The Commercial Courier December 2020 by Content House

THE COMMERCIAL/93

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

DECEMBER 2020/JANUARY 2021

Luxury in the capital Contemporary design meets historical identity

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE COVID-19 AND ITS IMPACT ON BUSINESS IN MALTA BEYOND 2020 / WILL COVID-19 DISRUPT THE CHRISTMAS BUSINESS? / BUSINESS COACHES DISCUSS BUSINESS LEADERSHIP IN SENSITIVE TIMES / NEW OPPOSITION LEADER BERNARD GRECH ON BUSINESS AND THE ECONOMY / A CHAT WITH NEW BRITISH HIGH COMMISSIONER TO MALTA CATHY WARD / THE ART OF SARAH MARIA SCICLUNA / THE LATEST BUSINESS NEWS

DECEMBER 2020/JANUARY 2021

THE COMMERCIAL/93

COURIER

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DECEMBER 2020 / JANUARY 2021

74 DESIGN TRENDS CELEBRATING CONTEMPORARY DESIGN WITHIN A UNIQUE HISTORICAL CONTEXT

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26.

FOOD TRENDS

26 INTERVIEW

Sarah Micallef discusses the process behind bringing Iniala Harbour House and Residences to life with Iniala Group Communications Officer Vanessa Azzopardi and Ela Perşembe of Istanbul-based multidisciplinary design studio Autoban, one of three firms tasked with the project’s design.

OF BUILDING A STRONG OPPOSITION AND PUTTING PEOPLE AT THE HEART OF POLICY-MAKING

81 BUSINESS

Noella Abramovic speaks to a number of experts from various sectors about the impact of COVID-19 on their industry, and how the pandemic can be seen as an opportunity for positive change.

After his first two months in office, Dr Bernard Grech, Leader of the Opposition and Nationalist Party, talks to Martina Said about his priorities, Malta’s economic recovery and the work that needs to be done.

Martina Said meets YCN members Mark Arrigo, Founder of MA Architects, and Sarah Cassar, Managing Director at St George’s Care Ltd.

19 IN FIGURES

36 INTERVIEW

THE YEAR OF THE PANDEMIC AND BEYOND… IN NUMBERS

“THE INDUSTRY IS HEALTHY, BUT THERE IS A LACK OF LONG-TERM VISION”

A look into the figures related to COVID-19 in Malta.

Benjamin Tabone Grech, Chief Executive Officer at Engel & Völkers Malta, discusses the effects of COVID-19 on the property industry, and what needs to be done to move ahead sustainably, with Sarah Micallef.

10 COVER STORY BEYOND COVID-19: HOW THE ECONOMY CAN SURVIVE AND THRIVE

20 IN DEPTH A COVID CHRISTMAS: WILL COVID-19 DISRUPT CHRISTMAS BUSINESS? As the Christmas season draws nearer, Sarah Micallef discovers the unique challenges which are expected to be faced by different sectors this year, and what local companies can do to minimise disruptions.

40 INTERVIEW STRENGTHENING A FIRM FRIENDSHIP New British High Commissioner to Malta Cathy Ward speaks to Rebecca Anastasi about what her tenure holds.

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STYLE REVIEW

MEET THE PEOPLE BEHIND THE YOUNG CHAMBER NETWORK

84 FOCUS COACHING BUSINESSES THROUGH CHANGE, TO CHANGE Noella Abramovic speaks to business coaches Nathan Farrugia, Marion Gamel and Jonathan Shaw about what steps every business should be taking in order to pull through trying times.

94 MEET THE ARTIST HARNESSING THE ELEMENT OF CHANCE Sarah Maria Scicluna chats to Martina Said about her curiosities as an artist, her solo exhibitions abroad, and combining traditional methods with modern techniques.

stablished in 1947, The Commercial Courier is the official magazine of the The Malta Chamber of Commerce, Enterprise and Industry. It is the leading business magazine, having one of the best distribution channels in the sector. The publication is distributed for free to the members of The Malta Chamber of Commerce, Enterprise and Industry. It is also delivered to leading businesspeople across the Maltese islands.

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

DIRECTOR OF SALES & BUSINESS DEVELOPMENT

This issue covers the month of December 2020 and January 2021.

EDITOR

Bernard Schranz

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

EDITORIAL COORDINATION

We care about the environment Because we care about the environment, The Commercial Courier is printed on FSC-certified paper, a certification which provides assurance that the paper is from sustainable and well-managed sources, thereby minimising its environmental impacts.

Edward Bonello

Matthew Spiteri CORPORATE SALES & BUSINESS DEVELOPMENT MANAGER

Sarah Micallef

CORPORATE SALES & BUSINESS DEVELOPMENT EXECUTIVE

PUBLISHER

Matthew Mizzi

Content House Ltd Mallia Building, 3, Level 2, Triq in-Negozju, Central Business District, Birkirkara CBD3010

SALES COORDINATOR

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

James Debono – Design Studio at Content House Ltd

Sue Ann Pisani Tel: +356 2132 0713 DESIGN

ON THE COVER Iniala Harbour House and Residences Photo by Christian Marot

MALTA CHAMBER’S BRONZE COLLABORATING PARTNERS DECEMBER 2020/JANUARY 2021

CHAMBER/93

EDITORIAL

DECEMBER 2020/JANUARY 2021

CHAMBER/93

EDITORIAL

Let’s not lose the lessons learnt December is a particularly special month, as it gives us the opportunity to reflect on the current year as we prepare for the new one. The festive season – while we sincerely augur that it will be a busy period for our colleagues in the retail sector – can also be a time of regrouping, analysis and planning for the months ahead.

nd while we look back on the past 12 months, we will probably all agree that none of us saw the absolute and unprecedented storm around this time last year. 2020 will go down in the annals as the year that surprised everyone and changed everything. With the spread of Coronavirus in the early months of 2020, the business community, as well as the rest of society, had to shift priorities, sharpen focus, change gear and adapt quickly to a completely new reality no one was expecting. The Malta Chamber embraced this time to come closer to its members more than ever before, as well as reach out to entirely new business sectors which had developed or reorganised over the recent years. The silver lining of the pandemic was that it gave us the correct context in which to truly focus on what matters most, as driven by the core values of The Malta Chamber and to align the positive energies of many wellmeaning business leaders in the country. Looking ahead, seeing that a number of reputable research institutions are reporting very encouraging developments in the commercialisation of their vaccine solutions and with distribution systems being deployed as early as December of this year, hope is real and action is near. Within this context, some very important questions arise. As we all look forward to a new form of stability, it would be a real shame to put all the good and enriching lessons we have learnt over the past 12 months behind us. It was a greatly challenging year, certainly, but it was also a year of much compassion, thought, reflection and realisation. The COVID-19 crisis pushed us into a tight corner, the only way out of which is a heightened sense of courage, ingenuity, cooperation, entrepreneurship and flexibility based on strong values of honesty, integrity and good governance. Some were agile in pivoting their entire business model to be inspired by sustainability and resilience, as they clearly read the signs of the times (probably after some sleepless nights), and

DECEMBER 2020/JANUARY 2021

grabbed the opportunities that were there for the taking. Our Chamber of Commerce has nurtured, supported and motivated this value and will continue to do so even after COVID-19, in order to enshrine this ambition of becoming better at a personal level as well as at a corporate level during every day of our lives. This is why The Chamber worked hard to promote a Business Re-engineering Scheme to Government in July. The objective was to ensure that all businesses would embrace the opportunity to analyse and test their economic models led by specialised business advisors who embark on a personalised restructuring journey. The Business Transformation and ReEngineering Scheme, we are pleased to note, was launched last month at The Malta Chamber, and we are convinced that it will make a real difference for businesses, the national economy and the quality of life of our nation. We are keen to see the value of continued regeneration appreciated as a positive energy and will become a natural objective in our business landscape of the future. We therefore trust that 2020 will be remembered not only for the personal sacrifices and the physical and emotional hardships it brought about, but also as a turning point into shaping sustainable business models that are driven by smart solutions and enabling a better quality of life for the inhabitants of this country. We are therefore to drive the right decisions as set by a healthy, strong and honest socio-economic and environmental vision. We need to encourage each other collectively. We must be vigilant of the shifting macro-economic landscape in the rest of the world. We must be on the look-out for ways we can become more sustainable, resilient and future-proof. It is the sum of the parts that will make our economy strong and competitive. Let’s look back on this year and possibly also remember the positive outcomes of a year that taught us the best lessons. After all, the finest steel has to go through the hottest of flames to reach its full potential. cc

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Beyond COVID-19: How the economy can survive and thrive Whilst the general consensus on the business outlook for 2021 seems to be one replete with uncertainties and challenges, the overall sentiment is that Malta will recover. Noella Abramovic speaks to a number of experts from various sectors about the impact of COVID-19 on their industry, and how the pandemic can be seen as an opportunity for positive change.

DECEMBER 2020/JANUARY 2021

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“W

e need to be careful not to lose the opportunity to reset. In such a massive crisis, the temptation is to avoid change and resultant challenges,” says Ronald Attard, Country Managing Partner at EY Malta. COVID-19 has already had a huge impact on the global economy, and this will surely affect profitability levels across all business sectors in Malta. Financial projections published by the European Commission and Maltese Government indicate that the impact of the pandemic was curtailed in 2020 through various short-term mitigation measures, but that recovery will

be prolonged. Recovery timeframes will vary according to the industry, and whilst it’s still early to have any indication of when things will go back to normal, a vaccine will ultimately be needed to restore confidence. Whilst Government has been quick and efficient in providing short-to-medium-term support – from wage subsidies to moratoria on borrowings and additional funding guarantees – a long-term view needs to also be considered, Mr Attard insists, drawing on the findings from the recent EY Malta Attractiveness Survey, which produced one very clear message, according to him: “we need to move our measures of success away

“We need to be careful not to lose the opportunity to reset.” – Ronald Attard, Country Managing Partner, EY Malta

DECEMBER 2020/JANUARY 2021

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“We have always proved to be resilient as a nation and I am sure 2021 will not be all doom and gloom.” – George Gregory, Partner, RSM Malta from purely financial metrics, such as GDP and profit, to ones which place long-term value for a broader set of stakeholders, namely employees, customers, society and the environment.” Mr Attard says that discussions on longterm value need to happen immediately, and possibly not just at country level. At a corporate level, companies that realise that focusing on non-financial metrics will create a stronger affinity with their employees and customers, will in turn create value for their organisation for years to come, he says. Indeed, the economic situation in 2021 is DECEMBER 2020/JANUARY 2021

dependent on the extent of the pandemic, says George Gregory, Partner at RSM Malta. “I believe we have not yet seen the end of the tunnel and any economic forecast can only be realistically projected once we have. Having said that, we have always proved to be resilient as a nation, and I am sure that it will not be all doom and gloom,” he states. Realistically, should the current situation persist till March, Mr Gregory is of the opinion that the outlook for 2021 will be just as bleak if not worse than what Malta is currently facing, and that in that case, a certain level of recovery should be expected in 2022.

In the short-term, the economy will continue to require an element of Government assistance, he foresees, such as the continuation of the COVID-19 wage supplement, however, he’s also of the opinion that Government aid should only be given to enterprises which are doing their utmost to restructure in such a fashion so as to hit the ground running once the pandemic starts to fade. With regards to generating growth within new sectors post COVID-19, Mr Gregory believes that Malta should focus on a number of niche sectors where technology can help 13

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“There are islands all over the world which are boasting full sustainability, whereas we're miles away.” – Benjamin Tabone Grech, CEO, Engel & Völkers Malta

Sustainability also remains on the cards for Air Malta, according to the airline’s Chairman, Charles Mangion, who speaks of the airline’s ambition to become one of the most environmentally sustainable airlines in Europe by reducing emissions and fuel consumption. The fleet replacement programme, in fact, continues with the arrival of the fourth brand new Airbus A320Neo at the end of 2020, he says. The pandemic has had an unprecedented negative effect on travel, and airlines have seen passenger numbers decline by almost 85 per cent. The International Air Transport Association has said that financially, 2020 will go down as the worst year in the history of aviation, recording losses of €70 billion. Whilst the much-awaited return to normality seems to remain a distant prospect for now, Dr Mangion is confident that Air Malta will pull through, and goes on to speak about how the airline has formulated a seven-year strategy which covers the COVID-19 period

us leverage our national advantages, such as AI and Augmented Reality. Engel & Völkers Malta CEO, Benjamin Tabone Grech sees 2021 as the year of change and opportunity within the real estate industry globally, believing that building typologies will be rethought, and real estate will be given new uses we were not aware of. “We will see changes,” he foresees. Since rental prices in Malta adjusted in 2020 due to COVID-19, this might affect sales prices in 2021, as there’s typically a nine-month lag for changes in one market to affect the other, he states. Nevertheless, if banks lend well and developers do not overstretch, according to Mr Tabone Grech, the market will remain stable and prices will alter with a more educated buyer. He foresees that buyers will, in fact, become more discerning in their choices, expecting more value for money and betterquality properties, whilst specific property ‘must-haves’, like outdoor space as a result of life during the pandemic, could also cause a shift in property demand. Quality and sustainability will be important keywords in 2021 and beyond, he insists, adding that the pandemic has given us time to think and reflect. “There are islands all over the world which are boasting full sustainability, whereas we’re miles away,” he argues.

“2020 will go down as the worst year in the history of aviation.” – Dr Charles Mangion, Chairman, Air Malta 14

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“The financial sector is instrumental in supporting the economy during these difficult times.” – Rick Hunkin, CEO, BOV DECEMBER 2020/JANUARY 2021

and beyond. Initiatives from this plan are already being executed and a new portal, booking engine and mobile app will be launched by the second quarter of 2021. The mitigation of a cost policy is also being implemented as planned, says Dr Mangion, adding that the airline is making sure that once the pandemic is over, it will be in the best possible financial, operational and commercial position for a quick and longterm sustainable re-start. Meanwhile, despite these uncertain times, Air Malta has also launched its Business Guaranteed winter flight schedule; a timetable intended to secure flight connectivity for the season and to deliver more peace of mind to the thousands who depend on tourism for their daily livelihood. Of course, Dr Mangion expresses how safety remains the airline’s top priority, going into more detail about the strict COVID-19 safety protocols that are followed on the aircrafts, along with procedures to deal with spreadable diseases on board. What’s more, Air Malta is also backing calls headed by the International Air Transport Association (IATA) for the development and deployment of a rapid, accurate and affordable COVID-19 test for all passengers before flight departure. The Chairman ends on a hopeful note, saying, “we are on the forefront not only to outlast the current state of affairs, but also to restore with new vigour our full operations.” Meanwhile, “the financial sector is instrumental in supporting the economy during these difficult times,” says Bank of Valletta’s CEO Rick Hunkin, stating that, from the onset of the pandemic, the bank took a leading role in helping the Maltese economy recover and thrive once again. Up until October 2019, he goes on to say, Bank of Valletta extended close to €252 million in loans to nearly 400 business customers facing liquidity shortages and bank financing for working capital requirements, and granted loan moratoria to more than 3,000 customers, whilst lowering interest rates on home loans. “I believe that all of this has helped the economy avoid a more severe impact,” Mr Hunkin says, in light of what to expect come 2021. Whilst admitting that COVID-19 has driven the bank into unexpected headwinds, and that it’s difficult to predict what will happen in the coming months, Mr Hunkin is confident that the bank is ready for different scenarios. “Bank of Valletta has a clear strategic plan that will ensure the long-term sustainability of the bank, and we will continue to work relentlessly and to invest heavily in our systems, processes and our people,” he concludes. cc 17

THE YEAR OF THE PANDEMIC AND BEYOND

€1,242 583,776 MILLION

deficit of Government’s Consolidated Fund by the end of October 2020

€6,377 MILLION

central Government debt as of the end of June 2020, a rise of almost €896 million when compared to the same period last year

0.6%

annual inflation rate for Malta, as of October 2020

€1,473 MILLION

value of imports from the European Union between January and June this year

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79%

total number of inbound tourist trips for the first nine months of 2020, a decrease of 72.7 per cent over the same period in 2019

the decrease in the total number of nights spent by guests in 3-star hotels in Gozo and Comino, compared with the same period last year

75.1%

6.9%

the drop in total outbound tourists for Q3/2020 over the corresponding quarter of 2019

the percentage by which Fitch forecasts Malta’s real GDP to contract in 2020

97.3%

12.6%

the fall of total cruise passenger traffic during the third quarter of 2020, compared to Q3/2019

70%

the decrease in the total number of nights spent by guests in both 5- and 3-star hotels in Malta, when compared to the same period last year

the amount by which seasonally adjusted GDP increased in the entire euro zone in the third quarter of 2020

60%

Government debt-to-GDP ratio, which is set to surge in 2021, as forecast by Eurostat

Sources: National Statistics Office; Eurostat; Fitch; Budget 2021

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A COVID Christmas: Will COVID-19 disrupt Christmas business? As the Christmas season draws nearer – a traditionally strong period for business – Sarah Micallef discovers the unique challenges which are expected to be faced by different sectors this year, and what local companies can do to minimise disruptions due to COVID-19.

David Xuereb President, The Malta Chamber “One can certainly say that the entire economy has been very heavily impacted by the unexpected crisis,” says The Malta Chamber President David Xuereb, highlighting that the sectors that took the lion’s share of the brunt are, unsurprisingly, those related to tourism and hospitality, with 20

travel having been greatly limited in 2020. But these were not the only sectors that were affected, he continues, pointing to manufacturing, which was holding rather strong at the beginning of the pandemic but is now facing logistical issues as more employees are requested to quarantine; and care home operators, that are operating under extreme conditions and around the clock. On the other hand, the President says that certain sectors have seen a rise in

production, capitalising on new demands and work-from-home opportunities. “COVID-19 has disrupted the supply and demand equations we had become used to and this has changed our priorities and the way we conduct business. It has also created opportunities for businesses to diversify their operations, think outside the box and profit from innovation,” he maintains. Focusing on the upcoming Christmas period, the priority, according to Perit Xuereb, DECEMBER 2020/JANUARY 2021

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“The country will register one of its toughest economic years in history, as an expected reduction of consumer spending power will surely leave its mark.” – David Xuereb, President, The Malta Chamber remains that of safeguarding our health and the lives of our vulnerable in a responsible manner. “While expressing an element of optimism, members from the retail sector are certain it will be a different December to what they had become accustomed to,” he says, adding that retailers are hoping for the much-awaited festive season to bring about some impetus into their business, albeit expecting sales to be significantly lower, particularly in certain sectors. “The extent of sales will be determined by how safe customers and other potential visitors feel in their outlets and, even more so, it will also depend on how much our retailers have managed to organise their business online,” he continues. The Chamber President goes on to forecast that “the country will register one of its toughest economic years in history, as an expected reduction of consumer spending power will surely leave its mark,” yet believes that the second batch of Government vouchers, expected in January 2021, “will be a very welcome immediate-term measure that will enable businesses to recover some lost ground at the beginning of the new year.” “At The Malta Chamber we have consistently expressed our unwavering trust in the health authorities’ recommendations on COVID-19 management, and have appealed to all to follow all health and safety guidelines strictly. This position stands and will continue to DECEMBER 2020/JANUARY 2021

on the opportunities generated by the same challenges posed by the pandemic, Ing. Chetcuti says that in a similar way, “the increase in business that is typical of the Christmas season may perhaps provide further opportunities for businesses to think outside the box and create innovative ways of turning challenges into opportunities.” Highlighting a number of short-term measures proposed to Government by The Malta Chamber in order to enable business operators to remain afloat whilst they seek to re-invent and re-invest in themselves, the Chamber CEO points out the need for a change in the wage subsidy scheme to allow for a more equitable distribution of the available financial support by basing the allocation of the wage subsidy on the loss of turnover rather than NACE codes. Apart from this, he says, “the Chamber also continued to reiterate the need for discounts on utilities, especially in relation to industry, and the importance of subsidies for night-time deliveries to reduce traffic and costs,” and champions short-term measures aimed at incentivising business to re-invent and re-invest in themselves that will enable the country to recover sustainably from the pandemic.

stand until this pandemic will form part of our history books,” Perit Xuereb continues, adding that the Chamber is pleased to note serious business leaders acting creatively and thinking in collective, collegial, honest and safe manners, and re-inventing themselves to be prepared for the new reality, making them resilient and future proof.

Edward Chetcuti CEO, The Malta Chamber “Over the past few months, The Malta Chamber has repeatedly encouraged businesses to look beyond the fog and to seek opportunities within the challenges presented by the current crisis,” explains The Malta Chamber CEO Edward Chetcuti, affirming that several operators in various sectors have been proactive in their approach, with the aim of safeguarding their business operations. Noting that these businesses have capitalised

“In the new world, good will no longer be good enough. This is not a journey anymore; it is a race. Standing still is not an option.” – Edward Chetcuti, CEO, The Malta Chamber

Photo by Inigo Taylor

DECEMBER 2020/JANUARY 2021

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“With encouraging news of a COVID-19 vaccine being steadily on its way, we cannot but share in the enthusiasm for a return to normality,” he admits, qualifying it with a warning. “There is no going back to the past. The past is behind us and businesses need to face the brutal fact that pre-COVID conditions are gone, possibly never to return, and the businesses that will survive and thrive after the pandemic are those that are able to best adapt to the post-pandemic realities. In the new world, good will no longer be good enough. This is not a journey anymore; it is a race. Standing still is not an option.” Making reference to numerous policy positions through the work done by the 31 different Business Sections, Economic Groups and Thematic Committees, the CEO says that The Malta Chamber will continue to do its utmost to facilitate dialogue with Government, the authorities, and all social partners in accordance with the needs of each business sector it represents. Finally, highlighting the Chamber’s Economic Vision launched last January, he maintains that “in 2021 we will work harder to operationalise this vision into real and tangible implementation, driven by the co-ordinated work of Government and the business community alike towards achieving a smart and sustainable island whilst establishing a measurable manner to monitor progress.” This will, Ing. Chetcuti believes, enable businesses to move from post-pandemic recovery to re-invention and re-investment, “as we aim to grow our economy whilst improving the quality of life for everyone, every day.”

Justin Zammit Tabona Managing Director, Infinitely Xara “The hospitality industry is one of the worst hit sectors by the COVID-19 pandemic,” says Justin Zammit Tabona, Managing Director at Infinitely Xara, operators of The Xara Palace Relais & Chateaux, the Xara Lodge, Michelin star restaurant de Mondion, Trattoria AD 1530, The Medina Restaurant, Palazzo de Piro, and the recently launched Xara Catering. “Our business is luxury leisure, and this has been nearly wiped out completely,” he laments, affirming that with the majority of their foreign clients being middle-aged, and therefore within the higher risk category for COVID-19, the company is hardly seeing any business from abroad.

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Photo by Antoine Azzopardi

“We are, at the end of the day, a family – the Xara family – and we stick together and pick each other up.” – Justin Zammit Tabona, Managing Director, Infinitely Xara There has been an increase in local guests at The Xara Palace however, he reveals, which comes as little surprise, with many people having not travelled in the last few months but still feeling the need for a break. “It has given us the opportunity to showcase our hotel to people based in Malta, who under usual circumstances would not have stayed with us,” Mr Zammit Tabona maintains. Looking ahead at the upcoming Christmas period, the Managing Director projects a “much quieter” Christmas this year. “We do not envisage much foreign travel to The Xara Palace during this period. Cases are increasing all over the world, and the message is very clear from all governments that this Christmas we will need to stick to our immediate bubbles and restrict family gatherings and party celebrations. We need to all make an effort to protect the vulnerable and the elderly, especially during the next few months,” he says. Utilising the time wisely, the team at Infinitely Xara will continue to challenge themselves and work towards adapting their offerings in these trying times, Mr Zammit Tabona continues. “We have also encouraged our team to take the time to study and pursue courses. The MTA Winning Programme was very well received, and two of our employees are actually working on their Masters,” he says, adding that he also meets up with the team on a weekly basis to come up with

different ideas on how to showcase their products. “We have opened a number of private dining rooms within the hotel so that guests can still enjoy gastronomy experiences within the safety of their own spaces,” he reveals, admitting that, while these are difficult times, it is important to continue to motivate each other to push through. “We are, at the end of the day, a family – the Xara family – and we stick together and pick each other up.” “Realistically, we all know that even if a vaccine becomes available in the coming months – which I am sure would certainly improve the situation for everyone – we are still looking at another difficult six months ahead of us. The authorities will have to continue to lend their support in various ways, giving businesses a chance to recover and potentially offer incentives to keep us all afloat for the Maltese community as a whole,” Mr Zammit Tabona concludes.

Angele Calleja Director, VCT Ltd “2020 has been a year like no other and I pray this year is over soon and we close this chapter once and for all,” says Angele Calleja, Director at lighting supplier VCT Ltd. Admitting that VCT has not been spared the effects of COVID-19, Ms Calleja affirms

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“If we are firmly focused and take the necessary measures as pointed out by the health authorities, we will slowly get back to the norm again.” – Angele Calleja, Director, VCT Ltd that while the company did not close down their operation completely, they had to make several arrangements to carry on in the circumstances. “We had some of our staff teleworking, where work was still being done one way or another, but with the difference that if we needed something, we needed to send emails or call, so tasks took longer to finish,” she says, adding that the rest of the team was at work, keeping to social distancing protocols. As for their showroom, the Director explains that VCT had no choice but to halt entry for clients. “We created a makeshift counter at the door, which was no easy task,” she says, admitting that, after 34 years in the retail business, “I couldn’t figure out how to make a proper sale by showing samples of our products at the doorstep.” Meanwhile, online communication with customers became an everyday norm, and slowly, the team managed to carry on with their business. Compared to last year, Ms Calleja points out that the company was certainly hit by a “sales downfall” but is firm in the belief that “if we are firmly focused and take the necessary measures as pointed out by the health authorities, we will slowly get back to the norm again.” 24

Moving on to projections for the upcoming Christmas period, she reveals that the company is offering special offers to its customers, which will run throughout December and will also include Christmas. “For us, COVID-19 may hinder business in such a way that, since social gatherings are not allowed, perhaps people will think twice about renovating their residences for the Christmas period,” she posits. Speaking of specific measures being undertaken by VCT to combat challenges brought about by COVID-19 during this period, Ms Calleja highlights staff’s positive approach to visiting customers, “making them more comfortable at our showroom”, and this also extends to online and wholesale customers, with the team doing their utmost to be more available and efficient where possible. As for what needs to be done to help bolster businesses in this difficult time, the Director maintains that “the local authorities have been very helpful in terms of providing support through employees’ salaries” – a measure which she feels is imperative for the time being, while suggesting potential further assistance on the part of banks in relation to money lending.

Discussing how best to combat this and keep their employees safe, the Directors affirm that “as soon as an employee is sick, we make sure that they are fully recovered before coming back to work,” while continuing to follow every instruction stipulated by the Superintendent of Public Health and the health authorities. As for what more can be done to support business in this difficult time, the Andrew Vassallo General Trading Directors suggest further support when it comes to paying wages for employees who need to go into quarantine, affirming that the “amount given for quarantine leave support does not cover everything.” Apart from this, they say, “the period within which the quarantine leave support is received, which is months after, puts a strain on the business.” cc

Marlene and Andrew Vassallo Directors, Andrew Vassallo General Trading Ltd “During 2020, we encountered several problems brought about by COVID-19,” explain Marlene and Andrew Vassallo, Directors at Andrew Vassallo General Trading Ltd, which provides solutions to various clientele ranging from aluminium, wrought iron and uPVC structures to stocking and provision of construction material for industrial and domestic use. “The hardest period was when we had several employees in quarantine, and we had to close a particular department within the company temporarily,” they reveal, admitting that while they still had to pay their workers, they only received a small amount as leverage. “One of our employees went into quarantine three times which affected us a lot, and also put a strain on production,” they continue. Despite this, the Directors reveal that the pandemic has not had a substantial effect on their sales, and looking ahead to the upcoming Christmas period, they are hopeful that they will be able to continue to go about their business as usual. “With regards to disruptions, the worst-case scenario is having clients or employees test positive or being in close contact with anyone who has been infected with COVID-19, which will result in quarantine periods,” they say.

“The worst-case scenario is having clients or employees test positive or being in close contact with anyone who has been infected with COVID-19, which will result in quarantine periods.” – Marlene and Andrew Vassallo, Directors, Andrew Vassallo General Trading Ltd

DECEMBER 2020/JANUARY 2021

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Of building a strong opposition and putting people at the heart of policy-making After his first two months in office, Dr Bernard Grech, Leader of the Opposition and Nationalist Party, is unwavering in the path he, his party and the country need to take to achieve economic stability and prosperity in the years ahead. He talks to Martina Said about his priorities, Maltaâ&#x20AC;&#x2122;s economic recovery and the work that needs to be done.

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Photo by Rene Rossignaud

ollowing his victorious bid in the race for a new leader of the Nationalist Party, and subsequent swearing in as new Opposition leader in October 2020, Bernard Grech has entered Malta’s political scene at a decidedly delicate time. Before delving into matters of economy and business, Dr Grech begins by saying that his first weeks at the helm of the Nationalist Party have been exciting and challenging, just as he expected them to be. “I am humbled by the trust which our Party members showed in me and in our manifesto, built on the commitment to strengthen and renew the Party, hence making it successful. The opportunity to serve gives me great motivation while, at the same time, it places upon my shoulders enormous responsibilities, which I constantly keep in mind,” he asserts. Beginning with his reaction to the economic figures announced in the 2021 Budget speech, which forecasted Malta’s economic position by the end of 2020 and for the year ahead, Dr Grech asserts that 2020 has indeed been an extraordinary year, one which could have never been forecasted and which heavily impacted all of Malta’s

economy, including its most important sector, tourism. “However, the warning signs for our economy started being noticed before the outbreak of the pandemic, so much so that in the first three months of this year, the growth rate had gone down to 0.8 per cent in real terms, despite the fact that the outbreak of the pandemic was post second week of March 2020,” he asserts. “During the past seven years, real economic growth averaged 6.4 per cent and the first sign of a slowdown was evident in 2019, where economic growth for the year was reported at 5.3 per cent, remarkably lower than past average growth rates. Even more of a concern is that the reported real growth for 2018 and 2019 rest on a significant increase in Government consumption, with an annual growth rate of 11.4 per cent and 13.9 per cent respectively. General Government consumption expenditure reached €2.4 billion (market prices) in 2019, in a period when the Maltese economy used to record elevated growth rates. In our analysis of the Budget estimates, we have questioned the unrealistic assumptions upon which Government is

“I’m confident that the local industry is resilient enough to survive these coming six to eight months, pursuant to which they can bounce back stronger than before.” DECEMBER 2020/JANUARY 2021

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“I believe in our private industry and that there is sufficient leadership to steward Malta out of this reputational disaster that has been single-handedly self-inflicted by this Government.” basing its forecast for the current year. Suffice it to mention that Government is forecasting a deficit of €1.2 billion, when the deficit in October had already reached €1.24 billion.” Equally questionable, he continues, is the validity of Government’s forecast for next year’s deficit, estimated to reach €750 million, based on the assumption that its recurring income will be higher than it was in 2019 – which was a year of economic growth. “The same applies to income from VAT and income tax, where logic dictates that Government income will be less than what it collected in 2019, hence the deficit forecast is unrealistic, to say the least. Being optimistic is all well and good but building a national budget on the back of such misguided assumptions could prove to be harmful for our economy.” Dr Grech believes Malta’s economy will start showing signs of recovery towards the end of the second quarter of 2021, when the general sentiment of the consumer would start improving based on the anticipated widespread availability of COVID-19 vaccines. “I’m confident that the local industry is resilient enough to survive these coming six to eight months, pursuant to which they can bounce back stronger than before.” However, the Opposition Leader continues that Government needs to put taxpayers’ DECEMBER 2020/JANUARY 2021

money into optimal use by supporting businesses further to use this slow period to reinvest, rebuild and reposition their operations to grow faster and better after the crisis subsides. “In Government’s 2021 Budget, the much-expected direction and vision which will take this country into 2025 is completely absent. It is evident that the Maltese economy urgently needs to reengineer its economic model and Government failed to give a tangible action plan on the economic direction this country needs to be heading towards,” he asserts. “This is the most worrying aspect rather than the registered deficit per se. If we, as a nation, succeed in navigating through the storm, then fiscal sustainability will be a natural course to achieve, because future productive activity will yield the required tax revenues to the state. Yet, Government’s Budget for 2021 failed to give this reassurance.” Homing in on the worst-affected economic sectors and their future stability as a direct result of the effects of COVID-19, Dr Grech asserts there is no doubt that the hospitality, tourism, aviation and retail sectors have been and will be exponentially impacted due to three factors. “Firstly, 80 per cent of incoming tourism has been wiped out, which is a massive blow to the entire hospitality supply chain;

secondly, a sizeable number of foreign workers returned to their home country, hence contributing to a lower degree of demand; and thirdly, to top it all, the overall disposable income of consumers has dropped and families are more cautious on how to spend,” he explains. “Obviously, the impact is now being felt even more as our country had developed an economic model which was based on excessive consumption with minimal attention being given to the creation of new, high value-added sectors.” Dr Grech continues that a full recovery in critical sectors, such as tourism, is expected to take between two to three years, adding that the situation is not only worrisome for hotels and restaurants, but also for other important economic sectors which rely on tourism, namely transport operators, retail, real estate and, to a lesser extent, iGaming. “Therefore, the prospects for 2021 rely on our ability to prove our resilience and not to succumb to the serious challenges we have as a nation. If we rise to the occasion, we will succeed in turning these challenging times into an opportunity by proactively changing our economic model to factor in the ‘new reality’ post-pandemic, which would be paramount to recover as a nation.” Switching the focus to another important sector for Malta, the financial services industry, which has also suffered blows over the past year following a turbulent political period for Malta, and the subsequent fallout of the country’s reputation as a serious financial jurisdiction, Dr Grech says that the Opposition has been warning Government that it was courting disaster when it showed no true commitment to strengthen the country’s institutions and to take concrete action on cases which exposed how vulnerable and susceptible to money laundering Malta has become. “It took different administrations long years of hard planning, good choices and bipartisan agreement to build a reputable financial services sector which attracted to Malta the finest names in the industry, making Malta more attractive in the process,” he asserts. “A robust financial services industry made us more competitive too. After the events of the past years, Malta’s name in industry circles today is associated with Pilatus Bank, Satabank, the difficulty for our banking institutions to secure long-term correspondent banking agreements and the ongoing Moneyval issues.” He adds that, irrespective of whether Malta is grey-listed by the Financial Action Task Force (FATF) or not, the damage to our economy has unfortunately already been done. “If we look at the local commercial banks’ pressing difficulty to retain their correspondent banking, leaving us with a potential risk of not being able to transact in the US dollar, the higher compliance 29

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costs local businesses are being challenged with, and the laborious process local businesses have to go through to open new bank accounts, these are a direct result of Government’s failure in this respect.” Dr Grech asserts that having fully functional and independent authorities should be a top priority for Malta. “Despite this scenario, I believe in our private industry and that there is sufficient leadership to steward Malta out of this reputational disaster that has been single-handedly self-inflicted by this Government. I trust the industry and I am confident that the practitioners will rise to the occasion to lift our country’s credentials back to the place they deserve.” Is he confident Malta can avoid being placed on the grey list, which will frame the country as one that represents a higher risk of money laundering and terrorism financing? “Yes, I am. If institutions are allowed to operate independently and take action on the flagrant abuse of office that we have witnessed over the last seven years, then yes – we would be giving an opportunity to our private financial services industry to pick up the pieces and rebuild our reputation. It will not happen overnight, but at least we can get on the path towards recovery. And the solution cannot be led by this Government. Those who broke the system so badly cannot be the ones that fix it.” Discussing Malta’s efforts in the realms of R&D and innovation, which, according to EY’s 2020 Malta Attractiveness survey, stand to be improved – despite a strong push by the public sector to elevate the country’s standing in this regard over recent years – Dr Grech says that technology and digital services are at the core of his Party’s economic policy. “Digital is part of our economic mantra and not just a tool.” “Technology was always a cornerstone of our vision on the back of which we built some of the most exciting sectors, including iGaming, FinTech and biotechnology. Unfortunately, over the last years, this Government has focused on those areas of the technology chain that exposed our jurisdiction to the highest degree of risk possible, most notably the crypto business, which has dealt untold harm to our international standing in this sector, not to mention that it was a complete failure as a new vertical.” From his end, Dr Grech says the Party is aiming to build on its successful formula. “Cut the hype, focus on substance, build legislative frameworks for sectors which can generate significant economic value added, put in place the mechanisms to create and attract talent, serve as a pole to bring in reputable players and then nurture the sector like we nurture our children,” he 30

asserts. “The PN will certainly not adopt shortcuts to economic success and will definitely not put in jeopardy the long-term standing of our country merely to attract a handful of dubious operations.” Looking ahead, the Opposition Leader singles out key areas that are shaping his vision for Malta, namely smart manufacturing, the green and circular economy, establishing an ecosystem in health and well-being, further exploiting opportunities in maritime technology, and embarking on an economic transformation with the employment of future digital technologies, such as Artificial Intelligence, Distributed Ledger Technologies, chatbots, cybersecurity and Internet of Things. “We shall seek sectors that create high value-added and that develop well-paid jobs. We shall move away from activities which thrive on cheap labour and the predominance of precarious employment, since our economy has always been and will always be one which is designed around people and not numbers on billboards.” Shifting the focus to his priorities in 2021, Dr Grech considers next year to be an important one, “as we get nearer to the conclusion of this legislature,” and aims to continue to strengthen the Nationalist

“We shall seek sectors that create high value-added and that develop well-paid jobs.” Party “and position it as a credible alternative to Government”. He adds, “we will be reaching out to social partners and relevant stakeholders in drawing up our priorities for the coming years and presenting an innovative manifesto which will address issues such as competitiveness, attractiveness and political stability, but will also map out the aspirations we have for our country, for our people and for our future generations.” Dr Grech concludes that he is firmly committed to putting the people as the focal point of the Party’s policies, and believes that “we have the right attitude, the right policies and the right team to take this country forward in the next phase of its development. To achieve this, we have to earn our electors’ trust,” he states. “To achieve that, we shall be fielding a strong, united, regenerated and competent team which will close this dark chapter of politics in our country and start a new brighter one which will make the country leap forward and regain the respect it duly deserves.” cc

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Raising the bar for green office design The emerging Central Business District has gained another feather in its cap, or rather, an impressive office development in the stead of the iconic former Farsons brewery. Martina Said catches up with Charles Xuereb, CEO of Trident Estates plc, to find out all about it.

he site of the former Farsons brewery, located opposite the historic aqueduct along Mdina Road, has been a respected and iconic building ever since its establishment in 1950. Back then, it was hailed as a fine example of industrial 20th century architecture, and today, under the property portfolio of Trident Estates plc, it is being transformed into a modern and vibrant green office campus without losing its connection to the past. The regeneration project is a mammoth undertaking, one which Trident Estates plc embarked on with world-renowned architect Ian Ritchie, who founded his practice, Ian Ritchie Architects Ltd (IRAL), in London in 1981. Commenting on the partnership, Charles Xuereb, CEO of Trident Estates plc, says “as a redevelopment of one of the island’s most iconic landmarks, we would not have done it justice if we didn’t aim to achieve another landmark development.” Mr Xuereb asserts that the aim was to design a building that takes into consideration one of the biggest challenges Malta is and will be facing going forward: the environment. “Ian Ritchie Architects is specialised in designing sustainable buildings and in cutting-edge design, making the firm 32

a natural choice. There was an instant synchronisation of thoughts with the architect, who understood both the historical significance of the site and the sustainable approach we wanted to take.” The project, which is in its last phases of construction, comprises seven low-rise and low-density terraced office blocks, connected by walkways, landscaped gardens, courtyards and terraces. From the outset, the provision of green spaces was a central part of the design and development brief. The CEO explains that around 43 per cent – practically half of the whole footprint – is being developed. “We could have built 40,000 square metres of office space, but we’re putting 40 per cent of that on the market, approximately 16,000 square metres. I’m an accountant by profession, so from a return on investment point of view, it took some convincing,” he jokes. “However, the foresight of the board and the architect has been proved right, in terms of prioritising quality over quantity, without compromising the return. A building like Trident Park is here to stay for the next 50 or so years, so what we build now will be there for the generations to come, making it really important to strike the right balance.”

“There was an instant synchronisation of thoughts with the architect, who understood both the historical significance of the site and the sustainable approach we wanted to take.” Each block on the grounds of Trident Park is approximately 17 metres wide by 31 metres deep and overlooks or leads to the gardens on either side. This was inspired by the design of Maltese palazzos, renowned for their ample garden spaces, complemented by abundant natural light and ventilation throughout the office floor plates. An above-ground, multi-level car park also sets Trident Park apart, creating an exciting experience for any tenant or visitor arriving on campus via a private driveway. Trident Park boasts several other on-site amenities, namely a conference facility that seats 170 people, a main reception, a wellness area and state-ofthe-art gym, as well as childcare facilities. All of these are flanked by the iconic Brewhouse, which is being re-developed by Farsons, says Mr Xuereb, who explains that respecting and restoring the architectural heritage of this iconic DECEMBER 2020/JANUARY 2021

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“Trident Park is driven by green technologies, which are installed and embedded within the very fabric of the building.” landmark while blending it with a new development was one of the biggest challenges of the project. The Brewhouse, which covers 7,000 square metres of industrial space, is a mixed-use development, which will include various food and beverage outlets, a visitor experience centre, retail stores, a microbrewery, a brew pub and industrial workspaces, as well as events spaces, which exude an industrial style and differ in look and feel to the rest of the development. With a target to inaugurate Trident Park in June 2021, the CEO explains that progress is well underway, “despite all the challenges that a project of this magnitude entails, besides those brought about by COVID-19. Construction work is nearing its end, and we are now focusing on the external works and the installation of the last pre-cast panels, while mechanical, electrical and finishing works are also progressing well.” Zeroing in on the green credentials of Trident Park, Mr Xuereb says that, by way of its design, the development aims to achieve BREEAM ‘Excellent’ certification – the world’s leading building sustainability assessment. “Trident Park is driven by green technologies, which are installed and embedded within the very fabric of the

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building. An example of this is the cooling technology – rather than using a conventional air conditioning system, we’re using a Thermally Active Building System, where over 90 kilometres of proprietary pipes have been cast into the concrete roof slabs, and the water that runs through them cools the fabric of the building.” Given the current competitive climate for large-scale office developments, with other such buildings being developed both within the Central Business District and beyond, I ask Mr Xuereb what sets Trident Park apart from the rest. “Trident Park sets itself apart from the rest by being a sustainable low-rise development with low impact on its surroundings which prioritises open and landscaped spaces and introduces innovative cutting-edge green building technologies.” Additionally, Mr Xuereb says that the design of the building, with its low-rise, recessed blocks, respects the skyline of the area, while elevating the overall quality within the Central Business District. “This was the vision of our Chairman, Louis Farrugia, whose idea was to raise the bar for Mriehel, which is already home to several established institutions, such as MFSA, BOV, HSBC, PwC and Deloitte. Doing this means carrying out works of general embellishment, roadworks, enhancing waste management, increasing and updating the street lighting and adding new bus routes to mention a few. Today, the Central Business District, which is a private-public partnership, includes over 38 members along with

Government, and together we are lifting what was formerly known as Mriehel to a new, prestigious destination.” Given the extraordinary circumstances of 2020, and the way work patterns and conditions have changed tremendously within a matter of months, does the CEO think that demand for office space will remain? “When COVID-19 first hit the island, the board’s initial reaction was to assess whether we should continue at this pace or have a phased approach to the development, but its direction quickly became clear – the environmental credentials of Trident Park and its unique, campus-style offering will result in a finished development that has a competitive advantage as and when the market recovers,” says Mr Xuereb. “We expect COVID-19 to have an impact on the market, not least on the rates, for instance, but we firmly believe it is a unique development and that the pandemic may give rise to opportunities too.” Looking ahead, Mr Xuereb says there are certainly challenges to face in the coming months. “The main one being delivering the project on time and on budget, as we are committed with the inauguration of Trident Park in June 2021,” he asserts, drawing on his previous 12 years of experience as Chief Financial Officer at Farsons Group. “Without doubt, our proudest achievement is seeing it all come together, and we are confident that Trident Park will be the kind of commercial development that is second to none on the island.” cc 33

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“We have a bright future ahead” GlobalCapital recently unveiled its new brand identity, LifeStar, as it focuses on the rapidly changing life and health insurance market. The Commercial Courier catches up with LifeStar Health Insurance Managing Director and Bupa Malta Branch Manager Adriana Zarb Adami to discuss the company’s vision, the challenges presented by the pandemic and remaining passionate about the job for more than three decades.

lobalCapital Health Insurance Agency Limited, which represents Bupa in Malta, has just undergone a transformation and is now LifeStar Health Limited. What do these changes mean for your clients? I must start by emphasising how excited and proud I am with this new name change. The new logo of LifeStar symbolises the direction the company has adopted to be more agile, dynamic and innovative. This is an exciting time for the company and our clients, who we want to reassure will continue to enjoy the same level of cover and benefits that they currently have with their existing insurance policies. This year, we have also rolled out more benefit enhancements. We have introduced alternative treatment cover, a €1,000-excess, provided a full refund on Outpatient Benefits for Bupa Malta International Cover Gold

Option, and extended the Bupa Malta Premier Cover to secure clients worldwide, not just in Malta. In addition, individuals and businesses who wish to join Bupa for the first time can benefit from our attractive new rates. We chose LifeStar Health because we want our clients to live the brightest life possible without any concerns. You have been working in insurance for 30 years. What have been the biggest changes you’ve witnessed in the industry over the years? Over the years, I have witnessed several changes – some happy, and some not so happy – but somehow, we have always managed to overcome them. One major change which had really concerned me was when Bupa Agencies Limited was bought by British American. I had worked closely with

the late Donald Darmanin, who was then the owner of Bupa in Malta. He was a perfect gentleman, and I admit that at the time, I was reluctant to embrace this change. Luckily, the changeover was a smooth one. Another change that worried me was the arrival of Brexit, which saw our principals in the UK move their headquarters to Ireland. This was a totally new set-up. Again, we managed this transaction with very few hitches, and today our relationship with our principals is better than ever before, as we continue working to provide our clients with the best health insurance plans. As head of Bupa Malta, what are the challenges you face? I’d say it has to be the tough competition, which is cutthroat at times. A few decades ago, Bupa Malta was the pioneer of health insurance on the island; we were the only DECEMBER 2020/JANUARY 2021

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ones to offer health insurance in Malta, and to date, we remain the only specialists in health – Bupa Malta does not offer any other form of insurance except health. We have a strong brand name and while it is the Rolls Royce of health insurance, Bupa offers very attractive packages for corporate clients and delivers a stellar service. Right now, COVID-19 is every business’ biggest challenge, but if there’s one thing this pandemic has also brought to the fore, it is the importance of having health insurance. Bupa Malta also offers international covers to clients who are not resident of the Maltese islands for more than six months of the year. What has been the highlight of your career? For us, our clients are not just numbers, and we treat each case with the utmost care. One experience I will never forget was when one of our very young members was involved in a car accident. He was taken to hospital, where he required various operations. I was so upset with the news that I asked our head office in the UK to help us cheer this child. The next day, I received, via courier, a huge box containing balloons, story books, nursery rhymes to be played, colouring books and goodies. We managed to deliver this box to the boy just before he was about to undergo an operation. Seeing his face light up is something I will never forget. What has been the driving force in your job? I’m a people’s person, and I love what I do. There isn’t a day when I don’t feel like showing up for work. Bupa Malta is my second home and my colleagues are my extended family. The buzz and everyday challenges energise me.

is very often inundated, and patients may not be able to be seen to right away. Even a day can seem like an interminably long time when health problems arise, and this is where many may underestimate the advantage of possessing health insurance, which allows you to see the specialist and hospital of your choice practically immediately. Clients with overseas cover also have the option of choosing to receive treatment abroad.

performance and improved corporate governance. cc LifeStar Health Ltd (C6393) acts as an insurance agent for Bupa Global DAC under the Insurance Distribution Act, Cap 487 and is regulated by the MFSA.

Bupa is considered to be the Rolls Royce of health insurance. What distinguishes Bupa Malta from the rest? Bupa is Bupa! It’s an internationally recognised brand that gives our esteemed clients access to 1.2 million medical providers all over the world. Besides, we also benefit from 24-hour health expertise. With the COVID-19 pandemic dictating the agenda for 2020, what is the vision for LifeStar Health in the immediate future? We will continue to support our clients as best we can in these difficult times. Our principals at the Bupa Head Office in Ireland are constantly in touch and updating us with feedback on how we can be of further service to our clients during the pandemic. The rebranding is not merely a cosmetic change, but it has involved a thorough restructuring process. Processes were streamlined and efficient working practices, together with the reorganisation of management structure, were implemented. This resulted in better

In this business, you are often fielding calls from those struggling with serious health issues. What have been your guiding principles in dealing with these? Health issues are very sensitive, and one has to thread very, very carefully. I listen to my clients attentively and am always there to offer help and support when lightning strikes. There have been many times when I found myself crying with my clients, as their struggles become pain. How have habits towards buying health insurance changed over the years? People have become more health conscious over the years. Our State hospital, which offers excellent treatment and service, DECEMBER 2020/JANUARY 2021

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“The industry is healthy, but there is a lack of long-term vision” Benjamin Tabone Grech, Chief Executive Officer at Engel & Völkers Malta and Chair of the Building Industry Committee within The Malta Chamber, discusses the effects of COVID-19 on the property industry, and what needs to be done to move ahead sustainably, with Sarah Micallef.

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e are a tiny jurisdiction in the middle of the Med, and whatever happens and whatever choices are made globally affect us in the long run,” begins Benjamin Tabone Grech, arguing that, in order to adequately gauge the impact of COVID-19 on the local property industry, one must first consider the global perspective. “The pandemic has made the big players in the global real estate market rethink typologies,” he explains, referencing the types of property that are available, and the space that is being used. Highlighting questions like ‘Do we need so much office space?’, ‘Are people happy to commute for an hour?’ and ‘Are people happy to live in apartments without outside space?’, Benji affirms that such considerations have been the biggest point of reflection, both locally and in the global market. And while one can only make assumptions for the future in these uncertain times, one thing the CEO is sure of is that the pandemic has instigated a change. “In the local market, the first reaction – which is very normal to our market specifically – is that whenever something happens, both good or bad, the first effects are felt in the rental market,” he explains, drawing on the example of apartment rental prices shooting up when the IIP programme was launched. “As the country went into semi-lockdown, with restaurants and bars closing their doors and many people working from home, a lot of international people who were here on a casual basis or who lost their jobs suddenly went home,” he says, affirming that some 6,000 individuals left the country in three months – a large number for a country as small as ours. “This led to an oversupply of rental accommodation, so landlords immediately understood that they needed to compete to get their apartment rented. The first reaction we witnessed was a 40 per cent reduction in rental prices,” Benji continues.

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The same cannot be said for the property sales market, however. While the sales market is always slower to react, Benji notes that in these circumstances, the lag will be longer still, as contracts weren’t signed and konvenji were postponed during the outset, meaning that the market was able to keep going, albeit at a slower pace. “People were still buying, so there was no reason the prices should change, and, as a matter of fact, they haven’t,” he says, adding that demand also remains strong, largely due to Government measures aimed at encouraging people to buy. He also notes that this period has led many to shift their focus on buying a house

rather than an apartment, possibly due to spending more time indoors and becoming more aware of their immediate surroundings. “People are now more interested in looking for houses to rent and to buy,” he affirms, lamenting that this poses its own problem, due to the vast amount of apartments built in recent years, resulting in the typology that is predominantly available on the market being comprised of single plots and small apartments with no outside space. “Finding a house is difficult because the prices are too high, since the supply of houses is much less than that of apartments,” he maintains. Looking forward, Benji calls for discussion about policy and typology, affirming that

“The industry appears to be healthy, but because of this lack of vision, in the long run it’s going to be a mess.”

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“We are proposing that for every contract, every contractor will be legally bound to provide a building owner’s manual, which will include the plans, the location of electrical points, the structural drawings, and so on.” this needs to be taken more seriously by the authorities. Taking Mosta as an example to illustrate the importance of town planning, he says, “we need to ask ourselves, ‘how do we want Mosta to grow? If this is going to be the main high street, what’s going to happen with retail? Do we need another 5,000 apartments, or another 500? If we do, what’s the timeline for them?’” Asking these questions is the norm in other countries, he continues, lamenting that “we just seem to think it’s OK to continue to build without planning.” And, as things have slowed down due to COVID-19, Benji feels that it is the appropriate time to reflect and start a discussion. “One thing that has motivated me and kept me feeling positive is finding people who share the same thoughts,” he notes, making reference to his involvement with The Malta Chamber and other entities. “The Kamra Tal-Periti have been working incredibly hard to change the planning process. The industry appears to be healthy, but because of this lack of vision, in the long run it’s going to be a mess,” he warns, continuing to emphasise the importance of planning. “When it comes to real estate or brokerage, whether the 38

market is good or bad, we will always sell – we focus on the service we give our customer. At the end of the day however, I would like a much better product to sell.” Through his work with The Chamber, Benji maintains that together with all the stakeholders, he is in full support of the changes being proposed to this end by different entities and committees, and one of their current focuses is the issuing of building owner’s manuals. “We are proposing that for every contract, every contractor will be legally bound to provide a building owner’s manual, which will include the plans, the location of electrical points, the structural drawings, and so on. This is provided in other countries, and we are proposing that it is implemented here.” Focusing further on opportunities created as a result of the pandemic, Benji speaks in favour of digitisation, asserting that “digitising any business can give you an advantage, making it easier for people to work with you and interact with your product. I think that’s where the opportunities are getting greater and greater.” As for his projections for the property sector in 2021, Benji believes that we’re likely

to see less cranes. “There have been some 70,000 units constructed over the past 13 years. Apart from that, we’ve always spoken about the number of vacant properties on the island, and that number, from the information that I have, has not reduced, but rather my feeling is that it has grown. I think that in 2021, we’re going to reach a point where there is a lot of choice, so people will tend to go for the better product,” he says, recalling the shift in demand from apartments to houses, and noting that the speculation of buying off plan has also reduced. As Chair of the dedicated committee on the subject within The Malta Chamber, he hopes to see the majority of the proposals by the Kamra Tal-Periti being implemented, a set of building regulations being put together and enforced, and perhaps a more holistic plan for the island moving forward when it comes to town planning; as well as building owner’s manuals being given upon contracts and the digitisation of the land registry, which will translate into less time for a contract to materialise due to notarial researches. cc DECEMBER 2020/JANUARY 2021

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Strengthening a firm friendship The relationship between the United Kingdom and Malta has deep roots, coloured by the islandâ&#x20AC;&#x2122;s integral membership of the Commonwealth of Nations as well as the profound friendships and bonds created between the people of the two countries. Cathy Ward, as the new British High Commissioner to Malta, is now the guardian of these ties. Here, she speaks to Rebecca Anastasi about what her tenure holds.

Photos by Bernard Polidano

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ver the course of the last 220 years, Malta and the United Kingdom have been bound through their shared histories, interests and destinies. Indeed, as a colony of Britain from 1800 to 1964, the island has had – at times – a somewhat fraught relationship with the former imperial power, but today, as an independent country, the political and business establishment are cognisant of the strength which lies in the relationship, and handle it with care. Yet, the ties between the two nations go beyond the machinations of diplomacy, for the Maltese and the British have forged deep bonds across generations: people have fallen in love and gotten married, having children which symbolise the union between the countries; local graduates have spent their formative years in London, Oxford or Cambridge; and English remains an official language of the Mediterranean island, colouring, to an extent, the way locals think and behave. Queen Elizabeth II and Prince Philip also lived a happy two years in Malta, when they were just newlyweds. The role of British High Commissioner to Malta is, therefore, a sensitive one, pivotal to the countries’ continued friendship. Cathy Ward, who has just stepped into the role, taking over from Stuart Gill – who had been in the posting since 2016, and who has now DECEMBER 2020/JANUARY 2021

retired – has a wealth of experience behind her, having worked within Britain’s Foreign and Commonwealth Office since 1994. “Malta has a special link with the UK, not only as a member of the Commonwealth, and due to a long-shared history, but because there is a unique connection with the Royal family and HM the Queen,” Ms Ward says. Indeed, she expects her present appointment to come with different challenges to her previous, as ambassador in Quito, Ecuador. “Ecuador, due to its geographic location, is at significant risk of both seismic and volcanic activity. Moreover, due to its politics and history, it is at risk of social unrest which can paralyse the country as it did in 2019. This means that crisis leadership was a significant element of my role as Ambassador in Ecuador. In Malta I expect this to be less,” she says. Moreover, and conversely, “as Malta is an EU member state, and has a much closer relationship with the UK, I expect the impact of our final departure from the European Union on 31st December 2020 to be greater. There is, therefore, more work to help prepare for the transition. The British community is also much greater in Malta than in Ecuador, as is the number of tourists. Consular work is therefore likely to feature more significantly,” she explains.

“We greatly appreciate the steps that Malta has taken to implement the Withdrawal Agreement smoothly and for the clear communication it has provided to UK nationals living in Malta.”

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“Having worked in Brussels myself, I appreciate the importance of the UK/Malta relationship, the friendship and close cooperation between our delegates.” Elaborating on the unique challenges ahead of her, Ms Ward cites three: staff wellbeing, “doing everything we can to ensure that our staff remain safe and healthy for as long as the pandemic lasts”; resources, since any “allocated to High Commission work could, inevitably, be affected by the impact of COVID-19 on the UK economy”; and European Union Exit disruption, for which the British High Commission (BHC) needs to “work with the Maltese Government to minimise disruption to citizens, business and government links due to the end of the transition period.” These priorities were also outlined in the Queen’s letters of commission at the beginning of Ms Ward’s. In these documents, 42

the monarch highlighted the strong relationship between the Maltese and the British, and pledged her commitment to deepen bilateral relations, even in the context of Britain’s exit from the EU. HRH also underscored the need to work for the common good of both nations, particularly in the arena of citizens’ rights. Indeed, Ms Ward echoes this perspective and is emphatic: “the UK and the EU have always been clear that citizens’ rights were an absolute priority during negotiations.” Indeed, “the Withdrawal Agreement agreed between the UK and the EU protects the rights of UK nationals living in the EU by the end of the year and the rights of EU nationals in the UK. We greatly appreciate

the steps that Malta has taken to implement the Withdrawal Agreement smoothly and for the clear communication it has provided to UK nationals living in Malta,” she says. Taking a broader view of the issue, Ms Ward is asked whether she believes that Malta will likely suffer now that Brexit is a reality, in that it will lose a strong ally within the EU. The British High Commissioner is firm, replying in the negative and pointing to her practical experience in Brussels as formative in shaping her view. “It is certainly correct that the UK and Malta had many shared priorities within the EU and we often worked together to tackle these shared challenges. In fact, we sat next to each other at the Council meetings and working DECEMBER 2020/JANUARY 2021

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“The UK is and will remain an important opportunity for local businesses.” groups. Having worked in Brussels myself, I appreciate the importance of the UK/ Malta relationship, the friendship and close cooperation between our delegates,” she asserts. Moreover, the High Commissioner is quick to add, the relationship between Malta and the United Kingdom has long predated the bloc – and will continue to garner momentum in the years ahead. For, the friendship between the two nations was not built “just through the prism of the EU. We have a far longer and stronger history which we should continue to build on going forward,” she explains. Moving on from the issues surrounding Brexit, towards the urgent challenges in the arenas of security, migration and climate change – priority areas which are at the top of Ms Ward’s agenda – the High Commissioner says that the BHC is already working closely with the Maltese Government. “Sharing best practice and working in partnership is the best way to tackle these challenges. We are particularly excited, for example, with our current collaborative work on climate change. As hosts of COP26 in November 2021 we are working with Malta on green finance, water management, adaptation and resilience, hydrogen and clean oceans. We believe that our already strong relationship can be further strengthened if we tackle climate change together,” she says. Furthermore, “there are many challenges the UK and Malta face together and we work very closely to keep our citizens safe. Threats come from terrorism, organised crime, malicious cyber activity and international money laundering. I’m proud of the close cooperation I’ve seen and the excellent working relationship between UK and Malta law enforcement. I recently discussed two of the UK’s big priorities, organised immigration crime and financial crime, with the Commissioner of Police,” she continues. And as the countries move into what many are predicting to be a somewhat uncertain year, Ms Ward is confident the collaboration between the two countries will alleviate many of the difficulties facing companies. For, she insists, “the UK is and will remain an important opportunity for local businesses”, adding that the “UK-Malta communication will go ahead, and we believe that the MaltaUK trade relationship will go from strength to strength.” cc DECEMBER 2020/JANUARY 2021

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How can you enforce a judgement against your debtorsâ&#x20AC;&#x2122; assets in the European Union? By Avv Naomi Bugre

DECEMBER 2020/JANUARY 2021

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reditors may face difficulties in retrieving the sum owed to them by a debtor and one of the reasons is that the debtor’s assets would not be found in Malta. Even with a judgement in favour of the creditor from the Maltese courts, it can be difficult for them to attack a debtor’s assets which are not held locally, due to the time and money involved in instituting intermediary proceedings in a foreign court in order for the Maltese judgement to be recognised and subsequently enforced. Such court cases are referred to as exequatur proceedings, which refer to cases where a court of one EU member state would need to recognise the judgement of another EU member state and declare its enforceability. This provides an extra hurdle for the creditor, since the debtor would have the opportunity to oppose the enforceability of the judgement against him in such other country. Historically, the European Union has set itself the objective of maintaining an area of freedom, security and justice throughout the member states. In order to achieve this goal, the Union has adopted a number of measures in the field of judicial cooperation in civil and commercial matters that are necessary for the proper functioning of the internal market, by facilitating the enforcement of judgements between courts of the European Union. The European Enforcement Order (the ‘Order’) procedure was created by Regulation 805/2004 of the European Union. It is a mechanism for the enforcement of a judgement by a court in a European Union member state by the court of another European Union member state, without any need for further formalities or proceedings. Therefore, through this procedure, a judgement by a Maltese court would automatically be enforceable in another Union state without the need for exequatur proceedings. This regulation binds every member state with the exception of Denmark, which opted out of this procedure. A creditor who wants to avail themselves of this procedure may request the Maltese courts to issue a European Enforcement Order certificate with respect to a judgement to be given, as well as a judgement which has already been given, with respect to civil and commercial claims with a cross-border element. The interpretation of the word judgement DECEMBER 2020/JANUARY 2021

includes also decrees, orders, writs and/ or any other binding instrument issued by a judge, magistrate or court official. Jurisprudence of the Court of Justice of the European Union (CJEU), such as the case Netherlands State v Rüffer (ECJ 1980), highlights that in the determination of whether a claim is civil or commercial in nature, the court must consider the subject matter of the dispute as well as the nature of the relationship between the parties involved in light of general principles which stem from the corpus of national legal systems. If the matter falls outside of the scope of the regulation, an order cannot be declared by the court of a member state with respect to a judgement. The matter must also fall within the scope of European Union law, and therefore revenue, customs and administrative matters are excluded from the enjoyment of this procedure together with issues relating to bankruptcy and insolvency, social security matters, acts or omissions of the state (acta iure imperii) and/or matters related to arbitration. If the creditor has only parts of a judgement or binding decision which meet the requirements of the regulation, then a partial European Order certificate can be sought for that part of the judgement or decision. This very effective debt collection tool does however have other certain parameters within which a claim must fall in order for it to benefit from an order. Most importantly, the claim must be pecuniary in nature, and therefore the matter must be in relation to a claim for payment of a specific sum of money that has fallen due. Secondly, the claim for which the debtor seeks an Enforcement Order must be a claim which has been uncontested by the debtor. Article three of the regulation explains that in order to be classified as uncontested, a claim must have been (i) expressly agreed to by the debtor through admission or by means of a settlement approved or concluded by a court or (ii) unobjected by the debtor in accordance with the relevant procedural requirements under the law of the member state which presided over the claim or (iii) one in which the debtor did not appear nor was represented at a court hearing regarding that claim in court proceedings, even if the claim was initially objected, provided that according to national law this would constitute a tacit admission of the claim and/or (iv) one in which the debtor

expressly agreed to the claim by means of an authentic legal instrument. The regulation also outlines two minimum requirements for uncontested claims to benefit from an order, which requirements are in place to protect the debtor and ensure that the court of the member state that issued the judgement followed the correct civil law procedures. The first minimum requirement is the service of the documents instituting proceedings upon the debtor, preferably with a receipt of service by the competent person effecting the service, such as the court marshall. Should there be no receipt to prove service, the regulation allows for the service of the instituting legal document to be served on persons living in the same household of the debtor, at the debtors’ personal address, or at the official business premises of the debtor or of their legal representative. Proof of this requirement for electronic service by means of e-mail or fax without a receipt must be accompanied by proof that the debtor expressly accepted this method of service in advance. The second minimum requirement is that the claim instituting proceedings by the creditor against the debtor must provide sufficient information to the debtor about the claim and how to contest it. It is only if this procedural requirement is satisfied that the claim can be considered uncontested. The procedures for a creditor or their legal representatives to request an order from the court vary across the member states of the European Union. In Malta, such a request must be made by court application (rikors) in the acts of the local judgement which the creditor seeks to enforce abroad, requesting such certificate to be issued. Once a European Enforcement Order is issued against a debtor, there is very little the debtor can do to challenge its enforceability, since no appeal lies from this procedure. Nonetheless, the debtor may appeal the judgement itself which was given by the Maltese courts, should the judgement be subject to appeal under national law. Therefore, the order procedure is further evidence of the effectiveness and practicality of Union law in civil and commercial matters, and provides a powerful tool in the hands of the creditor to recover their debt without unnecessary delays. cc Avv Naomi Bugre, Mifsud & Mifsud Advocates, 123, Melita Street, Valletta. T: 2123 7172; www.mifsudadvocates.com.mt

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A return to normality and innovation By George Mangion, Senior Partner, PKF Malta

ne augurs that next year, the certification of an effective vaccine against COVID-19 will be announced, and the first inoculations be administered to all front-liners. This will usher a ray of hope that the deadly virus has been controlled, and business confidence will return with a curtailment of lockdowns and curfews so common in certain parts of the world. The progression of this antidote will slowly open the way for increased travel flows, which can relieve the dire financial problems of world aviation companies and revive prospects of a gradual build-up of the depleted tourism sector. Another ray of hope is the election of president-elect Joe Biden in the USA, who has shown a more friendly approach to issues such as climate change and better welfare, apart from improved trade relations with the EU and China. The news that Pete Buttigieg, a former US presidential candidate has joined the transitional team of the president elect augurs well, since Pete has direct Maltese parentage and this lineage may continue 46

to strengthen our trade and diplomatic relations with a resurgent US economy. It looks like a good prognosis on the international front as a future platform to revive trade and hopefully brace ourselves for a solid recovery. One is also encouraged by the extra EU recovery funds (about €750 billion mostly as grants) which were sanctioned by the European Commission recently. On the local scene, one cannot but comment on how the 2021 Budget proposals were a harbinger for lower paid workers. The Prime Minister hailed the Budget as the best one that his Government presented for the past nine years. Conversely, the Malta Chamber said it had failed to address the massive impact that COVID-19 is having on operating costs for businesses and introduced no new measures to support businesses struggling on this front. It noted Government’s optimism that the economy would recover in the short-term and said that optimism was not shared by businesses at large. By sheer contrast,

Malta’s largest union, the General Workers Union, said it was pleased with it and praised Government for combining “economic caution and fiscal discipline”. Let us now examine in closer detail some of the creative aspects of this Budget, which will help the country stand firmer to face COVID-19 challenges. Reproducing a section from the proposals, one meets a drive to develop a new and exciting Digital Strategy. This is a great goal, provided enough funds are placed for research and development where regrettably, so far, our contribution did not match our targets. As a general rule, the EU recommends contributions to a R&D fund equating two to three per cent of annual GDP to be invested annually. This works out to about €360 million, but regrettably, not even half this amount is garnered in the 2021 Budget. One may excuse our parsimony given that the country is facing a €1,240 million annual deficit, with about half the working population (excluding state workers) on life support in a daring furlough scheme. The DECEMBER 2020/JANUARY 2021

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latter has been extended until March 2021, amid cheers from various worker unions. So, having allocated such a low portion towards R&D, we cannot imagine how the Finance Minister promised business leaders that there will be an emphasis on strengthening R&D and implementation capacity. It is an empty boast to wish that the country rises to the level of success reached by start-ups in Europe. Yet, prophetically, Government waxed lyrical, saying it will promote innovative technologies such as VR, augmented reality, 3D printing and quantum and highperformance computing. The much-vaulted AI project will be continuing but little details were given as to who the experts leading this initiative are unless Tech.mt will be beefed up to attract international capital funds and AI evangelists to place Malta on the map. Remember the Blockchain Malta bubble. A lot of hype and razzmatazz were abundant when launching the sector, giving birth to three complex laws by MFSA and fancy conferences. The euphoria masking DECEMBER 2020/JANUARY 2021

blockchain and crypto mania raised a lot of expectation among practitioners; ending up with 23 locally licensed VFA agents, but so far, with few jobs created. Last year, the Finance Minister proposed the launching of an exciting Seed Investment scheme. As it turned out, no details have been given in the media about the success of this Seed fund among struggling start-ups and SMEs. Be that as it may, in an ebullient stance, Government promised to create an ecosystem that will help start-ups grow, and gallantly introduced a start-up visa scheme, aimed at easing the process for foreign startups to establish themselves in Malta. The cherry on the cake was the announcement of the creation of a co-working space. With a brave face, Government is promising an accelerator programme in partnership with an international entity. Again, Government may be excused when announcing that some Budget promises were scuppered by a fierce pandemic which forced a three-month lockdown starting in March. A true novelty expected to generate domestic demand was the brainchild of the Economy Minister, who announced the launch of cash vouchers to be exchanged in hotels and restaurants. He claims this idea proved to be manna from heaven for cash strapped traders, so another batch will be launched next year. More excitement is in store as one reads that Government will establish a Venture Capital Fund to attract more start-ups. Now, observers of the local financial scene tell us that this is a damp squib, since for the past decade, both political parties promised a venture fund, but the idea did not materialise, possibly because local banks never supported such competition. But do

not hold your breath, since the rabbit will soon jump out of the magician’s hat. This consists of a scheme to be launched next year aimed at supporting SME innovation, including technology investment and adoption of more efficient processes and procedures. Grants will cover up to 50 per cent of expenses, capped at €200,000 per company. Worth mentioning is that last April saw the arrival of an EU innovation fund of €5.3 million, heralded by Government as the elixir that will supplement its own aid. Obviously, every drop counts, but we hardly expect to break out of the mound with peanuts. Perhaps, a positive suggestion during this pandemic is using the slack in business as an ideal pause for start-ups to re-engineer themselves to tap new export markets post-pandemic. After seven years of positive growth in GDP with fiscal surpluses, this growth has been eaten up by sporadic COVID-19 recovery schemes. On a positive note, the money pumped into the economy this year has undoubtedly helped to support employment, especially in the service industries noting that Government will continue assisting employers to retain their staff. Finally, it is not all doom and gloom, since the EU gave us an encouraging GDP forecast in 2022 when compared to other EU states. This silver lining gives Government a respite, as the EU is forecasting that Malta will achieve a recovery that is double the average EU growth. cc George Mangion FCCA CPA MA (Financial Services) is the Senior Partner and Head of the Audit Department at PKF Malta. He has over 30 years’ experience in accounting, taxation, financial and consultancy services. Mr Mangion has also lectured and delivered presentations at numerous seminars and conferences worldwide on subjects relating to a wide range of topics including taxation, auditing and captive insurance.

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Future-proof your networks to meet tomorrow’s data demands

ektraco Telecoms is a local systems integrator working in various niche markets. Among them are networks and network testing. For the past 30 years, we have been providing solutions for both copper and fibre technologies to local operators while also implementing our own projects. The global trend of telecom operators worldwide has been to implement fibre optics in any way possible; to feed the data demands for 4G and now 5G infrastructure, as well as the thirst for data from households. This is true also for our local operators, with two of them actively deploying fibre to the home (FTTH) networks.

New passive optical LAN reduces capital and operational costs A passive optical local-area network (OLAN) solution designed to provide converged video, data, wireless access and telephone services at gigabit speeds over single mode fibre is being pioneered by Tektraco Telecoms. This is an integration of telecom grade FTTH within a medium to large sized local network. The following are the main advantages of Passive Optical LAN (OLAN) compared to the traditional copperbased LAN: • Cost effective The technology allows enterprises such as hotels, schools and hospitals to upgrade or replace their infrastructure in a cost and energy-efficient manner. Moreover, the passive optical LAN may save companies tens of thousands of euro

in prohibitive capital and operational costs. Indeed, the system introduced by Tektraco Ltd reduces the amount of cabling and hardware required, creating a seamless, neat solution to providing fibre-optic level data and voice services able to stretch over 20km. • Space saving Floor, rack and cabinet space is practically eliminated, thereby decreasing associated costs and allowing for a smaller footprint, essential for enterprises seeking to maximise their network capabilities. With fibre being the primary medium we source cable which is substantially thinner and stronger than the Ethernet Category cable. • Energy efficient Companies can reduce up to 30 per cent of their network energy use when compared to standard active Ethernet solutions. This is because the passive architecture requires no power within the outside cable plant, known as the Optical Distribution Network (ODN), thus doing away with any of energy requirements related to this infrastructure. This increased efficiency and the stringent controls affected by Tektraco ensure that the cable and network topology lifespan can be measured in decades as opposed to years. • Enhanced security and lower operational overhead Another major advantage is enhanced security. The technology enables Tektraco to know how far and when the fibre has been tampered with. It comes with a standard 128-bit optical encryption, with

the added benefit of being immune to broadcast storms and man in the middle attacks. This allows the system to be future proof, not solely in terms of innovation, but also in terms of its durability and longevity. With lower network complexity, one needs to dedicate less time to the operation and maintenance of a GPON network. All network configurations are centrally orchestrated within the OLT while the ONTs service as the network edge have no intelligence. For this reason, any problems can be solved by an IT specialist controlling the OLT or by unskilled personnel simply replacing an ONT. This frees up time for your IT specialists to be doing better work.

Why is it the future? The result is a simple and efficient network – without the convoluted configuration usually required including spanning tree and other protocols. Deployment time is shorter as cable runs are reduced by two thirds and there is no need for cabinets. Single mode fibre standards have been constant for years – this means any new technology can use the same fibre infrastructure, giving your passive infrastructure extreme longevity. Tektraco also provides extensive aftersales, with its 24/7 service-level agreement, ensuring peace of mind. cc Contact us for an installed solution tour or live demonstration on E: telecomsales@tektraco.com or T: 2137 4329 ext. 24.

Benefits of Optical LAN • High Capital Cost Savings

• Increased Security

• Reduced Space Requirements • Reduced Power Consumption

• Provision Of Plain Old Telephone Service Ports

• Green Building Technology

• Rf Output Available

• Reduced Fire Risk

• Cable Plant Which Will Last 25+ Years

DECEMBER 2020/JANUARY 2021

• Breaks In Fibre Can Be Repaired Unlike Copper Drops • Central Administration Reduces Operating Costs

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NEWS EVENTS & INITIATIVES

01. Chamber’s Economic Vision – Ideal framework for national economic aspirations Opposition Spokesperson Claudio Grech commended The Malta Chamber’s work on creating an Economic Vision for the country in October. The Opposition Spokesperson said that The Malta Chamber had done a fantastic job in creating a framework on which the country could aspire to converge towards an Economic Vision that would be a national achievement for all.

02. “This Budget will define how we wish to see our country in the future” – Chamber urges Government to be brave The Malta Chamber met with Prime Minister Robert Abela at the Auberge de Castille in October, as part of a consultation process for the 2021 Budget. “While addressing the short-term challenges brought about by the pandemic, this time presents a unique opportunity to be brave and put in place the necessary elements that will pave the way for us to reach the strategic objectives of the next decade, for the benefit of the country’s economy and also everyone’s quality of life,” Perit Xuereb said.

03. Sustainable tourism needs to be integrated within a holistic strategy to achieve National Quality Objectives A delegation led by President David Xuereb met the Minister of Tourism and Consumer Protection, Julia Farrugia Portelli in October. The Malta Chamber President reiterated the importance of sustainable tourism to be integrated within a holistic strategy to achieve National Quality Objectives as set out in the Chamber’s vision document Smart Sustainable Island, that seeks to safeguard economic growth while enhancing the quality of life of our people. Minister Farrugia Portelli thanked The Malta Chamber for its continuous work, particularly during these challenging times.

04. It is time for clear mandatory regulation and enforcement for all to ensure accountability and respect for each other In view of the alarming increase in the number of COVID-19 contagions in October, The Malta Chamber was compelled to appeal for stricter and clearer guidelines for all, as DECEMBER 2020/JANUARY 2021

05. the situation needs management through leadership. With the imminent reopening of postsecondary institutions, these points were underlined even further as we mustn’t allow our higher education institutions to become super-spreader hotspots. The Malta Chamber appealed to individuals and businesses alike to follow all public health protocols rigorously and responsibly. The country cannot afford another situation where the restriction of education and business activity is the only option. This is detrimental to everyone.

05. The Malta Chamber recommends the issue of a second wave of vouchers On 17th October, Malta Chamber CEO Edward Chetcuti said that the upcoming Budget needed to forge an economic future for the country, with a long-term vision for a more sustainable and resilient Maltese society, during a business breakfast organised by the Ministry for the Economy. “In its pre-Budget proposals document, The Malta Chamber recommended the issue of a second wave of vouchers which would remain focused on hospitality and retail, while however offering consumers more flexibility to decide on how to consume said vouchers,” Ing. Chetcuti said.

06. Rich in social measures, vague on economic recovery On 20th October, the Chamber noted that this Budget did not address the massive impact that COVID-19 is having on operating

costs for businesses and introduced no new measures to support businesses that are struggling on this front. In this regard, the Chamber feels that this Budget falls short on the detail on how to achieve this. The Chamber shall continue to pursue such calls but meanwhile comments on the following specific measures announced. The Chamber commends Government’s resolve in terms of good governance measures such as the strengthening of the Office of the Attorney General and the Office of the State Advocate. Furthermore, it is noted that the authorities are addressing the recommendations highlighted in the 2019 Moneyval report.

07. 07. Signing of MOU to support vulnerable children in accessing online learning In October, The Malta Chamber signed a Memorandum of Understanding with The Malta Foundation for the Wellbeing of Society, aimed at supporting vulnerable 53

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children in their ability to follow online learning. “As schools have reopened their doors to students and have started operating within the context of the challenges of the COVID-19 pandemic, we must make sure that children hailing from challenging backgrounds are not at a disadvantage,” said the Chamber President. The Chair of The Malta Foundation for the Wellbeing of Society Marie-Louise Coleiro Preca said, “the pandemic has also exposed the growing digital divide. This needs to be urgently tackled, otherwise, children who come from disadvantaged backgrounds will be doomed to further social exclusion.”

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07. 08. Guiding your path to recovery and success Addressing the attendees during the online event held by EY in October, The Malta Chamber President David Xuereb said that this yearly event is now crucial more than ever, since 2020 will be forever marked by the global pandemic that disrupted economies worldwide. “I appeal to you to listen, analyse the current situation and the 2021 Budget, critically examine your resources and discuss with your teams any new ideas that might help you diversify in order to Recover, Re-Invent and Re-Invest in new sectors to turn this pandemic into an opportunity for change,” said Perit Xuereb.

test, the Deputy President said, “we hope that we will keep in mind that Moneyval, good governance and restoring the country’s reputation is a process not a single test, and that all major stakeholders need to align themselves towards this goal.”

10. The actions taken today, will define Malta’s prosperity for the years to come “Governance and the rule of law have always been the top two reasons foreign investors choose Malta,” said President David Xuereb during an interview on NETLIVE in October. Perit Xuereb insisted on the need for immediate action from our country. “We asked Government to be brave. The actions we take today must push us in the direction of being a better country in the next 10 years. If we do not, we would have missed a vital opportunity,” he said. The Chamber President noted how the COVID-19 pandemic, and the changes brought with it, offers a unique opportunity

to benefit from a disruptive force to the benefit of economic activity and development.

11. The Malta Chamber’s vital role during COVID-19 Speaking on Life & Style in October, President David Xuereb discussed the work of The Malta Chamber during the COVID-19 pandemic and its role in providing leadership and support for businesses in Malta during such a sensitive time. “Representing businesses which are responsible for employing over 80 per cent of Malta’s workforce, varying from large corporations to small- and medium-sized companies within a wide range of industries and sectors, The Malta Chamber is the nation’s foremost business organisation and a key player in policy formation,” Perit Xuereb told Lea Hogg, the presenter of the show. In the past months, “we managed to attract the attention and energy of our members to ensure that recommendations

09. A better balance between social measures and economic recovery Deputy President Marisa Xuereb stated that a number of chapters within the 2021 Budget clearly show that the Government is aware of the destination but not the journey that needs to be taken. “This can only be achieved through constant communication between Government and business entities to discuss the policies that need to be formulated to achieve smart goals,” said the Deputy President Xuereb. Commenting on the upcoming Moneyval 54

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15. The Malta Chamber and BNF Bank team up to support family businesses

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The Malta Chamber and BNF Bank plc have signed a collaboration agreement with the aim of supporting The Chamber’s Family Business Committee. The Committee shall seek to discuss and propose policy to support family businesses in Malta. It will also seek to leverage membership feedback, appreciate success stories and experiences, and drive discussion in policy areas relevant to family businesses. are well researched and relevant not only to our members, but also to the nation as a whole,” the President noted.

12. Black Friday should be extended to Black Weekend to avoid overcrowding The Importers, Retailers and Distributors Economic Group within The Malta Chamber, representing business in the retail sector, called for an extension of Black Friday sales proceedings over a number of days, and over extended opening times, to spread out the risk of overcrowding in the country’s shopping spots. Businesses are also encouraged to take their trade online by extending the same offers to their digital shops, for the benefit and convenience of all. The IDREG reached out to a number of key retail operators and shopping malls towards the end of October, and all agreed that this proposal is in the best health and economic interest of all involved.

14. The Malta Chamber of Commerce supports professional digitalisation of the building industry “At The Malta Chamber of Commerce, we constantly strive to drive accountability and transparency within all economic sectors with growth objectives,” said President David Xuereb as he addressed a press conference launching HSEQutive – a cloud-based solution that provides realtime data to better manage health and safety standards within the construction sector. Perit Xuereb said that HSEQutive proposals and objectives fit like a glove within the Chamber’s Economic Vision for Malta 2020-2025, which was published by The Malta Chamber in January. He explained how being smart and sustainable was the underpinning narrative of the entire vision that should drive our economy in the next five to 10 years.

16. Re-engineering your way to success! “The re-engineering of businesses is a concept The Malta Chamber has advocated for years; however, it is only during COVID-19 that its importance has become clearer than ever,” said President David Xuereb as he was welcoming guests to ‘Re-engineering your way to Success!’, an event organised by The Malta Chamber in collaboration with the Ministry for the Economy and Malta

15.

13. Community calls for action before end of Brexit transition period The Malta Chamber and its EU support organisation, the Malta Business Bureau (MBB), are jointly calling on the EU and the UK government to do what it takes for an agreement to be reached before the current transition period ends on 31st December. Malta Chamber President David Xuereb observed that “starting 2021 with an agreement in place is of the utmost importance for our businesses, particularly due to the voluminous trade that goes on between Malta and the UK, both in terms of goods and services.” MBB President Simon De Cesare stated, “we acknowledge that negotiations have been set back by the COVID-19 emergency throughout this year, but the repercussion that no deal brings to our respective economies is too high and should not be acceptable for either party.” DECEMBER 2020/JANUARY 2021

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Enterprise as part of the national SME Week 2020. Addressing the press, Minister for the Economy Silvio Schembri said, “we will be allocating a budget of €2.5 million for this scheme. We have ascertained that a substantial and strong amount is allocated in order to ensure that the scheme reaches as many businesses as possible, from the largest to the smallest.” Kurt Farrugia, CEO at Malta Enterprise, explained how through this scheme, businesses were being encouraged to consider innovation and digitisation in their operation.

17. Malta-Japan Chamber of Commerce joins The Malta Chamber A cooperation agreement, which includes corporate membership, was signed between The Malta Chamber and the Malta-Japan Chamber of Commerce to cooperate on doing business with Japan by endorsing terms of cooperation towards the development and diversification of commercial exchanges between the respective countries. “This places us at an ideal position as the go-to entity to do business with Japan. I therefore encourage Maltese business to help us steer the best path which best suits their needs to engage in projects of intrinsic value for them,” said Chamber President David Xuereb.

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adapting to changes and succeeded during challenging times. Sam Borg, COO at Bortex, said that the ability to quickly adapt to the needs of the market helped Bortex turn this threat into an opportunity. YUE Malta Director Fabian Vella explained that the decision to invest in UV air purifiers prior to the onset of COVID-19 was taken as the company operates in a closed environment, thereby prioritising their customers’ health above all else. eCabs CEO Matthew Bezzina emphasised the importance of proactiveness and

noted how, as e-commerce was on the rise, this would grow to new heights once the pandemic hit the island. “The re-deployment of staff meant that we could fill specific areas such as marketing, e-commerce and digitalisation to adapt to a constantly changing market,” concluded Edward Mizzi, General Manager at Sottozero.

19. “There has never been a better time for SMEs to invest in themselves” During the ‘Re-Engineering your way to success’ event organised by The Malta

18. “Looking at this scenario as an opportunity rather than a crisis was highly important” During the ‘Re-Engineering your way to success’ event organised by The Malta Chamber as part of SME week, a panel discussion focused on the challenges of reengineering one’s business in practice. Moderated by The Malta Chamber CEO Edward Chetcuti, the discussion revolved around ways local business leaders were 58

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Chamber as part of SME week, a number of business leaders shared their views in a panel discussion titled ‘The Road to Innovation’. The Malta Chamber Deputy President Marisa Xuereb noted how The Chamber was proactive in its approach to embark on two major processes before the COVID-19 pandemic became a reality. Francois Grech, Deputy Chairman at Tech.MT, said that although a number of businesses are aware of the need to re-invent themselves, they are unsure as to how to go about it. “Examine your surroundings and the key players within your industry. Ask clients and reach out to experienced employees about the way forward,” said Anthony David Gatt, Head of External Communications at Malta Enterprise. Emanuele Vignoli, Head of GLCM for UK and EU International Markets at HSBC, shone a spotlight on the importance of prioritising employees’ well-being, particularly during a pandemic.

20. “Action towards a zerocarbon economy is an opportunity for economic growth and our nation’s well-being” “It is of fundamental importance that a clear vision has been set, as this will motivate true actions that will drive these long-term goals of a zero-carbon economy to be reached. From a business point of view, having a clear view of what the end-goal is, remains critical,” said David Xuereb, as he participated in a discussion on the European Ecological Pact organised by MEUSAC in November. “As a Chamber of Commerce, we have consistently championed this vision and always knew that such an ambition of working with best use of our limited resources while being one with the prioritised values of our customers will lead to healthier lifestyles and improved quality of life in a winning formula for society at large,” Perit Xuereb remarked.

manufacturing operators are finding it extremely hard to reconcile the fact that their output is falling significantly while their wage bill remains almost the same.

22. Malta Chamber helps Maltese retail and tech companies find international partners during virtual UK event Early in November, Malta was the fourth most represented country from a total of 30 countries engaged in international virtual business-to-business meetings as part of Retaissance’ Live, organised by Chamberlink (UK) and supported by the Malta Chamber as an Enterprise Europe Network (EEN) partner. The event provided a digital platform for 17 Maltese tech and retail company representatives who met international counterparts during pre-set meetings. They explored how retail brands could use new and more innovative ways to put the customer experience at the centre of their business model by going digital.

23. Launched: Call for service providers to support businesses in the Business Re-Engineering and Transformation Scheme The Malta Chamber launched a call for service providers to support businesses that want to take advantage of Malta Enterprise’s ‘Business Re-Engineering and Transformation Scheme’ which was launched at the Chamber in November in the presence of Minister Silvio Schembri. Following evaluation and approval, interested service providers shall be included in a Recommended List which is being compiled by The Malta Chamber, to serve as consultants for both the Business Re-Engineering and Transformation Scheme in the case of SMEs and other schemes in the case of larger enterprises.

24. New Medical Cannabis Industry Business Section established within The Malta Chamber A new business section dedicated to the sector of medical cannabis was set up within The Malta Chamber in November. “With the setting up of this Business Section, The Malta Chamber is once again being proactive in representing a new economic sector,” said David Xuereb, President of The Malta Chamber. Robert Spiteri, Chairman of the new Executive Committee, expressed his enthusiasm to support the business community within the medical cannabis industry, through The Malta Chamber. This is the first time such an industry is being set up locally. Hence it is essential to safeguard and develop the sector strategically, with a view to attract further foreign direct investment.

25. Business urged to prepare for no-deal Brexit On 12th November, the President of The Malta Chamber David Xuereb said that with 50 days to the end of the Brexit transition period, businesses needed to make sure that they had everything in place in order to ascertain a continuation of their business come next January. The Malta Chamber President was addressing a press conference which launched an information campaign to help businesses get ready for a probable no-deal Brexit. The Malta Chamber co-organised the event with the Ministry for Foreign Affairs and the Parliamentary Secretariat for EU Funds.

26. Malta Chamber encourages employers to actively organise work from home where possible In the context of the sustained rate

21. Malta Chamber worried about current challenges faced by manufacturing sector The Malta Chamber is deeply concerned about the current serious challenges being faced by the manufacturing sector which are making survival of this crucial part of our economy harder by the day. Locally, employers have even been burdened with an extra day of leave, during one of the most challenging years to date. It is therefore not surprising that DECEMBER 2020/JANUARY 2021

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of infection being experienced in Malta in November, which is resulting in an unfortunately consistent consequential mortality rate, The Malta Chamber was compelled to call for utmost care and responsibility by all, no less the country’s employers, in the interest of everyone’s health and well-being. In order to avoid further economic restrictions, The Malta Chamber called on all employers in Malta to actively consider remote working for all their employees who are able to work from home. Employees should also seriously consider this option. This is especially relevant for the public sector.

27. The Malta Chamber and MEIA agree to support each other in the interest of the creative sector

that often, women were expected to care for their children, even while working from home.

29. Let us be guided by our scientific experts The Malta Chamber is heartened to note the positive strides being registered on the international stage in relation to the development and distribution of an effective vaccine against COVID-19. As hope seems to loom closer, everyone is encouraged to act responsibly, for the benefit of one and all. The resilience and sustainability of our business is intimately linked with a disciplined and science-based approach to the pandemic. The quicker we get to a solution, the quicker the business community can start to look beyond the recovery sustainably and into the reinvestment phase.

30. “The business community has a great role to play in ensuring leadership driven by strong moral values” During a special meeting of the Malta Council for Economic and Social Development (MCESD) with the Archbishop of Malta Mons. Charles J. Scicluna, Perit Xuereb spoke about the importance of moral leadership in the country. During the meeting, the Archbishop spoke about the stresses of the pandemic on the national economic and social spectrum, and that employers and employees have an equally strong role to play to address shortcomings, and appealed for everyone to work together towards the common good. cc

The Malta Chamber and the MEIA signed a collaboration agreement at Teatru Manoel, in a shared bid to cooperate actively in the interest of the arts, cultural and entertainment professionals in Malta. “The arts, culture and entertainment have an important place in our socio-economic landscape. Apart from contributing to the economy as an industry in its own right, creatives have an integral role to play in the design of a new economy for a modern Malta,” Perit Xuereb said. The President of the MEIA Howard Keith Debono said, “the Chamber of Commerce were crucial for the set-up of MEIA. We’ve been given nothing but support.”

28. “More awareness needed if we are to minimise gender bias” “Shortcomings related to the challenges of increasing female participation in the workforce and in business leadership in a post-pandemic world will not change unless there is increased awareness on the subject,” said David Xuereb during an online event in November. In agreement was Chamber Deputy President Marisa Xuereb, who confirmed 62

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Photo by Archdiocese Malta

DECEMBER 2020/JANUARY 2021

Christmas is finally around the corner and, while it may (perhaps) end up being a different affair to the usual over-indulgent celebration, that doesn’t mean style has to be put on the backburner. Rebecca Anastasi has the latest fashion trends to help spruce up your winter wardrobe – and perhaps, your pressie wish-lists. 01. Corduroy Fed up of your jersey leggings and joggers, worn while working from home? Well, there is a solution in the form of the much-beloved corduroy. Once the purview of 1970s trend-setters, this smart, yet casual, comfort-wear is a great alternative to stiff jeans or starched shirts.

02. Knitted co-ord sets Usually we would relish the time at home this season brings, although this year, some of us may have had enough of their four walls. Nonetheless, Christmas is a time to chill and let your waistbands stretch a bit, so these knitted top-andtrouser sets – for men or women – are ideal for slumping on the sofa and eating leftovers. But they are also stylish enough to open your front door to the deliveryman for (hopefully) yet another gift.

03. Oversized scarves and capes As the cooler weather settles in, there’s no better feeling than wrapping yourself up in a figure-hugging scarf, designed to keep the chill out. These accessories

have been popular for a few seasons now, but, this year, keep an eye out for lush fabrics, such as cashmere, and vibrant, warm tones. And, if you have some extra dosh to splurge, word on the street is that Michael Kors is re-releasing his iconic cape.

04. Leather – and lots of it

REVIEW 01. Boden

Style Review

STYLE

A world away from slouchy trousers and comfy jumpers, this season also sees leather cement its status as the go-to fabric for the style savvy. Think wide skirts, leggings or culottes as well as fit-and-flare dresses for the ladies, or an iconic jacket in a standout colour for those men eager to weather many a fashion season.

05. Combat boots For adults who grew up in the ‘90s, the reliable combat boot was never far from their shoe shelves. And, in line with the style return of many of that decade’s trends, these hardy lace-ups have received a bit of an update, with deep autumnal colours and silver, metal – or even pearl – detailing proving there is no limit to the fashion imagination.

06. Puff sleeves Women often earmark a new outfit to wear on Christmas day and there’s actually no reason why this year should be any different, despite COVID-19. So, if you’re staying at home and would like to avoid sequins (though there’s nothing wrong with curling up on the sofa in a sparkly new dress!), then puff sleeves are the way to go. Head-turning and artistic, the detailed stitching here imbues a touch of class. cc

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Tech Trends

As wearable technology, home appliances and next-generation gadgets become increasingly sophisticated, Martina Said singles out six next-level gizmos that are creating quite the buzz. 01. Echo Dot smart speaker The fourth-generation model of Amazon’s popular Bluetooth smart speaker, the Alexa-powered Echo Dot, features a new spherical design, is portable and lightweight. It enables music streaming from multiple platforms, and with Alexa voice assistance, can be placed anywhere around your home.

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02. White noise sound machine With a promise to help its users fall asleep with ease, we could all use a LectroFan high fidelity white noise sound machine. It provides fan sounds and ambient noise variations, and also helps to block disruptive environmental noises until and while you sleep.

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For avid gamers, the long wait for the much-anticipated Play Station 5 is over. The new console, launched in November, has been described by tech reviewers as a powerful and well-designed console with significant upgrades to the PS4, creating a next-generation gaming experience.

05. Sleevenote Recording artist Tom Vek created Sleevenote, a 6.2-inch square screen made to recapture the experience of buying a CD or vinyl record. Currently in crowdfunding stage, users can select a record displaying its original cover and read through its digital booklet – a nifty gadget for audiophiles.

06. Air Jordan XI Adapt shoes

03. Automated bread maker

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04. Play Station 5

Bread making has become something of a trend among keen home cooks over the past year, so it was just a matter of time until a sophisticated gadget that does all the work reaches our shelves. Cue the HomeCraft Programmable Bread Maker – a 12-programme automated appliance for making all kinds of bread imaginable.

The Air Jordan XI Adapt shoes are a sportswear and technology match made in heaven. The new shoe model, developed by Nike, allows users to adjust the fit of the shoe using selflacing technology via an app, as well as customise the colours of the Adapt buttons on the shoe’s midsole. cc

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CC LEGAL

Brexit: How to pull through unscathed Britain’s momentous decision to leave the European Union has put into question what rights British companies and nationals based in Britain will have in relation to the European single market. Here, Noella Abramovic speaks to Geraldine Noel, Barrister of England, Wales and the Republic of Ireland, and Head of Acumum Chambers, about what businesses and individuals are to expect following a deal or no deal Brexit, along with what help they can seek out to make the process easier.

Photos by Inigo Taylor

he end of the transition period whereby the UK will no longer be bound by the rules of the European Union will occur on 31st December 2020, Geraldine Noel starts. Following that, from 1st January 2021, both businesses and individuals will have to negotiate through a multitude of laws and regulations, independent of EU law, and covering areas like travel, residency, citizenship, import and export, and data protection, to name but a few, to regularise their position. Barristers are often called to assist in this process, being at the forefront of international litigation and arbitration matters, ranging from concerns before the European Court of Human Rights and

the Privy Council, to cases before the International Court of Justice and the courts of the European Union, as well as international arbitrations. At all stages, Ms Noel proceeds, a barrister will give objective and independent advice as to the prospects of success, whilst collecting what evidence is necessary to prove their client’s case, as well as identifying any weaknesses in the situation. Acumum Chambers, which has been established in Malta since 2016 and which Ms Noel heads, provides such barrister services. It operates as an independent entity from the Acumum Group of Companies, which themselves provide corporate and fiduciary services.

The barristers at Acumum Chambers also have the litigation designation, meaning that Acumum’s barristers are licensed to commence and oversee all aspects of the litigation process in the UK, she goes on to say. What’s more, not only are the barristers coordinated by three regulators in the UK, but they also adhere to Maltese rules relating to codes of ethics, thus ensuring that clients can find comfort in the integrity of the barristers they engage. Overall, the independence of a barrister is ensured by the fact that they operate on a self-employed basis and take client work directly, as opposed to being part of a structure such as a law firm, Ms Noel states, DECEMBER 2020/JANUARY 2021

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going into more detail about the profession – and as such, work is never delegated to another individual, resulting in a barrister providing dedicated client attention at competitive rates. Furthermore, following the introduction of the Public Access designation, the profession of barristers became open to the general public, meaning that clients can engage barristers directly, without having to go through other lawyers first, therefore increasing the possibilities of who can represent them. “A barrister will advise on strategy, drawing upon his or her considerable experience of litigation and arbitration from the outset,” she says. By way of reciprocity agreements, Ms Noel continues, barristers may represent clients before most courts and tribunals in most Commonwealth (offshore), as well as international jurisdictions. It has long been acknowledged that due to Malta and the UK’s shared history, and with Malta being a member of the Commonwealth, there exists a special relationship between the two countries. This is most evident in Malta’s generous Brexit residency rules for resident British people in Malta, Ms Noel says. The historical connection between the two countries has resulted in agreements that are independent of the EU, most notably the Bilateral Reciprocal Health Agreement between the UK and Malta, which allows Maltese and UK citizens to use the health services of each other’s countries. Of course, she adds, Malta will still be a member of the EU and accordingly must comply with its rules and regulations to make sure it does not derogate much from that status quo. However, there are areas in which Malta and the UK can liaise within the parameters, and with Malta still meeting the requirements laid down by the EU, she believes. Ms Noel says, however, that passporting rights for financial services firms, whereby the financial services licences obtained in their home jurisdiction can be ‘passported’ to other EU member states without having to go through a new, full on, licensing application in the country that they intend to offer services, will no longer be possible in the event of there being no deal between the UK and the EU. “The Malta Financial Services Authority has recently issued two circulars on the effects of a no deal on passporting rights; on 2nd September 2020 and 18th November 2020, both urging businesses to review their arrangements and if necessary prepare and apply for appropriate licences in the countries of the EU or the UK – the intended target jurisdiction,” she explains. DECEMBER 2020/JANUARY 2021

Geraldine Noel Head of Acumum Chambers B.A (Hons)(Oxford), M.A (Hons)(Oxford), Pg Dip (London), LLM (Fordham), CiArb Barrister of England & Wales & the Republic of Ireland

If the UK does not reach a trade deal with the EU, then UK businesses will have to comply with EU standards such as certification on the one hand, and, on the other, EU and Maltese businesses will need to adhere to any UK standards, Ms Noel elaborates. Following any outcome, be it a deal or no deal Brexit, barristers can help Maltese service providers in meeting any requirements relating to their clients in the UK, in addition to assisting Maltese businesses and individuals in complying with regulations in both the commercial and personal arenas such as gaming, financial services, certifications of goods and services, VAT, tax and customs, and residency and citizenship of the UK, Ms Noel says. Acumum Chambers can also aid UK individuals living in Malta with complying with Maltese regulations, particularly in respect of meeting any documentation

“A barrister will advise on strategy, drawing upon his or her considerable experience of litigation and arbitration from the outset.” requirements as is necessary for such matters including wills, estates, marriages and other notarial services pursuant to English law. Furthermore, as years of uncertainty and the potential loss of EU passporting rights could affect Britain’s status as Europe’s number one destination for foreign direct investment, Malta is also positioning itself as an attractive alternative for businesses seeking an address in the European Union. cc For more information get in touch on E: gnoel@acumum.com; www.acumum.com 69

CC BUSINESS

Can COVID-19 bring about an economic revolution? Polymath & Boffin MD Christopher Vella discusses the fundamental effects the COVID-19 pandemic has had on businesses and markets with Sarah Micallef, and details how, if we play our cards right, a challenge can blossom into an opportunity to create new economy.

Christopher Vella Managing Director of Polymath and Boffin Photos by Inigo Taylor

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very solution needs a polymath and a boffin,” says Christopher Vella, MD at investment advisory and corporate services firm Polymath & Boffin. The Managing Director, who is experienced in analysis, special situation finance and venture capital, and is an expert in modeling of finance structures, explains, “a polymath is a person that is well-versed in many subjects but is not an expert on any, while a boffin can be considered an expert in one subject.” It is these qualities combined that the team at Polymath & Boffin brings to bear on its work: assisting clients attain a higher level of security and return from their business.

Specialising in business strategy, funding, fund management and diversified investment portfolios, Chris and his team provide dynamic solution-based approaches to business development and funding strategy. Originally set up in 2010 in the aftermath of the 2008/2009 financial crisis, Polymath & Boffin was created to provide investment banking expertise to companies with conventional market ideology, giving businesses an edge when attracting investment for growth. And now, with COVID-19 dealing an unprecedented blow to world economies and leaving companies struggling to regain their footing in a new economic environment, the business solutions

development and finance company couldn’t be better placed to provide their world class corporate expertise and services. “We know what a bad situation looks like and we know how to turn it around. That is our business,” explains Chris, who firmly believes that where one opportunity is stalled, others are created. Discussing the fundamental effects the COVID-19 pandemic has had on businesses and markets, the Polymath & Boffin CEO asserts that uncertainty in asset values has emerged as the biggest problem. “I strongly believe that the only way to return to growth and the normal we had become accustomed to is by making sure that our assets’ value is retained – whether it’s an aircraft, a ship, DECEMBER 2020/JANUARY 2021

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a hotel or a factory – something is worth according to how much it can produce. If it doesn’t produce, it’s worth much less,” he says. “Asset values are based on market comparables – as one goes up or down, so do the rest, comparably,” Chris continues, defining the value of something as a scientific number based on productivity and comparison of similar attributed assets. Taking property as an example, he goes on to explain that if we do not take action to keep up trade of properties, demand for development will stall, employment will fall, and this will have many negative repercussions – a chain reaction that needs to be avoided. “Firstly, and the most long-term effect, will be the further reduction of building quality and sustainability standards,” he describes, delving deeper into the analogy. “We had started experiencing a drive for sustainability and improved design. This too gradual of a leap will be the first to suffer the cull, at the great expense of growth of value based on quality of assets, and not only demand, which leads to the price acquirers will have to pay for its use,” Chris continues. Following the drop of asset values, he says, “we will see a reduced lending appetite from investors, especially banks, which remain the

mainstay – a dated characteristic – of access to capital in the economy.” This, in turn, will further reduce development and demand, another deduction in value, followed by the next link in the chain: “consumption, and hand-in-hand, employment, which will further reduce demand, and consequentially asset values.” This is where Polymath & Boffin can help. Offering possible solutions to retaining asset values, Chris urges co-operation with the public sector to retain what he calls BC (before COVID-19) values. “A Government entity such the Malta Development Bank (MDB) may use its capacity to guarantee shortfall in asset values BC. Using capitalisation rules, MDB will have 12:1 ability to use its assets and a potential shortfall of value boldly – say 30 per cent – for all lending into sustainable development of assets, and asset buying and improvement programmes,” he explains, adding that this will boost investor confidence and may also attract an increase in foreign direct investment (FDI), boosting the economy from its lost €2 billion influx of foreign currency due to tourism. Another potential solution Chris points to is Government lead spending in direct job creation. “Now is the time for Government to borrow and invest greatly in new PPPs, tax credits for innovation, acquisition of sustainable and green bonds – to invest in new economy,” he posits, going on to make the case for a venture capital agency, where ideas are pitched and crowd funding programmes are guaranteed up to a degree by Government. “Investment in infrastructure for niche economic sectors is ill afforded but greatly needed,” Chris continues, as a final point. The Polymath and Boffin MD goes on to highlight another important factor which he feels is lacking on the island: harmonisation with the major capital world. “It would be so useful for Maltese businesses to be able to look elsewhere other than banks,” he maintains, highlighting the benefits of

harmonisation of practices of international capital, in particular venture capital markets. “Asset valuations need to reach new professional heights. We need to use our Anglo-Saxon heritage and follow a great system of verifiable and certifiable comps, using mainly RICS or similar standards of valuations and holistic methods of asset appraisals,” he adds, reiterating that value should be scientific, not an opinion. Apart from this, Chris continues, “due diligence of asset upkeep certification, income historicals per assets and not company financials as the basis of good performance should be the main valuation criteria for lending and investment.” Noting Malta’s finance laws, he affirms that our legal framework should be supported by servicing expertise. “It is not very useful to have a spaceship that no-one knows how to operate. Our regulators should be further empowered and be given abilities to recruit from the international scene to bring in international good practices and boost the use of our great legal framework,” Chris says. The MD believes that in this way, COVID-19 has the potential to bring about an economic revolution. “If the new initiatives we’ve been speaking about were to materialise, it would generate so much investment and create new economy,” he asserts, believing Malta to be well positioned for today’s digital world and fast-moving economy. “If you look past the surface imperfections and stigmas, a significant percentage of the island’s population lives a great life, and these economic correction mechanisms can leapfrog our economy and standards of living, increasing average domestic income to new heights in a short amount of time. This will be the most real asset whose value, if it were to increase, will make for an even greater place for people to live in,” he concludes, not to mention allowing the economy to drive further to sustainability and resilience from world economic hardships. cc

Christopher Vella, Managing DIrector of Polymath and Boffin, pictured centred right, with some members of the Business Development, Operations and RE Team

DECEMBER 2020/JANUARY 2021

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Safeguarding the longevity of family businesses In a year wracked by uncertainty, many family businesses have felt the strain of dwindling custom, depleted financial resources and the need for urgent digital transformation to ensure their survival. Here, Dr Joseph Gerada, the Regulator at the Family Business Office, speaks to Rebecca Anastasi to outline the initiatives under the entity’s auspices aiming to alleviate the strain.

n a survey conducted by Price Waterhouse Coopers, published last year, the majority of family businesses in Malta were found to be concerned with the difficulties of instituting a digital transformation for their business, with 39 per cent of companies and firms saying they felt vulnerable to digital disruption. However, a lot can happen in a year – as 2020 has proven – and what was, before, a growing necessity which seemed far on the horizon, today has become an urgent requirement for survival. Indeed, COVID-19 has pushed businesses to transform themselves digitally – or risk being left behind. “Our objective is to ensure the continuity of family businesses,” Dr Joseph Gerada, the

Regulator at the Family Business Office says, underlining the pivotal importance of these firms to the entire Maltese economy. Indeed, 75 per cent of Small and Medium Enterprises (SMEs) in Malta are family businesses, either due to investment or direct ownership. “I call them the backbone of the economy,” he insists. This year, that backbone has been at risk of fracturing, with pressures arising from COVID-19 impacting upon these companies’ bottom lines. Despite this, Dr Gerada has seen positive developments in the ability of businesses to react to the challenging circumstances. “Due to necessity a lot of businesses have embarked on a process of digitisation: going online and opening up to e-commerce, for they have realised that if

customers cannot go to them, they will have to go to their customers. In fact, those who had already set up a website realised that demand far exceeded supply,” he explains. And the Family Business Office has striven to be on hand to come to the aid of family businesses needing guidance and support. Indeed, the entity recently participated in SME Week, an initiative taking place all across the European Union, aiming to provide information and build a network of contacts for companies which may struggle to find access to new avenues. “It’s actually become more of an SME month, since there were 11 events which took place over a few weeks, one of which was directly organised by our office. This was a webinar – titled Family Business Office DECEMBER 2020/JANUARY 2021

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2021, And Beyond – aiming to outline the incentives available to such SMEs to date, and those of the future, in order to also generate a discussion,” he says, adding that the event saw 155 registrations. “We need to incentivise family businesses and show them how to transfer the fruits of their hard work from one generation to the next,” Dr Gerada explains, outlining the motivation for such an event. This goal is a priority for Government, the Regulator attests, describing the support available to family businesses through Malta Enterprise, but underlining the specific allowances being made to ensure such incentives fully cater to the needs of hard-working families. “99 per cent of the incentives on offer are those falling under the auspices of Malta Enterprise. The main difference is that, when it comes to family businesses, we know they need a little bit of an extra hand, so we’ve catered the standard schemes accordingly. Therefore, if, for instance, the Micro Invest Scheme usually has a capping of €50,000, the capping for these SMEs is higher, at €70,000.” However, it’s not only the Micro Invest Scheme which has been moulded to fit the needs of firms run by relatives. Such companies can also access financing, through the loan debt facility administered by Bank of Valletta and Malta Development Bank, allowing companies to gain access to up to €750,000 in cash flow loans. They can also avail themselves of fiscal incentives, such as the Family Business Transfer, through which parents transferring their company to their children will benefit from a reduced stamp duty from five per cent to 1.5 per cent with no capping on the amount to be transferred. Moreover, the Immovable Property Scheme offers a reduction in duty when transferring a family business: indeed, duty, in this case, is only chargeable on the first €500,000 of the value of the property at the rate of €3.50 per €100. “The Education and Training Scheme has also been extended,” Dr Gerada continues. “It’s been going on since 2017, but now, we’ve split it into two parts and it’s focusing on issues which family businesses face directly – such as preparing for succession and establishing the right governance – as well as training courses in relation to VAT, accounting and the more generic aspects of running a business.” For, indeed, he asserts, the main concerns of these SMEs are not necessarily access to finance, but more practical and longterm worries centring on the day-to-day running of the enterprise and how to ensure its longevity. “These businesses tend to look long-term, so what we’re also doing – together with the Malta Chamber and its Family Business Committee – is trying to work out the specifics of what they need DECEMBER 2020/JANUARY 2021

and how we can continue to help them,” Dr Gerada says. This has been the task of the Family Business Office since its inception, though, as Dr Gerada readily admits, this year had initially thrown all plans in disarray. “We conducted a survey pre-COVID and the results weren’t very positive, revealing that many didn’t know what the Office did. Then, the pandemic came along, and we had to focus on other ways to ensure outreach. Fortunately, businesses also had more time to stop and look at ways and means to find further support, but we also branched out into collaboration with producers working with the national broadcaster, for instance, in order to get our message across,” he explains. The result of the latter was a joint effort with the television programme, Wirt u Eredi screened on PBS, which allowed the Office to highlight the different experiences of family businesses, and their successes. “We’ve actually had very good feedback from this and, as a result of this initiative, we’ve had more and more businesses contacting us to find out about our incentives and about

“Due to necessity a lot of businesses have embarked on a process of digitisation: going online and opening up to e-commerce.” how we can help them – more have gotten in touch than ever before,” Dr Gerada says. Looking ahead, the Regulator has more ideas on how to ensure these SMEs get the help where and when they need. “We need to also investigate the possibility of mergers and acquisitions in those cases where family businesses cannot be passed down to the next generation, either because there is no next generation or because no one wants to take over the company. These are realities which also must be confronted,” he insists. To this end, he sees “a lot of motivation moving into that direction, even as a result of COVID-19,” he says. “Things are not as they were one year ago and we, as Government, also need to adapt and change our objectives and plans to be able to support these businesses, whatever the circumstance,” he concludes. cc

CC DESIGN TRENDS

Celebrating contemporary design within a unique historical context Opening its doors last November following a lengthy restoration, Iniala Harbour House and Residences is a luxury hotel spread over four Maltese townhouses and several vaults, overlooking Valletta’s spectacular Grand Harbour. Sarah Micallef discusses the process behind bringing the incredible space to life with Iniala Group Communications Officer Vanessa Azzopardi and Ela Perşembe of Istanbulbased multidisciplinary design studio Autoban, one of three firms tasked with the project’s design.

Grand Junior Suite Photos by Christian Marot

DECEMBER 2020/JANUARY 2021

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ION - The Harbour

ith an aim to provide an unparalleled level of luxury and experiential travel in Malta, the design story of Iniala Harbour House and Residences is all about celebrating contemporary design while respecting an existing historical context. Spread over four renovated townhouses and several vaults on St Barbara Bastion and East Street in Valletta, Iniala Group’s Vanessa Azzopardi explains that each was purchased separately from different owners at different times, starting in 2013. Therefore, each building was in a completely different state at the start of the project. “Two of the main buildings, now known as ‘The Residences’ and ‘The House’, were both formerly used as office blocks and needed almost complete renovation,” she explains, adding that ‘The House’ is a palatial building which dates back to the early 19th century, when it was amongst one of the most elite private residences in Valletta. In the late 20th century, it was converted into an office block and housed different companies over the years, including, most recently, the Mediterranean Bank. “The building’s original features had been preserved, including its traditional façade, the grand central staircase, and painted cupola,” Vanessa describes, adding that Iniala ensured that all these historical elements were meticulously restored, bringing the building’s historical identity back to life. DECEMBER 2020/JANUARY 2021

The hotel’s gym, meanwhile, which is situated within two vaults on East Street that were used as storage and office space, as well as the vaults which will feature Iniala’s spa and pool when opened in 2021, were in a completely dilapidated state, she continues. Describing the process involved in bringing the ambitious project to fruition, Vanessa says that the first building was bought by Iniala founder Mark Weingard in 2013, with

the intention of being turned into a home. “However, realising the beauty and the potential of such an exclusive location, Mark, over the next few years, purchased additional properties on the street to turn them all into one luxury hotel,” she explains, with the transactions taking place up until 2017. “Every time a building was bought, plans were revised and improved,” Vanessa continues, adding that there were times the

“We wanted to use all elements and layers of the design to emulate the richness and grandeur of the past of both the island and the structure, and also create an unforgettable experience linked to the atmosphere of the city today.”

ION - The Harbour Terrace

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Presidential Suite

wholeness by continuing throughout the entire space,” she continues. The depth and richness of the cultural identity of the space is further alluded to through the use of rich textures and patterns like wooden panelling, which contrasts with Malta’s traditional stone. Meanwhile, Ela adds, “scenic and fantastical wallpapers are a contemporary interpretation of wall reliefs, and the depictions of palmed oases in the suites of The Residences bring an exotic atmosphere to the bedrooms,” in a design element that intends not only to mirror the Mediterranean atmosphere of the island but also to establish a connection with the Iniala Group’s first project on the west coast of Thailand, Iniala Beach House. Drawing inspiration from the Mediterranean atmosphere, the view of the Grand Harbour and the remnants of a majestic past are all elements that informed Autoban’s design. “The suites are faced with the backdrop of Malta’s long history – the strategic Grand Harbour and the fortified Three Cities, and the prestige and significance of this location were a key driver for our design approach,” Ela explains, highlighting the importance for the designers to echo this history through an equally rich and layered design. Meanwhile, “the heritage of Malta, the long narrative of colonisation and invasion, the melting pot of cultures and civilisations, and the ancient but exotic

Penthouse Suite

“Scenic and fantastical wallpapers are a contemporary interpretation of wall reliefs, and the depictions of palmed oases in the suites of The Residences bring an exotic atmosphere to the bedrooms.”

project’s timeline had to be adjusted in order to provide sufficient time to bring a unified standard of luxury throughout the buildings. Of course, the COVID-19 pandemic created an additional challenge over the last year, halting work for some time due to the partial lockdown. Speaking of the brief in relation to its design, Ela Perşembe from design studio Autoban – which was tasked with the design of 13 rooms and suites within ‘The House’ and ‘The Residences’, as well as rooftop restaurant ION – The Harbour and other hotel facilities – says “we wanted to use all elements and layers of the design to emulate the richness and grandeur of the past of both the island and the structure, and also create an unforgettable experience linked to the atmosphere of the city today.” Housed within a historical building which forms part of Valletta’s unique identity, the designers referred consistently to this cultural identity while adding their signature contemporary touch. “We did this by creating a second architectural layer within the interior spaces – an approach that we use within all of our projects,” Ela explains, adding that the grandeur of the interiors is reflected in the abstraction of the traditional column-beam relationship, which builds a system of an inner shell. “This shell emphasises the high ceilings of the structure and contributes to a feeling of unity and

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Grand Residence with Maltese Balcony

“The strategic Grand Harbour and the fortified Three Cities, and the prestige and significance of this location were a key driver for our design approach.” influences were all factors that shaped our design choices,” she adds. The baroque and neoclassical architecture that floods Valletta’s streets also served as an influence for Spanish architecture studio A-cero, which handled the design of The Presidential Penthouse Suite in ‘The Residences’ and a further five suites to be launched in 2021. Elements including the geometric character of the roads and the warm tone of the light reflected in the limestone of the facades formed the base of the A-cero proposals for Iniala Harbour House & Residences, with the capital city being reinterpreted in the interior through orthogonal geometries of walls and ceiling. A few doors down, the design of ‘The Hideaway’, which offers a bespoke guesthouse setting with just two rooms and two suites, was entrusted to local architecture and interior design firm DAAA Haus, and here too, the historic capital makes its presence felt through the design. Each room features carefully curated lighting, furniture and fabrics from top Italian design houses such as Edra and Minotti, and marries them with the history of the house, while the capital city itself influenced the colour schemes, joinery detailing, and art-inspired soft furnishings throughout. An abundance of natural materials, including marble, wood, natural metals and finished metals were used in Autoban’s DECEMBER 2020/JANUARY 2021

design, Ela goes on to explain, adding that the focus was not solely on interior design, but also on expert workmanship and furniture-making, and it is through this detail-centric approach and the combination of different materials that the designers were able to enrich the space and add depth through sophisticated details. “One important accent is the Dream Bed that we designed specifically for one of the larger suites. In addition to the exotic wallpapers, guests will find an enchanting and striking bronze headboard, with silhouettes of birds and sunflowers which have been cut from the metal,” she says, describing the room as a dreamy and lavish sanctuary. Throughout the hotel, she continues, “you will also see the use of layers of patchwork wooden panels, a contemporary interpretation which evokes the opulence of French and British interiors of the past. This patchwork pattern continues from the floors to the ceilings of the interiors, heightening the sense of luxury and sophistication.” Indeed, the team at Autoban utilised exquisite craft and workmanship to add richness and an exceptional level of luxury, with all of the objects and furniture pieces used throughout being limited edition and custom-made by expert craftsmen specifically for the space. “In line with the design at Iniala Beach House in Thailand, the

other chief aspect here was to consistently present a surprising, unexpected and unforgettable design,” Ela continues, adding that each of the suites consists of eccentric and unique touches, such as an abstract animal shaped mirror, an unconventional and sculptural table, and a sculptural ceilingheight bookcase. And, she says, despite the emphasis on lavish and luxurious interiors, this was also done with sustainability in mind. “For the wooden panels that we employed throughout the interiors we made use of recycled waste materials which we then brought together to be finely crafted,” she says, noting that the sense of luxury is obtained not from costly materials but rather, from exquisite workmanship. “We were also careful to use all-natural materials – none of which were particularly rare or difficult to source – and made sure to use energy-saving lighting options where possible,” she adds. Looking at it now, Iniala Harbour House and Residences is best described as an eclectic collection of innovative design concepts executed on different historical buildings by three world-class design studios. “Maintaining an exceptional level of luxury and comfort throughout, each building marries history with contemporary design while reflecting the unique style of its designer,” Vanessa concludes. cc 77

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Food Trends

04. Alternative jerky

From a return to the basics to the most innovative ingredients that will make their way to every menu in 2021, Sarah Micallef discovers the latest food trends. 01. Vitamin-rich foods As people continue to focus more on their health and well-being when it comes to food choices, 2021’s top food predictions include foods rich in vitamins and supplements. We’re talking superfoods, probiotics, broths and sauerkrauts, along with foods with added functional ingredients like vitamin C to support the immune system.

02. Alcoholic kombucha Speaking of which, everyone’s favourite healthy drink is set for a fun twist: 2021 will be the year of alcoholic kombucha. Merging bubbles with live probiotic cultures, the fermented drink will tick all the boxes for those looking for a healthy yet alcoholic drink during a time when low and no alcohol drinks are on the rise.

FOOD&WINE

With demand for different ways of consuming fruit and vegetables at an alltime high, everything from mushrooms to jackfruit is being made into ‘jerky’ – that is, dried at peak freshness to preserve flavour and nutrients. Their taste is also enhanced with the addition of ingredients like chili, salt, ginger and cacao.

05. Comfort foods 2020 has been a bit of a tough year, and while more of us are focusing on eating healthily, there’s no denying the feeling that comes from classic comfort and family-style food. As the cold season sets in, people will be looking to hearty pies, baked dishes and stews to lift their spirits.

01.

Bon Appetit

06. Sophisticated desserts The gradual move away from overly sweet treats continues as sophisticated desserts are forecast to be all the rage in 2021. As sugar takes a back seat, dark bitter chocolate, salty flavours, subtle milk desserts, green tea ice-cream and ginger flavours will rise in popularity. cc

03. Coffee everything Lovers of their coffee are bound to be excited by this prediction, which forecasts coffee flavouring to get very popular in 2021. Think coffee-flavoured bars and granola, smoothies and cocktails, and even coffee-flavoured yogurt. The possibilities are endless!

02.

05.

Epicurious

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06.

House & Garden

Beer & Brewer

03.

Healthy Substitute

04. 79

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Meet the people behind the Young Chamber Network The Young Chamber Network (YCN), a forum within The Malta Chamber, seeks to create connections between a new generation of young businesspeople. In this issue, Martina Said meets two of its members, Mark Arrigo, Founder of MA Architects, and Sarah Cassar, Managing Director at St George’s Care Ltd.

Mark Arrigo Perit and Founder, MA Architects “Fusing creative design with the practical side of construction is my passion – taking a vision for a residential, commercial or industrial building and bringing it to life in a feasible manner,” says Mark Arrigo, who, as a qualified structural engineer, has always been interested in all forms of architecture. “It’s this combination of skill and fascination that helps me provide clients with architectural solutions that are both aesthetic and functional.” Perit Arrigo began his career with a renowned architectural firm, where, over seven years, he gained insight into the industry and developed his strengths working on some of Malta’s largest projects at the time. “I then chose to branch out and start my own practice in 2014, an adventure that has seen my firm grow from strength to strength over the years. Our team of qualified architectural and engineering professionals share my personal belief – that delivering luxury and quality goes beyond materials and finishing. It is an experience that we are eager to provide to our clients and, in turn, one that we infuse into all aspects of the building we are creating that the end user can enjoy.” The firm has found its niche in luxury residential design, whether a single residence, multi-dwelling or hospitality development. “Over the years, we’ve used this desire to understand space and how it can be made to feel richer through its design and the way it comes together on several small- and large-scale projects for office, industrial and retail industries.” Perit Arrigo adds that he and his team are excited by edgy features and concepts that push the boundaries of what clients might expect. “We recently received an accolade from the International Property Awards for a villa we designed in Madliena, which is about to start construction. Recognition in any form is always welcome. But I think real pride comes from seeing your sketches turn into a solid reality. That feeling is indescribable.” Asked to share his proudest achievement, Perit Arrigo says that, despite the firm’s successful portfolio, “I’d say it’s still on the way. There’s a creative restlessness inside DECEMBER 2020/JANUARY 2021

Photo by Jean Pierre Borg Cuschieri

“It’s been a brilliant opportunity to rub shoulders with people experiencing similar challenges and learn from the older members who’ve got so much insight to tap into.” me and my team. We’re always looking out for the next project where we can push boundaries and deliver something new to the country – and even beyond these shores in the future.” He adds that architecture is a responsibility to the community, and one must respect the way people will see the building, enjoy the space and feel when they walk or drive past it. “Buildings are like an ecosystem that sustain, entertain, educate and protect us. From innovative designs that are more sustainable, to delivering the wow factor, we’re here to shape space effectively, beautifully and always practically.” Sharing his views on the Young Chamber Network, Perit Arrigo says he decided to join around 18 months ago, at a time when he

was looking to be more involved with likeminded professionals. “It’s been a brilliant opportunity to rub shoulders with people experiencing similar challenges and learn from the older members who’ve got so much insight to tap into,” he explains. “Owning my own firm is challenging – there are so many other factors to consider besides the service you provide, so leaning on and learning from a strong network really helps fuel ambitions for success.” He adds that, while Malta’s architectural industry is strong, he sees value in finding new ways to do things. “I joined a committee dedicated to the exploration of how to make our industry better, a team I value being a part of, as it will help shape the architectural field in the years to come.” 81

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Photo by Kristi Palm

Dr Sarah Cassar Managing Director, St George’s Care Ltd – Operators of Casa Antonia After obtaining a Law Degree from the University of Malta in 2011 and a stint practicing with a leading firm, Sarah Cassar joined the family business, St George’s Care Ltd, the company that operates Casa Antonia care home in Balzan. Furthering her knowledge of the sector, she read for a Postgraduate Diploma in Gerontology and Geriatrics, and soon went on to become General Manager of Casa Antonia. Since 2003, Casa Antonia has been offering long-term care, short-stay convalescence and respite care, with a focus on providing exceptional care and services, as well as creating a community of likeminded people in which elderly residents can live a full and satisfying life, says Dr Cassar. Speaking of the past year, she explains that it has been particularly challenging but also rewarding for the team at Casa Antonia, who reorganised the day-to-day running of the home when the COVID-19 pandemic struck in March 2020. “A full lockdown was held for 12 weeks, the primary aim of which was to keep our residents safe, and within two days, we organised lodging and supplies for a team of 70 people to live on site.” The latter is a truly proud moment for Dr Cassar, who witnessed employees volunteer to be part of the first group to enter into 82

“Joining The Chamber meant finding a safe place in which we could share our fears, but more importantly, come up with a common strategy for the industry.” lockdown, living and working at Casa Antonia in three- or six-week shifts, with no physical contact with the outside world. Having experienced this herself too, Dr Cassar says, “it offered a completely new perspective on life at Casa Antonia and a chance to get to know our staff and residents more intimately. It also gave me insight to better understand the needs of our residents.” Nine months on, Dr Cassar says they are still operating under challenging conditions. “We’ve found ourselves putting in place rules and regulations which go against our great efforts to have our residents live as part of the community,” she explains. “The situation is heart-breaking for all working in the industry, but especially for those of us who have worked hard to provide opportunities for the elderly to live actively.” Looking ahead to the coming year, Dr Cassar says 2021 is earmarked to be an exciting year for the company, with the opening of its second home – The Imperial in Rudolph Street, Sliema – formerly the Imperial Hotel, which was housed in a historic building dating back to 1865. “The historic part of the property will be the hub of our community, housing our reception area, coffee shop, administrative offices, a hair salon and several activity rooms. Planned to be an extension of the Sliema community as much as a part of The Imperial, the Villa

includes a games room, library and several lounges, among others.” Speaking about her experience within the Young Chamber Network, Dr Cassar explains that times of crisis bring people together, and the Care Homes Operators Division within the Malta Chamber was created in March 2020, when operators found that they desperately needed to band together to get through the crisis. “Joining The Chamber meant finding a safe place in which we could share our fears, but more importantly, come up with a common strategy for the industry,” says Dr Cassar. Beyond this, she adds that discovering the Young Chamber Network was a pleasant surprise. “I had imagined that I would be surrounded by older persons with more experience than me, but meeting people of a similar age and from different sectors gave my experience within The Chamber a whole new spin.” Dr Cassar adds that she enjoys being a part of the Care Home Operators Division and the all-female Care Home Operators Committee, and cherishes the opportunity provided by the YCN to meet people from different industries and learn about their experiences, “which inspires and provides us with an opportunity to rethink the way we do things as an industry, and as a company.” cc DECEMBER 2020/JANUARY 2021

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Coaching businesses through change, to change COVID-19 has spared no one in its wake, not least business owners, many of whom will feel the repercussions of a crippled economy for some time. In light of the pandemic, there are questions all leaders should be asking, whilst simultaneously focusing on implementing successful strategies that will see their enterprises rise from this, stronger. Noella Abramovic speaks to business coaches Nathan Farrugia, Marion Gamel and Jonathan Shaw about what steps every business should be taking in order to pull through.

DECEMBER 2020/JANUARY 2021

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tepping out of your business to work on your business is a requirement for every leader today,” says Nathan Farrugia, Managing Director at Vistage Malta. And a business coach can help to achieve that, adds Marion Gamel at www.mariongamel.com, describing coaches as “thinking partners”. Now more than ever, faced with the unprecedented crisis brought about by COVID-19, the need for such action is made all the more evident: “leaders have always felt isolated, but right now, they need this partnership even more,” she adds. The difference between a leader and a brilliant leader, according to Jonathan Shaw, Director Coach at Coaching Minds Ltd, emerged in the way they handled COVID-19. “The main issue in this pandemic is not the element of risk or losses but that of uncertainty,” he says, adding that some of the steps which are helping leaders navigate these uncertain times are a commitment to maintain a full and regular channel of communication, remaining resilient in the face of the unknown, and fostering trust. Trust, he elaborates, especially towards remote working, was a big challenge for

some leaders. “It’s clear that COVID-19 has acted as a catalyst for such, and yet, some business leaders and owners would have never allowed this unless it was pushed onto them because of the pandemic.” Other challenges leaders faced, according to Nathan, were keeping a level head, avoiding panicked decisions and staying objective, whilst true leaders maintained a growth mindset and used their creativity as key tools. All three coaches agree that it is now time for leaders to start asking a series of questions. The first, according to Nathan, should be “What is my purpose?” and he goes to challenge any entrepreneur and business owner to ask what the scope of their business is and how they can achieve it in spite of the current situation – “Is this what you want to be doing over the next three to five years, or as long as it takes for the economy to recover? Would you rather downsize and have a less stressful life, or pivot your business to move into another industry?” The way one thinks, according to Jonathan, is also crucial. “How we are

“The main issue in this pandemic is not the element of risk or losses but that of uncertainty.” – Jonathan Shaw, Director Coach, Coaching Minds Ltd DECEMBER 2020/JANUARY 2021

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“In essence, these hard challenges are a stepping-stone to growth, if seen in the right way.” – Nathan Farrugia, Managing Director, Vistage Malta thinking about a situation is more important than what is actually happening around us,” he says, adding, “as of today, what can I learn about the world we live in, the business sector I operate in, my company, my people and also about myself?” Marion adds that certain core business questions need to be addressed, like how agile the business is, whether it can pivot tomorrow and what opportunities or threats owners are not seeing. Apart from this, she continues, one should ask, “what should we stop doing?” Once the right questions have been addressed, leaders ought to strategise, and according to Jonathan, one possible short-term strategy to survive is adapting, whilst maintaining a regular and open line of communication from top to bottom. A short-term tactical approach to overcome this uncertainty is to work closely in order to respond with agility and flexibility. Whilst going digital is the optimal way forward for Marion, she also says that, during these difficult times, leaders should define and de-dramatise changes, communicate clearly about them, find a change process that works for their team and gradually 86

increase the pace of change, until the entire workforce is “change-friendly.” In the long term, according to Nathan, the companies that will survive are the ones that traded carefully and sustainably, that maintained cash reserves and consolidated their core competencies into market-leading products and services. When it comes to post-pandemic business goals, Jonathan insists that the main focus should be to put people first, and that getting this right will help any business move forward, irrespective of their goals. For Marion, retaining key talent, giving precise objectives and making accountability clear are all goals each business should strive to achieve, whilst also getting everyone refreshed on the ‘why’ their particular business does what it does. She also stresses that one should give more support to their leaders. “They’re doing incredible work and are staying alive thanks to adrenalin, but you need them to also be on top when the storm quiets down,” she offers. Moving forward, if there was ever a silver lining for businesses in the wake of this pandemic, it’s one of opportunity; opportunity to make the right changes, for leaders to stretch themselves, their team and their business model beyond any boundaries, to grow, learn, and start again on more solid grounds, Marion advises. “While some big companies simply have to weather the storm and come out at the top just by surviving, most small companies, including tech start-ups, are in a phase of intense transformation and learning,” she explains, adding that “learning has replaced revenue growth for some, for a while. Companies, small and large, are now understanding the value of being able to pivot.” Jonathan is in agreement, adding that “opportunities arise through the process of learning and challenging the status quo. It’s up to the individual to tap into such opportunities and exploit them.” In terms of growth, Nathan suggests that now, more than ever, business leaders must step away from their business to clear their mind and think strategy. “These pressures help build resilience and help us grow through adversity. In essence, these hard challenges are a stepping-stone to growth, if seen in the right way,” he states. There’s no denying that we’re expected to see a shift in the way businesses will operate and evolve in the very near future, from remote working, digitalisation, shifts in mind-set, habits and consumption patterns. The coaches’ recommendations are all

practices that should be put in place in order to navigate successfully through day-to-day challenges and future hurdles. And whilst success in business, both preand post-pandemic, is dependent on leaders asking the right questions and being able to pivot in the face of adversity, there are other less obvious elements they should consider, including the concept of “making one’s self redundant” as Jonathan puts it. “At one extreme it can mean to exit the business if the alternative is better, or to a lesser extent make one’s self redundant from certain roles and tasks. By doing this, one is creating space for others to grow and also creating new challenges and opportunities for one’s self,” he says. For Nathan, on the other hand, leaders need to look at the drivers of change and build a business canvas around them. “Every changing situation creates new drivers – economic, cultural, personal and even spiritual,” he states, before giving his final and most crucial pandemic-related piece of advice, which would be to “rise by helping others.” Marion’s final tips are for leaders to focus on empathy and compassion when running the show, whilst also planning for another pandemic. “I think it’s wise if you start a company now, to make it pandemic-friendly,” she ends, logically. cc

“I think it’s wise if you start a company now, to make it pandemic-friendly.” – Marion Gamel, www.mariongamel.com

DECEMBER 2020/JANUARY 2021

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Creating ‘The Student’s Chapel’ One of Atelier Maison’s most recent projects is the one they coined ‘The Student’s Chapel’. The project consisted of the renovation of a room within St Dorothy’s Senior School, Zebbug, which was dedicated as a space to hear holy mass. The space was in great need of a makeover. Being a church school, the staff really thought that the school deserved a beautiful and tranquil space, which both students and staff could use to escape in prayer and reflection.

HSBC Malta introduces innovative digital solutions for Malta businesses HSBC Malta has rolled out various digital solutions to the business community in Malta during the COVID-19 pandemic. These solutions, designed to help businesses continue operating in these challenging times, together with the bank’s future plans for digitisation, were outlined during a recent webinar titled ‘Reengineering for the future’, organised by The Malta Chamber as part of the SME Week. The webinar was addressed by Emanuele Vignoli, Head of Global Liquidity and Cash Management, UK Non-Ring-fenced Bank and Europe International Markets at HSBC, who explained how the bank has introduced mobile authentication and the use of soft tokens, giving business owners easy and secure access to their accounts. The introduction of live online chat specifically for business customers has DECEMBER 2020/JANUARY 2021

Before the renovation works began, the room was a garage-like space made up of four walls and two large windows overlooking the school playground. The budget was limited, but the possibilities were endless. The team at Atelier Maison had a carte blanche when it came to the proposed aesthetic, however the space had to remain functional. The only thing that had to be kept were the chairs – so that was the starting point. The arched back of the chairs triggered off inspiration for the geometric shapes found throughout the space. The colours used were very minimal – lavender and vanilla coloured walls, and berry coloured carpeting. The interior architecture of the room was redefined by introducing a number of layers with the help of gypsum plaster-boarding. Each layer

further enhanced the level of digital service being offered. Throughout this period, HSBC has been proactive in reaching out to its business customers to provide advice on how best to use the digital channels available. The SME Week focused on efforts to raise digital awareness among businesses owners and to support enterprises who are planning to scale up their activities. In this context, HSBC Malta is committed to introducing Treasury application programming interfaces (APIs) to enable customers to initiate, track, request and receive payments in real time. Furthermore, HSBC Malta has committed to work on innovations towards enhanced mitigation of cyber-crime risk and has embarked on education initiatives on cyber fraud by raising awareness via anti-fraud messages and on-screen warning alerts. The bank has also held refresher sessions on fraud reporting for internal teams to equip them with the skills to raise customers’ vigilance relating to fraud and to directly support Malta’s welfare, jobs, innovation and competitiveness. Mr Vignoli said, “HSBC has delivered the capability for businesses in Malta to integrate their internal systems and infrastructure to HSBC via APIs. Business owners, treasurers and financial controllers need real-time access to information, globally, to support liquidity management and cash flow forecasting. As a consequence, customers

appears to be isolated from one another, and each is perforated with geometric shapes like arches and squares, while giving the illusion of depth. Two sloping planes – finished in a wash of lavender – draw your eye to the focal point, the altar. The seating is positioned to appear like it is radiating out from this same focal point. Like this, anyone who is present in the room feels included, as though they are part of the ongoing service. A perforated layer with a grid of square voids shields the room from direct sunlight entering from the existing windows, diffusing soft natural light into the space. cc T: 7904 8106/7930 0387; E: info@ateliermaison.com.mt; www. ateliermaison.com.mt

are digitising payments and collections processes to leverage new opportunities and refine their business models, which is increasingly important as they navigate the current pandemic.” cc

Emanuele Vignoli, Head of Global Liquidity and Cash Management, UK NonRing-fenced Bank and Europe International Markets at HSBC

HSBC Bank Malta p.l.c. HSBC Bank Malta p.l.c. is a member of the HSBC Group, whose ultimate parent company is HSBC Holdings plc. HSBC Malta provides a comprehensive range of financial services which are all designed to meet the expanding requirements of its large client base of personal and corporate customers. These include Wealth and Personal Banking, Commercial Banking and Global Markets. Registered in Malta number C3177. Registered Office: 116, Archbishop Street, Valletta VLT 1444, Malta. HSBC Bank Malta p.l.c. is regulated and licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta) by the Malta Financial Services Authority. HSBC Group HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,956bn at 30 September 2020, HSBC is one of the world’s largest banking and financial services organisations.

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Centrecom: Your go-to outsourcing partner Centrecom is a 24/7 Service Centre of Excellence offering a variety of B2B and B2C outsourcing solutions.

We are the go-to outsourcing partner offering multi-lingual and omni-channel contact centre services but also back-office functions ranging from data inputting and validation to payroll services, document management and digitilisation, as well as training services. Whilst providing access to specialised skillsets, resources and processes that help

maximise the experience for our clients and their customers, Centrecom is committed to deliver an excellent quality service across the board. Whether companies need our support on the front-line of their business, or whether it’s managing those back-office processes, we will ensure to provide an added value professional service through quality, innovation and expertise.

A closer look at our back-office services Companies often fall short of giving their business the attention it needs because their key employees are too busy with administrative tasks. Centrecom has addressed this issue by offering a range of back-office service solutions that encompass a number of micro-services resulting in a high-quality support service package. Rather than having their most skilled workers handling the repetitive admin tasks, companies opt to work with Centrecom’s back-office team on a shared service basis for reduced cost and improved flexibility. This provides the benefits of a comprehensive and high-quality service with the possibility to grow and scale up as the business demands. Are you constantly running against time when it comes to finalising your company’s payroll and billing processes? Is payroll a

load on your HR team, who ends up spending more time on payroll processes than focusing on important HR aspects like engagement and retention? Does your organisation have high volumes of transactions backed up with piles and piles of paper documents and are you finding it a struggle to manage, archive and retrieve your hard copy documents? Have you considered giving your team additional training to boost their performance and service delivery, but haven’t yet found the time to identify their training needs and map it all out? cc Time to stop worrying! Contact Centrecom today on info@centrecom.eu or visit us on www.centrecom.eu for more information.

DECEMBER 2020/JANUARY 2021

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Focus your investments, focus on high yield European Central Bank President Christine Lagarde famously said “we should be happier to have a job than to have savings” in support of a low interest rate environment. More recently, Federal Reserve Chairman Jerome Powell was quoted as saying “we think the US economy’s going to need low interest rates, which support economic activity, for an extended period of time.” Investors today are on the lookout for income opportunities in a low yield environment. Any higher yielding investment will carry more risk than a traditional bank account, which investors need to be aware of. However, while some investments carry more risk than the more traditional type of investments, when the alternative is earning nothing or a negative real rate of return for

Celebrating the first companies to obtain the FHRD HR Quality Mark certification A total of 12 organisations have successfully obtained the FHRD Quality Mark, an initiative launched by the Foundation for Human Resources Development last year. The FHRD Quality Mark is a national recognition awarded to organisations based in Malta for the professionalism, competency and contribution of their HR function irrelevant of their size and sector. It is awarded to organisations which provide evidence of high-quality HR practices and serves as a process to guide entities on how to improve their HR practices. The Quality Mark also serves to elevate the status of the HR function within the organisation. The organisations that obtained the FHRD Quality Mark hail from various sectors in the private and public sectors including communication, financial, ICT, iGaming, manufacturing, retail, social work DECEMBER 2020/JANUARY 2021

the foreseeable future, it may be a good time to consider a shift in your portfolio. The Vilhena High Yield Fund, launched in 2006, has over time distributed a consistent and higher level of income over a sustained number of years. In the last five years, the Fund has generated an average annual return of 5.22 per cent and has a current income yield of 4.93 per cent (as at 16th November 2020). Income is distributed every three months providing investors with regular income flows. cc Past performance is not necessarily a guide to future performance. The value of the investment may fall as well as rise and currency fluctuations may also affect the value of the investment. Any initial charges that may apply may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Vilhena Funds Prospectus, Offering Supplements and the Key Investor Information Document, which may be obtained from BOV Asset Management Limited, Bank of Valletta p.l.c., Branches and Investment Centres and other licensed financial intermediaries. BOV Asset Management Limited is licensed to provide investment services in Malta by the Malta Financial Services Authority. The Vilhena Funds SICAV p.l.c. is licensed by the Malta Financial Services Authority and qualifies as UCITS. Issued by BOV Asset Management Limited, 58, Triq San Żakkarija, Il-Belt Valletta, VLT 1130, Malta. Tel: 2122 7311, Fax: 2275 5661, Email: infoassetmanagement@bov.com; www.bovassetmanagement.com.mt. Source: BOV Asset Management Limited.

and wholesale. They are Credorax Bank Ltd, Ecopure Ltd, Farsons Beverage Import Company plc, Go plc, Hero Gaming Ltd, ICT Solutions, Malta Business Registry, Melita Ltd, Quintano Foods Ltd, Shireburn, Simonds Farsons Cisk and The Inspire Foundation. Almost 30 entities applied to be among the first to obtain the HR Quality Mark certification. The Quality Mark is awarded following a rigorous evaluation carried out by competent evaluators who assess applicant organisations on their HR practices in seven content areas. These are HR policies; recruitment and selection; compensation and benefits; employment and industrial relations; performance management; HR information systems; people training and development. “We definitely set the bar high, but it was something we did consciously because we want the achievement of the standard to be a nationally recognised symbol of prestige and quality assurance in the field of Human Resources,” FHRD President Matthew Naudi says. The onsite evaluations started in the first months of 2020 but had to be postponed for a number of months because of the restrictions imposed by the health authorities due to the spread of the pandemic.

Each application was assigned two evaluators, who carried out a rigorous on-site audit and presented a final report, which was the basis on which the Quality Mark was awarded or not. In every case, a postevaluation report was prepared and sent to the respective applicants with the outcome of the assessment, highlighting their strengths and the areas for improvement. cc FHRD is currently processing applications from the second public HRQM call with the aim of having another group of successful companies obtaining the certification by the end of March 2021. Those interested in the HRQM may visit http://fhrd.org/hrqualitymark or email qm@fhrd.org

CC MEET THE ARTIST

Aligned

Harnessing the element of chance For silk screen printing and digital artist Sarah Maria Scicluna, the exploratory process of creating her art is, in her words, the artwork itself. She chats to Martina Said about her curiosities as an artist, her solo exhibitions abroad, and combining traditional methods with modern techniques.

“I

am driven by curiosity, which is what led me to be an artist and to pursue this path,” says Sarah Maria Scicluna, whose meticulous and observant work has travelled from Valletta, to Bosnia and Herzegovina, and Japan. “My artistic journey was not necessarily a conventional one,” says the artist, who, although always interested in art and honing her skills, began her academic journey studying the sciences. “Retrospectively, I can see how studying the sciences formed my artistic approach and practice.” Also a lecturer of fine art at the Malta College of Arts, Science and Technology (MCAST), Sarah Maria has engaged with various forms of creativity for as long as she 94

can remember. “When I was young, I was constantly drawing, painting, sewing and making things out of found materials, and my parents always supported this by providing me with the material needed and books to learn more,” she explains. “As time went on, even though I was not studying art formally at the time, I kept drawing and reading about art. Eventually, in my late teens, I realised that whatever I would be doing in the future, I wanted art to be present in my life. It was at that point that I took the decision to pursue an education in fine art.” Following the completion of her degree in Fine Arts at MCAST, Sarah Maria went on to read for a Master’s degree in Digital

“With every new body of work, I always try to push myself further, both in technique and in design.”

DECEMBER 2020/JANUARY 2021

CC MEET THE ARTIST

“The process of how the work comes to be is very important and I consider it to be the artwork in itself. What one sees on the wall is simply the result of the process.”

Arts at the University of the Arts London, Camberwell, in 2015. This led her to marry her preferred medium, silk screen printing, with current, modern practices. “Most of my work is in silk screen printing, which is a very traditional discipline. However, the process of arriving to the work itself is, very often, digital,” she says. “This allows me to have the freedom which the digital arts allow throughout the design process, and then taking the work back into the traditional realm by harnessing it through the possibilities and restrictions that silk screen printing provides.” Sarah Maria describes her work as continuously exploring ritual, systems and chance, placing a lot of importance on the process and the spontaneous possibility that it may bring. “I love exploring formulas, algorithms and other very structured approaches and systems that I would later apply to various ideas, which would allow an element of chance to come through, as the result cannot always be anticipated,” says the artist. “For me, the process of how the work comes to be is very important and I consider it to be the artwork in itself. What one sees on the wall is simply the result of the process.” So was the case for her latest exhibition, held in October in Valletta, called CUBE: Manipulations. For this body of work, her starting point was the form of the cube. “I was interested in how this form can be manipulated and deconstructed to create new forms. I was also interested in exploring the imaginary space that these newly manipulated forms occupy, and how they can exist in a made-up space, which is the 2D paper.” DECEMBER 2020/JANUARY 2021

Cubes

Unboxed

CC MEET THE ARTIST

Walks in Prijedor

“Most of my work is in silk screen printing, which is a very traditional discipline. However, the process of arriving to the work itself is, very often, digital.”

Walks in Prijedor

Indeed, the process of translating those ideas from mind to matter was laborious, and Sarah Maria admits that the initial process was a long one. “It started out from a series of sketches, which were later developed into the works that were exhibited. Once I was happy with a design, I prepped it in a manner that would make it feasible to be screen printed,” she explains. “From there DECEMBER 2020/JANUARY 2021

on, the process is purely technical; I print the film, coat the screen, expose the screen and print.” While she admits that the design part is always the hardest, the technical one tends to be the trickiest, “as I am always pushing the limits of what silk screen printing can do. For CUBE: Manipulations, 11 works were featured, all as an edition of four. If I had

to choose favourites, I am very fond of the prints CUBE(S) and Aligned, although I’m finding myself having new favourites every couple of weeks!” In 2019, Sarah Maria’s work travelled beyond Malta’s shores to Bosnia and Herzegovina, to the town of Prijedor, which served as the very source of inspiration for her solo exhibition. The artist explains that the project started from a couple of visits to Prijedor, where her imagination was captured by its architectural style, which, to her, “is unlike anything I could compare to.” “While there, I was going for long walks around the town and documenting everything, with the idea that eventually, I’ll develop these into works. A couple of months later, I received an invitation from the art museum in Prijedor to hold a solo exhibition there,” says Sarah Maria. “At that point, I knew I wanted to make works based on my sightings of architecture from my walks around the town.” 97

CC MEET THE ARTIST

Cubic Pathway

Using geometric shapes and contrasting colours, the artist recreated the scenes she observed, capturing the dynamic nature of Prijedor’s buildings. “I derived forms from the existing architecture, building my own compositions based on the photos I took, and constructing my own geometric landscapes.” Asked to share who or what inspires her most as an artist, Sarah Maria explains that, while there are many artists she looks up to, the people who truly inspire her are her family and partner. “From them, I learned to find joy in hard work, to not give up in hard times, and to always be enthusiastic for what’s to come. Other than that,” she adds, “I’m personally not a big believer in ‘inspiration’ in the common sense of the word. I believe that one keeps working on something, at times failing, other times succeeding, until something leads you to what is to become your artwork.” Reflecting on her challenges as a working artist, Sarah Maria says every challenge appears to be the biggest in the context within which it takes place. “With every new body of work, I always try to push myself further, both in technique and in design. Obviously, this will always present new challenges which tend to be very frustrating at that point in time. Some of my proudest achievements in art, on the other hand, must be holding a solo exhibition in Tokyo, Japan, and another one in Bosnia and Herzegovina.” 98

Impossible Structure

“In my late teens, I realised that whatever I would be doing in the future, I wanted art to be present in my life.” Without giving too much away, Sarah Maria says she’s currently got new works in progress, but is patiently waiting for the current situation to improve before

exhibiting. Optimistically, however, she says “this will allow me more time to explore new venues, make new work, and develop other projects in the pipeline.” cc DECEMBER 2020/JANUARY 2021