be achieved with a clear industry policy.” Minister Cardona adds to this, maintaining, “we have to stimulate a mentality of growth, encouraging local industry to aim higher and innovate. We have to promote and assist efforts between local industries to join forces and explore new markets. We must explore new models of business. A state of complacency would mean that the edge we have in certain niches will be eroded rapidly.” Mr Fauser asserts that the Malta Chamber is in agreement with the fact that manufacturing “is a sure means to
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support the country in finding jobs for a wide range of skills.” He explains that the Chamber is recommending the avoidance of any distortionary measures to minimum wage levels and the avoidance of misguided restrictions on temporary and flexible work arrangements including a wider acceptance of time banking programmes. “We also need to attract new potential investors in different sectors. The formula for this should be low volume but more value adding,” he advises. When it comes to internationalisation and penetration of international markets, Minister Cardona believes that we can never do enough. “Dialogue between the state and the industrialist and his representatives is fundamental,” he maintains. According to Mr Carachi, the initiative by Government to use our foreign embassies as business support offices, working closely with Malta Enterprise, is an important step in the right direction. Having said this however, he asserts, “more needs to be done to internationalise our products and find new niche markets. This can only be done with increased and focused trade missions to overseas countries and participation in fairs, not only in EU countries, but also beyond.” On a European level, there is much to be done to address and reverse the declining role of industry in Europe. In Minister Cardona’s view, “for sustained and significant economic growth, the EU needs to provide more focus on industry.” He goes on to assert that competition to European industry from lower labour cost JUNE / JULY 2014
CC cover story bases has increased, but says that nowadays, these costs are not the sole determinant of competitiveness. “Governments and private enterprises must invest more in research, development, training and education at all levels, while individuals must be encouraged to look to industry as a source of satisfying and well-paid employment. Regulatory burdens should not be excessive, public administration needs to be responsive, while trade agreements negotiated by the EU must ensure a level international playing field for our manufacturers,” he says. Mr Fauser is in agreement, asserting that from a local and European perspective, industry shares a number of common challenges and goals: “industry at both levels needs to become more competitive – better regulation and energy costs are an issue in Europe as much as they are locally. Europe needs to make significant strides in innovation to be at the forefront of a new digital revolution that will transform and contribute to manufacturing through productivity gains, growth and job creation.” Certainly, it is Ms Marcegaglia’s belief that, “the European Union, member states
“Europe is walking, when the rest of the world is running.” BusinessEurope President Emma Marcegaglia
and European regions should all apply a new industrial governance to improve the coordination between all relevant EU policies. If we don’t apply ‘competitiveness proofing’ in all new legislation, Europe will be a laggard in the global race. To regain lost ground, European industry must be able to quickly adapt to global trends and to seize the opportunities provided by the developments on the global market.” That said, Minister Cardona warns it is wrong to presume that European countries should adopt a common formula for industrial success, but rather it should be recognised that each country and region has specific, individual strengths based on differing factors and hence, policies should be developed to allow the full capitalisation of this potential. Mr Carachi is in agreement, claiming, “Malta, for example, has to export by sea at a substantial cost. It is therefore imperative for the EU to update the EU Regional Aid Regulations and consider country-specific disadvantages to ensure a level playing field.” Indeed, Minister Cardona concludes, “the success of each region and state in its own niche across a European value-chain would contribute to the growth of the EU as a whole. Within this picture, it is essential for Malta to carve its own niche within a European enabling framework; and I believe that we are on the right track.” cc
CC INTERVIEW
The rise and rise of Malta’s tourism industry
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alta’s tourism industry has been delivering record figures consistently for a number of years now, every year topping the previous one with even better results. Merely a few weeks ago, it was revealed that inbound tourism during the first four months of this year increased by 8.9 per cent compared to the corresponding period in 2013, particularly during the month of April, which recorded an increase of 11.3 per cent. Recently-appointed Minister for Tourism, Edward Zammit Lewis, says that these results are very positive indeed, although figures should not be the only indications of a healthy and sustainable tourism industry. “It could be said that we are experiencing a boom in numbers, which is good and significant due to the fact that we suffer from seasonality, as every other Mediterranean country does. Recent statistics revealed an increase in bed nights and – although not a considerable increase – an increase in spending power per capita in the first four months of the year,” says Minister Zammit
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Lewis. “However there are implications to this, which this ministry is acting on. These numbers are a big challenge and strain on our infrastructure as a small island, not only with reference to roads but also to law and order, cleanliness and enforcement, and we are working to ensure the islands are ready to cope with more large numbers as we expect the trend will continue until September.” Minister Zammit Lewis says that in response to the challenge brought about by this surge in tourism, Government has established Tourism Zones in the southern, central and northern parts of Malta. Tourism Police will be responsible for monitoring the quality of the product in their respective zones, predominantly in relation to cleaning, maintenance and minor embellishment initiatives. “We are also beefing up our human resources and helping the local councils of such zones, namely St Julian’s, St Paul’s Bay and Sliema, cope with this strain.” Would it be correct to say then that perhaps the sector is overheating? The
Photos by Matthew Mirabelli
Martina Said meets the recently appointed Minister for Tourism, Edward Zammit Lewis, to discuss soaring statistics in Malta’s tourism industry, the quality of our tourism product and where it stands to improve.
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CC INTERVIEW
“The [increasing tourist] numbers are a big challenge and strain on our infrastructure as a small island, not only with reference to roads but also to law and order, cleanliness and enforcement, and we are working to ensure the islands are ready to cope with more large numbers as we expect the trend will continue until September.�
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CC INTERVIEW
“Attracting tourists during the shoulder months is our main challenge, and we will be taking concrete steps to overcome this.”
minister says that he would struggle to agree because irrespective of the enormous numbers recorded during the summer months, we are still at the mercy of seasonality. “It is a tricky question – if you check bed capacity in August you will notice the market is saturated, but check it in November and you will find that hotel occupancy is low. Attracting tourists during the shoulder months is our main challenge, and we will be taking concrete steps to overcome this, such as a better calendar of events between October and March, and developing niche markets that will attract a particular kind of tourist, such as cultural tourism, religious tourism, sports tourism as well as conference business.” He adds that the most ideal situation would be more growth and more arrivals but spread more evenly across the year – “we host around a quarter of a million tourists in August alone; spreading the load would benefit in many ways, namely by giving the hotel industry and its employees more certainty and better working conditions.” Minister Zammit Lewis says that another of Government’s crucial roles in this industry is increasing connectivity. “If you analyse figures of the last four years against our 20
connectivity, there is a clear and direct correlation. In fact, we have concrete plans to increase seat capacity further – apart from airlines Wizz Air, Transavia and Niki, all of which have already operated to and from Malta, we will be introducing new routes with Jet2.com, which is a big airline in the UK midlands and north UK, Scotland and Wales, and which will start operating as of June 2015.” He adds that an overall better result in figures can certainly be attributed to the drive of Government as well as the Malta Tourism Authority, but one key player in it all is the private sector. “I think a tourism minister needs to be an excellent interlocutor with the private sector. Investment in the hotel industry here is predominantly indigenous, as against other industries such as the pharmaceutical and manufacturing industries which enjoy Foreign Direct Investment. Local investors are the ones risking their money.” Based on this, the Minister says he is determined to keep on consulting with the private sector as well as other pro-active entities involved in the tourism sector before taking any executive decisions or imposing any legislative intervention which
may disrupt the market. “More dialogue – I think this is the way forward, because as politicians, we are the ones drafting the policies but it is the private sector that is investing the money and taking all the big risks.” In view of the encouraging milestones achieved in this sector so far – such as the record 1.5 million mark in inbound tourism last year – Minister Zammit Lewis says we could definitely raise the bar further. Although the numbers are there, he believes there is room for improvement in terms of the quality of our product. “I anticipate there will be better figures still, but I am not happy with the quality of our product and I am hopeful that we can attract higher-spending tourists here, but all this calls for a collective effort.” He mentions a few projects underway in collaboration with other ministries, such as work on the coast road under the leadership of the Ministry for Transport and Infrastructure, as well as a project with the Ministry for Home Affairs and National Security on the introduction of Tourism Police, which would require officials to survey the tourism zones and be more competent in dealing with tourists, which includes helping them and not just enforcing. Work is also JUNE / JULY 2014
CC INTERVIEW
“More dialogue – I think this is the way forward, because as politicians, we are the ones drafting the policies but it is the private sector that is investing the money and taking all the big risks.”
being carried out to improve road signage as well as signs indicating places of cultural and heritage relevance, with the underlying motivation in all this being the refinement and upgrading of the perceptions of Malta’s tourism product and service with visiting tourists.
“I believe our country has great potential – but there is always room for improvement.” One area which stands to be improved, for instance, is the level of education within this sector. “We need a more skilled and professional workforce. It is unacceptable, in my opinion, that this particular sector directly and indirectly contributes around 28 per cent to our GDP, but a lot of workers within the industry regard their work as a part-time activity. We have to be less amateurish and more professional in our way of doing things.” This portfolio marks a new chapter in Minister Zammit Lewis’s political career, having previously occupied the role of parliamentary secretary for competitiveness and economic growth. It appears, however, that his targets and priorities are well in check. “There is no honeymoon period in politics,” he jokes. “You have to apply and adapt yourself quickly, and I think what I’ve managed to achieve so far since my appointment as minister is a better communication system with the private sector. There is no doubt there are many challenges ahead, but I am confident that with the help of the private sector, other ministries, as well as agencies and associations such as MHRA, we can overcome these hurdles and win these challenges.” cc
CC the debate
Is Malta’s economy creating enough new jobs? Unemployment levels in Malta are relatively stable and low in comparison to other countries, but should this be enough to satisfy concerns of increased levels of unemployment in the foreseeable future? Martina Said speaks to the experts to find out.
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ne of the toughest bones of contention between Government and Opposition that has dominated over the past year is the creation of new jobs and unemployment. Increased youth unemployment appears to be a particularly pressing issue in political circles. While unemployment at large appears to be on the low side in comparison to the rest of Europe, it still begs the question: is our economy managing to create enough new jobs?
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Education Minister Evarist Bartolo says Malta’s economy is performing well relative to economies of other European countries. “During the past year, the labour market registered an additional 5,571 full-time jobs and 2,281 part-time jobs. In 2013, Malta had the second highest employment growth rate when compared to other EU member states.” He says that the majority of jobs created require middle-to-high skill levels, and so could be considered to be highly productive jobs, categorised in the
economic sectors of professional, scientific and technical activities, and administrative and support service activities. Minister Bartolo adds that while the number of registered unemployed is back to last year’s levels of 7,000 registrants, according to the Labour Force Survey Malta’s present unemployment rate is 6.5 per cent, which is one of the lowest unemployment rates in Europe. “Despite the positive figures, Government is still committed to keep on reducing the number JUNE / JULY 2014
CC the debate of people looking for work. This can only be done through additional investment in the skills of such jobseekers so that they are not distant from the labour market.” Economist Dr Gordon Cordina explains that “our country is going through a period in which the rate at which jobs are being created, albeit sustained as in previous years, is being outstripped by the number of people seeking a job. This is, in itself, a good sign and a result of policies aimed at activating labour, be it the female component as well as the older category. However our economy may be insufficiently prepared for these changes because of the lack of sufficiently effective lifelong learning opportunities targeted to meet the specific needs of the next three to five years.” He adds that one of the most crucial aspects for Malta’s economy is the diversification of jobs to meet the aptitudes and expectations of different people, as well as to be sufficiently resilient to sectorspecific shocks. “It is also true that there are jobs with multiplier effects. For instance, the creation of one type of job would lead to the creation of others to support it. Thus, job creation should not be viewed from the narrow perspective of value-added created directly by that job, but in terms of its wider effects. This is very true, for instance, in the case of green jobs.” The importance of diversification can also be applied to sectors such as manufacturing, that fared better in the past but are now lagging behind somewhat compared to other sectors in the creation of job opportunities. Dr Cordina says that our economy will always need a strong manufacturing base that is competitive, both to complement other sectors and to actually contribute to their development. A recurring argument that surfaces on the subject of employment is that the number of foreign nationals occupying jobs locally is on the increase. Is this a myth or does our economy in truth need foreign workers to occupy posts that locals cannot or will not fill? Minister Bartolo says that most foreign workers in Malta are European nationals, and foreigners are mainly found in two strata of the labour market: high and low-skilled jobs. “It is true that the Maltese no longer want to take up certain manual jobs such as cleaning or in labour services sector, and in order to satisfy the demand for labour, employers’ only option is to get foreign workers,” he explains. “On the other hand, foreign workers are required to fill in high skilled jobs. This is due to the shortage of human capital in specific professions that require certain mathematical, linguistic and scientific skills. A case in point is the iGaming industry, where 33 per cent of the employees are foreigners.” Dr Cordina is in agreement with Minister Bartolo, and adds that we need to adopt a JUNE / JULY 2014
more cosmopolitan attitude to our labour market, and appreciate the value of jobs carried out by foreigners in Malta at the opposite ends of the skills spectrum. “Some jobs are extremely specialised and we may still have a lot to learn from foreign professionals working in Malta. Our economy has always thrived on international exchange, and I believe this
to be also true in the case of the labour market.” President of the Malta Chamber, Mr David G. Curmi, says it is pertinent to underline that in order for Malta to compete globally, it must also be able to attract global talent. “Malta’s challenges in this regard are considerable, particularly given the size of its population. Indeed, the strong education
“During the past year, the labour market registered an additional 5,571 full-time jobs and 2,281 part-time jobs.” Education Minister, Evarist Bartolo 25
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“The early school leaving rate in Malta (21 per cent) is almost double that in the EU28 (12 per cent) where the countries that recently joined the EU are making giant strides in investment in the skills of their workers.” Malta Chamber President, David G. Curmi
given priority through their future demand and high yield productivity at a normal input.” This, he adds, should help us move from the creation of jobs to the creation of high quality and high yielding jobs. This calls for our country to be more attractive to potential investors by producing workers with the relative skills needed to match that investment, and by giving the “world of employment” more relevance in our infrastructure complemented by a strong family ethos that places importance on education has allowed Malta to produce talent that is disproportionate to its size. Our population is, however, an ageing one.” Mr Curmi believes that Malta’s economy is certainly managing to create new jobs. However, such jobs are typically performed by people of certain skills and qualifications. “This creates a mismatch in terms of demand for skills and supply of skills that the country has readily available on the unemployment register because these people do not possess the relevant skills or qualifications. The sectors that would provide jobs relevant to absorb the unemployed pool of people are currently undergoing competitive challenges which lead to a decline in their business sentiment and are therefore cautious in the recruitment of new personnel.” In spite of this, Mr Curmi says that there is no real cause for concern because our unemployment rate is low by EU standards, but there is no room for complacency, especially when considering that unemployment for youths is 13 per cent higher than that of the total unemployment rate. “Also, the early school leaving rate in Malta (21 per cent) is almost double that in the EU28 (12 per cent) where the countries that recently joined the EU are making giant strides in investment in the skills of their workers.” UHM Secretary General Josef Vella says that the real challenge in this scenario is to create jobs that bring about the highest productivity for the same amount of work input. In order to do so, he suggests, “our country needs to establish a Skills Council Office, whereby the people in Industry and the people in Education, together with other professions, come together to forecast the Maltese Economy sectors that should be 26
“Our country is going through a period in which the rate at which jobs are being created, albeit sustained as in previous years, is being outstripped by the number of people seeking a job.” Economist, Dr Gordon Cordina JUNE / JULY 2014
CC the debate
“Our country needs to establish a Skills Council Office, whereby the people in Industry and the people in Education, together with other professions, come together to forecast the Maltese Economy sectors that should be given priority through their future demand and high yield productivity at a normal input.” UHM Secretary General, Josef Vella
education system, whereby students realise the rate of return from their education, while also taking into consideration students that are failing, as “it is no longer acceptable in this day and age that 16-yearolds end their compulsory education without knowing how to read and write.” Mr Vella concedes that it is all easier said than done, “but if we succeed in finding this equation, whereby the right jobs are created for the right sectors, our economy will rise to another level. This is what we as UHM have been actively pointing out through our Active Labour Market Policy Jobs+, which today is adopted by the Government and reflected in the National Employment Policy.” cc
CC business
New president for the Malta Business Bureau From recent successes to exciting upcoming challenges, Jo Caruana chats to the Malta Business Bureau’s outgoing president George Vella, and incoming president Mario Spiteri.
George Vella has led the MBB for two years. Although he has completed his term as president, he will remain part of the organisation in the capacity of a member of the board of directors. “My experience at the helm of the MBB has been very rewarding. It was a pleasure to steer an organisation that is forward looking, with an open agenda, and whose purpose it is to make the best out of EU opportunities to improve the Maltese business environment through the provision of information and services. “Thankfully, the MBB today enjoys strong foundations and expertise in EU-related matters. Its role has naturally evolved from the one that it was originally set up for in 1996. The way forward for the bureau is to become a more effective lobby organisation in Brussels, and to use its experience to guide local enterprises in making the best out of EU opportunities. “I am pleased that there have been several achievements in my time as president. From a policy perspective, that would be the publication of two detailed reports on the
market gaps in Access to Finance in Malta and on the allocation of EU Funds in aid of private enterprise for the period 2014 to 2020. While, from an EU projects point of view, the highlight was definitely the successful completion of the EU LIFE+ Investing in Water project, which resulted in the saving of an annual 141 million litres of water by hotels and businesses. As a result, the MBB won first prize in the 2014 National Enterprise Support Awards and this success was also recognised by the Brussels-based European Projects Association. “Now, I believe one of the biggest challenges facing Maltese businesses is the access to finance for SMEs. Maltese enterprises require easier and affordable financing, primarily start-ups, but also SMEs that need to invest in their operations to grow and internationalise. As a country we need to diversify the financing options that are currently offered on the local credit market as these are currently too centred on bank loans and overdrafts. In this respect, the MBB is currently working on an exciting project to introduce the first crowd-funding platform in Malta. More details should emerge in the coming weeks.”
Mario Spiteri recently took on the role of MBB president, having been nominated by the Malta Chamber of Commerce, Enterprise and Industry. By profession, Mr Spiteri is a certified public accountant who has also pursued business interests in various areas, including tourism, insurance, local and international real estate, and financial and management consultancy.
“The way forward for the bureau is to become a more effective lobby organisation in Brussels, and to use its experience to guide local enterprises in making the best out of EU opportunities.” – George Vella JUNE / JULY 2014
“This is an exciting time for the MBB. During my term as president, aside from ensuring that we continue to keep the local business community abreast of developments taking place in Brussels, I expect the MBB to be highly active in preparing for lively institutional involvement during Malta’s EU Presidency in 2017. I believe this is a golden opportunity to put Maltese interests in the forefront of the European agenda. This prospect cannot be taken lightly. Issues should not matter only to Malta in isolation, but also need to have a European dimension or, at least, a cross-border and, indeed ideally, regional significance. “Additionally, I also intend to build on the success of the previous years in terms of
“I believe this is a golden opportunity to put Maltese interests in the forefront of the European agenda.” – Mario Spiteri
tapping into structural and direct EU funding. There is already a list of projects that are currently being developed and that the MBB intends to submit later this year, ranging from capacity building for local companies to environmental projects addressing energy efficiency and waste management. We will also continue to be involved in a number of projects that will expose enterprises and their employees to best practices in various areas in the EU. “I believe the outlook for business and the economy for the rest of 2014 looks to be stable and promises growth. This in itself is a positive aspect. However, it’s important to bear in mind that, while certain sectors such as the financial services and the tourism industries are performing fairly well, we must not ignore other sectors that may be losing their competitive edge. Particular attention needs to be given to the manufacturing industry, which is to date one of the major employers in Malta. “With that in mind, all local businesses should ensure that they keep abreast of the various developments within EU businessrelated policy and legislation. Ultimately this will have an impact on their operations. The legislative process in the EU is rather complex, yet, unless we make good use of all resources to exert our influence, the Maltese economy, or a particular industry, may be negatively impacted somewhere down the line. “Through its Brussels representation office, the MBB is deeply involved in pan-European business organisations and well connected with European Commission officials as well as MEPs. Forthcoming feedback by local operators is therefore key to our lobbying efforts on an EU-level.” cc 31
CC in figures
The retail sector in Malta… IN FIGURES
€2.2 BILLION
the turnover generated by the retail sector in Malta and Gozo in 2012 (statistics for 2013 are not yet available)
€219
increase in turnover of the retail industry in Malta when comparing 2005 with 2012
MILLION
the impressive retail turnover generated in Victoria, Gozo, in 2012
MILLION
revenue generated by retail activity in Birkirkara in 2012. Surprisingly Birkirkara beats Sliema and Valletta for turnover in retail activity
70%
€73
65%
16,500 the number of employees working in the retail sector in Malta and Gozo in 2012
INCREASE
impressive jump in retail activity in Birkirkara when comparing 2005 with 2012
€1.3 BILLION
the turnover generated by the retail sector in Malta and Gozo in 2005
€2.2
€38,000 the overall modest turnover generated by the retail sector in the small Gozitan village of Ghasri in 2012. In fact, Ghasri generated the lowest turnover among the villages, towns and cities in Malta and Gozo
MILLION EACH neck and neck – the turnover of sales generated by the shops of Valletta and Sliema in 2012 JUNE / JULY 2014
Source: Business Register and National Accounts Data, National Statistics Office
15%
increase in the number of employees working in the retail sector in Malta and Gozo in 2012 when compared to 2005. Not a major rise, compared to the high jump in turnover in the same period
6,800
the number of shops operating in Malta and Gozo in 2012. Surprisingly, the number of shops has remained the same in 2012 compared to 2005, despite the rapid increase in turnover over the same period 33
CC human capital
Achieving a better work-life balance Following a benchmarking event organised by the Malta Chamber on flexible work arrangements last April, Martina Said reviews a report on its main topics of discussion and notable outcomes.
M
ost people would be quick to agree that one of the hardest tasks to achieve in life is a good work-life balance: our jobs are always bound to be hectic and demand more and more of us as time goes by, but life isn’t going to stop in its tracks until you’re done from a full day’s work, and often enough, it simply passes you by. However, taking time off is not always possible, and sometimes, all that’s needed is a bit of flexibility with working hours to make it more bearable. The Human Resources Committee within the Malta Chamber of Commerce, Enterprise and Industry recently organised a Benchmarking forum event on flexible work arrangements, addressing this exact issue. The event was introduced by the 34
Committee’s Chairperson, Catherine Calleja, who explained that following the success of a Linking Enterprise event that was organised with Vodafone Malta on the same subject, this forum would serve as a good followup with the aim of sharing information, discussing companies’ best practices and comparing company policies on the matter. During this session, representatives who form part of the Committee spoke about their respective companies’ experiences and ongoing practices in the context of family friendly measures (FFMs) and the changing requisites of today’s working conditions. Most companies remarked that although no formal procedures or policies have yet been established on flexible work arrangements, an element of flexibility within employees’
working hours does exist, subject to employees’ needs as well as the employers’ exigencies. A number of representatives explained that with task-related work, their companies choose to focus on employees’ accomplishments and completion of tasks, rather than the number of hours being worked. As a result, employees may not necessarily need to be physically present at work as long as they complete their tasks. On the other hand, however, they are expected to ensure that deliverables are met, even if this means having to work extra hours, therefore an element of trust is required for a strong working relationship between the employer and the employee. A clear point emerged through this JUNE / JULY 2014
CC human capital discussion: flexible work arrangements strongly depend on the nature of the work, making it inapplicable across all industries. For instance, representatives of companies whose work is based on sales and customer service explained how a customer relationship management system has helped to successfully implement flexible hours, because all work is required to be webbased and so it could be accessed remotely and at any time. Speakers representing manufacturing companies, however, pointed out that employees who work on machinery and production lines find it immensely difficult to manage their hours flexibly, due to the nature of their work. Some other companies added just how difficult it is for them to implement teleworking, due to the sensitivity of the work and because of security reasons, which do not allow employees to work from home or elsewhere. Different leave entitlements were highlighted by one particular company that explained how it provides 18 extra months of reduced hours to employees returning from maternity leave. This proved to be beneficial to the company, as it enabled it to retain some of its best employees and uphold the company’s success as a result. Private childcare incentives are also provided to employees with children under the age of six, whereby this same company gives €1 for every hour that the parent is making use of
A number of representatives explained that with taskrelated work, their companies choose to focus on employees’ accomplishments and completion of tasks, rather than the number of hours being worked.
childcare services while working. Dr Matthew Brincat from Ganado Advocates offered a legal perspective on the subject, and clarified that having different types of flexibility arrangements across different levels of employment is in no way discriminatory - employees in different departments meet different needs and so it is deemed acceptable and fair to have them treated differently, on a business level. He added that Maltese Law is mainly based on a system termed as ‘reasonableness’, meaning that once an employment agreement is entered into, then this still remains subject to a number of changing conditions. With this in mind, the existing employment’s surrounding elements, such as working hours and leave entitlement, may still be altered with time. Having contracts set to be reviewed after a number of years calls for an ideology that is more flexible and subject to change. cc
Finishing touches
From adding bursts of colour to an otherwise drab-looking room to contemporary accessories that liven up any office space, Martina Said takes a look at some of the latest decorative trends that make for perfect finishing touches. 01. Pops of Colour When decorating an office, most people tend to opt for the safer option of classical decor, because it doesn’t go out of fashion too quickly, and because neutral colours are known to match with anything and everything. But don’t hesitate to add pops of colourful furniture around your office space – be it a bright solid-coloured armchair, a contrasting filing cabinet or even an eye-catching lamp, it’s enough to liven up a monotone office. The importance here is balance, as adding too much colour could prove distracting to employees.
02. Suspended Seat This idea is simply ingenious and perfect for that part of your home which spells relaxation. It could be viewed as a chic version of a hammock, and depending on the size of the chair, you could either simply sit in it or lay back in it just like an armchair. They’re often made of rattan and come in various colours, typically white, brown and neutral tones, and could be used as indoor or outdoor furniture, depending on personal preference. If you enjoy being surrounded by nature, however, we recommend you set it up outdoors – and relish being swayed by a breeze under a tree in the shade.
STYLE
REVIEW
04. Decorative Paperweight A paperweight is a pretty common sight on most desks, but you could make it that little bit more extraordinary by donning a paperweight that has exceptional design, such as this crumpled music sheet paperweight that has a three-dimensional look to it and, let’s face it, is a very imaginative way of keeping papers down. The rigid silk-screened vinyl desktop ornament by Tibor Kalman is hand-crumpled and wrapped around a steel weight, and is sure to be appreciated by any aspiring musician, or appreciator of all-things cleverly designed.
05. Invisible bookshelf Much as throwing books out is never a nice thing, it must be admitted that they take up a lot of space if left lying around and stacked up in cupboards. This ingenious invisible bookshelf should resolve that issue nicely, and is perfectly suitable for an office or home. An L-shaped bracket screws directly into the wall and can take up to 16 inches in height of books. It does require that you ruin one book though – the one at the very bottom needs to be glued to the bracket and never leaves the shelf.
01.
06. Shine some Neon Light Sometimes, jazzing up a space only requires that little bit of creativity, such as with the use of neon lights spelling out the name of an area in your house, a chillout zone in the office or even a personalised set of initials to hang on the wall, creating a contemporary lighting fixture that is also visually appealing. The great thing about neon lights is that they are versatile and you could create just about anything you like in a cool script, adding a modern touch to any space. cc
03. Talk Dock This eye-catching desk accessory is actually multi-purpose: it looks like an old-fashioned telephone, but doubles up as a mobile dock, charging station and receiver all in one, therefore enabling you to charge your phone, while talking to a friend and finishing up a work report all at once (if you’re able to multi-task). While the charger is only compatible with the iPhone 4, 4S and 5, it is still attractive for non-Apple users, as it comes with a 3.5mm audio jack that plugs into any phone’s headset port, and is detachable from the base making it portable too.
05. JUNE / JULY 2014
02. 04.
06.
03. 37
CC DESIGN TRENDS
Where tradition meets contemporary artistic expression While for most, il-Barri Restaurant conjures up visions of delicious fenkati in good company, something else is afoot at this venue within the rural village of Mgarr, as the second phase of a three-part refurbishment project is completed. Sarah Micallef talks to Monica Audrey Galea of Galea&Galea Architects about this collaborative endeavour.
O Photos by David Pisani, Monica Audrey Galea
pen to the public since last April, the first floor level of il-Barri Restaurant shines as a multipurpose space that can be transformed for dining, conferences or events, following an intense six-month process of design, documentation and planning, culminating in a construction time of just three weeks. This beautifully presented space is the result of a collaboration between Malta-based studio Galea&Galea Architects, made up of Anthony Galea, Monica Audrey Galea and Sarah Jane Bilocca, and Japanese tattoo artist Emico Hatakeyama, and explores a fusion of cultures in a playful yet conceptual reinterpretation of form and pattern. Audrey talks about the original brief, explaining, “we had designed the main restaurant a few years back and upstairs was an extension of the floor below, so the clients wanted to upgrade the spaces in order to
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have better-equipped facilities. This is to be rented out for functions and conferences.” Noting the fact that Mgarr as a location is a little farther afield, she maintains, “the idea was to create a space which makes it worth the extra mile to get to. They were after a calming, serene space in which one can let go and focus on the food, company and surroundings.” Since the owners intended to retain the services and existing air conditioning units, the architects had to work around the multiple levels of the soffit in their design, accommodating ducting and services. They also had to factor in plenty of storage in which to stow tables and chairs out of sight when catering for events that would require an open space. There was also the awkward angle of the space to deal with. Audrey explains how this was tackled: “there were certain angles which needed to be JUNE / JULY 2014
CC DESIGN TRENDS symbols and explore the interesting fusion between the two unlikely disciplines of tattoo art and interior architecture. Audrey looks back on how this collaboration with Emico came about, recalling, “we crossed paths when she was travelling through Malta. When I saw her work, I was fascinated by the incredible intricacy and precision. She works using mandalas – circular geometric designs, adopting the hand-poking technique, a method that creates form out of a series of dots. Following a number of exchanges between us, it soon became clear that a fascinating parallel between our traditional crafts of lace-making, wrought-iron work, patterned concrete tiles, fretwork and filigree, and the decorative intricacy of handpoked tattoo art, began to emerge. This was the start of the design concept.” The artist, Emico, reflects on her part within the project, maintaining, “the
toned down if the space was to function properly. We used a number of techniques to counteract the feeling of entering a space through a bent entrance. The soffit was remodelled around the existing structure, using a series of triangulated planes, imparting a Zen-like quality to the space and resulting in a more contemporary aesthetic.” She goes on to walk me through the layout, explaining, “as you walk up the illuminated stairs, you are drawn into the space by the minimal handrail that morphs into a coat hanger.” The main restaurant or dining space comes into full view, with the bar and service cores at one end. These cut through the space as a series of powerful volumes expressed in a rich array of warmer tones: the reddish hues of the copper, the maple accents and the vibrant blue-green glass pose a dramatic backdrop to the white metal structure of the bar. A series of screens separate the dining space from the entry point which is the stairwell. Another flight of stairs is tucked away behind the screens and leads to the kitchen above. This is connected by a set of both passenger and food lifts hidden away in the food preparation area behind the bar. The pièce de résistance however, and what gives this project its unique identity is the intricate geometric mandala designs that draw on a repertoire of traditional Maltese JUNE / JULY 2014
concept, ideas and how my design would be used were really interesting. It was my first time designing on such a large scale, so there were many new things to think and try. Interior design and tattoo design are completely different; however I also see many things in common. Both need to find the right balance from different angles and even though I do the drawing and designing part, there is still someone to include and collaborate with. For tattoos, it is my client’s request, and for this project, there was the concept generated by the architects.” The result is a series of laser-cut backlit metal screens and laminated fused glass ceiling grilles that push material boundaries to the limit, imparting a fragility that simultaneously evokes images of delicate lace and elaborate wrought-iron work. The process leading up to these, Audrey maintains, was relatively complex. Firstly the
“The pièce de résistance is the intricate geometric mandala designs that draw on a repertoire of traditional Maltese symbols and explore the interesting fusion between the two unlikely disciplines of tattoo art and interior architecture.” 39
CC DESIGN TRENDS
designs, upon being perfected by hand, had to be digitised. “We were constantly sending each other updated versions of the evolving designs, fine-tuning them and meeting up very regularly. We built a full-scale model of the bar and spent hours cutting, pasting, scaling – literally doing everything manually. Once we had drawn it all up and transferred it into digital format, we started exploring how to go about it,” she recalls. Then came the sizeable challenge of finding the perfect medium (and supplier) for the job. Audrey explains, “we started experimenting with a range of materials including corian, glass, wood and plastics and pairing these with suitable cutting techniques. When we decided to proceed with metal, we tried out a variety of different suppliers. Most of them were unwilling to go into such fine detail. Finally, we found somebody with whom we could work hand in hand, conscious of the fact that this was purely experimental ground and willing to develop a prototype that could work.” The experiments paid off and resulted in a series of laser-cut, backlit, hand-finished metal screens and the bar, evoking an image of something more delicate, like lace, yet without the fragility, since these were to be installed in a public space. Lighting also plays an important role in this project, highlighting the intricacy of the
“Lighting plays an important role in this project, highlighting the intricacy of the patterns and reinforcing the dot concept.”
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patterns and reinforcing the dot concept. “Circles work their way randomly among the main patterns as a reminder of the origins of the hand-poking technique, and the same effect is achieved at a very different scale on the ceiling. You can have subtle lighting for an evening dinner or you can add to this using the main area seamless luminaires when required,” Audrey maintains. Within the niches, light is used to create a very special effect: “we have used the same basic patterns as we have on the bar and screens, but to a much smaller scale. For these, a radial strip was designed and different sections of it were selected so that each wall niche has a slightly different effect. This time, the patterns were laser-cut in thin acrylic sheets and then fused with glass for support without obstructing the light.
Overall, a contemporary yet timeless effect was achieved through the contrast between the white interior and the warmer palette of materials used. Copper is used to full effect, displaying its aesthetic potential, interacting with light and contrasting with the other materials. The project did not come without its challenges however. One of the main ones, the architect admits, was the timeframe. “The clients didn’t want to lose too much time for the transformation, so they gave us a three-week bracket. We couldn’t line up most of the interior installations beforehand because until the demolition and the necessary structural alterations were carried out, there was no way of knowing what surprises might lie in store and whether panels would need to be re-sized or dimensions altered.” In fact, one such instance did take place, albeit ending up working in their favour, Audrey recalls. “We found that with the combination of the way the space was angled and due to a slight misalignment during the building of the toilet core, we ended up with the bar area being some 30cm bigger than we had originally planned. We improvised a builtin storage unit that took up the extra space and that the owners were delighted with.” Despite the difficulties and time constraints however, Audrey admits that the team and clients alike are pleased with the final outcome. She states, “we were lucky to meet so many talented people who could translate our designs, understand what we were after and appreciate the experimental side of it. It was very rewarding.” As for the collaboration with Emico, Audrey maintains, “what definitely came out of it is the universality of communication. JUNE / JULY 2014
CC DESIGN TRENDS
“As you walk up the illuminated stairs, you are drawn into the space by the minimal handrail that morphs into a coat hanger.”
If you think about the relevance of the tattoo in contemporary society, it is a portable tool for empowerment, a means of communication and a permanent expression of one’s values. Similarly, our perforated screens communicate an equally powerful message, leaving no doubt as to the context of the Maltese traditions that inspired their inception. Yet even such a longstanding tradition can evolve and can be given a new interpretation.” “This experiment shows that beauty is more than skin deep – what started off
from a tattoo has developed into something that goes beyond the constraints of time and context,” she asserts. “We borrowed elements that have been rooted in a rich cultural tradition of elaborate detail and decorative intricacy, and added another layer of meaning, transforming them into a contemporary yet timeless interior.” On Emico’s part, she states, “I truly enjoyed and appreciated this collaboration. I’m very pleased to see the results and hope people who visit will enjoy the atmosphere.” cc
CC LIFESTYLE
Planning stand-out business events From eclectic menus served in unusual surroundings to traditional fare presented in a classic manner, the right business event could really set your company apart. Jo Caruana takes a look at the many options available.
B
usiness events are all the rage. Utilised to highlight a new product or service, or even simply to thank top clients or employees for their dedication and hard work, these occasions require innovation and creativity to help them stand out. As a result, more and more hotels, restaurants and conference venues are focusing on giving their corporate customers a service that promises both high-quality results and originality, thus guaranteeing that every event boasts that stand-out feel that its organisers are hoping for. But it doesn’t stop there. “In my experience, there is so much that has to be kept in mind when planning a successful event,” says Johanna Ward, corporate and events sales manager at the Corinthia Palace Hotel and Spa in Attard. “There are a lot of practicalities to consider, including accessibility into the venue, the general location, parking facilities and excellent service on the day.” Naturally, the venue will play a very important role and will actually determine many of your planning decisions. “The right venue is your starting point,” says Stephen Sammut, director of Il-Barri Restaurant in Mgarr, which was recently enhanced to fit the needs of the corporate events market. “Before planning an event, ask yourself some key questions about what you would like your venue to look and feel like. For instance, some clients are looking for something central and commercial, while others want something with rural flavour and no parking problems; these decisions
“The right venue is your starting point.” - Il-Barri Restaurant Director, Stephen Sammut will automatically rule-out certain options. “Next, depending on the style of the event, you will also need a variety of facilities for things to go smoothly, including a private setting, audio-visual equipment and a good sound system, as well as a nearby bar and restroom.” Agreeing with the need for a full range of facilities, Karen Muscat Baldacchino, sales executive for the Mediterranean Conference Centre, explains that meticulous attention to detail is also key and she even suggests a dummy-run prior to the actual event.
“For us, it is never an automatic question of the most popular set-up or what we know has worked well in the past; we approach every new event by listening to the client and figuring out exactly what they are looking for. “Of course, the nature of the MCC and our experience in this field means that we have a vast variety of facilities in-house, including screens, a data projector, a roving microphone, local and EU flags, a technician, photocopying and printing facilities, and so much more. Over the years we have come to understand the unique needs of corporate events, and we have learnt that it is best to be prepared for every eventuality. We definitely take a ‘can do’ attitude to our events.” Naturally, sourcing the right menu is also high on the agenda for any corporate events organiser. “Choosing the menu also depends on the event itself,” continues Ms Muscat Baldacchino. “Usually, if it’s a lunch
“Our chefs are well-versed in creating menus that take dietary requirements into consideration.” - Sales and Marketing Manager Waterfront Hotel, Charmaine Camilleri JUNE / JULY 2014
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CC LIFESTYLE
“There are a lot of practicalities to consider, including accessibility into the venue, the general location, parking facilities and excellent service on the day.” - Corporate and Events Sales Manager Corinthia Palace Hotel and Spa, Johanna Ward
Planning a corporate event? Follow these steps to ensure every aspect is covered.
occasion, our client will opt for a networking or stand-up reception to save time, thus allowing the delegates to interact while they dine. On the other hand, a VIP event or dinner will usually be sit-down, starting with a welcome drink and followed by a silver service meal, or a buffet.” Thus, narrowing down the type of event – whether sit-down or stand-up – will help you to select the right menu. “Both types of service require a certain amount of planning,” continues Ms Ward, “and the venue set-up will vary considerably. For a plated lunch or dinner, a table plan will likely be required, while a service running order would apply to any type of organised event, allocating time for speeches,
presentations, networking discussions and question time. A reception, on the other hand, will involve intricate planning and timing, as well as a good mix of items to suit all tastes.” Additionally, Charmaine Camilleri, sales and marketing manager for the Waterfront Hotel, explains that special dietary requirements must also be taken into consideration, including when it comes to guests who are celiac or who require halal meat. “Both of these are becoming the norm, so our chefs are now well-versed in creating menus that take this into consideration, both for stand-up buffets and reception menus,” she says. Similarly, the team behind il-Barri, which is known for its traditional local cuisine, is also adept at tailoring its menus to the needs of the client in question. “When we work on events, we understand that all sorts of aspects have to work together, so we try to be very flexible in suggesting the food that will work best. Of course we offer local favourites, which always prove popular, but we can also craft a menu of hot and cold canapés, vegetarian items, a fish-based lunch or dinner, or a buffet. “Whatever your requirements and whatever your menu, the important thing is for you to work hand-in-hand with your chosen venue and events organiser, as this will help to ensure that all expectations can be met and exceeded,” Mr Sammut adds. cc
“Usually, if it’s a lunch occasion, our client will opt for a networking or stand-up reception to save time, thus allowing the delegates to interact while they dine.” - Sales Executive Mediterranean Conference Centre, Karen Muscat Baldacchino 46
u Pick a general theme. Will it be a VIP cocktail party, a laid-back lunch or a busy workshop? This basic information will help you to pick your food, décor, entertainment and more. u Set a budget. Whether this is going to be a small occasion or the largest event of your corporate calendar, you need to have a budget in mind – as this will determine everything from the venue to the guest list. u Visit venues. Get out there and discover your options. Discuss all the nitty-gritties, including the relevant charges, menu options, audio-visual requirements and limitations. u Discuss the menu. Meet with the head chef and make some decisions .Do you want a plated event or a standup buffet? Are their special dietary requirements to adhere to, and how should the timings work? u Get it all in writing. Sign a contract with your vendors and bring yourself up to speed on exactly what will happen on the day of your event. This will avoid unnecessary surprises. u Plan your theme. You may need elaborate decorations, or simply some fresh flowers to brighten the space. Your venue manager may be able to organise this for you. u Decide your guest list. Do this well in advance and allow plenty of time for sending out the invitations or informing the invitees, whether by traditional mail or electronically. u Plan a to-do list. In the run up to the event, list everything that needs to be considered – from the table plan to any special dietary requirements. Check and double-check your list in the weeks before the event. u Organise your team. Decide who will be handling the guest list on the day, and who will be on door duty. If you, as the organiser, need to mingle with the guests and enjoy the event, then you need to have a good back-up plan in place. JUNE / JULY 2014
Food Trends
04. Milky Buns
Summer calls for a lighter and more refreshing approach to food, but that doesn’t mean compromising taste and, in some instances, sheer indulgence. Martina Said takes a look at the latest delectable food trends that you’d do well to follow this summer.
A ‘milky bun’ is what you’ll get if you fill a warm doughnut with delicious ice-cream. The concept is similar to the Italian brioche filled with ice-cream, but this latest trend in the US makes use of a doughy deep-fried glazed bun instead, filled with an ice-cream of your choice. The secret lies in placing the ice-cream stuffed doughnut in an iron press (similar to a waffle iron) to seal the bun and deliver a delicious contrast of warm gooeyness and cool, creamy flavour.
01. Alcohol-Infused Desserts
05. Ancient Grains
You wouldn’t think that some of the best dessert recipes could possibly get any better than they already are – but they just did. Adventurous food bloggers are pushing the limits with alcohol-infused cakes and cupcakes, such as The Mojito Cupcake, made with rum-soaked sponge, sugar cane lime frosting and fresh mint. If you’ll try making one type, you’ve got to try some others, such as the margarita cupcakes, sangria upside down cake and orange banana bourbon loaf.
02. New-Purpose Noodles It turns out that more can be done with those off-the-shelf jumbo noodle packs than we might have imagined. Pre-packed ramen noodles are being used as ‘batter’ for deep-fried chicken pieces, referred to as ramen-crusted fried chicken. One talented chef ground half a pack of noodles into a fine powder and left the other half broken roughly by hand, then dipped the buttermilkcoated chicken in the powder first and chunky crumbs second before deep-frying, delivering the crunchiest chicken imaginable.
03. Chocolate Chip Milk Shots Milk and cookies bring back fond childhood memories, and this new adaptation will surely create new ones. Using chocolate or items such as shot glasses to make different shapes is nothing new, but this particular invention uses cookie dough to line a shot glass mould, that is further lined with fine chocolate. Once baked, all that would be left to do is to pour some creamy cold milk into the cookie case and savour the picture-perfect chocolate chip milk shot experience down to the last crumb.
You know an item has become mainstream when you find it in the smallest grocery stores and even in restaurant menus. Ancient grains such as quinoa and chia seeds that were a crucial source of food for ancient civilizations are some of the more popular of these grains today. They’re filling, healthy and immensely versatile – they can be combined in a tasty salad with practically any ingredients imaginable or served as an accompaniment with fish or meat dishes.
FOOD&WINE 01.
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06. Frozen Treats There is no better time of year to indulge in ice-cold treats than during the hot summer months, and these intelligent creations are delighting foodies. Take your favourite summer cocktail one step further by making a cocktail popsicle, such as a grape sangria popsicle or one with blackcurrant mixed with campari. You’ve got the must-have cooling factor thanks to the ice, but with an alcoholic kick. cc
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Doing more with less At PKF we have always realised that the low lying fruit has already been picked and to maintain our future viability we continuously need to seek yonder. The impetus to search for niche markets has, over the years, made us at PKF invest in knowledge on a number of sectors which are off the beaten track. Over the years these initiatives included many topics such as the promotion of remote gaming where we organised international conferences to market Malta at a time when the island was relatively unknown to the industry and we did this at an early stage, even before 2004 when a set of comprehensive remote gambling licenses were promulgated. We were the first audit firm to register a listed Australian gaming company in 2002 which we succeeded to attract to Malta for purposes of applying and the eventual grant of a sports betting license. It is no hyperbole to state that gaming has not only survived the recession but sprinted at a remarkable pace. This week it was reported that over ₏12 million in gaming tax were collected last year and overall the effect at GDP level reaches a remarkable level of 6 per cent, almost matching the contribution paid by the hospitality sector. Everyone knows that the solid set of gaming regulations and the way the industry has been monitored over the past decade has attracted tier one companies and has so far been careful in avoiding any scandals. As happens in similar business cycles, the sector is now at a crossroad – other European countries are cognisant of the power of the internet which enables players to access gaming sites across borders and recently there has been a drive by EU countries to restrict access to their citizens from companies registered in other EU countries such as Malta unless the latter obtain a home licence and pay foreign gaming tax. Obviously we cannot rest on our laurels. For this and other reasons PKF is offering a free service to the Lotteries and Gaming Authority to conduct a scientific survey of all operators to gauge their appetite for further expansion and to obtain their views on whether they should wish to propose any improvements on existing gaming regulation. Other initiatives included the promotion of captive insurance in a number of competitor countries which had a head start on us in the field. To do this we organised and participated in conferences with a number of international service providers from countries such as Luxembourg, London, Dublin and Toronto. In Toronto we discovered JUNE / JULY 2014
that a good part of insurance risks were being directed to a particular country in the Caribbean and after a comparative exercise it emerged that the tax advantages that Malta can offer as an EU country were more than able to compete on equal grounds, particularly to Canadian companies having insurance risks within the Single European market. A recent PKF initiative concerned the promotion of a nascent oil and gas sector, and the complementary maritime industry that is an offshoot of such activities. For this purpose we set up a number of meetings with the Minister responsible for oil exploration under the previous administration and we were informed that there are ongoing talks with neighbouring countries which in the past were contesting the boundaries of the continental shelf being offered for exploration. Following a change in government last year we resumed talks with the Minister for Transport who was appointed to attract more investors to show interest in signing drilling or exploration contracts. It is a fact that for the past 10 years there was no drilling carried in offshore waters but two wells will be drilled in area 4 to the south and a new seismic survey to the north. By definition the Continental Shelf Department is responsible for licensing, monitoring and regulating oil and gas exploration, and its main role is to promote exploration opportunities offshore Malta. We have worked closely with this department and offered them to promote the island for free within investor conferences which we attend and regularly request them to provide us with official marketing material to be distributed on our stands. To better acquaint ourselves with the intricacies of the sector we set up meetings with specialists in this
sector and teamed up with Oil Barrel Ltd., a UK based consultancy firm to discuss and debate the opportunities of the island. We extended our courtesy through invitations to top officials at the Directorate of the Continental Shelf department who, on occasion, joined us at such events. A number of articles on the subject have been written and we hope that our efforts will help to create awareness on the potential of this industry, coupled with the determination of government to revive the maritime sector (including the privatisation of the vast facilities which currently lay dormant at the ex-Marsa Shipyards site). In order to further educate ourselves about this industry we paid a familiarisation visit to Aberdeen Scotland hosted by our PKF member there. During our visit we toured the port of Aberdeen, spoke to banks which support the industry, discussed common topics with top law firms and attended a breakfast briefing for circa 300 service providers organised by the leading organisation Oil and Gas UK. Finally as a show of our continued commitment to the industry PKF has participated in a London Oil and Gas Summit held over three days this month at the Marriott Hotel where speakers/ participants have over $12.5bn under management. PKF certainly tries to do more with limited resources at its disposal. cc For more information contact Kinga Warda at kwarda@pkfmalta.com
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Farsons Group CEO Mr Norman Aquilina
Farsons Group – a case study on the benefits of embracing competition Ever since market liberalisation in January 2008, export-led growth has become more and more of a focused priority for the Farsons Group. Significant growth ambitions set on a more competitive operation led to steady results in recent years. The Group’s €6.8 million profit before tax for 2013 surpassed 2012’s record performance by almost six per cent, while Group turnover increased by two per cent, reaching nearly €79 million. Core segments improved both their turnover and segmental results performance. Farsons Group CEO Norman Aquilina says: “the consistent improvement in our results is evidence that we are steadily on course – despite rapid market evolution and fierce competition across all sectors in which we operate.” In anticipation of market liberalisation along with the intense competition that this was bound to bring about, Farsons foresaw this development and adopted a long-term vision and business growth strategy which anticipated the requisites of modernisation. Mr Aquilina affirms that “the Farsons Group, whilst embracing competition, has maintained its strategic focus and determination to deliver improved results. The Group’s ambitions for growth remain strong – a growth strategy which, apart from being supported by strategically JUNE / JULY 2014
important and significantly material investments, is primarily being driven by innovation and exports.” Today, the Group has further ambitions to become a regional player. Just one example: the performance of their new Brewhouse, embodying their latest commitment to innovation, quality and intelligent production and resource efficiencies, is exceeding production expectations. Furthermore, during the past 12 months, Farsons exported the equivalent of one container per day, affirming the world-class
appeal of its quality products. Their latest and biggest investment so far in a €27 million beer packaging hall announced earlier this year is to be completed by April 2016. This facility will replace all current facilities that fill and package their bottle and can production as well as provide the additional capability of producing ‘one way’ bottle packages designed for export markets, further strengthening their competitiveness, especially on the export front. Today, Farsons exports its flagship Cisk and Kinnie brands to Italy, The Netherlands, Poland, Greece, Libya, China and also Australia – the latter including the production of Kinnie under licence. The Group’s five-year export strategy (2016-2020) provides the basis for trebling its exports by 2020. Mr Norman Aquilina explains: “our vision is to significantly grow our local and international business. Apart from the projected export-led growth, innovation will also form an important part of our growth strategy. Innovation throughout every single facet of our operation is one of the basic tenets for the creation and nurturing of world class brands. In practical terms, for example, the launch of two new products, Cisk Chill Berry and Kinnie Vita, this June emphasises Farsons’ constant commitment to brand innovation to increase our brands’ equity as a driver for growth.” Farsons believes that there are still other business opportunities to be pursued locally, both for Farsons and its group subsidiaries. A case in point are the opportunities for acquisitions or extended brand representations in the food importation segment, along with extending their existing network of fast food franchise outlets as evidenced by their recent announcement to open their first Burger King ‘Drive Thru’ restaurant in Qormi this summer. An increasingly competitive environment continuously challenges the Group within all its operational sectors, but over the years, this leading Maltese Group has transformed its productive beverage operation into a leaner, more costefficient business, which in return is today more appropriately re-structured as an advanced business model. “The unwavering commitment of the Farsons Group to render our business more efficient, so as to ensure that we continue to build and improve on our competitive advantage and strengthen our whole business model, remain areas of focus as we continue to develop our vision of broadening our horizons and growing our business,” says Mr Aquilina. In fact, the Group is now more strategically geared, with ambitions and objectives for further profitable growth. Once again, Farsons is turning challenges into opportunities. cc 53
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Meli Car Rentals 36 years on It was only a year ago that Meli Car Rentals Ltd., which has been operating in the transport sector for the past 36 years, inaugurated the new, modern, purpose-built repair shops at Triq il-Kummerc, Qormi. Originally situated in Spiteri Fremond Street, Qormi, the company grew from initially modest beginnings to the organisation it is today. This continuous growth led to the realisation that the old premises had become too small to cater for the requirements of the ever- increasing size and variety of its fleet and the services provided by the company. The change in the technology of car manufacture and maintenance, together with the ever increasing health and safety regulations, moreover, necessitated a complete overhaul of work practices and the introduction of modern equipment. It was not an easy task to embark on such a project. Finding a suitable site and constructing the various departments in such a manner that they improve efficiency required a lot of preparation, planning and funding, and this without disrupting the normal provision of service of an ongoing commercial enterprise such as this one! It is therefore with a sense of pride that
Banif Bank expands its branch network in Mosta and Paola Banif Bank (Malta) plc has opened new branches in the heart of Mosta and Paola as part of a network expansion programme that will enable the bank to reach out to more clients in their localities, while attracting regional traffic. Offering better facilities and points of sales to customers is
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New air-conditioning service offered by Meli Repair Shop
the directors can today look at what has been achieved in such a relatively short time. Not that they are resting on their laurels! Currently the company is not only catering for its own needs, but is also offering its experience in the repairs and maintenance of vehicles to the general public. It has stocked various parts of the most popular models, while offering the service of trained professionals in the areas of car engineering, panel beating, spray painting, air conditioning, car electronics and tyre repair. All of this is being done while it continues to offer the services on which it has based its previous reputation; that of car hire and
leasing, chauffeur driven vans and cars, bridal and wedding cars and deluxe limousine services. With a reputation which has been strengthened throughout its long history, Meli Car Rentals is sure to continue on its road to further growth and success with this new venture. cc For quotations and appointments clients: T: 7900 9700; E: bodyshop@meligroup.com For other services: T: 7903 1010; E: transport@meligroup.com or Thrifty@meligroup.com
foremost on the bank’s list, and having a wider geographical coverage will contribute further to the high standards of customer care the bank already enjoys. Acknowledging the significant results and achievements that have made the bank what it is today, Banif Bank Chief Executive Officer Silva Pinto said that Banif is a core domestic Maltese bank vying for a larger share of the local market. The bank was an impressive accomplishment in a very short time, clearly uplifted by the trust and confidence the public continues to show in the bank. In the meantime, as an important player in the financial sector Banif Bank uses its muscle to contribute to the resilient financial system in Malta and to maintain the country’s reputation as an important hub for financial services. “We will continue giving our customers the high quality of service they expect, foreseeing their needs and strengthening our relationship with them,” said Mr Silva Pinto. “We will keep exploring how best to improve our product portfolio to their
satisfaction, challenged by ever-changing trends and consumption patterns, and a highly competitive market. Year in year out, we confirm the bank has the fundamentals in place for long-term growth and a strong position in the market.” cc
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HSBC Malta offers unique trading in Renminbi with China As trade opportunities between Malta and China are on the increase, HSBC Bank Malta is the first bank in Malta to offer the facility of trading with China through direct Trade Settlements in the Renminbi (RMB) currency. This offers Maltese businesses a distinct trade advantage. The growing use of RMB worldwide is creating new trade, capital investment and financing opportunities for companies doing business with China. Benefits for
The evolution of the renewable energy market Solar Solutions Ltd is Malta’s leading renewable energy company. Set up in 2005 by four friends (Carmelo, David, Jes and Karl), their objective was to introduce renewable energy on a large scale to the Maltese islands. The specialisations of Solar Solutions Ltd are photovoltaic, wind turbines and solar thermal for water heating. The first critical decision to be taken was that the company had to be a quality company – quality products, quality installations and quality customer care. Competitive pricing and
corporates using RMB include improving working capital, simplifying processes and mitigating payment risks. Pilot schemes such as Shanghai Free Trade Zones could represent many potential opportunities for both Corporate and FI clients. Rongrong Huo, HSBC’s Head of RMB Business Development, Europe, Global Banking & Markets, said: “by internationalising RMB through offshore financial markets, China is achieving new levels of openness and transparency. China is the third biggest global investor behind the US and Japan, with outbound investment growth at an average of 35 per cent between 2005 and 2012. By 2017, China is set to become a net investor in the world, after the
value added services ensure the systems are affordable. This strategy has paid off; in 2014 SSL represents global brands Kyocera Solar, Hyundai Solar, SMA inverters and Siemens Sieline solar heaters. ISO9001 and ISO14001 customer service surveys consistently confirm a ‘very satisfied’ clientele of over 97 per cent. The renewable energy market has evolved and grown over the past nine years. The market today is driven mainly by government and Malta Resources Authority grants, generally funded by the EU (85 per cent EU – 15 per cent government funds). Generous ‘feed-in-tariffs’ (€0.15c-€0.22c) have also stimulated the domestic and commercial markets. Grants have been phased out for the commercial market which is now driven
HSBC Head of RMB Business Development, Europe, Global Banking & Markets, Ms Rongrong Huo during an HSBC Business Breakfast addressing the rising aspiration for trade in RMB
US. The world stands to gain from Chinese capital in the coming years.” Ms Huo, who is also responsible for shaping HSBC’s RMB strategy, emphasised the importance of the RMB concept for those Maltese businesses aiming to capture two way strategic flows via trade and investment. HSBC Malta Chief Executive Officer Mark Watkinson said: “as the leading international bank for RMB business, HSBC is well placed to support businesses looking to be a part of this growth. Coupled with HSBC’s €50 million ‘Malta Trade for Growth’ Fund, this makes business trade between Malta and China more attractive, straightforward and advantageous.” cc
solely by feed-in-tariffs. This has been set at €0.16c for the next few weeks and will then be reduced to €0.15c. SSL has installed well over 11Mwp (50,000 panels) over the past nine years; the experience and data collected for PV production and climatic conditions are priceless. SSL has its own test site where different modules, inverters, mounting structures and inclinations are constantly tested. The advice given to customers is therefore backed by scientific data and can be supported. In 2013 and 2104, SSL invested heavily in the construction of power plants and the first plants are already on line; another first for Solar Solutions Ltd in Malta. A 1.257MWp Kyocera Solar/SMA power plant installed in Burmarrad is expected to generate 2,011,200KWhrs annually and displace 1,749,744kgs annually of CO2 from fuel powered power stations. A 750kWp Kyocera Solar/SMA power plant installed in Bulebel is expected to generate 1,200,000kWhrs annually and displace 1,044,000kgs of CO2 annually. cc Solar Solutions Ltd, 2/3 Tal Balal Road, Xwieki, L/O Gharghur. T: 21/27 42 4750; E: info@solarsolutions.com.mt; www.solarsolutions.com.mt
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NEWS Internationalisation
01. MEBC meets with Non-Resident Ambassador of Malta to Oman On 4th April, the Vice-Chairman of the Internationalisation Committee and Chairman of the Middle East Business Council, Tonio Casapinta, met with the non-resident Ambassador of Malta to Oman, Joseph Mangion. The meeting was also attended by Internationalisation Manager, Klaus Pedersen; and Internationalisation Executive, Lina El-Nahhal. Mr Casapinta congratulated Mr Mangion on his new post and informed Mr Mangion about the outcome of the recent visit of the delegation to the Gulf, led by Minister Chris Cardona. He also spoke about the need to create visibility in the region visà-vis Malta. Mr Casapinta said that Oman has great potential in the financial services sector so one had to focus on this. Mr Mangion agreed with Mr Casapinta while adding that Oman was also strong in education and tourism. He further added that the government was currently placing great emphasis on the Gulf.
02. MEBC meets with Ambassador Designate of Malta to Saudi Arabia On 15th April, Vice-Chairman of the Internationalisation Committee and Chairman of the Middle East Business Council (MEBC), Tonio Casapinta, met with Ambassador Designate of Malta to Saudi Arabia, Martin Valentino. The meeting was also attended by Internationalisation Manager, Klaus Pedersen. Mr Casapinta congratulated Mr Valentino on his new post and gave him a briefing of the work of the MEBC. Mr Valentino will also be responsible for Bahrain, Yemen, United Arab Emirates, and Qatar, until the new Embassy in Qatar is established.
Klaus Pedersen and Internationalisation Executive Lina El-Nahhal. During the meeting the parties discussed the possibilities for collaborating both at an institutional level and also more directly at a practical level, by putting members of the respective organisations in contact with each other. The parties also discussed the importance of assisting the grouping of companies into consortia or newly formed companies for the purpose of bidding for larger contracts.
04. Malta-Vietnam Economic Roundtable Director General Kevin J. Borg, welcomed a delegation from the Vietnamese Embassy in Rome to the Malta Chamber and thanked the stakeholders for their participation in the Economic Roundtable. The delegation was visiting Malta to mark 40 years of diplomatic relations between Malta and Vietnam. This was followed by a speech by H.E. Nguyen Hoang Long, Ambassador for Vietnam who thanked the Malta Chamber and those present. Mr Long mentioned that Malta was one of the first countries to recognise Vietnam in 1974. He added that Vietnam was currently entering a new stage of development which put it in a favourable position to push further in three main sectors - trade and investment including financial services, tourism and education. Mr Long also mentioned that the Free Trade Agreement which was currently being discussed would act as a vehicle for Vietnam’s economic recovery.
The event took place on 5th May with the participation of representatives from the Ministry for Foreign Affairs, Malta Enterprise, FinanceMalta, FELTOM, Institute of Tourism Studies and the Honorary Consul to Vietnam in Malta Peter Formosa. The Vietnamese Delegation consisted of Ambassador Nguyen Hoang Long, Economic and Commercial Counsellor Bui Vuong Anh, Second Secretary Pham Thanh Huyen and Commercial Attaché Do Viet Ha. The ambassador’s speech was followed by an overview of business advantages in Malta delivered by the stakeholders present as well as a presentation on Vietnam’s economy by Mr Anh.
05. SBFM Seminar on Leadership with a Mission “Don’t you ever get tired of telling your kids the same thing?” This was the opening question by the keynote speaker at a seminar held by Scandinavian Business Forum on 15th May at the Malta Chamber. Jens Erik Hoverby was introduced by the Chairman of the Scandinavian Business Forum, Dr Mark Fenech and he based his starting point on the need for a company and its management to break the habit of making the same mistakes over and over again. Based on a case study, Mr Hoverby showed how a management coach can be the impetus for a CEO to realise what his personal core-skills and personal mission was within the company, and then work towards spending more time on this and
03. Newly formed Libyan Business Association meets Malta Chamber The newly formed Libyan Businessmen Council is a private association of Libyan businessmen which was established in 2011. The association is based in Misurata, but has members all over Libya. During a visit to Malta, the Libyan Businessmen Council paid a visit to the Malta Chamber, where the group was met by Director General Kevin J. Borg, Internationalisation Manager 60
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less on all the things that distract from this. The CEO must then in turn be the coach for his management team to achieve the same goal. This method helped the company in the case study to increase its turnover by 30 per cent in three years and increase its quality levels considerably, with the same staff contingent – and in the process transforming the employees into more engaged and empowered individuals. The presentation was followed by a Q&A session and a networking reception with food sponsored by Rubino and Meridiana wines, kindly supplied by S. Rausi.
06. Meeting with Ambassador of Sri Lanka The President and Director General discussed the economies of Malta and Sri Lanka as well as recent developments in the two countries during a meeting with H.E. Nawalage Bennet Cooray, Ambassador of Sri Lanka. The ambassador was briefed about the Malta Chamber’s role and composition. Potential areas of cooperation such as trade in agri-food goods, precious stones, garments and textiles, tourism, employment opportunities for Sri Lankan skilled labour in Malta as well as economic linkages which be developed during the forthcoming CHOGM conference in Malta in November 2015 were also discussed. The meeting was held at the Malta Chamber on 28th May 2014.
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07. Incoming Delegation from Russian Chambers of Commerce David G. Curmi, Malta Chamber President welcomed the President of the Chamber of Commerce and Industry of the Russian Federation, Sergey Katyrin to the Chamber. A Memorandum of Understanding was signed by the Presidents of both Chambers to mark the beginning of strong collaboration between the two Chambers. Mr Curmi also delivered a presentation on MalteseRussian Trade. Mr Katyrin was accompanied by representatives from the regional Chambers of Commerce of Belgorod and Vologda who provided presentations about business opportunities in the region. The event was held on Monday, 2nd June 2014 and was attended by members of the Board of Management and Council as well as representatives from the Russian Embassy and Maltese and Russian entrepreneurs. JUNE / JULY 2014
08. 08. Malta Chamber members meet Taiwanese companies More than 40 one-to-one meetings were held during a business forum at the Malta Chamber on Tuesday 3rd June. The business forum had been organised by the Internationalisation Desk on the occasion of the visit of a trade delegation from Chinese Taipei. The delegates representing 10 companies from various sectors were welcomed by President David G. Curmi who spoke about the transformation of Taiwan into a technological superpower, hosting such household brand names
as HTC, Acer, Garmin and Asus. Director General Kevin J. Borg, provided the visitors with a thorough introduction to the key selling points of Malta, especially as a destination for inward foreign direct investment. The Head of the Delegation, Dr Po-Chih Huang thanked the Malta Chamber for its hospitality whilst David Wang from the Economic Division of the Taipei Representative Office in Rome spoke about the importance of the Taiwanese economy and the good relations with China, underpinned by an economic and free trade agreement as well as the fact that there are between 800 and 900 weekly flights between Taiwan and mainland China. 61
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NEWS Events & Initiatives
01. Changing with The Times at the first Malta Chamber Marketing Committee event The first event of the Malta Chamber Marketing Committee, on 10th April, saw the signing of a Memorandum of Understanding (MoU) between the Malta Chamber and The Chartered Institute of Marketing (CIM). “The Malta Chamber is indeed very pleased that the Malta Branch of the CIM has selected the Malta Chamber as its strategic partner in Malta,” Malta Chamber President David G. Curmi said during his opening address. Mr Curmi introduced the Marketing Committee as one of the Malta Chamber’s horizontal committees, composed of marketing experts from amongst its membership. He said that the Marketing Committee was instrumental in advising the Malta Chamber on the revamp of the Chamberlink e-newsletter which was shortly to be launched. The Committee will also be helping the Malta Chamber with membership reach-out strategy. Marketing Committee Chairman Louis Olivieri spoke about the Committee’s role which was to set standards and offer guidance on marketing matters. The keynote speaker at the event was Allied Group of Companies Managing Director Adrian Hillman, who spoke about how the group had adapted itself to sell content in the 21st century. Mr Hillman spoke about how last year, the brand ventured into new terrain by means of the current affairs television programme Times Talk. Speaking about the brand’s projects for the future, Mr Hillman said that it would be looking into launching a fully-fledged app, continuing ventures in audio-visual, creating further events and maximising its property portfolio.
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03. 02. Malta Chamber involvement in CHOGM/CBC – November 2015
03. Benchmarking Forum on Flexible Working Arrangements
The President and Director-General met a delegation from the Commonwealth Business Council (CBC) at the Malta Chamber on 10th April. The delegation included Peter Callaghan Director-General and John Pemberton-Pigott, Head of Programmes of the CBC and was accompanied by Louis A. Farrugia who sits on the Commonwealth Business Council. The delegation expressed their intention for the Malta Chamber to be directly associated in the two and a half day business forum which would be held to coincide with the Commonwealth Heads of Government Meeting (CHOGM) in November 2015. The topics planned for discussion during the CBC are: Internationalisation, Access to Finance and Business with Small Island States.
As part of its annual programme, the Malta Chamber Human Resources Committee organised a Benchmarking Forum event focusing on flexible working arrangements, family friendly measures (FFMs) and the changing needs of today’s working conditions. The well-attended session was held on 29th April at the Exchange Buildings. Participants were welcomed by the Malta Chamber Human Resources Committee Chairperson Catherine Calleja who explained that following the success of a Linking Enterprise event organised with Vodafone Malta on the subject, the Committee felt it would serve as a good follow up to organise a Benchmarking Forum event during which information and best practices are shared amongst the different companies, whilst having companies’ policies compared. A comprehensive presentation entitled ‘Flexible Working Arrangements: Towards Improved Work-Life Balance’ was delivered by Policy Executive Marilena Gauci who spoke about the philosophy behind the concept of work-life balance and flexible working arrangements, and also about the Malta Chamber’s stance with regards to FFMs and their implementation in the country’s industries. The Malta Chamber believed that the introduction of FFMs had to be at best cost neutral to business and viewed within the entire framework of cost competitiveness, as an integral component of labour costs. It was made clear how such measures JUNE / JULY 2014
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should be granted at the discretion of companies and were not to be considered as a legal right of the employee, bearing in mind the increased financial costs that were imposed upon businesses. The session continued with the participants sharing their companies’ experiences and current implementations.
04. Council Meets the Hon Dr Mario de Marco The President and Council welcomed the Hon. Dr Mario de Marco, Shadow Minister for the Economy to the Council Meeting held on 6th May 2014. The President informed Dr de Marco of a number of issues being tackled by the Malta Chamber, these included: the importance of competitiveness and Malta’s attractiveness for manufacture; potential risks to the banking sector and the fact that the two main banks were to be controlled by the European Central Bank rather than the Malta Financial Services Authority; investor confidence in the manufacturing sector which was suffering due to high operating costs especially in terms of energy rates, transport and salaries; the new EU regional aid intensity guidelines; investment in the import and distribution sector which had diminished as a result of a situation of unfair competition and environmental and consumer regulations. A discussion was also held on shop opening hours, regional aid intensities, the MCESD, National Employment Policy, Industrial Policy and the Malta Chamber’s Economic Vision document. Dr de Marco will be maintaining contact with the Malta Chamber on a regular basis.
05. Launch of the National Employment Policy Kevin J Borg and Andre Fenech represented the Malta Chamber at the launch event for the National Employment Policy on 2nd May. The event was addressed by the Prime Minister, the Minister of Employment and Education and the Chairman of ETC. Mr Borg spoke about the Malta Chamber’s contribution to the document and welcomed its publication through its participation on the Jobs+ Committee. He added that the Chamber expected further consultation on certain measures included in the document such as the changes to maternity leave as talks on the matter had been inconclusive. He said that employment generation was amongst the primary economic challenges facing the country because continuous JUNE / JULY 2014
improvement was needed in terms of skills and flexibility if the country was to fulfil its ambitions in terms of serving new knowledge-based economic sectors.
06. Malta Business Bureau wins the National Enterprise Support Award The Malta Business Bureau (MBB) won first prize for its EU Life+ Investing in Water project in the National Enterprise Support Awards in the ‘other entities’ category. The Malta Chamber together with MHRA were the other two major partners in this project. The presentation ceremony was held at the Mediterranean Conference Centre on Tuesday 6th May. This award which has been held for the last four years is organised by the Department of Commerce in collaboration with the Ministry for the Economy, Investment and Small Business. Klaus Pedersen on behalf of the Malta Chamber was invited to deliver a speech about his experience as the outgoing winners of the national awards and representatives of Malta in Vilinus for the European Awards. Geoffrey Saliba, MBB Project Coordinator explained that the aim of the project was to assist companies and hotels introduce tools to save water within their operations. He said that the final results had been surprising and that the total water saving measures implemented by the audited companies during the project, amounted to the removal of three four-star hotels and two medium sized manufacturing plants from the national demand for water.
07. Linking Enterprise – Green Buildings As part of its Linking Enterprise programme, the Malta Chamber organised an event at SmartCity Malta, focusing on green buildings, sustainability, alternative energy and energy efficient measures. The well-attended event was held on Wednesday, 30th April. Participants were welcomed by Malta Chamber Head of Policy, Andre Fenech, and by Ing Norman Zammit, Facilities Manager at SmartCity Malta. Mr Fenech gave a brief overview of the Malta Chamber’s Energy and Environment Committee to explain the Committee’s main objectives: to serve as a contact point between enterprises and institutions; to monitor the various environment related legislation and to provide members with assistance on environmental concerns and
07. in identifying EU programmes and local funding opportunities. Mr Fenech went on to explain the priority areas of the Committee, these being: alternative energy sources, sustainable management, and natural resources’ utilisation, among others. An all-encompassing presentation on SmartCity’s infrastructure and its qualifications to the certification for Leadership in Energy and Environmental Design (LEED) was then delivered by Ing. Norman Zammit who spoke about the buildings’ green designs and construction features, as well as a number of facilities that had been put into place for the improved usage of resources. He said that sustainable measures had provided SmartCity Malta with the ability to attain a number of savings. Following this, participants were given a tour of the premises.
08. Dialogue on the Education Strategy for Malta The eSkills Malta Foundation organised a dialogue meeting with stakeholders on Tuesday 29th April, as part of the consultation process on the Framework for the Education Strategy for Malta 2014-2024. Among the speakers was Keith Fearne, member of the Malta Chamber’s ICT Business Section who spoke from the ICT Industry point of view. Mr Fearne said that although a good number of students were graduating from the University of Malta, the numbers were not sufficient to meet demand, especially in the area of software development. The ICT Business Section had held various consultation meetings with to discuss how courses could be better aligned for the needs of the sector. The Business Section was pleased to note that the University had taken the recommendations of the Industry on board and had launched a series of new degree courses targeted at filling the gaps in the market. Speaking about the level of MCAST ICT courses, Mr Fearne claimed that these needed to be further enhanced in order to meet the requirements of employers in the sector. At that level of competence, MCAST students should not be generalists 65
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09. but rather more focused and specialised, in narrow areas of competence with a focus on vocational training. Mr Fearne continued that students should also invest in developing their soft skills which were an important requirement for employment.
09. Importers, Distributors and Retailers Economic Group Information Session on ICT and e-Commerce The Malta Chamber’s Importers, Distributors and Retailers Executive Board organised an information session on the use of ICT and e-Commerce on Wednesday 30th April. Andrew Mamo, Chairman of the Economic Group welcomed the members present and said that the information session was being organised as part of the Board’s efforts at increasing awareness among its members to identify the core strengths and opportunities, for businesses to exploit web technology. Mr Mamo said that through the organisation of such information sessions, the Economic Group was at the forefront in understanding the reasons why certain buisnesses were reluctant to go online and whether there existed any barriers to the use of these services. Sue Ann Scott, Manager of the Education and Information Society Statistics at the National Statistics Offices (NSO), delivered a presentation based on the NSO’s yearly survey and newsletter entitled ‘ICT Usage and e-Commerce in Enterprises’. The presentation gave an overview on the current state of play on the local scene, with particular focus on
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the wholesale and retail industry and an interpretation of the survey’s results. Claudine Cassar, Chairperson of the Malta Chamber’s ICT Business Section, followed with a presentation aimed at raising awareness on the potential economic benefits that could be derived from investing in this area and engaged the members present in a discussion on how local retailers could compete in an increasingly globalised e-Commerce environment. The feedback gathered from the participants was positive in that the Malta Chamber was taking proactive steps towards addressing this sensitive topic for its members.
10. Chamber Discusses Economic Growth Sectors with Parliamentary Secretary The President and Director General discussed national issues related to national competitiveness with Hon. Dr Jose Herrera, Parliamentary Secretary for Competitiveness and Economic Growth. At this meeting, held on 23rd May, the Chamber presented the Parliamentary Secretary with a copy of its newly launched Industrial Policy document briefly highlighting its 64 recommendations towards a more competitive local industry. Subjects related to the Parliamentary Secretariat’s responsibilities and which were directly linked to the recommendations were discussed. These included venture capital and crowd funding for start-up and innovation companies. At the meeting, the Parliamentary Secretary showed active interest in meeting sector-specific groupings within the Chamber including those for manufacturing, remote gaming, communications yachting, real estate and shipping.
11. An Industrial Policy for Malta With the launch of its Industrial Policy for Malta, the Chamber has addressed industry’s
present realities and challenges, avoiding stagnation and encouraging growth. The Malta Chamber’s Industrial Policy was launched during a press conference on Friday, 23rd May. The President, David G. Curmi and Matthias Fauser, Chairman of the Manufacturers and Other Industries Economic Group addressed those present as did Hon. Dr Chris Cardona, Minister for the Economy, Investment and Small Business. The President said that the Industrial Policy had been pioneered by the Manufacturers and Other Industries Economic group and entirely formulated in-house. The policy was originally presented to Malta Enterprise in 2012 and had since been updated as the Malta Chamber perceived manufacturing to be a key pillar of a balanced economy, it believed that a solid manufacturing base provided a country with better defences against economic downturns and because the European target of reaching a 20% direct contribution of Industry to GDP was commendable. An electronic version of the executive summary of the Malta Chamber’s Industrial Policy document is available on request.
12. Courtesy Visit to the President of Malta The Malta Chamber Board of Management, led by President David G Curmi, met with the President of Malta, H.E Dr Marie Louise Coleiro Preca. The courtesy visit served as an introduction to the Board of Management, as well as to exchange views on topics of mutual interest. A number of issues were discussed, including the Presidency’s plans for the forthcoming term. The President explained that her activities would be inspired by the need to engage Maltese society which was continuously changing. H.E Dr Coleiro Preca also referred to her philanthropic activities, with the Malta Chamber offering its support for potential new initiatives particularly in terms of its active engagement in the promotion of CSR activities.
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NEWS Issues & Positions
01. Abuse in Free Movement of Goods In the last weeks the Malta Chamber has concentrated on Abuse in the Free Movement of Goods, which has been the topic of a number of newspaper articles and interviews. On 25th March the Malta Chamber’s Importers Business Section Executive Committee held a meeting with departmental heads of governmental authorities concerned with market surveillance, namely: Inland Revenue, Customs and VAT Departments. The meeting was attended by the Chief of Staff at the Ministry of Finance and representatives from the Commissioner of Revenue. The Chairman of the Importers Business Section, Gino Cutajar had explained that, for a number of years, the Malta Chamber had actively pursued the concerns of its members arising from the existing unlevel playing field between bona fide operators and illicit traders. The Executive Committee highlighted the issue of inadequate market surveillance structures and the lack of enforcement resources, which situation led to an increase in the volume of illicitly traded products which did not carry the price of eco-contribution, VAT, excise duties and Inland Revenue. A media release entitled “Free movement of goods does not equate to free for all” was issued on 1st April in which the Malta Chamber had voiced it serious concern at the level of unfair competition which was being reported by its members in the importation and distribution sector. This had arisen because border controls had not been effectively replaced with an appropriate market surveillance structure. A further media release was issued on 6th May reporting on a meeting of a Chamber delegation led by the President with the Parliamentary Committee for Economic and Financial Affairs on 5th May during which an extensive presentation about abuse in free movement of goods had been delivered. In the course of the presentation the Malta Chamber had said that this was a matter of national concern because it hit the country from various angles: • It allowed unfair competition between law-abiding companies and others that go about their business in total disregard of all laws including fiscal and environmental; • It was severely reducing the appetite for investment in the affected sectors to the detriment of their competitiveness; JUNE / JULY 2014
• It was impacting significantly on government revenue; • It was distorting national trade statistics; • It was placing undue risks on consumer health and safety; • It was compromising national security. Throughout the discussion, the Malta Chamber emphasized that it was making its representations in full recognition of the parameters regulating the free movement of goods within the European Single Market and stood in full support of a liberalized and competitive business environment – provided this was fair and equitable. The Chamber made representations to the Parliamentary Committee in favour of: 1. Safeguarding the interests and safety of consumers, 2. Ensuring a general adherence to all laws and regulations of the country including fiscal, 3. Restoring fair competition between all economic operators on the island. To this end it recommended that: • A thorough cost-benefit analysis of import related rules and procedures. Repeal those that are superseded but enforce those that remain valid. • Enhance collaboration between local and foreign authorities – particularly fiscal. • Urgently set up a multi-departmental single authority responsible for fair and effective market surveillance on the island – (both fiscal and quality) in order to, once and for all, proactively enforce taxes, laws and regulations on those that operate below the compliance radar and beyond the knowledge of any authority including fiscal. On 8th May, Andre Fenech, Head of Policy Development took part in the PBS morning programme TVAM on the same topic. Reference had been made to a meeting held with the Parliamentary Committee responsible for Economic Affairs. Mr Fenech said that the current situation had a strong impact on the country in terms of loss of revenue to Government due to fiscal evasion, unfair competition across various local economic sectors, lower turnover and market share erosion of law abiding operators, high risks to consumer health and safety and issues related national security. He said that the problem of the abuse of the system was widespread and included sectors as varied as imports of wines and spirits, furniture, white and electronic goods, detergents and toiletries, foodstuff, clothing, etc. President David G. Curmi was also interviewed by PBS on the subject.
02. The Remote Gaming Business Section Executive Committee meets with Hon. Dr Edward Zammit Lewis The Malta Chamber’s Remote Gaming Business Section Executive Committee held a meeting with Parliamentary Secretary for Competitiveness and Economic Growth, the Hon. Edward Zammit Lewis on 27th March. The meeting was also attended by the Lotteries and Gaming Authority (LGA) Executive Chairman Joseph Cuschieri. The members of the Remote Gaming Executive Committee spoke about the importance of regular consultation meetings and offered its assistance to the Government and LGA to maintain the competitiveness of the already established operators who made the local Gaming Industry what it is today. The meeting continued with a discussion on important current topics and suggestions such as the possibility of consolidating audit processes, the streamlining of licences of the same class within the same company or group of companies, a review of regulations permitting the leveraging of new technologies, as well as the setting up of a technical committee for the implementation of best practices. The Executive Committee would contribute by providing its recommendations to bridge the learning curve and assist government in the implementation of its vision to ensure that Malta’s gaming industry remained attractive for investment. On his part, the Parliamentary Secretary affirmed his commitment to support the Industry and looked forward to continued ongoing consultation meetings with the Malta Chamber’s Remote Gaming Business Section.
03. Meeting with EU Commission Representative Office In April, the President, David G. Curmi and Director-General, Kevin J. Borg met with Ivan Ebejer from the EU Commission Representative Office in Malta. The main topic of the meeting was bank lending rates. The President and Director-General reiterated the Malta Chamber’s views that whilst lower interest rates on borrowings would be appreciated, the Chamber would not agree to lower rates if these posed a threat to the stability of the local banking sector. Members were aware of the fact that the strength of the banking sector contributed to Malta surviving the worst effects of the global financial crisis. 69
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04. Meeting with MEP Candidate, Hon. Dr Francis Zammit-Dimech The President, David G. Curmi and Director-General, Kevin J. Borg met with MEP candidate, Hon. Dr Francis ZammitDimech on 2nd April. Those present discussed economic developments in the country and the constant challenge of creating new job opportunities. The President spoke about the concern of members arising from the erosion of competitiveness in certain sectors, particularly manufacture as well as difficulties faced by members involved in import and distribution. These difficulties were due to the lack of effective enforcement allowing certain so-called ‘traders’ to go unpunished despite operating in total disregard of their regulatory responsibilities including fiscal. He said that the country had not effectively replaced border controls – which were no longer permissible with Malta being part of the Single European Market – with an appropriate market surveillance structure.
05. Urgent issues affecting importers and manufacturers discussed with MEP A number of important issues affecting importers and manufacturers were discussed during a recent meeting with MEP Dr Roberta Metsola. These included eco-contribution, illicit trade and regional aid guidelines. The Board of Management and Dr Metsola discussed collaboration on a national and EU level aimed at boosting Malta’s competitiveness across different
sectors of its economy, increasing business and consumer confidence and job creation. Another topic discussed was the loss of Malta’s eligibility for Regional Aid Intensities. The Malta Chamber felt that Government should make the necessary representations for a change in the EU rules and should insist that permanent disadvantages faced by island states like Malta should be addressed by permanent solutions rather than on variable factors as is the GDP ratio of the country in terms of the EU average. The meeting was held at Malta Chamber on 4th April and was attended by Deputy President, Anton Borg, Vice President, Frank V. Farrugia, Tonio Casapinta and Charles A. Zahra, members of the Board of Management and Kevin J. Borg, Director-General.
06. Malta Chamber Discusses Employment Issues with Opposition The Malta Chamber participated in a special meeting organised for MCESD members with the Leader of the Opposition. Speaking as the representative of the Malta Chamber, the Director-General Kevin J. Borg said that employment creation was amongst the country’s present major challenges. He said that the labour market was confronted by issues of abuse, inflexibility and changing expectations of both workers and employers. Above all, however, the major difficulty in the labour market, he said, was a skills mismatch situation. This came about because new companies investing in Malta, which were mainly service-orientated, were not absorbing people from the unemployed
pool because the skills of the latter were not relevant to the new employers. To bridge this gap, he emphasised the need for closer links between education institutions and business; life-long learning initiatives; enhanced career guidance mechanisms; and the availability of an Employability Index. He also emphasised the need to safeguard the competitiveness of Malta’s traditional economic sectors including tourism and manufacturing which were likely to provide job opportunities to the people who were currently on the unemployment register.
07. Single Accounting Directive – for the Simplification of Accountancy and Audit Requirements of Companies The EU Single Accounting Directive was approved on 12th June 2013 and will eventually need to be transposed to Maltese law. The Directive includes a number of ‘optin’ clauses which would allow Malta to retain the need for mandatory audits for companies according to criteria which could be selected at the national level and which could differ from those set out by the Directive. The provisions of the Directive would kick-in, in terms of financial statements ending on any date during the course of 2016. A meeting between representatives of the Malta Chamber and the Malta Institute of Accountants on the topic was held on 14th May 2014. The Directive contemplated various requirements for companies falling under four main categories, namely, Micro, Small, Medium and Large. The MIA representatives provided the Malta Chamber with information regarding the local implications of the Directive as well as detailed background information. The Malta Chamber was represented by Anton Borg, Deputy President, Frank V. Farrugia, Vice-President and Kevin J. Borg. The Chamber had conducted an internal process to formulate its opinion.
08. Business Sentiment Is Leading to a Decline in Commercial Lending
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A Media release was issued on 14th May on the Malta Chamber’s concern about declining levels of lending as expressed by the Central Bank Governor reported in the press wherein Prof Bonnici was reported to ask why lending rates were declining locally and why Malta was not following the trends manifested in the rest of Europe. Through its recording of business sentiment levels amongst its members, JUNE / JULY 2014
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the Malta Chamber was able to shed some light on this matter. The Malta Chamber was convinced the decline in demand for commercial credit did not relate to interest rates. Banks in Malta had, in the past, experienced a higher demand for commercial credit when interest rates were at the same level or indeed higher. The Chamber was informed that while local banks were experiencing a strong demand for credit from SMEs, the demand for credit from larger businesses had declined. This subdued demand for credit from the larger businesses was mainly attributable to the uncertainty which led to reduced appetite for investment in certain affected sectors such as manufacturing and import and distribution.
09. Developing ongoing contact and dialogue Members of the press were invited to a networking lunch at the Malta Chamber on 15th May. The purpose of the event was to further develop ongoing contact and dialogue between the Chamber and the press for mutual benefit. The President welcomed guests and reminded them about the important efforts being undertaken by the Malta Chamber in its mission to promote and safeguard Malta’s economic interests. He focused on three main topics: Abuse in Free Movement of Goods; the Economic Vision for Malta for 2014-2020 and the updated Industrial Policy. The President spoke about the Malta Chamber’s conviction that when business worked better, the country worked better and said that this provided the inspiration for the Chamber’s continuous endeavours. The business community offered out-ofthe-box ideas on how to make the country work better. With its Economic Vision and
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Industrial Policy the Malta Chamber was being proactive by providing a business agenda to Government rather than a Government Agenda for business.
10. The Malta Business Bureau announces new President The MBB has announced its new President, Mario Spiteri. Mr Spiteri is a member of the Malta Chamber’s Council. He is an entrepreneur and is involved in tourism, insurance, local and international real estate, and financial and management consultancy. Throughout his career he has worked in senior management roles, predominantly in the financial services sector, for established firms such as KPMG, Cutrico Services Group, Investment Finance Bank Limited, APS Bank, Malta External Trade Corporation and GasanMamo Insurance Limited. Mr Spiteri is a Certified Public Accountant, a Fellow of the Malta Institute of Accountants and also a Member of the Malta Institute of Management. For many years, he also served on various committees at the Malta Chamber of Commerce, Enterprise and Industry.
11. Chamber Raises Competitiveness and Unfair Competition Issues at MCESD The Chamber President raised, yet again, issues of strong concern to members at a recent MCESD meeting in the presence of the Minister of Finance, Hon. Prof. Edward Scicluna and Hon. Dr Helena Dalli, Minister for Social Dialogue, Consumer Affairs and Civil Liberties. The Chamber repeated its concerns related to manufacturing industry – namely higher operating costs, lower productivity and the imminent termination of the regional aid regime for large undertakings. The issue related to abuse in free movement of goods was also highlighted. The Chamber maintained that both matters were causing business sentiment to decline with negative repercussions on investment and employment opportunities in the country. The Minister of Finance announced that Government agreed with the Chamber’s position on the need to enforce fiscal and other regulations equally on all imports. To this end, he reconfirmed that the Customs, VAT and Inland Revenue Departments would be merged into a single entity under one Authority to enable better enforcement.
10. 12. MCESD Meeting on EU 2020 Strategy Director-General, Kevin J. Borg represented the Malta Chamber at an MCESD meeting held to discuss progress on the Europe 2020 Strategy. To this end a mid-term review briefing was given to the social partners by officials of the European Commission Representation in Malta. The meeting was held on 28th May. Progress in terms of the EU 2020 Strategy as measured against five representative headline EU-level targets, which Member States were asked to translate into national targets reflecting the following starting points: • 75 per cent of the population aged 20-64 to be employed. • 3 per cent of the EU’s GDP (public and private combined) to be invested in R&D/innovation. • The ‘20/20/20’ climate/energy targets to be met. Green-house gas emissions 20 per cent (or even 30 per cent, if the conditions were right) lower than 1990; 20 per cent of energy from renewables; 20 per cent increase in energy efficiency • In education, reducing school dropout rates below 10 per cent. At least 40 per cent of 30-34–year-olds to complete third level education. • At least 20 million fewer people in or at risk of poverty and social exclusion Since the launching of the Strategy, the Malta Chamber has given annual feedback on the local targets via the National Reform Programme which lists the national priorities set in order to achieve the European Strategy. cc JUNE / JULY 2014
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Commercial property: A local success story? So much is said about Malta’s residential property sector while the commercial sector is less in the limelight. Here Jo Caruana discusses everything from retail options to office blocks with Federation of Estate Agents president Ian Casolani.
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alta’s commercial property sector appears to be booming. Everywhere you look development is taking place – from new shops replacing old ones in Sliema or Valletta, to huge new projects that encompass state-of-the-art offices, commercial, retail and catering space. “The commercial sector is strong at the moment,” states Ian Casolani, managing director of Belair Property and president of the Federation of Estate Agents. “Over the past few months we have seen sustained growth where business renting is concerned, while commercial sales have continued performing solidly. “Naturally, none of this is a given for the future, though, and the industry does require continued efforts and attention from its JUNE / JULY 2014
stakeholders so as to provide a high quality service. In fact, I believe this is crucial if we want to continue enhancing Malta’s potential as a leading business hub in Europe and the Mediterranean.” Mr Casolani explains that, in recent years, with the increasing demand from iGaming and financial institutions, in particular, the need for office premises has continued unabated. “These requests are mainly for particular areas where amenities and social lifestyles are abundant,” he says, referring to localities that include Sliema, St Julian’s, Gzira and Ta’ Xbiex. “However, we have also seen an increase in requests for retail outlets and catering establishments. Most of the time, the supply meets the demand, unless, of
“High quality service is crucial if we want to continue enhancing Malta’s potential as a leading business hub in Europe and the Mediterranean.” 77
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“Requests [for office premises] are mainly for particular areas where amenities and social lifestyles are abundant.”
natural reaction to the increase in supply. “When it comes to catering establishments, it is expected that, with tourism performing well and the presence of more varying cultures on the island, the combination of different cuisine concepts will go on. Retail, on the other hand, is more fluid. This means that there will always be a mix in fortunes for operators, depending on locality, the product or service on offer, and overall quality.” Quality, in fact, is the aspect that Mr Casolani believes the local commercial industry needs to focus its attention on more than anything else. “Undoubtedly, a high standard of finishing is a sine qua non,” he says. “Quality, attention to detail, design and an increasing number of facilities will continue to play a crucial role in Malta’s competitiveness against other jurisdictions when it comes to attracting business to our islands. Sufficient parking space is also key to a successful commercial property. “And it’s important to note that this does not only apply to estate agents, but more importantly to property developers and owners, building contractors, service providers and other intermediaries. This focus on quality is what makes Malta a realistic and manageable prospect for foreign investors to consider,” he adds. cc
“Each sector – whether catering, retail or office-based – requires unique elements from its base, but so much of that is linked to location.” course, that request is very unique and unconventional, in which case it would require time to be addressed.” Asked about the different property requirements between sectors, Mr Casolani states that it’s really all about ‘location, location, location’. “Each sector – whether catering, retail or office-based – requires unique elements from its base, but so much of that is linked to location,” he says. “For instance, office premises for a company employing a large number of foreign employees would usually be located in a central spot that is easily reached by public transport, and which are near entertainment areas. Meanwhile, a company employing largely Maltese people prefers office premises away from the centre, where parking is less of an issue. “Similarly, the demand for retail outlets that rely on passing trade is mostly focused on areas with the highest exposure possible, such as in Sliema or Valletta. Catering, on 78
the other hand, requires a combination of locality, passing trade, size and attractive features like sea-views or characteristic buildings.” And it seems that plenty of investment is going into ensuring that there are enough commercial properties out there on the market, whether for sale or rental. “Of course nobody knows exactly how things will progress in the coming years – the future of this industry poses a million-dollar question,” continues Mr Casolani. “Property, like every other commercial activity, relies solely on the generic performance of the national economy. From the current developments and the ones being planned (which we know about), it is quite clear that developers are expecting this sector to continue to perform steadily. This will mean that, as a number of purposelybuilt office parks will come onto the market in the next couple of years, smaller office owners will have to re-adjust their rates as a
Thinking of investing in property for your business, renting a new office space or even building your own commercial block? Here is some advice to consider before you do. “Above all else, as a prospective buyer or tenant you should seek out a good location that fits your particular operation, as this could make or break the future success of your business,” Mr Casolani says. “Secondly, decide on a proper budget, as this will enable your property agent to seek viable options without wasting your time. “On top of that, ensure your potential property adheres to all planning and environmental legislation, as well as that it could cope with your business’ expansion in the short to medium term. “Finally, focus on high quality finishing, aesthetics and – budget permitting – parking facilities,” he says. JUNE / JULY 2014
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Don’t waste your energy Taking the necessary steps towards making your business more sustainable and energy efficient may come at a cost, but will certainly make for a considerable return on investment. Sarah Micallef discovers the options available and benefits of an energy efficient business. Ò
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n an age of waste not want not, there are several measures businesses can take toward becoming more sustainable and energy efficient. The benefits are plain to see – from reduced costs to a lessened carbon footprint – and as many are realising, the way forward is most certainly green. Ing. Ryan Xuereb, Managing Director at Econetique Ltd, explains that the first step on the road to a more energy efficient business is understanding where your primary sources of consumption are. Following this, you need to understand what you can do about it. “There are a lot of opportunities to save on energy. These range from simply changing the settings on your PC to changing energy hungry appliances such as lighting and heating/cooling systems,” he advises. Additionally, he maintains, a company can act on the fabric of the offices themselves – making them more energy efficient by installing thermal insulation, hence reducing their heating/cooling costs. Another aspect where energy can be saved is by reducing the thermal gain through glazing. 82
“Nowadays, a large variety of glazing solar films is available. This is a plastic film which is installed on the glass of a window and can reduce 99 per cent of UV and 97 per cent of IR radiation, reducing the overall heat gain through the windows by a staggering 60 per cent. Imagine what this does to your heating/cooling load and hence AC energy consumption,” he explains, going on to mention, “you can even go a step further and have the glass actually generate electricity. This has recently become a reality whereby a transparent glass also works as a solar panel and hence you can have your glass generate electricity which you can then sell to offset your electricity bill.” Indeed, as Martin De Bono, Business Development Director at CD Power Solutions Co Ltd advises, there are multiple measures businesses can take to become more energy efficient, “ranging from process management or energy management to replacement of equipment or even installing passive equipment to reduce electrical waste. There are other items like shading, insulation
“Look at your current electricity bill. Chop off 75 per cent of that amount and put it in your accounts under the profit section and see what that does to your business.” Ing. Ryan Xuereb, Managing Director at Econetique Ltd
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CC environment and double glazing just to mention a few.” Clayton Saliba, Marketing Manager at Frank Borda Ltd, is in agreement, asserting that it is essential to start by looking at how energy is being used. He cites the main areas to look at, including cooling, heating, lighting, office equipment or factory and warehouse equipment. “Cooling and heating add up to about half of the energy used in offices and account for a large proportion of energy use in other areas of a business. It is something to be targeted with effective measures like regularly servicing the units and ensuring that doors and windows are closed properly during operation. With regards to lighting, there are many ways to reduce the energy consumption and costs associated with lighting without compromising safety and comfort levels, such as installing LED bulbs and making sure lights are switched off when no one is in the building,” he states. Mr Saliba goes on to mention other considerations, including switching off electronic equipment when not in use. Ing. Jean Paul Micallef, Technical Director at Energy Management Solutions Ltd
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recommends that businesses perform an energy audit by a qualified mechanical engineer, covering both the infrastructure and operating equipment. He gives examples of practical outcomes, maintaining, “a practical example is shifting to energy saving lighting solutions replacing the older technologies, that reduce approximately 10-15 per cent of electrical consumption in small to medium businesses. Further improvements in efficiency can also be achieved by implementing an energy policy within the company framework, and operating philosophy. Employees, being first in line, can be awarded for suggestions that improve operations and efficiency.” Noelle Agius, Draughtsman at BT Commercial, discusses how installing an efficient air-conditioning system like the GREE GMV5 DC Inverter Multi VRF System can make a significant difference in energy consumption. He explains, “the GMV5 adopts the best method of control for optimum running of the building, resulting in improved efficiency. Technical innovation results in better energy savings as the system allows
users to control and get limits for each and every indoor unit, thus obtaining best optimum energy consumption and minimum wastage. It also analyses the cost of electricity and has an option to remind users about the cost of electricity during operation and give suggestions on energy saving.” As Tonio Montebello, Chief Executive Officer at WasteServ Malta Ltd maintains, reducing waste is another step in the right direction, and can bring tangible benefits to any business. “By producing less waste, companies can indirectly help to lower the resources needed for transporting and treating that waste. This is especially so in Malta, since recyclable waste is only sorted
“By producing less waste, companies can indirectly help to lower the resources needed for transporting and treating that waste.” Tonio Montebello, Chief Executive Officer at WasteServ Malta Ltd
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locally; the waste must then be exported to facilities overseas for further treatment and recycling into new products,” he states. So what do businesses stand to gain from such measures? Forming part of a team of engineers who perform energy audits and assess what areas should be tackled, as well as offer a full range of products including installation, Ing. Xuereb highlights benefits to be a reduction in energy costs amounting to a significant return on investment, as well as the social responsibility aspect and reducing the business’ carbon footprint. He argues, “every measure you invest in to reduce your energy cost will pay dividends when it comes to the closing end of year accounts. Look at your current electricity bill. Chop off 75 per cent of that amount and put it in your accounts under the profit section and see what that does to your business. We have had cases where a few adjustments to a building have reduced consumption by that amount.” Mr De Bono agrees, maintaining, “it’s about the bottom line. Invest €10k and calculate the exact return and how much profit you will make over its lifetime. Some technologies have a very short return, like lighting replacements and voltage optimisation, while others such as double glazing, equipment replacements and insulation have very long returns. Other items like energy management also have a 86
“A practical example is shifting to energy saving lighting solutions replacing the older technologies, that reduce approximately 10-15 per cent of electrical consumption in small to medium businesses.” Ing. Jean Paul Micallef, Technical Director at Energy Management Solutions Ltd
good return; however you will need human intervention to keep it up, which is not always ideal.” “Since CD Power Solutions Co Ltd started business in 2005,” he states, “we have implemented well over 30 large energy efficiency projects. Our clients range from medium sized restaurants to one of the largest manufacturing companies in Malta. We start with an energy survey and energy usage analysis, which gives us a good understanding of what we can potentially save and what the returns can be. Once done we propose solutions with an exact investment amount, an exact saving percentage and, more importantly, guarantee the savings with a money back option if savings are not achieved. In all cases we have always over-achieved the savings guaranteed, giving the client extra value for their investments.” Mr Saliba seconds this, arguing, “with the continuously increasing demand for electricity, and the growing concern for the environment, many businesses are resorting
to alternative sources of energy. Among the renewable energy sources, solar energy is a sustainable choice and one that can be used in various applications. The top major products to invest in are predominantly solar water heaters and solar panels – products which we at Frank Borda Ltd, being the official Sharp Partners in Malta, supply and install effectively and meticulously to ensure that optimal performance is achieved.” He goes on to say that photovoltaic systems will reduce and in some instances even eliminate an office building’s electricity bill. “Having a photovoltaic system is a good return on investment as the cost per unit of your current energy costs is likely much higher than what you would spend for a photovoltaic system. This results in further savings for your business. Once installed, a photovoltaic system will require little maintenance and will provide electricity quietly and cleanly for a long time,” Mr Saliba maintains. Energy Management Solutions Ltd has a portfolio of products and services JUNE / JULY 2014
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“Some technologies have a very short return, like lighting replacements and voltage optimisation, while others such as double glazing, equipment replacements and insulation have very long returns.” Martin De Bono, Business Development Director at CD Power Solutions Co Ltd
which include energy savings audits, LED lighting, solar heating and cooling, power factor correction, refrigeration energy savings solutions as well as photovoltaic grid and off-grid solutions. According to Ing. Micallef, in many cases, apart from reducing the operating costs in running the business, solutions may also deliver a better environment, increasing the throughput of employees and machinery, as well as reduce downtime and maintenance costs. “A case in point was the replacement of lighting in a warehouse which delivered 50 per
cent energy savings on their lighting and increased light levels by 30 per cent, which in turn delivered a 15 per cent increase in quality control, and reduced the safety risks in the aisles during material handling,” he states. As for separating waste, Mr Montebello advises that it is a great initiative for businesses to take on, “not only environmentally but also from a financial perspective, since charges for waste disposal in landfills are much higher than those for recycling.” Going a step further and focusing efforts on reducing the
amount of waste produced will have even greater results, he continues, while also lowering the company’s carbon footprint. “WasteServ’s facilities cater for the waste of all types of businesses, from organic waste and recyclables to hazardous waste such as clinical waste, chemical products and WEEE (Waste Electrical and Electronic Equipment). We are very active in the provision of waste management training to businesses in all sectors, from manufacturing and retailing to service industries and office-based environments.” cc
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Numbers to knowledge Photos by Lionel Galea
Sarah Micallef sits down with Director General of the National Statistics Office Michael Pace Ross to discuss the statistical office’s growth and re-dimensioned role within the EU, as well as the importance of remaining relevant in an ever-changing climate.
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“In the census we conducted in 2011 for example, we had a 99 per cent response, so practically all households understood the importance of this once-in-adecade exercise.”
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he National Statistics Office’s 68-year history has seen it undergo a number of changes – from government entity with four employees upon its inception following the Second World War, to its current role as Malta’s official statistical agency on a par with foreign statistical offices. Malta’s ambition for EU accession in the mid-1990s had a lot to do with the office’s modernisation, prompting it to widen and diversify its statistical programme in order to meet the requirements set out in the EU’s Acquis Communautaire, which was a pivotal pre-condition of membership. NSO Director General Michael Pace Ross reflects on this time, explaining, “preparations started well before we joined the EU, because there was a set of rules and regulations which a country had to fulfil or plan to fulfil in its preparations to become a member. At the time, we did not request any derogation for statistics, which meant that we had to be fully prepared to have our statistical system up and running upon accession.” The office did this, he maintains, by “introducing new statistical domains, engaging new graduates and building the office in terms of human resources.” In so doing, the office was re-dimensioned from a typical government department to a fully fledged authority which is run similarly to a private company: “today we have requirements and deadlines with Eurostat which are specific. Once we joined the EU, we became part of a network of statistical institutes known as the European Statistical System (ESS). We are one of 28 national statistical offices and on a quarterly basis discuss the demands of our users, which are primarily the European Commission, the European Central Bank as well as other international organisations.” Mr Pace Ross maintains that forming part of the ESS is beneficial for Malta: “the fact that you’re part of this system gives you a voice. We put forward our views as a small country, with all the advantages and disadvantages that entails, and we do in certain instances influence decisions taken at a European level.” This is not to say however, that the administrative burden on a relatively smaller statistical office is to be overlooked. “Whether you’re a small or a large member state, you have to comply with all the statistical regulations and requirements which are in place. There are certain
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statistical demands and timeframes which are regulated by EU law. We are a small office of about 160 employees which has to compile all the range of statistics which are compiled by much larger countries. Having said that, we do our best to compile our statistics in the best possible way, and are fulfilling all our statistical obligations,” he asserts. The limited size of the pool of respondents can also be somewhat limiting. As Mr Pace Ross explains, “we rely on respondents, be they individuals, households, businesses or government departments.” He goes on to take household surveys as an example, explaining that with 153,000 households in Malta, there is a limited pool of households with which to conduct surveys. Because of this, he laments, the burden is larger in smaller countries. This also applies to businesses: “in certain economic activities, you would have a few, or even sometimes one, dominant firm, so if you don’t ask for statistics from this dominant firm or firms, you cannot accurately gauge the economic performance or the business indicators of a country.” Having said that, Mr Pace Ross believes that Malta’s size can be used as an advantage
too: “if you capture these companies and households, you have a very clear indication of what’s going on in the country.” He goes on to express gratitude to respondents, stating that the NSO finds full cooperation from households and businesses. “In the census we conducted in 2011 for example, we had a 99 per cent response, so practically all households understood the importance of this once-in-a-decade exercise,” he asserts. In relation to how Malta fares with regard to compiling statistics when compared to other member states, the Director General maintains that while in some sectors like ICT Malta was the first country in Europe to submit data, there is still an issue of timeliness in relation to other sectors, such as structural business statistics. While noting that progress has been made, he believes there is still room for improvement, “not in terms of quality of the data, but in terms of timeliness”. Speaking about whether being benchmarked against EU and euro area countries puts pressure on politicians and the public sector to make improvements, Mr Pace Ross explains that while it does put a certain amount of pressure, it is not fair to compare Malta to all the indicators which are produced 91
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“Every day we publish news releases which, if analysed properly, give clear indications on where a business person should be investing or what decisions they should be making.”
by statistical offices and by Eurostat; citing that in certain instances, it is more accurate to compare Malta with itself over time. “If you have a classification of 28 member states and Malta’s ranking is in the lower half, there is always that pressure to improve. Indicators are a good gauge to see where we stand, however it really depends on which indicators we are talking about, and sometimes it’s not correct to compare Malta with say, Germany or France, on particular issues.” Asked about how Malta is currently faring compared to other member states, Mr Pace Ross identifies the services industry as performing well, as well as tourism: “last year was a record year and we had successive record years apart from one year, so the indicators show that that is very positive for Malta.” On the other hand, he points out that certain pockets of manufacturing are no longer attractive, maintaining, “I won’t comment on whether that is good or bad as it’s not NSO’s remit, but we have indicators that show that there are pockets of manufacturing that are not doing well.” NSO is often commissioned to carry out studies to help private companies as well as government ministries and agencies make informed decisions. These entities then utilise NSO data to gain an empirical angle in order to help in decision-making tied to investments. Useful data need not
be specifically commissioned however, according to Mr Pace Ross: “every day we publish news releases which, if analysed properly, give clear indications on where a business person should be investing or what decisions they should be making. For example, if you take demographic statistics, we have localities in Malta where the average age is 35. So, is it ideal to open a pharmacy in that locality when you know that there is a high correlation between medicines and ageing people?” Broadening it to a national scale, he continues, “if you have a declining fertility rate – so less children and more ageing people – would you build a school or an old peoples’ home?” Mr Pace Ross goes on to explain that the areas the statistical office looks into are also dictated by demand. “We are encouraged to remain relevant and not be afraid to change or stop certain indicators or statistics which are no longer relevant to users.” At a European level, Europe 2020 targets provide various indicators which the Commission requests from statistical offices. Mr Pace Ross likens it to fashion, maintaining, “it is up to us to see that we are remaining relevant, as is the case with fashion companies – it is up to them to see that they are up to date with the market and in line with what the demands of their customers are.” cc
CC security
How to secure your business With crime on the increase, businesses can no longer ignore the need for robust security solutions – whether in real life or in cyber space. Here Jo Caruana chats to the experts to discover your options.
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e all know we need to protect the things that are important to us. As a result, most people will install an alarm at their residence, and maybe even set up CCTV to keep a close eye on their entrance or drive way. But what about the commercial side of security? When it comes to protection for businesses, business owners are faced with a completely different set of challenges – whether that’s the security of a large warehouse or shop, or even the threat of pillaging from staff members. Clearly, business owners need to be on the ball, although the concerns vary greatly depending on the industry.“The security exposure of different institutions such as banks, insurance companies, financial operators, gaming companies, medical practitioners, retail operations and so on, all vary greatly due to the very nature of their business, the information systems used and the value of the
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information that they work with. “For example, from a cyber-criminal’s point of view, a bank’s online banking system is a very ‘juicy’ (high value) target. On the other hand the leakage of a customer list to a competitor could prove catastrophic to a small service company such as an accounting firm,” explains Patrick Genovese, technical director and cofounder of InterTek Laboratories Ltd. “The scale of that risk, however, is not always proportional to the size of the business. For instance, a small law firm dealing with highly sensitive information, may need to adopt security measures that would normally be associated with larger institutions such as banks. As a business owner you need to be sensible and scale your security measures in proportion to the risk posed by a security breach.” With that in mind, Mr Genovese compares the impact of a computer virus taking systems down in two different scenarios. “In
“Never consider security to be a luxury but a necessity.” - Joseph Psaila, Security Service Malta Ltd 95
CC security
“The law requires you to have fire fighting equipment in place, including fire extinguishers and fire detection products such as alarms.” - Danjela Bianchi, Firetech Ltd the first situation, it hits a small retail outlet with two points of sale and, in the second, a large supermarket. With a little bit of forward planning, the retail outlet will easily be able to function for a day or two while its systems are down, but that is not the case for the supermarket. Thus, it is clear that every business must assess its unique needs individually.” Hence it is vital to know and acknowledge your business needs, as well as to assess the threats that you could be open to. “While staff and client pilfering, as well as break-ins, may be the primary concern for retail businesses, manufacturing companies might consider staff pilfering to be their main concern,” explains Anthony Tonna, director of Pincott Security Ltd. “In both cases there are solutions to the problem faced, and although none are fool-proof, the risk is controlled and minimised. “Naturally, success in this area can only be achieved by seeking out expert advice. With years of experience in the industry, we know the sort of issues that set a bank apart from a pizza restaurant. There are basics to be considered regardless, though, including the need for a security safe, intruder alarm and fire detection system. We wouldn’t advise any business to risk operating without one of those security safeguards.” Unfortunately, there is no denying that local businesses can no longer afford to take an ‘it won’t happen to me’ attitude, as many did in the past. “According to the 2013 Crime Malta Report, statistics show that crime in Malta, including break-ins, has risen by over 27 per cent since 2009. This increase is not something that can be ignored,” stresses James Sciberras, the technical team leader for the security division of security firm PTL. “It is never too early to think about securing your business. It is important to 96
consult security specialists who are able to guide your choices so that your business is fitted with the most appropriate and up-todate systems. We recommend working with companies or specialists that have many years of experience, and that are able to guarantee regular servicing and testing.” Most security companies would suggest that it is best to take a ‘prevention is better than cure’ approach to protecting your business. “In a world, where crime is on the increase, peace of mind can only come from knowing you have taken the right precautions,” says Firetech’s Danjela Bianchi. “While several of our business clients’ concerns do mirror those of a home owner, they do tend to be more complicated, and the risks are greater. After all, not only are you dealing with your data and belongings, but with the data and belongings of other people, which is a huge responsibility. The more you can do to prevent any form of damage, the better.” With this in mind, business owners tend to opt for a variety of products to protect them, namely intruder alarms, access control and CCTV systems. “Additionally, the law requires you to have fire fighting equipment in place, including fire extinguishers and fire detection products such as alarms. All of these are an obvious choice when setting up a business, whatever the industry,” continues Mrs Bianchi. “It really does make sense to invest in a safer environment for you and your employees.” Agreeing with that sentiment, Joseph Psaila, operations director for Security Service Malta Ltd, believes that all sectors should implement a strong business contingency plan. “Evaluate your security awareness and never consider security to be a luxury but
a necessity,” he says. “Always review your premises’ security and the security of the services you offer, and obtain professional security advice from an experienced firm. Don’t underestimate the fact that your business could be put at serious risk because of a security breach. A lapse could even lead to you not being able to reach your business objectives or goals. “Thankfully there is a variety of products out there to keep your interests safe, namely cash in transit services, static guarding, CCTV and alarm systems, security surveys and courier services. The latest technology is also helping to keep businesses even safer, through a combination of motion detection systems and the monitoring of alarm systems, satellite tracking for vehicles and security cases for the safe transportation of cash,” he explains. Naturally, today’s high-tech world has also created a whole host of new technology-based security challenges for business owners, and this is another aspect of security that cannot be ignored. “With stiffer competition from on-line selling, the selling process has changed the rules of the game,” explains John Portelli, managing director for Technology In Management Ltd, a company dedicated to IT security. “A company of practically any size can have an open shop 24-seven in today’s online environment. However online fraud has dissuaded many from taking the jump into the virtual world. “Plus, since many companies now hold most of their data in electronic form, keeping a tab on who has access to what data has become something of a nightmare! For instance, what happens when an employee holds on to data after they have ended their employment? How can this issue be managed effectively?
“According to the 2013 Crime Malta Report, crime in Malta, including break-ins, has risen by over 27 per cent since 2009.” - James Sciberras, PTL
“There are basics to be considered, including the need for a security safe, intruder alarm and fire detection system.” - Anthony Tonna, Pincott Security Ltd JUNE / JULY 2014
CC security “In this respect, the best approach is to know your weaknesses and identify your threats. When it comes to technology, new vulnerabilities and exploits are discovered on a daily basis. I recommend that a good vulnerability management tool should be part of your arsenal of tools used to fight cybercrime, and everything should begin with an adequate IT use policy that all employees sign when they join the company. “As for protection, well, traditional anti-virus software has become a thing of the past. Today we focus on endpoint protection, which is a collection of applications designed to protect your data from hostile code, but also to prevent unauthorised intrusion and any access to your systems, as well as the unlawful transfer of data, whether by printing, copying or attaching it to mobile phones or memory sticks.” Of course, technology has risen to the challenge to help meet the requirements of the latest security threats out there. “The threat landscape is continually changing and, thus, the tools used to defend our systems have had to evolve,” continues Mr Genovese. “That said, there is no ‘whiz bang’ latest-and-greatest technology for security of this kind – it is a continuous process of refinement. The IT industry today is effectively waging a cyber war against
many types of viruses and malicious content in e-mails, web sites, social media and more. “My advice would be to educate yourself as best you can – both you and your employees need to be aware of the sort of activity that looks suspicious, whether in
real life or in cyberspace. Additionally, follow the five ‘Ps’ – ‘proper planning prevents poor performance’. I am a strong believer that it is only by proper planning that your business would be able to weather a storm, should it hit,” he concludes. cc
“Follow the five Ps – proper planning prevents poor performance.” - Patrick Genovese, InterTek Laboratories Ltd
“When it comes to technology, new vulnerabilities and exploits are discovered on a daily basis.” - John Portelli, Technology In Management Ltd
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Seasons Event Caterers Catering for Your Events, Whatever Your Occasion Seasons Event Caterers are a highly professional and extremely dedicated event catering company, created by a team of catering and event management specialists which also forms part of Mizzi Organisation. Seasons take a modern approach to event catering, creating distinctive food made from seasonal local ingredients to meet the individual needs of each and every client. Services are relaxed, friendly and above all, very professional. Their reputation has grown by wordof-mouth not only for the provision of superb outside catering and the delicious food served but also for their style and the consistently high quality service provided. Seasons is led by an experienced, passionate and friendly team that is dedicated to making your event the best, from start to finish and can put forward proposals for glassware, linen, floristry, music, creative lighting, and design – in fact everything to complement the delicious food and irreproachable service.
Menus Menus are extremely adaptable, combining both contemporary and traditional food designs. Dishes have been put together to stimulate your senses with the sublime combinations that are put together. Classics are featured and served in a modern way with a twist! Most of Seasons’ clients have tailor-made dishes to suit their likes and their event. Menus can be created to suit personal taste, individual budget or the occasion’s theme. cc
monitoring, safekeeping of assets and oversight duties. Paul Mifsud (the bank’s CEO) explained that he sees this as a ‘stepping stone’ opportunity for both the bank and Malta to attract further business as it positions both the bank, as well as Malta, well amongst managers who may eventually seek full integration of their funds into the EU.
The bank is encouraged with the overwhelming response it has received in this regard and is very optimistic, he added. cc
For more information contact Charmaine Camilleri on T: 2090 6850 or E: sales@water.mizzi.com.mt
SPARKASSE BANK MALTA PLC offers Depositary Lite* solutions to Fund Managers Sparkasse Bank Malta plc has announced the launch of its ‘Depositary Lite’ solutions targeting Alternative Investment Fund Managers (AIFM) seeking to promote their nonEU funds within the EU. The offering is being made available as a standalone service within the bank’s AIFMD suite of services as the bank seeks to expand its offering internationally to EU and non-EU fund managers who are managing and seeking to market their non-EU funds on a private placement basis within the EU. *The Depositary Lite regime comes out of Article 36 of the AIFM Directive (conditions for the marketing in member states without a passport of non-EU AIFs managed by an EU AIFM), which states that the AIFM must ensure that an entity is appointed to perform depositary duties to the fund. These duties must be performed by a credit institution and include namely the provision of bank accounts, cash flow
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Trade link between Malta and Spain strengthened Express Trailers introduces new road service from Spain with four days transit An increase in trade between Malta and Spain has been experienced over the past few years mainly due to a number of new Spanish brands entering the Maltese market. Trade between Malta and Spain has always been ongoing. Over the past few years, especially with Malta’s accession to the EU, trade between the two countries kept registering positive figures. An increase in Spanish fashion brands, food and beverage products and pharmaceuticals in recent years kept business between the two countries on a positive note. Express Trailers have been transporting to and from Spain for over 20 years, during which the leading transport and logistics company developed a reliable and strong network of over 30 depots across the Spanish peninsula, including Portugal. This network keeps being strengthened. Last year in fact, Express Trailers established a collaboration with Spanish transport and logistics company Transportes
Tresserras which established a stronger and more reliable supply chain of chilled and frozen food products from Spain to Malta. This collaboration enabled bookings even for the smallest shipments throughout Spain, including the Canary Islands and the Balearic Islands. Now, together with its groupage sea service from Barcelona, Express Trailers has initiated a set of more flexible solutions with a new road service direct from Spain with a four-day transit time. The service includes departure every Thursday from Barcelona, arriving Malta every Monday and departure from Malta every Saturday, arriving in Barcelona every Thursday. The service also includes daily connection from Portugal to Express Trailers’ weekly scheduled departure to Malta from Barcelona. “Over the past months we have seen a growing number of requests from our customers for the collection of food products from Spain. In order to satisfy this demand in a reliable way, we chose to strengthen our connections to accommodate growing trade and potential new companies doing business with or from Spain,” explains Franco Azzopardi, Chairman and CEO of Express Trailers. Express Trailers’ services to and from Spain are currently handling the delivery
of retail and fashion products and all goods requiring a temperature-controlled environment thanks to the company’s fleet of reefer temperature-controlled and GPRSmonitored trailers. “Whilst Malta’s geographical position in the middle of the Mediterranean has and is still considered as a competitive advantage for hubbing of goods through Malta to the EU and North Africa, it poses challenges of accessibility. Our team at Express Trailers is actively exploring new modes and routes that will make Malta more competitive as a hub. This strengthened service to Spain is our most recent step in this direction,” concluded Mr Azzopardi. cc
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Obstructive Sleep Apnoea Obstructive Sleep Apnoea (OSA) is a common and debilitating condition affecting up to 10 per cent of the population. It often remains undiagnosed in patients, but has been found to be as widespread as conditions like diabetes and can affect people at any age, although is most prevalent from middle-age onwards. In OSA the upper part of the air passage behind the tongue, narrows and often blocks during sleep causing an interruption to breathing. This is called an obstructive apnoea. Obstructive Sleep Apnoea is characterised by loud snoring with episodes of silence. Sleep partners may report not just snoring but snorting and choking, as well as frightening struggles to breathe while asleep. Occasional brief obstructive events are harmless and are quite common in a normal adult. Each brief awakening required to reopen the airway passage destroys the normal sleep pattern and sleep is severely disrupted. This prevents the sleeper from enjoying sufficient deep sleep to feel refreshed and energetic the next day. Sleep Apnoea’s short to medium term
Small businesses can now opt for enhanced Maxicredit offered by HSBC Malta
symptoms include chronic fatigue, mental confusion, lower testosterone count which reduces libido and associated erectile dysfunction but is also linked to many other serious conditions if left untreated over the long term. OSA can in fact be a contributing factor for hypertension, stroke, diabetes, heart disease and ultimately, heart failure. Continuous Positive Airway Pressure (CPAP) is the most effective and non-invasive treatment offered to OSA sufferers. This therapy is designed to stop the air passage
from narrowing or collapsing during sleep by acting as a splint. Air is continuously blown through a mask (worn over the nose and/or mouth) at a positive pressure which holds the airway open thus preventing its collapse during sleep. cc
The current Maxicredit variable rate is 4.75 per cent. Customers also have the option of fixing the interest rate on their Maxicredit loan for two, three or five years. cc
For more details visit HSBC Malta’s website www.hsbc.com.mt, call Customer Service on 2380 2380, or visit any one of HSBC Malta’s branches.
For an appointment or for further information contact Technoline Ltd. T: 2134 4345; E: admin@technoline-mt.com; www.technoline-mt.com
Maxicredit business loans of up to €100,000 can now be obtained from HSBC Malta to finance the purchase of fixed assets for business purposes. This enhanced proposition enables borrowers to spread the repayment over the 10-year lifetime of the asset, though in certain cases this can be extended to 25 years. Through Maxicredit, customers can unlock the value of their home, which in most cases would also be their biggest investment. Maxicredit allows property owners to tap this equity and use it as security for a medium or long term loan. “Through Maxicredit, HSBC Malta is offering another unique solution in support of small business owners who are the backbone of the Maltese economy,” said HSBC Malta’s Head of Customer Value Management James Hewitson. “Maxicredit offers a lower interest rate and a longer term than with an unsecured loan, opening up innovative and affordable funding solutions that maximise the full potential of their investment.” 102
Seeking funding for the business? HSBC Malta’s Maxicredit proposition offers a number of flexible opportunities JUNE / JULY 2014
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Introducing an innovative fitness concept – By Xandru Grech Move, The Future Of Fitness, is a totally innovative and unique concept for those who would like to lose and burn extra fats, gain weight, tone, work specific areas or just stay in shape. All this with a minimum of 48 hours commitment in a year. I had been working on this idea for years and wanted to offer something that did not really exist. We are what one could call a personalised gym. We have no weights and no treadmills. I am a firm believer that if people are given personal attention they will manage to commit more and therefore get desired results. I also observed the changes that are taking place in everyday life. We are a generation of instant gratification. The what we could call ‘Now’ generation. So I asked: why should training be any different? I was sure there was a segment of the population that wanted quicker results in less time. First of all Move is situated in one of the most beautiful and upmarket locations in Malta – the Ta’ Xbiex Marina seafront. As a centre we are different for various reasons. We offer personalised solutions and get amazing results in just 30mins workouts thanks to our state-of-the-art future generation machines. When a person walks into Move we listen to what he or she would like to achieve and guide them in the right direction. In fact our relationship with customers starts, not ends, once they become a member. All our systems
and methods of training are personalised and are the perfect work-out for any person that leads a busy life and does not have time to train in a conventional manner. Move is also ideal for the individual who finds it hard to commit to training every day. We have seen it happen too many times. People start ok, but stop after a couple of weeks. We only ask for a minimum of 30mins twice a week. The Miha Body Tec (electromuscular stimulation) and the Power Plate (Acceleration Training) 30mins work-outs are always with an instructor and are amazing. They work and tone areas that are really hard to get to such as thighs, glutes, abdominals, arms and chest, and also improve blood circulation, bone density, skin tone and cellulite. Both systems activate all the muscles in the body simultaneously and therefore give a full body work-out. The work-out is intense and really gets to that deep tissue under the layers of fat. For this reason one can focus on two sessions per week for effective results. The Circle by Milon on the other hand is a computerised strength endurance circuit. Every machine in the circuit is personalised for each and every individual (weight, resistance, length and height) and after the initial setting, all one needs is his or her personal smart card. The system will guide each customer during training (how long to train for, speed and strength of training movements), save and register all training
sessions once the session is completed. Each round of the Circle is 17mins 30secs and we recommend two rounds per session. Believe me when I say that all methods work. It is what one does during the workout that counts and how s/he trains. Rest is also essential, because if a person is fully recovered s/he can push harder and work 100 per cent each session. That would not be possible if the body is tired. All the systems are easy, safe and effective, and are all medically approved and used overseas for medical fitness. At Move we also organise Group Classes and we currently offer Pilates, Boxing, High Intensive Training, Group Cycling, Yoga, Rip 60 suspension training and Hipos breathing techniques. These classes last 45mins to 1hr depending on the class. Whether one is looking to improve core, flexibility and general fitness or just searching for a bit of pure energetic fun, these classes are the answer. At Move The Future Of Fitness one can also test one’s genetic potential and get an individual personalised Fitness and Diet Plan based on the individual genetic results. With the DNA Fit results we would be in a position to create a tailor-made fitness and diet plan. This is really something new in the fitness industry and ground breaking. All one needs is a three-minute swab. We also offer nutrition solutions and work hand in hand with a qualified nutritionist. Come try us for a totally new experience. There are no limitations so don’t create them. The hardest part is making the first ‘move’. For further information call on T: 2131 0573 Mon- Fri 7am-9pm, Sat 7am-5pm. cc www.move.com; F: Move Fitness Malta
THE FUTURE OF
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Mobility boosts productivity, but what about the challenges? By Curt Gauci, Kinetix IT Solutions Director and co-Founder From the boardroom to the back office, employees at all levels are increasingly mobile and ‘wired’, using sophisticated smartphones in an effort to stay connected, get more done in less time and do their jobs better. Just look around at the number of employees using some type of mobile device other than their laptop to conduct business. In today’s world, organisations are moving quickly. In order to be more responsive to requests for information, employees need rapid and easy access to information. As a result, more people are using smartphones and devices to work outside the office as effectively as they could at a desk. Whilst this is great for productivity, it does pose management and IT with a number of security challenges that need to be addressed and that are often overlooked. The migration to a more mobile work environment poses significant new challenges for IT organisations. In earlier days, most companies took a hands-off approach and did not monitor mobile devices closely. But now, with more employees pressing for access to corporate networks and valuable data, IT management can no longer ignore smartphones. How can you support anytime, anywhere access for mobile devices while keeping your data and network secure? Despite the significant productivity benefits that come with mobility, this fastmoving environment is increasingly complex. Multiple devices and remote accessibility lead to increased security risks and manageability challenges, yet IT must balance the need for protection with the flexibility employees require in order to be more productive. In many cases people in management try to manage mobility more effectively by providing employees with devices that are easy to maintain and to control, and which support enterprise applications within a security framework. But they struggle to control user behaviour as employees like to select their own devices and then use them to access consumer applications too. There has been a blurring of the boundaries
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between business and personal usage, and many IT managers struggle to enforce company policies while employees demand more consumer-like devices and applications. In many other instances, employees use their own devices for work purposes which can leave IT with even more data and network security issues if not controlled properly. The main mobile security concerns are device loss or theft, application security, device data leakage and malware attacks. The use of mobile devices in the enterprise will continue to grow. As it does, companies can partner with solution experts to supplement their internal resources with the necessary outside expertise. In this way, they can: · Secure devices in a way that controls network and application access and protects valuable corporate data, in compliance with company security standards. · Provide support levels that enable users to employ their devices effectively and enjoy a positive user experience ‘right out of the box’. · Increase the productivity of mobile employees and their ability to communicate effectively with customers, colleagues, partners and others. · Manage the costs, and specifically decrease the total cost of ownership of mobility initiatives.
About Curt Gauci Curt is director and co-founder of Kinetix IT Solutions, a local leading IT Systems Integrator. Kinetix are HP, Cisco, Microsoft, Kerio, Trend Micro and Symantec certified partners. Having deployed mobility solutions in several local companies, Kinetix have a good track record of providing reliable and affordable solutions to help businesses manage all their devices and mobility and accessibility solutions, seamlessly and securely. cc
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Tech Review
Ever in search of new toys and gadgets, the exciting world of technology never fails to disappoint. Sarah Micallef discovers what’s got the techies’ tongues wagging this month. 01. Logitech Wireless Solar Keyboard K750 Making use of the latest renewable energy technology, the streamlined Logitech Wireless Solar Keyboard K750 uses energy from the sun to function, eliminating the need for battery hassles while improving your energy efficiency. The sleek and comfortable keyboard works by automatically connecting via a 2.4GHz wireless unifying receiver, resulting in a fully charged solar battery that can last up to three months, even in the dark.
02. Slingshot Facebook’s recently released messaging app, Slingshot, has been dubbed a Snapchat competitor owing to features that enable users to take a quick photo or video, customise it with colourful drawings, caption and send it to their contacts. The free app however, has received mixed reviews and has been met with a little bewilderment too, mainly because of one questionable feature — you can’t view an incoming ‘shot’ from a friend until you send a shot back to the sender. Unlike Snapchat or any other messaging app, this may act as a deterrent for some, though only time will tell if the techies over at Facebook have got it wrong.
03. Microsoft Surface Pro 3 The latest, third generation of Surface devices by Microsoft is the closest they’ve come yet to building a device that can replace both your tablet and laptop. The tablet, which you can supplement with an optional keyboard that attaches to the screen to make it very laptop-like, enjoys a larger screen size than its predecessor, and is easier than ever to use as a tablet, thanks to a thinner, lighter design and more sensible aspect ratio. The keyboard also enjoys a new look to that of the Surface Pro 2, coming in larger and bearing a more responsive touchpad, as well as the ability to prop it up at a more comfortable angle.
04. Samsung Galaxy Tab S Rumoured to be well positioned to finally knock the iPad off its throne, the Samsung’s new Galaxy Tab S line will be available as from July, and comes in 8.4 and 10.5 inch versions in white and titanium bronze finishes. The tablets’ AMOLED screen is the star of the show, boasting adaptive settings that change depending on what you’re using it for. Resolution is an eye-popping 2560×1600 (making it better than HDquality). It also outweighs (or the opposite rather) the iPad when it comes to physical specifications, coming in at 6.6mm thick, with the 8.4 inch version weighing only 10 ounces, and the 10.5 inch version weighing in at just over 11 ounces. Other noteworthy features include a built-in fingerprint scanner, an 8 megapixel camera and a 2.1 megapixel front-facing shooter for video chats. The processor is a 1.9GHz quad + 1.3GHz quad octa-core Samsung Exynos 5 processor with 3GB of RAM and 16GB built-in storage, boasting up to 128GB of additional capacity via micro SD cards.
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05. Ringly The latest in wearable technology, the (honestly) stylish Ringly is a cocktail ring that alerts you to messages and notifications from your phone, connecting via Bluetooth LE-technology. The corresponding Ringly app is available for iOS and Android, and enables the wearer to choose which notifications you want to receive and how you’d like to receive them — be it emails and texts or tweets and phone calls. It is equipped with four different vibration patterns and lights which allow you to control the frequency and colour of the notification depending on who it’s from. The first collection comprises four semi-precious stone options and is matted with 18K gold, providing a stylish way of putting your phone away while still receiving the notifications you deem important. cc
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STYLE
REVIEW
Best Dressed
04. Fashionable Flats
Give your workwear a summer lift that will see you from the boardroom through to dinner with our selection of seasonal office attire trends. 01. Pastel Timepiece Give your timepiece a warm weather update with a fresh pastel colour. Olivia Burton’s spring collection of vintage-style watches, for example, work perfectly for the office, and will give your look a sophisticated summer cool.
02. Classic Cream
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Thanks to designers like Nicole Farhi, Meadham Kirchoff and Richard James, neutrals, and creamy colours in particular, are really making waves. Rather than opting for the same hue throughout your look, mix and match shades and textures to pull this look off successfully.
03. Who needs Symmetry? Asymmetric lines and interesting shapes are a key feature of workwear picks this summer season. Opt for an asymmetric cut on a neutral coloured jacket or blazer to give your workwear a high fashion edge while still retaining a business-like feel.
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It’s a little hot to wear your trusty courts, and sandals may be a no-go in your office, but this season’s trendy flats provide a multitude of options. From metallic pumps to tasselled loafers and even brogues, give your work footwear a little interest while staying comfortable.
05. Go for Pink The major colour trend for menswear this season is pink. The variety of tones and shades available mean that you can integrate pink into your wardrobe in numerous ways – via a breezy pastel hue on a blazer or pair of trousers or making more of a statement via brighter tones. Dress up your pink piece with neutral colours like navy, grey or white.
06. Seeing Stripes While the humble stripe has seen many transformations, this season wear yours a little differently – opting for differing thickness and bold prints. Stripes work best worn on your top half rather than your bottom, so avoid looking like you’re wearing pyjamas by sticking to stripy tops and shirts.
07. The Pencil Skirt Pencil skirts have always been an office attire must-have, but with this season’s bright new crop of styles making their way into less formal occasions, you’re spoilt for choice whatever your dress code. Go for a bright midi or one featuring a lace overlay – sure-fire favourites this summer. cc
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CC meet the artist
The newspaper man
T
here’s something particularly captivating about Matthew Kassar’s artistic works. It isn’t merely the finished painting itself, but rather, the curiosity of what lies beneath the outermost layer of acrylic paint. His works are layered, not just symbolically, but physically too – there are layers of newspaper cuttings, glue, sometimes clay and other times sand, and beneath this layer still, there sometimes lies a papier mâché structure that juts out of the painting. You find yourself looking at a landscape of the beautiful Mdina set on a backdrop of hazy newspaper print, with a 3D effect for added drama. The result is very intriguing. I meet Matthew at his tranquil home in the village heart of Qrendi, which is where his studio is also located. The room is flooded with natural light, and scattered all around are messy tubs of paint, boards prepped
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with newspapers or clay ready for painting and, as one would expect, a healthy stack of newspapers. “It is my personal touch to never start painting on a blank board, there simply has to be a background.” From a young age, Matthew was drawn towards and fascinated by many different materials; an interest he picked up as a result of hours spent in his father’s carpentry workshop. “From an early age, I recall going to a printing factory and bringing off-cuts home with me. I never seemed to have enough and would ask my mother if we could go back for more. I also loved experimenting and playing with sand, sawdust, paint and glue at my father’s workshop. At the age of nine, my mother started taking me to art lessons at Palazzo de la Salle, and from then on I began developing my talent.” Matthew’s exposure and subsequent obsession with different materials led him
Photo by Lionel Galea
His trademark newspaper collage has earned Matthew Kassar a unique moniker and respected following among artistic circles. Martina Said meets the artist behind the memorable Mdina and Valletta landscapes, which linger in your memory long after you’ve seen them.
“It is my personal touch to never start painting on a blank board, there simply has to be a background.” JUNE / JULY 2014
Photo by Lionel Galea
CC meet the artist
to develop his distinct style. Back at school, he had started a series of paintings using newspapers – “I am obviously not the first artist to use newspapers in a painting; Picasso used them and all the great masters used newspapers. But I began with small pieces at first, covering small parts of a board. Over time, the parts got bigger and bigger – I once attempted to cover the whole surface of the board and I stuck with it, because I felt it worked. Art is dynamic, it always changes through different
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imagery, colours and materials, so it never looks the same.” A recurring theme is noticeable in Matthew’s works: he appears to revisit Maltese heritage and traditional symbols time and time again, which he says is a result of his deep sense of patriotism. “I feel very strongly about my Maltese roots,” he explains. “I think our cities, landscapes, villages and balconies are so particular, you cannot be indifferent towards them. But this sense of heritage wasn’t always a part of me: I started out as an abstract artist, experimenting a lot with different media, and I thought back then that you couldn’t apply new painting techniques to traditional subjects, but I was so wrong.” Matthew takes me through the process of his technique. As with most things, it all starts with an idea. He uses photos as a reference point for buildings and architecture and over the years, he’s amassed a collection of hundreds of photos. He singles out a few
from the pile, and decides there and then the subject matter of his next painting. “I go on to determine the size of the painting – it could be a large board or a small one – and then the technique. I go about prepping the board, with clay, sand, newspapers or papier mache for a 3D effect, and once that is complete, I start painting with acrylics. When using newspapers, the process is painstaking as each small piece is cut with precision and I only use words, no images. Each landscape or feature could be done in an infinite number of ways, such as Mdina, for instance. I concentrate on different angles, colours and form, and each work looks different to another.” Some of his works reveal an interesting 3D effect, a technique called ‘bassorilievo’, which he creates using the conventional papier mache recipe in the preliminary stage of preparing a board. “I wanted to combine our cities, heritage and traditional aspects of our islands with more abstract Maltese imagery
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CC meet the artist
“I wanted to combine our cities, heritage and traditional aspects of our islands with more abstract Maltese imagery and symbolism, such as the Neolithic spiral motif and eight-pointed cross.” Photo by Lionel Galea
and symbolism, such as the Neolithic spiral motif and eight-pointed cross.” Throughout Matthew’s first years at school, art was nothing more than a hobby he was passionate about, and he never anticipated that same hobby would transform itself into a thriving artistic career. “I never imagined I could study art,” he says. “Art to me is a way of life, something that is a part of me, not something you learn. But I did end up studying art at sixth form, under the tutelage of Alfred Chircop who was my mentor and who helped me refine my skills and talent.” He later attended the School of Arts, as studying his passion seemed like the most natural thing to do next. “You eventually realise that you cannot continue studying and attending courses forever, and need to start working, so I began teaching
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CC meet the artist
art, although I always tell my students that they are their own best teacher.” After three years in the making, Matthew hosted his latest exhibition earlier this year with 43 works, entitled New Places, held at the German-Maltese Circle at Messina Palace in Valletta and sponsored by Fimbank. He says the title of the exhibition may seem contradictory, seeing as the places he depicted in his works are far from new, “but I tried seeing these places in a new light, from a new perspective.” He says the feedback he
received was encouraging, particularly with the 3D aspect being a novel technique in his artistic repertoire. I ask Matthew whether he considers his latest exhibition to be a highlight of his career so far: “They always tell you that the greatest achievement will be your next achievement. I wouldn’t say it is a highlight as such, because my artistic career has been a process.” He compares it to a stairway, where each step is a new achievement, and is followed by another step, and another one
“I think our cities, landscapes, villages and balconies are so particular, you cannot be indifferent towards them.” after that. “You cannot skip a few steps to get ahead; in the end, you’ll end up getting hurt. We all experience difficulties and negativity in life, the important thing is that if you fall, you get up and and learn from your mistakes.” cc