The Business Observer - 9th February 2017

INTERVIEW

Issue 69

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February 9, 2017

Distributed with Times of Malta

THE DEMOLITION OF FREEDOM PRESS FREES UP THE SITE FOR MMH – AND FOR A BYPASS. PHOTO: MATTHEW MIRABELLI

e executive chairman of the Malta Communications Authority, Edward Woods, would like to see more Maltese firms sell through e-commerce but he said that would not be possible unless local postal rates were more competitive. see pages 10 and 11 >

NEWS Malta’s telecommunications network presently relies on cables to Italy, which is why the government would like to spread the risk by having one to Marseille. e good news? It would cost a maximum of €17 million, less than anticipated. see page 3 >

€2m annual ground rent for Marsa Shipbuilding Vanessa Macdonald Ablecare Oilfield Services Holdings is paying an annual ground rent for the Mediterranean Maritime Hub on the former Marsa Shipbuilding site of €2,038,224 – which works out to €1 per square metre per month.

“People think we got it for free but we are paying one of the highest ground rents. It was a clean deal. We got no favours,” MMH managing director Paul Abela told The Business Observer.

Ablecare Oilfield Services Holdings won a competitive bid by the government for the 175,000square-metre site to be used as an oil and gas facility. The concession is for 65 years, and the

company is bound to make an investment of around €55 million over the next 10 years.

However, the concession was not made through a parliamentary resolution – even though it was for government land – which means that little was known about the terms.

There have been a number of PQs posed about them since then with typically unhelpful and uninformative replies.

Sources familiar with the process said that whether such concessions went through Parliament or not was somewhat of a “grey area”, depending on whether the request for proposals was considered to be a tender or not. In this case, the land was given on emphyteutical lease through

Malta Industrial Parks on August 1, 2016, a model used for industrial sites in the past, such as the Lufthansa Technik hangars. However, more controversially, it was also used more recently for the hospital site, meaning that the terms of that contract were not subjected to public scrutiny.

Mr Abela was somewhat defensive about the contract, as is apparent from his replies above, but was perfectly happy to share the key figures, confirming not only the ground rent but also that the upfront payment was €750,000.

“Going through Malta Industrial Parks is quite normal as this is an industrial site. It is the most continued on page 3

NEWS e Curia is taking a good hard look at its operations, tightening up on the collection of arrears, and outsourcing the running of its homes for the elderly – determined to focus its expenditure on its social mission: the vulnerable. see pages 5 and 6 >

ANALYSIS Volatility in currencies, commodities and capital markets were cited as the biggest risk to investment decisions by global investors, in an EY survey which looked at the impact of Brexit. see page 8 >

e Business OBSERVER

| February 9, 2017

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NEWS

‘Site to be open for businesses’ continued from page 1 efficient structure as it places us within the government’s industrial policy – and the associated legal framework,” he said.

Ablecare had already been using a small part of the site prior to the RFP and is now trying to keep it at least partially operational while it brings the site up to scratch.

Tons of debris have been removed from the site: “No one had ever done any housekeeping!” he said. Infrastructural works are going on across the site, with maintenance and refurbishing of Shed 4 already started, and the rest planned for the near future.

A significant part of the initial investment – being financed in part through €15 million in unsecured bonds – will be the dredging of the quay to enable oil rigs to come alongside. This will only start on February 13 as MMH first needed to complete all the associated processes involving the Planning Authority, and Environmental Resources Authority, among others.

Some of the silt is contaminated – although not hazardous or toxic – and will need special handling. In fact, it will be exported to Norway – to one of the very few facilities that accepts this type of waste.

Another major investment will involve the former dock, which is beyond economical repair, although Mr Abela said that it was premature to talk about the company’s plans.

He explained that the site would be “open for businesses” to operate from: “This is a national asset which will be made available to promote Malta’s oil and gas, not necessarily under exclusive ownership for MMH; we want it to be a catalyst and facilitator for operators in the marine industry to have a hub from where to service clients from storage to maintenance etc.,” he said, adding that this approach was behind the renaming to Mediterranean Maritime Hub last January, creating “a white label identity for the facility”.

The other significant change to the site is probably the most visible to passers-by – and will probably prove to be the most popular with the public.

The short-cut through Dock 7 had proved to be very popular with commuters and MMH kept it open – albeit rerouted. The government recently demolished Freedom Press at Addolorata Junction, which lies within the concession. A permanent bypass is now being constructed on part of the site which will pass at an elevated level behind the sheds, around the perimeter where Freedom Press stood, and back to Albert Town.

SOURCE: TELEGEOGRAPHY

€17m for Marseille cable A submarine fibre-optic cable linking Malta to Marseille in France would cost a maximum of €17 million – considerably less than anticipated, according to the executive chairman of the Malta Communications Authority Edward Woods.

Finance Minister Edward Scicluna announced the government’s plans to have a submarine fibre-optic link between Malta and Gozo and another one linking Malta’s backbone to Marseille, France, in the Budget for 2017.

Malta’s telecommunication providers GO and Melita already have submarine cables – but all three go to Sicily, which Dr Woods said was not ideal.

“We are connected to only one country, Italy, and if anything happened there, whether it was natural, accidental or anything else, we would be stranded,” he told The Business Observer.

The authority sought advice from foreign experts and was pleasantly surprised to learn that it would actually be cheaper than anticipated as there are numerous submarine

cables from east to west to which Malta could connect.

Although the minister had mentioned that Malta would be seeking EU funds, this might not be that easy, Dr Woods said, although he said that the MCA had received considerable cooperation from the European Investment Bank.

Dr Woods believes that the role of the MCA is to facilitate the project and he would like to bring together the stakeholders, arguing that the business model would be sound.

“Malta could become a hub when it comes to connectivity, just as Marseille currently is. We could be even more sought after than Marseille as we can offer links to north, south, east and west. There is the potential to make huge amounts of revenue.

“I believe that the local operators should do it between themselves. It would cost much more for Melita to get a cable from Milan to Malta than what its share of €17 million would be – and it would not have to share it,” he said.

“We could be even more sought after than Marseille as we can offer links to north, south, east and west. ere is the potential to make huge amounts of revenue”

e Business OBSERVER

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February 9, 2017

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NEWS

6 bids for Church elderly homes The Church has received six bids for the running of its homes for the elderly, the first time that it is considering outsourcing.

The move was prompted by the introduction of national minimum standards for the sector – 38 set out in a 54-page document – which would require the Church to invest “many millions” to upgrade its homes, according to administrative secretary Michael Pace Ross.

“We are no longer experts at running homes for the elderly in the way that is expected today.

There are professionals in care homes who run them on more professional lines,” he said. “And investment is required to tackle everything from room size to ventilation and cooling, hygiene, food quality, and the ratio of staff to residents.

“We don’t need a five-star hotel but we want to meet and exceed the standards!” he said.

The outsourcing is only one element of a wide programme to raise the levels of governance at the Archdiocese, which is facing growing pressure on its finances.

In 2015, the Curia had a net surplus €222,000 but paid out €845,000 in subsidies (€187,000 of which was for the homes for the elderly), ending up in the red had it not been for unrealised gains from exchange rates.

Mr Pace Ross joined the Curia from the National Statistics Office a year-and-a-half ago, and is the first lay person to occupy the position – the result of ever-increasing demands and regulations in accounting, finance and administration.

His initial focus was on clearing up legacy issues such as arrears, and then on finding more efficient ways to provide services.

“There are certain rules set by the Archdiocese – but we have limited control over how our entities spend their money and on what. Although we can take corrective action where necessary, they are mostly autonomous,” he explained, adding that this was no different to any corporate group and its subsidiaries.

“WE DON’T NEED A FIVE-STAR HOTEL BUT WE WANT TO MEET AND EXCEED THE STANDARDS!,” SAYS CURIA ADMINISTRATIVE SECRETARY MICHAEL PACE ROSS (LEFT)

“Church homes for the elderly charge below-market rates – even for the beds ‘bought’ by the government”

However, the Church is not after increasing its profits: quite the contrary. All the money is funnelled back to those in need.

With the full backing of Archbishop Charles Scicluna, Mr Pace Ross has now embarked on a programme to refocus the Church’s ability to fulfil its social mission, particularly given the

demographic pressure that will increase in the future.

In fact, the outsourcing concession for the homes for the elderly would be for up to 60 years, to enable the successful bidder to recoup the investment that will be required – but the Church will retain 10 per cent of the beds for social cases

– and a direct say in who should occupy them.

Church homes for the elderly charge below-market rates – even for the beds “bought” by the government – but these do not generate enough income to sustain their operations, let alone to invest the “millions upon millions” of capital expenditure required to

bring them up to scratch. In 2015, they brought in a mere €84,000.

“The rates will remain subsidised and will be monitored by the Curia for the first five years.

After that, there will be reviews and any rate increases would need to be justified by them,” Mr Pace Ross said.

“However, over the years, we found that there was a veritable hotchpotch of different rates accumulated over the years, resulting in considerable discrimination.

The intention is to streamline them – prior to the outsourcing.”

Mr Pace Ross would also like to bring its debtors into line, noting that there were unfortunately those who abused the Church’s Continued on page 6

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e Business OBSERVER

| February 9, 2017

NEWS

Targetting arrears Continued from page 5 goodwill and simply did not pay the fees – for years on end – even though they can afford it.

Apart from chasing the debtors, on the whole with success, he is also ensuring that there are clear lines of responsibility to prevent future problems, with forms identifying which relatives assume responsibility for payment.

Unlike entities run on commercial lines, it is hard to imagine the Church being able to evict defaulters or to take legal action against them, but the risk of a public relations nightmare is outweighed by the numbers of genuine cases on the waiting list.

“Is it fair for someone who can afford to stay in a home to spend months and years without paying a cent? The residents are washed a few times a day, fed three times a day; we have care workers, nurses, social workers who have to be paid, utility bills which need to be paid. Are residents expecting that we do not need to pay these bills?

“If some of them cannot afford to pay, then the Church is there to help them. They are being assessed case by case and whenever residents claim to be social cases, we are inviting them to submit proof of some sort that they have low income. The burden of proof lies with them.”

The Church is in a unique position. The Archdiocese – the main group, if it were a corporate – has an annual income of over €34 million and almost 1,500 full and part-time staff, not counting the clergy and members of Orders, which would make it a substantial company in the business world.

The Curia – its financing arm, in corporate speak – provided €845,000 in subsidies in 2015, down from €1.1 million the previous year, but had it not been for the unrealised gains on exchange rates (yes, the Archdiocese also dabbles in currency exchange), it would have made a loss of €623,000. And of course, those exchange gains may not actually materialise.

Nearly going into the red has a tremendous power to focus the mind on neglected areas, particularly the arrears – not only in the Church homes but across the whole spectrum – which the team of a nearly dozen at the Curia is now chasing. There are people who used the Metropolitan Tribunal who have not paid their fees. And there are even parishes which have not paid up the percentage of their income that goes towards remuneration of the clergy.

“We are making sure that the rules are observed to the letter,” he said.

Looking ahead, the Church is also already planning what to do with the €200,000 it will save in subsidies for the homes for elderly, as well as the income it will get from the successful bidder.

The Archdiocese has joined forces with the Hospice Movement and will open St Michael’s Hospice at Sta Venera at the former Cini Institute, which hosted battered women and children. Three-quarters of the building provided by the Church, worth millions, is already vacant and architects

“Where we give a direct subsidy, we will be exerting more control to ensure it is being spent in a better way”

are currently working on plans for the internal layout.

It is also reviewing subsidies for its loss-making media and will be cutting down on costs.

“An assessment was made, and it was decided that in spite of all the other channels available, we need to have one media house

– incorporating RTK and Media Centre – to get the Church’s message across. But that means we will consider new channels, whether web-based television or new programmes.

“Where we give a direct subsidy, we will be exerting more control to ensure it is being spent in a better way,” he said.

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e Business OBSERVER

| February 9, 2017

ANALYSIS

Strong global investment appetite into Europe despite geopolitical instability Despite current geopolitical and financial market volatility, investment plans into Europe over the next three years are strong, with 56 per cent of global investors planning to grow their presence in Europe, according to the EY 2017 European attractiveness survey – Plan B for Brexit. This contrasts with the findings from the EY survey conducted last May, which found that only 36 per cent of European investors had a positive investment outlook for Europe.

Investors cited instability on the continent as their primary concern in respect to future investment plans.

However, Europe’s talent, innovation capacity and large, integrated market and production system are still valued by global investors.

Of the 254 global investors surveyed, high volatility in currencies,

commodities and capital markets was identified as the biggest risk to investment decisions in Europe (37 per cent), while economic and political instability within the European Union (EU), excluding Brexit, (32 per cent) and the impact of Brexit (28 per cent) were identified as the second and third biggest risks respectively.

Andy Baldwin, EY area managing partner for Europe, Middle East,

India and Africa, said: “It is encouraging that the investors we are tracking continue to have strong investment appetite in Europe despite the instability and mixed geopolitical environment. However, investor patience is finite. Europe’s historical investor appeal was built on certainty and predictability. Europe is in danger of developing an emerging market ‘geopolitical risk profile’ without commensurate retrns. For

“High volatility in currencies, commodities and capital markets was identified as the biggest risk to investment decisions in Europe”

the foreseeable future, pure economic factors will vie alongside political considerations in influencing finalinvestment decisions.”

Heightened geographic and political risks across Europe and the UK are prompting one in 10 companies with a presence in Europe to review their geographical footprint.

However, the survey finds that the UK’s EU referendum result is a far bigger concern for foreign companies established in the UK (33 per cent), compared with those that are not (15 per cent). Companies not established in the UK cite geopolitical and wider EU instability (31 per cent), coupled with the slowdown in trade flows (30 per cent) as more urgent concerns.

Fourteen per cent of foreign investors with a presence in the UK plan to change or relocate some of their European operations in the next three years should the UK leave the European single market. Overall, 11 per cent plan to modify their UK presence in Europe following Brexit. Germany was identified as the preferred destination for those investors moving out of the UK (54 per cent), followed by the Netherlands (33 per cent) and France (eight per cent).

Hanne Jesca Bax, EY EMEIA managing partner for markets & accounts, said: “Investment appetite across Europe is growing but business structures will need to flex to accommodate future and unpredicted changes. Mitigating the impact of possible increases in import costs, for example, will be critical.

But businesses should not only address the risks. They should also seek opportunities to capture new business and improve operational efficiency as they strive to grow and expand their business.”

Financial services (FS) companies are the least optimistic about their growth prospects in Europe over the next three years: only 12 per cent anticipate strong growth, while six per cent expect to “slightly reduce” their existing presence in the region. FS firms are also nearly twice as likely as manufacturing firms to identify EU instability (51

per cent) and Brexit (41 per cent) among the top three growth risks, with volatility seen as a much less severe risk.

The technology sector is leading growth into Europe with 72 per cent of respondents planning to invest in Europe in the next three years and, of those, 33 per cent expecting to grow their presence significantly – identifying Europe as a powerhouse in emerging technologies such as artificial intelligence, the Internet of Things and robotics.

More than 70 per cent of foreign investors say they have already felt some impact following the UK’s referendum on EU membership.

These investors have seen an impact in at least one area of their business operations in Europe and have cited operating margins, cost of purchase and sales, in particular.

Companies with a strong presence in the UK were hit the hardest, with 31 per cent reporting an increase in purchase costs and the same percentage identifying operating margin pressures.

Assessing and managing the immediate impact of Brexit on costs (largely import-driven) and supply chain are fundamental concerns for respondents, with 32 per cent and 27 per cent respectively highlighting these as urgent agenda items. Despite concerns over the geopolitical environment, only four per cent of respondents report being well-prepared for the uncertainty arising from new risks and a changing regulatory environment.

Baldwin concluded: “The financial impact of Brexit is not confined to the UK. The survey shows that 70 per cent of European businesses we surveyed have been impacted in some way.

European businesses and investors need certainty and want clarity on the future trading relationship between the UK and the EU27. In the meantime, we will likely see a pick-up in businesses reconfiguring supply chains and distribution arrangements to mitigate currency volatility and cost pressures. Flexibility and agility will be key.”

e Business OBSERVER

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February 9, 2017

INDUSTRY FOCUS

Interesting investments

Investment options have been squeezed by low interest rates for a considerable time. However, this doesn’t mean that investors have no options – just that they need the right advice.

Are you happy with the uptake of third pillar pension products?

What are you doing to encourage more?

David G Curmi

What are the pitfalls of investing in low-interest products given that the rates may rise? Should an investor look for flexible investments that they can re-allocate if they do?

Mapfre MSV Life CEO

Christian Debono

Mapfre MSV Life was the first provider of Personal Pension Plans in Malta when, late in 2015, it had two personal pension plans registered with the Inland Revenue Department, enabling savers to receive a tax rebate on their savings for retirement.

Since the launch of these approved Personal Pension Plans, Mapfre MSV Life has exceeded €1 million in premium income into these third pillar pension products. This is considered to be a very positive development especially in view of the fact that the introduction of tax credits for people saving into personal pensions was an important step in encouraging higher voluntary provision.

Mapfre MSV Life continues to encourage and promote the importance of starting to plan early for one’s retirement savings.

While we now have personal pensions and tax incentives for people saving for their retirement, it is important to engage with more and more people. We recognise the important role that employers have in educating their employees and providing them with access to financial education and products at their place of work. In this regard, we strongly believe that voluntary workplace pensions is the next logical step in encouraging take-up of personal pensions and we are looking forward to the enactment of the relevant legislation that will provide the framework for the provision of Voluntary Occupational Pension Schemes as announced in the 2017 budget.

We want to play an active role in developing a stronger long-term savings culture in Malta.

Financial planning is essential if you want to make the most out of your money: to grow it, protect it and use it to achieve your goals.

Financial planning can be as simple as you want it to be; we always encourage our clients to take the time to meet and discuss what their goals and ambitions are for their money.

We seek to help our customers understand their goals and devise plans that help them meet them.

It is vital to prioritise your goals and give adequate importance to all areas of financial planning – addressing your protection needs, retirement planning, managing your wealth and planning for your children’s education – and ensuring you review these annually.

Of course, there are many different ways to save and invest including savings accounts, bonds, property, shares and investment funds. Our financial planning advisers can help you select the best investment based on your specific needs out of all the available options through HSBC. We are also experienced in making personalised recommendations from a wide choice of funds including our range of locally-managed investment funds which have a very strong track record in the Maltese investment market and our globally diversified investment solutions, some of which have the objective to give you smooth annual returns over the medium to long term.

HSBC Bank Malta Network wealth director

“It is vital to prioritise your goals and give adequate importance to all areas of financial planning – addressing your protection needs, retirement planning, managing your wealth and planning for your children’s education – and ensuring you review these annually”

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e Business OBSERVER

| February 9, 2017

INTERVIEW

MALTA COMMUNICATIONS AUTHORITY EXECUTIVE CHAIRMAN EDWARD WOODS. PHOTO: STEVE ZAMMIT LUPI

Communicating for the greater good Vanessa Macdonald Maltapost has an essential role to play in promoting e-commerce, especially for local companies selling to local customers – and its rates for bulky mail could be a deterrent, the executive chairman of the Malta Communications Authority, Edward Woods, has warned.

He has a clear vision: to increase e-commerce in Malta, where only one in five businesses sells over the internet.

“Yes, 78 per cent purchase over the internet, up eight per cent over two years. What I am worried about is that the Maltese purchase from abroad and not the local market. Why should I have to pay so much to have bulky mail delivered? And why should the process be so cumbersome?

“They [Maltapost] are working on this very seriously, introducing lockers which are accessible 24/7, a network which they plan to enlarge. But it takes time. The trick is to move as fast as you can,” he said.

“For those retailers that handle delivery themselves, it is not an issue, but for those who rely on normal mail, that is where Maltapost comes into play. It has an essential role in promoting e-commerce. It knows it and we make it very, very clear that unless they pull up their socks, they will end up as a nonentity. Local mail volumes are down and falling.”

Dr Woods explained that the high cost of delivery is not a problem unique to Malta, as e-commerce tends to favour the country where the order is originating. So a British retailer would offer favourable arrangements to get merchandise delivered in the UK, for example.

However, when the order is cross-border, the cost of that delivery involves the postal entities in both the dispatching and the receiving country, something which could in some cases be negotiated on a bilateral basis – which is much harder for Malta to do than, for example, China.

Another aspect that he stressed was the use of mobile as he fervently believes that e-commerce of the future will no longer be over the internet.

“Our survey found that 59 per cent access internet via mobile phone but when you analyse by age, it is almost 100 per cent.

So we do expect that rate to go up and up.”

He also mentioned payment portals and an online presence as limiting factors, which is one reason that the MCA is trying to encourage retailers to treat their websites as virtual shops.

“If you went into a shop, you would be obliged by law to display the price. It should be the same online. I would like to see a portal with all the information there! If you sell shoes, I want to see the styles, the sizes, the colours, and

the prices! Why should I have to come to your shop to find out the price? I would buy so much more if the information were already available,” he said.

Dr Woods, who first joined the MCA on a part-time basis nearly four years ago, was clearly frustrated by his inability to do anything about this. For many years, the MCA’s hands were tied by its role as a pure regulator of the postal and telecommunications sector, but in 2014, the law was amended giving it more of an enabler’s role.

In fact, the MCA is tapping into €400,000 through an EU project which will help to create a platform for Maltese craftsmen who want to sell abroad, hoping to

foster collaboration between entities that might be too small to do it on their own.

The MCA, which has 71 employees, is also working with government agency Mimcol to find a networking location where a tech society could take seed – with Dr Woods saying that he hoped to announce something “in the months to come”. The MCA also set up a two-person unit three years ago dealing with innovation and research, as he believes that the authority also has a remit to futureproof the sectors, ensuring the economy is not stifled by lack of infrastructure – whatever that might look like in the decades to come.

However, there is another role that he thinks the MCA should

“Forget the hopeless bureaucracy... e point is that our bite is much stronger as we are there from ex ante to ex post and the powers we have regarding fines for contracts really make things change for the better”

adopt: consumer protection – which will bring it head to head with the Malta Competition and Consumer Affairs Authority.

He argued that the MCA was able to impose hefty fines on service providers – with regular €10,000 for breaches of contract – which “really bite”.

“We have felt on a number of occasions that we are the right authority to deal with certain aspects involving the consumer. As it is, we are very limited as to what we can do for them when it comes to service standards, and are only involved when there is a breach of contract.

“The consumer comes to us and we send them to the relevant authority – the MCCAA – which comes back to us for our opinion, which we send back to it, which then decides.

“Forget the hopeless bureaucracy... The point is that our bite is much stronger as we are there from ex ante to ex post and the powers we have regarding fines for contracts really make things change for the better.

“I believe in my personal opinion that communications, which is so important, should be dealt with by one regulator and authority, just as financial services is.

“It would be very simple to change the legislation. If necessary we could have joint jurisdiction with the Malta Competition and Consumer Affairs Authority.”

e Business OBSERVER

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February 9, 2017

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INTERVIEW

MALTAPOST HANDLES THE DELIVERY OF A SUBSTANTIAL AMOUNT OF E-COMMERCE ORDERS

Who will pay for roaming?

The EU announced a week ago that roaming fees should be history by mid-June, thanks to a steep drop in maximum wholesale roaming prices – the charges telecom operators pay each other when their customers use their mobile phones abroad.

Although the deal still needs to be confirmed by the full European Parliament and member states, there are still hurdles, the main one being who will foot the bill as telecom operators still need to pay each other to keep their customers connected abroad.

For Maltese operators, the quandary is compounded by the loss of revenue from roaming, with consumers worried that they could try to raise local rates to make up for this.

MCA chairman Edward Woods said that whether they have to raise local tariffs depends on what arrangement they can reach with the provider of the country where the client is calling from.

“Vodafone has no problem as it has a network across Europe so what they lose on one side, they would gain on the other. GO has also got agreements with some of the best operators in countries across Europe, and can agree on a rate so that they do not lose out locally. Melita is going to solve the matter in a different way – but I will leave it up to them to reveal how,” he said.

One of the unintended consequences of roaming could have been for consumers to buy a service from the provider in another country where rates were lower than Malta’s – but this has been curtailed through the so-called ‘fair use’ policy.

“The Nordic countries have very well priced tariffs. So strictly speaking you could apply for a mobile

in Finland, paying the Finnish tariff, which is a pittance, and use it in Malta as there would be no roaming fees.

“That would kill local operators, which is certainly not something we want! So there are safeguards built in, restricting your use of that tariff to 90 days, for example, and once that period is up, you would need to pay the local rates.

“We need to keep the operators we have and we need to make them stronger. Vodafone is stronger in mobile, GO in mobile and broadband, and Melita is very strong in broadband and television. So we don’t really have three operators strong in all the sectors.

We don’t want more operators – but we certainly do not want fewer,” he said.

It is not all doom and gloom for operators though, as all three bid for channels in the 800MHz spectrum, which was only freed up less than a year ago after diplomatic efforts to oust foreign operators using it illegally.

The spectrum will be in demand as it is a very strong signal – reaching much further, including through thick walls. It will also generate considerable revenue for the government.

Dr Woods said that following receipt of the three bids a few weeks ago, it was now a question of allocating the six channels on this frequency – one of which has legacy issues that will need to be solved.

“This will be – relatively speaking – the least popular one as it involves some outlay and some months’ delay! But we hope that the parties will agree between them on who will have which channels. If not, we will have to auction them off but I am confident that we will not have to resort to this,” he said.

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e Business OBSERVER

| February 9, 2017

CASE STUDY

PHOTOS: MATTHEW MIRABELLI

ANDREW GRECH, REGUS’S AREA MANAGER FOR MALTA

“What we are seeing here – in such a short time – shows that location is crucial for foreign companies as they want the external environment, and not just office space per se”

More than just a place to work There are numerous office complexes planned for Mrieħel but for now, Regus’s area manager for Malta, Andrew Grech, remains convinced that Paceville is the place to be – with hardly any purpose-built office blocks available between Ta’ Xbiex and St Julian’s.

In just an hour, he was interrupted by over a dozen phone calls about potential clients interested in Regus’s second business centre in Malta, which will be opening officially in a week’s time.

The offices, which take up oneand-a-half storeys in the Dragonara Business Centre in the heart of Paceville, are filling up fast since the soft opening at the beginning of December, with companies from a variety of sectors – aviation, medicine, IT, gaming and financial services – and he is convinced that it will prove to be even more successful than the Swatar centre, which opened just over eight years ago.

“What we are seeing here – in such a short time – shows that

location is crucial for foreign companies as they want the external environment, and not just office space per se,” he said, noting that some 99 per cent of Regus clients in Malta are foreign.

“For a start, many of the employees do not own a car and want somewhere within walking distance of their homes – which tend to be in Sliema and St Julian’s. Secondly, they love being able to walk out of here either during their breaks or after work and find so many places to eat and drink – not to mention being able to go for a swim!” he smiled, adding that when they had visitors from abroad, there were a few dozen hotels nearby in which to stay.

This was why Paceville was such a natural choice for Regus’s second centre and even if the Paceville master plan fizzles out completely, it has not been in vain as it highlighted many of the infrastructural limitations of the area – from its traffic to its waste management –

e Business OBSERVER

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February 9, 2017

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CASE STUDY

which Mr Grech believes will result in positive change.

The fact that so many of its clients are foreign shows that the Maltese culture with regards to offices is only changing slowly.

Just as the Maltese prefer to own their homes, they also prefer to own their offices – but this ties up important capital, Mr Grech explained.

Indeed, Regus has built up a network of nearly 3,000 centres in 1,000 cities, based on the logic that companies want flexibility and an efficient use of space.

“People actually work in a very small percentage of the office, if you consider the kitchen, bathrooms, waiting room, meeting rooms and reception. And people now work in a very different way since they are digitally connected, so they are not in the office from 9am to 5pm.

“The idea of a flexible workspace came from allowing them to have their own office area but to share the rest – of course, still having 24/7 access. Imagine, at the Dragonara Business Centre, we offer 270 square metres of common area, out of the 1,100 square metres total.

“However, considerable thought has gone into ensuring that this does not compromise their operations. For example, each company is given its own telephone numbers so that the receptionist can identify which company an incoming call is for and answer accordingly. Companies setting up in Malta find everything ready, from internet connections and furniture to

cleaning services and IT backup – and only have to pay one monthly bill.”

The set-up is also flexible, so companies can expand their office requirements as they grow – or shrink.

“The average company has three or four people, but we have others that have grown to around 12,” Mr Grech said. Some companies need short-term space for a particular project, while numerous companies respect the jurisdiction’s preference for ones that have “substance” and want to have a physical presence here, rather than just using their company service provider’s address.

Belonging to a worldwide brand like Regus has its advantages too.

For a start, the building was furnished with an extraordinary eye for detail, thanks to a team of Italian and French designers – in just three months.

And in addition, users of the centres are given automatic access to other Regus centres around the world – over 1,000 in the US and 114 in London alone – meaning that they can benefit from somewhere to work, with Wi-Fi access and kitchen facilities, as well as the ability to book meeting rooms.

Mr Grech notices some clients being shown round by his assistant and beams.

“The Regus chief executive officer for Europe and North Africa as well as the area director will be coming here for the official opening. It will be wonderful to show them how well we have been doing even before the ribbon was cut!”

REGUS BY NUMBERS Founded in Brussels, Belgium in 1989 and currently headquartered in Luxembourg Its 2.3 million customers have access to 3,000 business centres, 700 airport lounges and 18 million global Wi-Fi hotspots globally Every day Regus answers a million phone calls for its customers and every year it handles over two billion items of post

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e Business Observer is Malta’s leading business newspaper distributed with Times of Malta every fortnight.

EDITORIAL

Hanging on to our tax rate There are important considerations when an MEP decides to launch a melodramatic tirade against an EU member state.

The first is who the MEP is and what his or her agenda might be – and let us not be naïve: there are always dots to connect. Second is the substance behind it: anyone can claim that the sky will fall on our heads – but it takes more than an acorn to bring down a jurisdiction.

The third – and most important – is what Malta’s reaction should be.

Sven Giegold is a German, Green MEP and is a member of the Committee of Inquiry to investigate the application of Union law in relation to money laundering, tax avoidance and tax evasion. It is worth reading the actual text of his question in the EP: “While this Parliament has made the fight against tax evasion and money laundering a priority, Malta unfortunately exploits a loophole in EU corporation tax policy: it treats local income differently to international income. Local businesses have to pay 35 per cent on their profits; international corporations profit from a corporation tax rate of as little as five per cent. That is not social; that is not European. Prime Minister, I call on you to change that in the interests of the coherence of the common market.”

What prompted his interest? Is there any German interest in deterring German companies from setting up in Malta because of the attractive tax system?

Read carefully what Mr Giegold said: Malta’s tax rate is “not social, not European”. This is not about whether Malta is a tax haven or not, but about the changing global pressures which have turned perfectly legal and acceptable tax efficiency into a sinister infringement.

Malta’s imputed tax system is clever, innovative and quite unique, and it was completely approved by the EU member states – including Germany.

Tax in the EU remains a sovereign issue – but as long ago as 1997,

it became clear that some sort of code of conduct was required for the growing Union. When Malta’s accession loomed, there were various elements of the tax system which would have run foul of state aid and competition law, and most were changed. The system was approved in March 2006 – subject to a few tweaks – and in November 2006, all the member states, albeit with some moaning and groaning, agreed that Malta complied with the code. By April 2007, the changes highlighted in March 2006 were made.

Mr Giegold was referring in his arguments to a 2015 report on aggressive tax planning – which was not endorsed by the EU, and it comes at a time when member states insist ever more vociferously on reaping the tax rewards for their companies’ activities. As he said, tax migration is “not social, not European” any longer. It does not make Malta a tax haven, a term which means a number of things to different entities – but not in the sinister, cloak-and-dagger context he implied.

Does Malta have full transparency on trusts? Full exchange of information? Tax loopholes that were exploited in the past? Let those without sin cast the first stone. After all, Malta was at least consistent across all countries with its tax rates – unlike many other countries.

No one expects that all countries will become saints overnight: the important thing is that there is goodwill and real action – which is why Malta must stop avoiding the Panama Papers scandal.

Malta may need to tweak its tax rate eventually, not because it is a tax haven but because such a competitive tax rate is “not social, not European”. But the country needs to do that at the right time – when it can bargain it against something it needs in return from the other member states… including Germany.

Editorial Vanessa Macdonald, Assistant editor, Times of Malta.

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BUSINESS OPINION

Sustainable development of solar energy

Edward Camilleri The promulgation of legislation facilitating investment in renewable sources of energy, together with financial incentives, have been instrumental in encouraging investment to achieve Malta’s 10 per cent benchmark in renewable energy, in accordance with the EU 2020 targets.

The draft National Renewable Energy Action Plan (NREAP) highlights that since the introduction of financial subsidies and advantageous feed-in tariffs, installation of solar panels has increased substantially. This has resulted in a yield of 4.4 per cent in energy produced through renewable sources, primary among them solar energy.

This figure is expected to increase in the near future, particularly since the draft NREAP confirmed the impetus on solar energy as Malta’s primary source of renewable energy to reach the 2020 targets. This policy will be aided by the establishment of solar farms, announced by the government in recent months.

The draft solar farms policy developed by then Mepa in 2014 establishes guidelines for the development of solar farms by the private sector. Nonetheless, the development of solar farms may be problematic to achieve – not only due to the Maltese islands’ diminutive size but also due to the specifications enshrined in this draft development brief.

This brief limits the definition of a ‘solar farm’ to installations covering a footprint of equal to or greater than 1,000m2.

Since the policy aims to limit solar farms to urban areas, it is unlikely that such open areas are available for similar developments within development zones.

This renders cooperation between the public and private sector imperative if we are to ensure that the existing infrastructure can be upgraded to cater for the development of jointly owned solar installations.

The draft policy identifies rooftops, open spaces and disused quarries as ideal property which may be considered for the development of solar farms. However, the greatest obstacle in this regard will be the footprint criteria, since some ideal sites may not allow the required level of development. A potential solution would be to decrease or remove the footprint criteria in its entirety and bestow its incentives to installations which produce an established output, saving – of course – planning and design considerations which must always be taken into account.

Additionally, the development of such installations on the

rooftops of existing commercial buildings may be more feasible to achieve. Decreasing or removing the established footprint would enable additional participation by private investors and cater for technological advances, through which a greater output may be achieved from smaller photovoltaic cells, as well as integrated photovoltaic cells.

This option may also be more financially feasible than repurposing dilapidated and unused quarries as solar farms. Considerable investment must be undertaken to successfully develop a solar farm on such sites, leading to a longer return on investment.

Depending on the actual size of the proposed site, this end up being economically unfeasible on a long term basis.

The draft policy identifies areas in close proximity to urban areas with high electrical consumption as preferred areas for investment in solar farms. This is a reasonable approach given that one of the greatest problems concerning the generation of renewable sources of energy is its high rate of dissipation due to inefficient storage.

However, issues pertaining to the lack of available space to qualify any installation as a solar farm would persist, given the lack of land available to be used primarily for such projects.

A possible solution would be to extend the benefits envisioned for solar farms to developments in condominia, mirroring an approach taken by Germany and France to promote solar energy.

Through such a scheme,

“It would be erroneous to become overreliant on governmental schemes to invest in renewable energy” generated electricity could be fed into the electric grid through the feed-in tariff system in the form of credits, which are then deducted from the electric bill of the tenants.

Such an approach could be encouraged with regard to new buildings through deductions in licensing and building fees. The establishment of a set footprint or potential output with regard to rooftops could be set through a voluntary licensing scheme, with building licenses increasing or decreasing depending on whether the proposed benchmark is met.

Additional consideration should also be made for photovoltaic cells integrated with construction materials and infrastructure, especially considering the potential of this

technology in relation to highrise buildings.

Nevertheless, it would be erroneous to become over-reliant on governmental schemes to invest in renewable energy, mostly since the government is itself constrained by the EU State Aid Directive. It is important to ensure that prior to embarking on a sustained programme of photovoltaic proliferation, the proposed plan is both environmentally and economically sustainable, in order to contribute towards sustainable development as part of a long-term plan spanning beyond the EU 2020 targets. edwardcamilleri@sagajuris.com Edward Camilleri is a lawyer at SAGA Juris Advocates.

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APPOINTMENTS

New directors for PG Group

Directors Chambers adds two members

PG Group has appointed John Zarb and Ramona Piscopo as chairman and director respectively.

These appointments are aimed at strengthening the corporate governance of the board by creating the correct balance between the executive and non-executive directors.

Mr Zarb recently retired from a long career with PricewaterhouseCoopers, where he served as a partner between 1988 until his retirement. He served on a number of regulatory and professional boards and was involved in various business transactions in Malta and abroad.

Dr Piscopo, who is a practising lawyer, worked as an international tax lawyer in various European countries.

She currently heads PiscoPartners with offices in Zurich and Malta. She has extensive experience in cross-border restructuring and reorganisations of multinational organisations in various sectors including investment funds.

Vanessa Vella and Liga Capkevica have joined Directors Chambers, strengthening its presence both in Malta and British Virgin islands.

Dr Vella (bottom) is a lawyer with experience in financial services including banking, insurance, funds, and trusts and foundations.

She holds non-executive directorships and is the company secretary for a number of Maltese companies.

Ms Capkevica has education and experience in banking and accounting.

She is approved as a director by the British Virgin Islands regulator.

“We welcome Vanessa and Liga to Directors Chambers as experienced professionals ready to accept non-executive director mandates,” John Christmas, cofounder of Directors Chambers, said.

Cordina NED at HSBC Bank Malta Gordon Cordina has replaced Juanito Camilleri as non-executive director of HSBC Bank Malta.

Dr Cordina presently operates as a consultant on economic matters at ECubed Consultants Ltd, where he also holds the role of executive director.

Dr Cordina holds a visiting position at the Department of Economics at the University of Malta. He also holds non-executive directorships at St Martin Holding Ltd and its subsidiary Zarattini International Ltd. Dr Cordina was an NED at Bank of Valletta up to 2013 and until recently at MFC Merchant Bank Ltd. HSBC Bank Malta said in a company announcement that it also plans to appoint Alison Hewitt as non-executive director to replace Tanuj Kapilashramim subject to regulatory approval.

Mediterrania appoints senior director Mediterrania Capital Partners, the regional private equity firm focusing on growth investments for companies in North African and Sub-Saharan countries, has appointed Pacôme Zahabi as senior director for Sub-Saharan Africa, based in Abidjan.

With 20 years of professional experience in the finance industry in Africa, Mr Zahabi is responsible for identifying new investment opportunities and driving financial and risk analysis of potential projects. He is also in charge of the legal processes and negotiations related to new investments, for the monitoring of Mediterrania Capital Partners’ portfolio companies in the region as well as for the exit strategies.

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e Business OBSERVER

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STOCK MARKET REVIEW

Time to focus on dividends Edward Rizzo Since the financial year-end of the large majority of companies listed on the Malta Stock Exchange is in December, these companies must publish their annual financial statements by April 30 at the latest.

The annual financial reporting season will be commencing within the next two weeks. HSBC Bank Malta plc will be publishing their 2016 financial results on February 21 followed by Malta International Airport plc the day after.

Unfortunately, some companies fail to announce the date of the publication of their financial statements well in advance of the actual date. It is customary practice overseas for investors to be notified of such dates several weeks before the event. The dates of publication of a company’s financial results on a semi-annual basis are the most important highlights of an investor’s calendar.

Apart from providing valuable insight to a company’s performance – and at times its future outlook – the publication of a company’s financial statements twice a year also coincides with the announcement of the payment of dividends to shareholders.

Dividends were always an important source of income for investors and the income stream derived from shares grew in importance in recent years following the unprecedented decline in yields across the bond market.

On an annual basis following the termination of the reporting season, I generally publish the dividend league table to depict those companies which are producing the highest dividend yields.

Since some companies benefit from tax incentives and distribute dividends out of tax free profits or reduced tax rates compared to the standard 35 per cent, the yields displayed in the annual dividend league table are based on the net dividends being proposed or paid to shareholders.

The net dividend yield measures the absolute net dividend compared to the share price. Due to regular movements in share prices, the dividend yield changes accordingly. In recent years, the share prices of several of the companies generating regular and

sustainable dividends to shareholders surged on the back of a significant increase in demand for income-generating equities following a sharp decline in official interest rates and corresponding yields across the bond market.

In some of my articles in the past few months, I remarked how the share prices of Plaza Centres plc and Tigné Mall plc have more than doubled in value since the second half of 2014 while the share price of Malita Investments plc is up around 53.3 per cent since mid-2014. Most of the other companies that have paid dividends at least annually, have also experienced similar positive performances in their share prices.

The significant rally in various share prices subsequently resulted in a decrease in the dividend yield as the growth in

dividends was far less than the increase in the share price. As an example, in the case of Tigné Mall and Plaza Centres the absolute dividends to shareholders increased by 80.2 per cent and 20.2 per cent respectively over the past two financial years. However, since the share prices more than doubled, the yields declined from 2.4 per cent and 4.0 per cent in 2014 to 1.9 per cent and 2.6 per cent in 2016 respectively. Meanwhile, the dividend of Malita paid out in respect of the 2013 to 2015 financial years was relatively unchanged and as such the yield declined from 4.1 per cent in 2014 to a current 2.8 per cent.

For certain types of companies, the dividend yield is one of the financial metrics generally used to measure whether an equity is attractively priced or overvalued.

“Investors need to be aware of other metrics to be able to judge whether certain companies may maintain or grow their dividends”

The more commonly used valuation multiples are based on profitability or asset values, depending on the nature of the company. The dividend yield becomes much less relevant for those companies seeking to expand internationally as these have the potential to increase their profitability exponentially in the event of a successful new contract or business development.

Although the dividend yield is still an important measure for the market in general, investors who are interested in income-generating equities need to look beyond the current yield before contemplating either an initial investment or an additional allocation to the equity or whether it would be advisable to dispose of an equity and seek an alternative investment.

Since dividends are not fixed from one year to the next (as in the case of interest rates on bonds) and may fluctuate or be eliminated completely depending on the individual company’s circumstances, investors need to pay particular attention to a variety of other factors such as a company’s cash flow generation, capital expenditure plans, overall leverage as well as potential changes in regulation.

Given the above, investors need to be aware of other metrics to be able to judge whether certain companies may maintain or grow

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STOCK MARKET REVIEW

their dividends. The dividend cover is a measure of a company’s ability to pay dividends from its profit generation. The dividend cover is calculated by dividing profits after tax by the net dividend. In other words, the dividend cover depicts the number of times that a company’s profits exceed the dividend distribution.

A dividend cover of two, for example, indicates that a company has sufficient profits to pay its dividend twice over from current earnings. While a high dividend cover is a good indicator, it should not be taken as a guarantee that the current dividend will be sustained in future years.

Meanwhile, a dividend cover of less than one indicates that a company does not have sufficient profits to maintain its dividend. Although companies can sell assets or increase borrowings to pay dividends to shareholders, a cover of less than one is a clear signal for investors that dividends may be under threat.

Most of the companies listed on the MSE paid a dividend in the last financial year with the exception of International Hotel Investments, FIMBank , Global Capital, Santumas Shareholdings, Malta Properties Company and Grand Harbour Marina.

It is interesting to note that none of the dividend-paying companies have an interest cover of less than one, which is a comforting signal for investors.

From the announcements issued so far, it seems that HSBC Bank Malta will be the first company to publish its 2016 annual financial statements. As I explained in my article two weeks ago, the main focus on the day will be on whether the bank will maintain its payout ratio of 60 per cent. A confirmation of this high dividend distribution

Company

Net Dividend Yield

Bank of Valletta plc

3.49%

GO plc

2.90%

Malita Investments plc

2.81%

Medserv plc

2.75%

Plaza Centres plc

2.60%

HSBC Bank Malta plc

2.48%

Malta International Airport plc

2.47%

MIDI plc

2.12%

Tigné Mall plc

2.01%

MaltaPost plc

1.95%

Mapfre Middlesea plc

1.72%

Simonds Farsons Cisk plc

1.46%

Lombard Bank Malta plc

1.14%

RS2 Software plc

0.90%

GlobalCapital plc FIMBank plc International Hotel Investments plc Santumas Shareholdings plc

Do not pay dividends

Malta Properties Company plc Grand Harbour Marina plc Based on share price as at 06/02/2017 and total dividend paid in respect of the last full financial year.

could help sustain the recent recovery in the share price which traded up to a three year high of above €2 from its 12-year low of €1.55 only six months ago.

MIA already confirmed the amount of passengers that passed through the terminal last year and this is a very good proxy for the company’s financial

performance. The company also published its financial targets for 2017 and the most important statement on February 22 will therefore be the final dividend being declared for approval by shareholders at the upcoming annual general meeting.

The importance placed by investors on dividend distributions

Non-US funds top list of best performing hedge funds - Preqin The US has been home to the world’s biggest hedge funds, but the industry’s most consistent strong performers generally hail from other nations.

Mauritius-based Arcstone Capital’s Passage to India Opportunity Fund, Great Britain-based Stratton Street Capital’s Japan Synthetic Warrant Fund and India-based Fair Value Capital Management’s India Insight Value Fund rank as the three top performing hedge funds over the last three years, according to research firm Preqin.

None are household names but at a time investors are searching for a crop of new winners, institutional investors are examining the list closely.

Arcstone Capital’s fund posted an average 44.84 per cent return while Stratton Street Capital’s fund had an average 36.4 per cent gain followed by Fair Value’s 35.9 per cent annual return.

Over the last five years, Taiga Fund Management, based in Oslo, Norway, ranked as the most consistent best-performing fund that selects stocks, Preqin said. Rio de Janeiro, Brazil-based Oceana

Investimentos followed in second place in the stock-picking category.

Preqin ranked the funds based on their annualised returns and how volatile the funds were. Preqin also included funds’ Sharpe ratios which calculate how much return investors can expect for the amount of risk they take and their Sortino ratios, which calculates return in relation to volatility to the downside, in the tallies.

The best-performing US-based funds include Loyola Capital Management, based in Lake Forest, Illinois, which was last year’s fourth-best performer with a 125 per cent return.

New York-based Extract Capital, which specialises in the mining and energy sectors, posted a 102 per cent return last year and returned an average 32.7 per cent between 2014 and 2016.

To be sure many of these funds are tiny – some have less than $100 million in assets – and many pursue niche strategies.

The average global hedge fund made 5.51 per cent last year after having lost money the year before, data from Hedge Fund Research show. (Reuters)

was amply evident last year when MIA announced a 9.1 per cent drop in the final dividend (from the record final dividend in respect of the 2014 financial year which had surged by 46.7 per cent), and the share price quickly dropped from the all-time high of €4.76 reached on the day of the publication of the financial results. Although passenger movements exceeded expectations during 2016, the share price has failed to regain its all-time high as investors await the upcoming dividend decision.

Although GO plc has not yet announced the date when it will be publishing its 2016 annual financial statements, the market will also be very attentive to their dividend declaration following the 42.9 per cent hike in last year’s dividend which was paid shortly before the acquisition of a majority stake in the company by Tunisie Telecom.

During the annual financial reporting season commencing shortly, dividend declarations by the various companies will be among the key items being looked upon by the investing community.

On their part, companies must aim to provide clear explanations behind their dividend recommendations, insight into the future dividend policy as well as a comprehensive review of possible upcoming developments.

Rizzo, Farrugia & Co. (Stockbrokers) Ltd (Rizzo Farrugia) is a member of the Malta Stock Exchange and licensed by the Malta Financial Services Authority. This report has been prepared in accordance with legal requirements. It has not been disclosed to the company/s herein mentioned before its publication. It is based on public information only and is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The author and other relevant persons may not trade in the securities to which this report relates (other than executing unsolicited client orders) until such time as the recipients of this report have had a reasonable opportunity to act thereon. Rizzo Farrugia, its directors, the author of this report, other employees or Rizzo Farrugia on behalf of its clients, have holdings in the securities herein mentioned and may at any time make purchases and/or sales in them as principal or agent, and may also have other business relationships with the company/s. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Neither Rizzo Farrugia, nor any of its directors or employees accept any liability for any loss or damage arising out of the use of all or any part thereof and no representation or warranty is provided in respect of the reliability of the information contained in this report. © 2017 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved

“MIA share price has failed to regain its all-time high as investors await the upcoming dividend decision”

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February 9, 2017

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BUSINESS UPDATES

Mapfre Middlesea launches loyalty scheme mobile app Mapfre Middlesea has launched a digital version of its loyalty programme, Insure & Save.

The Mapfre+ mobile application will facilitate the use of the reward system, allowing users to have all the information at hand, at all times. The mobile application will be officially launched at The Plaza in Sliema on Saturday between 10am and 1pm.

The mobile application will send clients notifications about outlets offering discounts in the vicinity, allowing them to search discounts by locality or brand and save their preferred outlets. It will also inform them when new discounts or exclusive offers have been added.

The application will provide clients with information about the outlets. Customers can then redeem their discount using the application, with a simple one-click method.

The first 500 customers to download the app will be given a free €10 discount to spend at the Plaza Shopping Complex. The app is available to download for free on Google Play and App Store. An info-

graphic video showing how to use the app is also available on the Mapfre Middlesea Youtube channel.

For more information visit www.middlesea.com Mapfre Middlesea plc (C-5553) is licensed by the Malta Financial Services Authority.

Eurobridge introduces Saving for your child’s future Europe-wide export service for the price of a coffee a day Whether saving for a rainy day or putting money aside for their first car or furthering studies, the dilemma of how to start putting money aside for when the little ones stop being so little is one that all parents face.

Until a decade or so ago, one would simply open a savings account in the name of the child. However, the persistently low interest rate scenario makes even keeping up with inflation an uncertainty. Furthermore, when the child reaches the age of 18, the parents have no control over the funds, meaning that the child can spend the money on anything.

What is the alternative? The Mapfre MSV Life Child Savings Plan provides a way for you to save regularly for your child’s future in a flexible manner. It is a medium- to long-term plan invested in the Mapfre MSV Life With Profits Fund.

The savings are protected from shortterm volatility in the market while enabling them to grow in line with annual bonuses that may be declared. The insured would then be able to receive a lump sum in the future, if the policy owner so decides – they control the rights.

One can make modest payments starting from the equivalent of just €1.31 a day, but also offers the flexibility to make any number of top-ups during its term. Savings are invested in a With Profits Fund, aimed at providing the insured with conservative but steady returns. You may choose how much to save and how often; take breaks from making payments should circumstances change without forfeiting any of the savings, and access up to €1,000 annually to cover any related costs.

Since the Mapfre MSV Life Child Savings Plan is an insurance product, it also includes important benefits such as the Death Benefit and the Terminal Illness benefit.

To learn more about the Mapfre MSV Life Child Savings Plan, contact Bank of Valletta on 2131 2020, or inquire online at www.bov.com//mytoolkit/bankassurancequote.aspx Bank of Valletta plc is an enrolled tied insurance intermediary of Mapfre MSV Life plc.

Mapfre MSV Life is authorised by the Malta Financial Services Authority (MFSA) to carry on long-term business of insurance under the Insurance Business Act 1998. Both entities are regulated by the MFSA.

EuroBridge Shipping Services Ltd is proud to announce that it will be starting its own export service from Malta to all Europe. The service will incorporate both groupage and full trailers.

As EuroBridge’s clients have come to expect from their import service, they are guaranteeing three fundamental points with this new service. First of all, Eurobridge will guarantee that groupage export rates will be the same as groupage import rates. Secondly, shipments will still be handled throughout directly from their local office, thus giving clients real time updates on their shipments. Lastly, but probably most important of all, deliveries to final consignees will start being done from the Tuesday of the week after the goods are loaded, with a guarantee that all shipments will be delivered within a week of being loaded.

More details on this new service will be provided by EuroBridge over the next few weeks but if you would like to learn more about it, they would be thrilled to hear from you.

Call on 2248 7000 or send an e-mail on sales@eurobridge.com.mt and they will get back to you immediately.

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BUSINESS UPDATES

Problems sleeping?

Obstructive Sleep Apnea (OSA) is a common and debilitating condition that 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 characterised by loud snoring with episodes of silence.

Occasional brief obstructive events are harmless and are quite common in a normal adult. However, each brief awakening required to re-open the airway passage destroys the normal sleep pattern and severely disrupts sleep. This prevents the sleeper from enjoying sufficient deep sleep to feel refreshed and energetic the next day.

Sleep apnea’s short to medium-term symptoms

include chronic fatigue, mental confusion and lower testosterone count which reduces libido and is associated with erectile dysfunction. It is also linked to many other serious conditions if left untreated over the long term, including 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.

Contact your doctor for further information.

Technoline Ltd: tel. 2134 4345; e-mail admin@technoline-mt.com; www.technolinemt.com

Multigas announces green thesis winners

KENNETH MICALLEF

KEVIN MOORE

CISI and IFS Malta strengthen ties to boost financial services training The Chartered Institute for Securities & Investment (CISI) has renewed its agreement with ifs Malta as its accredited training provider (ATP) in Malta, promoting qualifications, membership and supporting career progression in the global financial services jobs market.

The agreement means that the number of qualifications being offered by ifs Malta will increase, now covering: ▪ Managing cyber security ▪ International certificate in advanced wealth management

▪ Managing operational risk in financial institutions ▪ Certificate in private client investment advice and management ▪ Advanced certificate in global securities operations ▪ Diploma in investment operations Kevin Moore, Chartered MCSI and CISI director of global business development said: “We are extremely pleased to renew our partnership with ifs Malta, who we know are truly committed to the delivery of top quality training, as well as the development of high

professional standards in the Maltese financial sector.” ifs Malta president Kenneth Micallef said: “This renewed agreement with CISI is another important development for ifs Malta in its commitment to provide high quality qualifications to financial services professionals and will definitely contribute to improving financial services education in Malta.”

Those interested to take up a course of study through CISI in Malta should contact ifs Malta on tel. 2124 0335 or e-mail info@ifsmalta.org

Multigas Limited of Kirkop sponsored a dissertation competition themed on ‘Benefitting/ Protecting the Environment’, as part of its 90th anniversary celebration in industrial gas manufacturing and services. The competition was held in collaboration with the Institute for Climate Change and Sustainable Development of the University of Malta, whose prime objective is to conduct interdisciplinary research supporting and influencing practical policy decisions affecting the environment and social logistics.

The three winning dissertations demonstrated their applicability to policy in three key, yet diverse, areas. The first prize was awarded to Sara Hazzard for her dissertation titled ‘Interrupting Habit – Car-Use Habit and Personal Norm

combined: Implications for Malta’.

Deborah Mifsud came second with her dissertation called: ‘The Role of Public Transport in addressing Sustainable Mobility for the Elderly Population in Malta’, while Johann Attard’s work ‘Assessing Participatory Geographic Information Systems for the ecoGozo Initiative’, obtained third place. The prizes consisted of €1,500 for first place, and €1,250 and €500 for second and third places respectively.

The prizes were presented by Multigas Ltd director Mark Miceli Farrugia in the presence of CEO Michael Mifsud, University of Malta pro Rector Saviour Zammit, and the director of the institute, Maria Attard, who managed the dissertation competition.

FROM LEFT: MARK ASCIAK, ANNE HERSEY, CEO MICHAEL MIFSUD, MULTIGAS DIRECTOR MARK MICELI FARRUGIA (CENTRE), AWARD WINNERS SARA HAZZARD AND DEBORAH MIFSUD, MARIA ATTARD AND SAVIOUR ZAMMIT