CorporateDispatch Pro - Edition 30

TheEmpoweringQualities ofCommunications

by James Vella Clark

Mostbusinessesareconstantlystrivingtoconnectwiththeiraudiences.And therefore,associetiesbecomemoreconnectedthroughtechnologyanda sharedneedtocommunicate,onewouldexpectatheme,suchas communication,tobeattheverytopofbusinesses’priorities.Afterall, interactionisabasichumanneed.Unfortunately,however,somanybusinesses stillseemtostruggletotrulygraspthecrucialpowerofcommunication,both withintheirinternalhierarchiesandwiththeirexternalaudience.

Meaningful communication can be empowering on so many levels. But, first and foremost, the basic principle is that effective communication remains essential for businesses to succeed and thrive

Internally, effective communication structures improve collaboration by bringing employees together to work towards a common goal With clear communication, employees understand their roles and responsibilities and how their contributions fit into the organisation's overall strategy This yields stronger collaborations, teamwork, and productivity and, as a result, increased efficiency and improved decision-making for employees to perform their work faster and more efficiently

Communication also fosters an environment of creativity and innovation where employees feel encouraged and empowered to share ideas and collaborate on new and innovative solutions that help their organisations stay ahead of the competition.

Communication is also critical for companies that thrive on strong customer relationships

Because when communication is effective and targeted, businesses understand their customers’ needs better and can bring them better products and services, which eventually help build long-term relationships

Most importantly (because this is what we do at Corporate ID Group), effective communication helps businesses build a strong brand image by clearly communicating their values, mission, and unique selling proposition, thus attracting and retaining customers who share the same values.

As I researched this subject to write this piece, a particular phrase caught my attention: “Empowered Communication focuses our attention on compassion as our motivation, rather than fear, guilt, blame, or shame ”

Now, you must probably be asking yourselves, ‘What has compassion got to do with communication in business?’

I found this particular phrase touching not only for the message it seeks to transmit but also for the uncanny way I related this phrase to an interesting interview also published in this edition, in which Fr Mark Ciantar, a Franciscan who recently founded his community project Inteko, refers to compassion as “a quality that we find only when we look within us”

He says, “When we stop looking for value within ourselves, we end up alienated from what is real, we look for happiness in other things, and this makes us more aware of our increasing loneliness”

Compassionate people never impose; they inspire. Compassionate people bring out the best in people by helping them identify shared values and needs Compassion encourages us to use language that increases goodwill and avoid language that contributes to resentment or lowers self-esteem.

Isn’t this how companies and brands seek to inspire their customers and stakeholders? Because ultimately, we all know that where there is inspiration, there is trust.

“Communication is everything, and no matter what the situation is, it is crucial that we communicate, and we communicate well,” says Reuben Xuereb, Chairman of Corinthia Caterers “Positive feedback too goes a long way to empowering people where a simple “well done” could boost an employee’s morale beyond imagination. On the other hand, when concern about a particular situation exists, it is equally important to communicate constructively Proper communication empowers individuals and organisations whereas the lack of it can be the most destructive of ways to deal with a situation.”

“There are no two ways about it - a breakdown in communication leads to demotivated people and misunderstood directions,” adds Alison Bezzina, Digital Marketeer and Commissioner for Animal Welfare “Effective communication empowers individuals, relationships, and organisations, so whether it's a business, a government department or a voluntary organisation, effective communication is a fundamental requisite for performance, contentedness, and ultimately for overall productivity When it comes to communication, organisations are no different to relationships, so communicating is a must!”

“For a company like ours where our work entails a lot of daily verbal and written interactions, clarity in communication with our clients is key to our business,” says Andrew Xuereb, Founder & Director of Realhouse. “I look at communications as an essential contributor to our success Moreover, positive communication between our clients led us to achieve more business growth over the years ”

Kenneth Farrugia, CEO of Bank of Valletta, outlines how in an overcrowded market, corporate communication can indeed be a powerful tool to ensure that the purpose, vision and mission of the organisation are fully understood by all the stakeholders of the organisation, making it stand out while maintaining brand and reputation

“It exists within a complex environment incorporating brand identity, public perception, regulatory requirements, shareholder and employee feelings, and many other factors, and when properly planned, communication can effectively reach out to internal and external audiences and positively influence stakeholders both at a macro and micro level,” he said

Perit Antoine Zammit, Founder of Studjurban, added, “As an architecture and urban design firm, communication helps us strive for excellence, which we seek to showcase in the projects we direct Communication is critical, and we use our projects to communicate what we hope to be good design solutions and highquality outcomes to various individuals, from homeowners to public authorities Through our work, we hope to inspire people to want to aspire for a better quality of our urban environment”

Maria Cauchi Delia, CEO of the Malta Institute of Accountants, explained that internal and external communications are equally important.

“Effective internal communications keep the team motivated, working towards the same targets and achieving objectives in a timely and effective manner and at the same time, it is important to communicate with external stakeholders because the reality of the world we live in is that despite the quality of your offering unless you can put the message across, with no visibility, you have no relevance. On the other hand, communication should be of value: it is not about how much you say, but how well you communicate it”

Matthew von Brockdorff, CEO and Managing Director of Atlas Insurance, believes communication is an end in itself and not just a means to achieve something

“At Atlas, we do not believe in top-down communication but in one that is based on the concept of continuous feedback where people feel empowered to express their views, feelings and suggestions. In this respect, trust is key to effective communication. Likewise, communication should be a means to break down silos and promote cross-functional collaboration within an agile working mode”

Most importantly (because this is what we do at Corporate ID Group), effective communication helps businesses build a strong brand image by clearly communicating their values, mission, and unique selling proposition, thus attracting and retaining customers who share the same values.

Trust

Trust is increasingly featured as an essential component of brand equity. A trusted brand is a brand that communicates. When customers trust a brand, they are more likely to engage with it, buy its products or services, and recommend it to others

A brand with high levels of trust can create a strong emotional connection with its customers, which can help to build a loyal customer base and increase brand value. And a valuable brand is an empowered brand

“Today, building trust is more critical than ever because trust drives growth and builds legacy and reputation,” outlines Petre Tintoi, General Manager of Premier Restaurants Malta. “Communication builds trust when the right language and tone are used to share knowledge, navigate change, examine learning experiences, and tell stories demonstrating how the business lives up to its values and brand promise Trust is nurtured when communication is transparent, meaningful, and impactful”

Yolande Svensson, Corporate Marketing Manager of Hudson Group, referred to the subject from an internal human resources perspective, stressing that “successful communication lies in truly understanding what drives audiences”

“Businesses are built on human beings with hearts that beat and dreams to achieve, and for a company to truly communicate and bring all its members on board to achieve its goals and strategy, it must first understand what drives its employees But for this to happen successfully, a business should hold a clear understanding of its identity, its values, and the corporate culture it would like to cultivate and make sure these are channelled through its company events, the messages it affixes on its walls, senior management behaviour, dress code and so on.”

Davinia Cutajar, Partner at WH Partners, also agreed on how internal communication supports business operations by allowing it to share ideas and information “When knowledge and information are shared, employee engagement, alignment, and overall performance improve I find that short, in-person or online meetings are the best way to communicate internally, as they are the most effective means of communication.”

“In principle, we aim to communicate briefly but effectively, regularly and openly but in a tolerant and respectful manner. Most days, we succeed in doing this, and we have turned communication into one of the key ingredients in our recipe for success In fact, every time we failed to do so and watched the business suffer, we were reminded just how crucial communication is to guarantee our business success ” -

Rebecca Bonnici, Founder of BELS Language School

Sarah Cassar, Managing Director of St George’s Care Ltd, believes that internal communication is vital to ensuring the smooth running of operations and the primary tool enabling it to provide its residents with the best possible care and customer experience

“Regular in-person meetings for management and staff ensure that all information on changes in policy and procedures are understood, and possible issues ironed out before implementation. However, a people-centred business like ours requires that information is shared as quickly as possible This is where technology has revolutionised the way we communicate The use of technology allows us to document all communication - which is vital for any health care company”

That effective communication is an agent for business success was stressed by Rebecca Bonnici, Founder of BELS Language School “In principle, we aim to communicate briefly but effectively, regularly and openly but in a tolerant and respectful manner Most days, we succeed in doing this, and we have turned communication into one of the key ingredients in our recipe for success. In fact, every time we failed to do so and watched the business suffer, we were reminded just how crucial communication is to guarantee our business success”

“We live in a digital era, where social media and other online platforms are hungry for content, and many will happily broadcast whatever comes their way. So there will always be an ongoing narrative happening outside of corporate corridors, and if we are not talking and telling our story, sharing our values and vision, others will end up doing the talking for us,” remarked Susan Weenink Camilleri, Head

of Sales & Marketing of Farsons Group

“This is why communications should always be considered as that vital process that helps companies forge and nurture strong and meaningful relationships with their audiences Therefore, companies would do well to bolster their communications strategy and take control of this narrative responsibly and transparently,” she added

As more companies seek to communicate, the role of external communications, also known as public relations, continues to grow and become more strategic in managing companies’ public perception

Although PR has undergone a massive shift in the past few years, thanks to emerging technologies and changing media landscape which require the fusion of traditional skills to work with modern tools and channels to create consistent narratives, the intrinsic functions of PR remain the same:

To manage a company’s identity in terms of vision and mission

To generate awareness of new products and company milestones.

To communicate the company’s place in society and what it stands for

I have come to perceive public relations as the true human voice of a company

Beyond the rush to leverage technology and social channels to reach out to audiences, these audiences remain human beings where emotional connection can only be nurtured through communication, supported by the meaningful human voice of public relations

Although PR has undergone a massive shift in the past few years, thanks to emerging technologies and changing media landscape which require the fusion of traditional skills to work with modern tools and channels to create consistent narratives, the intrinsic functions of PR remain the same

Corporate

Services, industry propel strong economic growth as construction stutters

Despite the persistent economic challenges emanating particularly from the prolonged war in Ukraine and the subsequent energy crisis, Malta’s growth levels remained strong in 2022, with real GDP estimated to have reached 69%, which is higher than projected in autumn. The economy showed strong growth in both private and public consumption In addition to strong performance by the services sectors in general, the export of tourism services in 2022 rebounded quickly, both in terms of total number of visitors and tourism expenditures, contributing to overall positive economic results

Gross Domestic Product (GDP) for 2022 amounted to €16,870.3 million, registering an

increase of €1,8684 million, or 125 per cent compared to 2021 In volume terms, GDP rose by 69 per cent This is considered one of the highest growth rates in the eurozone, which according to a first estimation of annual growth for 2022, based on seasonally and calendar adjusted quarterly data, registered an increase of 35%

The drivers behind this growth were services and industry, which contributed to the lion’s share of growth Conversely, construction had a negative contribution of 03 percentage points Compared to last year, Service activities increased by 9%, industry by 76%, whereas Construction dropped by 70%

Breaking down the service sector, the NSO noted that the biggest increases took place within

accommodation and food service activities (814%), transportation and storage (233%), administrative and support services activities (15.8%), information and communication (7.9%), and wholesale and retail trade (7.7 %).

The contribution of domestic demand to the year-on-year GDP growth rate in volume terms was 10.9 percentage points, of which 4.7% were due to Final consumption expenditure and 6.1% to Gross capital formation External demand registered a negative contribution of 40 percentage points, with 108 percentage points attributable to exports and 14.8 percentage points explained by imports. Visitor numbers to Malta reached 23 million last year This figure exceeds some 83% of the pre-pandemic total and their busiest ever

Separate NSO data has confirmed a relatively slower performance in the property industry In the fourth quarter of 2022, 3,738 final deeds of sale were registered, an annual decrease of 41 per cent. The value of the deeds registered during this period went up by 01 per cent over the same quarter of the previous year and amounted to €8593 million In December 2022, 1,002 promise of sale agreements relating to residential property were registered, equivalent to a 559 per cent decrease over the previous year Lobbyists for the construction sector sought to explain this drop by making reference to one-off schemes which had inflated numbers the year before.

Malta’s job market remains a strong and stable one, with NSO data showing that as of February 2023, the unemployment rate stood at 3.0 per cent, at par with the previous month and down by 01 percentage points from February 2022 During February 2023, the number of unemployed persons was 8,977, with males and the 25 to 74 age group being the major contributors to the overall level of unemployment The seasonally adjusted number of unemployed youths amounted to 2,751, whereas those aged between 25 and 74 years stood at 6,226.

On the other hand, inflation remains a sore point for the economy In January 2023, the annual rate of inflation as measured by the HICP was 68 per cent, down from 7.3 per cent in December 2022. The 12-month moving average rate for January stood at 63 per cent In January 2023, the largest upward impact on annual inflation was registered in the Food and non-alcoholic beverages Index (+2.13 percentage points), largely due to higher prices of meat. The second and third largest impacts were measured in the Housing, water, electricity, gas and other fuels Index (+093 percentage points) and the Restaurants and Hotels Index (+0.86 percentage points), mainly on account of higher prices of house maintenance services and restaurant services, respectively

Possibly a result of the inflationary impact, the number of part-timers who held both a full-time and part-time job increased by 11% in just a year The number of persons who also held a full-time job at the end of August 2022 amounted to 38,541, an increase of 10.9 per cent when compared to the corresponding month in 2021.

Employed persons whose part-time job was their primary occupation totalled 35,844, up by 59 per cent when compared to the same month in 2021. During 2022, Malta reported a wider rade deficit, despite an increase in exports Imports and exports increased by €2,5827 million and €9399 million, respectively, amounting to €9,2545 million and €4,501.3 million. Higher imports were mainly recorded in fuels, lubricants and related materials (€1,0704 million), machinery and transport equipment (€9243 million), food (€1900 million), chemicals (€1359 million), semimanufactured goods (€121.9 million), and oher manufactured articles (€1047 million) On the exports side, the main increases were registered in machinery and transport equipment (€3794 million), fuels, lubricants and related materials (€359.5 million), food (€129.8 million) and other manufactured articles (€525 million), and semimanufactured goods (€458 million)

Finances deeper in red

Despite the healthy economic position, the continuation of energy subsidies and further increases in recurrent expenditure has pushed the state coffers further into the red. At the end of February 2023, Central Government debt stood at €9,2803 million, an increase of €8864 million when compared to 2022 The increase reported under Malta Government Stocks (€781.2 million) was the main contributor to the rise in debt Higher debt was also reported under Treasury Bills (€2375 million)

A recent report by the credit rating agency Fitch estimates that Malta's fiscal deficit narrowed to 58% of GDP in 2022 from 75% in 2021 The general government debt ratio is estimated to have decreased in 2022 and will likely continue to increase progressively over the rest of the forecast horizon, stabilising at around 58.0% by 2025 While sizeable energy and food subsidies weighed on the budget balance year, these were offset by the government's ad-hoc spending review during the summer and the continued phasing out of Covid-19 expenditure

Adding to these concerns, he Government has presented another bailout package for stateowned airline Air Malta, and although the total cost of any state aid to the airline remains unknown, a budgetary impact cannot be excluded

Over and above, the European Commission has referred Malta to the European Court of Justice due to concerns over its Citizenship by Direct Investment Programme, which could result in a revenue loss between 03% and 04% of GDP annually Although the same credit rate agency confirmed Malta’s A+ stable rating, it did highlight the downside risk to this classification in connection with Malta’s fiscal position, particularly in case of a continued upward trend in general government debt, for example, due to a more prolonged period of energy-related subsidies, weaker growth prospects or loss of key sources of revenues It, therefore, comes to no surprise that the Finance Minister has in recent weeks, referred to the need for action to shore up Malta’s financial position once again.

Growth rate to be halved in 2023

According to the European Commission’s forecast, in 2023, Malta’s real GDP is forecast to grow at a slower pace, by 31%, following a wider economic slowdown in Malta’s main trading partners The Central Bank of Malta projects a slightly more optimistic forecast, with a 3.7% growth in 2023. The latter suggests that domestic demand is expected to be the main driver of growth as investment begins to recover after last year’s contraction, while consumption is expected to remain relatively robust.

The net export contribution is expected to be marginal in 2023, as exports should grow at a significantly slower rate following the strong rebound seen in 2022. Although the contribution of net exports is set to edge up slightly in 2024 and 2025, domestic demand is then expected to remain the main driver of growth in those years.

However, as in many countries around the globe, inflation remains a significant concern HICP inflation in 2022 reached 6.1% despite energy prices being kept at 2020 levels following an extension of government subsidies EU forecasts indicate that inflation in 2023 is set to remain elevated at 43% due to continuing pressures in food, transport, and imported goods prices. In 2024, inflation is expected to subside to 24% as imported price pressures are

also set to moderate

In its latest assessment, the Central Bank opined that risks to economic activity are slightly tilted to the downside in 2023 and more balanced thereafter It sees the key downside risks as emanating from the possibility of stronger than envisaged weakness in the international economic environment, which could lead to lower exports. Foreign demand may also be weaker than expected, especially if the monetary policy in advanced economies tightens more forcibly than assumed in this projection round Some of these risks could be mitigated by stronger than expected wage growth, which could offer additional support to household consumption.

Key references:

National Statistics Office (Malta)

Central Bank of Malta Forecast – 2022-2025

Central Bank of Malta - Quarter Review (Q1-2023)

European Commission Winter Forecast (February 2023)

Fitch Credit Rating Report for Malta (March 2023)

Corporate

ENVIRONMENT

EU increases efforts to fight greenwashing through new rules

The Commission has proposed common criteria against greenwashing and misleading environmental claims Under the new proposal, consumers will have more clarity, stronger reassurance that when something is sold as green, it actually is green, and better quality information to choose environment-friendly products and services

Businesses will also benefit, as those that make a genuine effort to improve the environmental sustainability of their products will be more easily recognised and rewarded by consumers and

able to boost their sales – rather than face unfair competition.

This way, the proposal will help establish a level playing field when it comes to information about the environmental performance of products.

A Commission study from 2020 highlighted that 533% of examined environmental claims in the EU were found to be vague, misleading or unfounded, and 40% were unsubstantiated The absence of common rules for companies making voluntary green claims leads to ‘greenwashing' and creates an uneven playing field in the EU's market, to the disadvantage of genuinely sustainable companies

CONSUMER AFFAIRS

New rules promoting repair of goods launched

The European Commission adopted a new proposal on common rules promoting the repair of goods, which will result in savings for consumers and support the objectives of the European Green Deal by reducing waste, among others Over the last decades, replacement has often been prioritised over repair whenever products become defective and insufficient incentives have been given to consumers to repair their goods when the legal guarantee expires The proposal will make it easier and more cost-effective for consumers to repair as opposed to replace goods Additionally, more demand will translate into a boost to the repair sector while incentivising producers and sellers to develop more sustainable business models.

According to the EU executive, the proposal will ensure that more products are repaired within the legal guarantee, and that consumers have easier and cheaper options to repair products that are technically repairable (such as vacuum cleaners, or soon, tablets and smartphones) when the legal guarantee has

expired or when the good is not functional anymore as a result of wear and tear.

DIPLOMACY

EU commits €7bn for rebuilding of Turkey and Syria after quakes

A total of €7 billion were pledged by the international community at the ‘Together for the people of Türkiye and Syria' International Donors' Conference, co-hosted by the President of the European Commission, Ursula von der Leyen, and by the Prime Minister of Sweden, Ulf Kristersson, for the Swedish Presidency of the Council

More than 60 delegations from the European Union, its Member States and partners, including the UN, international and European financial institutions such as the EIB and the EBRD, and other relevant stakeholders met in Brussels to mobilise support for the people in Türkiye and Syria after the devastating earthquakes of February 2023 and to coordinate the response in the affected areas in both countries.

COMPETITION Commission announces Guidelines on exclusionary abuses and amends Guidance on enforcement priorities

The European Commission has launched a Call for Evidence seeking feedback on the adoption of Guidelines on exclusionary abuses of dominance. In parallel, it has published a Communication amending its 2008 Guidance on enforcement priorities concerning exclusionary abuses This package is being considered as the first major policy initiative in the area of abuse of dominance rules since 2008

The new guidelines seek to ensure that abuse of dominance rules are clear, effective and applied vigorously to the benefit of European consumers and the economy at large The Commission plans to publish a draft of the Guidelines for public consultation by mid-2024 so as to adopt them in 2025.

Thedragonwakesfrom itsslumber

By Tonio Galea

Thesleepingdragonmightbewakingfromitssleeporsimplytakingamore assertiveroleintheglobalscene.FromeconomicexpansioninAfricatoamore activeroleintheUkrainianconflict,forbetterorforworse,China'spresenceis beingfelt.

The Ukrainian conflict has allowed Beijing to emphasise its version of the world order

An alternative vision to a US-led world order, with which it is trying to woo the rest of the globe, with particular emphasis on the Global South: Southeast Asia, Africa and South America. The timing is also of particular importance. China's sudden closeness with Russia is happening when relations with the United States have hit a new low, with the issue of Taiwan always firmly in the background

China has claimed to be neutral regarding the war in Ukraine, but Western critics have scoffed at this notion and accused Beijing of tacitly endorsing Russia's unprovoked invasion China, which tends to side with Russia on geopolitical issues, has said it has a "no limits" partnership with Moscow Beijing has avoided criticising Russia over the invasion of Ukraine while criticising the West for issuing sanctions against Moscow in response to the war. Meanwhile, Chinese state media has echoed the Kremlin's propaganda about the conflict.

Also, the Chinese foreign minister's recent foreign visits and speeches were interpreted by many in the West as an effort by Beijing to that its serious problems are mainly with the US and that the problems with Europe can be fixed. The Kremlin threw cold water on China's peace plan for the Ukraine war, suggesting that now is not the time to pursue such a proposal Ukrainian President Volodymyr Zelenskyy did not reject China's bid outright but responded cautiously, saying he wanted to meet with Chinese leader Xi Jinping to discuss the plan

The Chinese government strongly rejected claims made by the United States that it was considering supplying weapons and ammunition to Russia Chinese firms are also accused of supplying dual-use technology - goods that can be used for civilian and military purposes, such as drones and semiconductor chips - to Russia

Any large-scale assistance from China to Russia would result in a significant shift in the war China has no interest in the war in Ukraine being over any time soon China would prefer that the US and Europe continue providing their best weapons to Ukraine and remain preoccupied in Europe.

China will boost defence spending by 72% this year, slightly outpacing last year's increase and faster than the government's modest economic growth forecast, as Premier Li Keqiang called for the armed forces to boost combat preparedness The national budget released on the opening of the Chinese Parliament showed 1.55 trillion yuan ($224 billion) allocated to military spending.

The defence budget will be closely watched by China's neighbours and the United States, who are concerned by Beijing's strategic intentions and development of its military, especially as tensions have spiked in recent years over Taiwan.

In his work report to the annual session of parliament, Li said military operations, capacity building and combat preparedness should be "well-coordinated in fulfilling major tasks"

"Our armed forces, with a focus on the goals for the centenary of the People's Liberation Army in 2027, should work to carry out military operations, boost combat preparedness and enhance military capabilities," he said in the stateof-the-nation address to the largely rubber-stamp legislature

This year's hike in defence spending marks the eighth consecutive singledigit increase As in previous years, no breakdown of the spending was given, only the overall amount and the rate of increase.

Beijing is nervous about challenges on fronts ranging from Chinese-claimed Taiwan to U.S. naval and air missions in the disputed South China Sea near Chinese-occupied islands

Military aid apart, China has provided economic assistance to Russia by purchasing oil and other energy supplies Since the beginning of the war, China has imported oil, gas and coal worth over 60 billion euros These funds have helped keep the Russian economy afloat and allowed Putin to fund his vicious war against Ukraine China rolled out the red carpet for key Putin ally, Belarus President Aleksander Lukashenko, as the US warned against aiding Russia’s war in Ukraine. Lukashenko visited China as the two countries agreed to upgrade their countries’ ties to an “all-weather comprehensive strategic partnership” during a September meeting on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Uzbekistan, which Putin also attended

The backdrop of Belarus’ damaged ties with the West – and an interest in diversifying a Russia-dependent economy – could see Lukashenko keen to focus on boosting economic relations with China during this visit Belarus was an early joiner of China’s Belt and Road development initiative, launched a decade ago, and trade between the two last year increased 33% year-on-year to surpass $5 billion. Some of the attention was diverted when we had the Chinese balloon incident during all this. A balloon that was part of a fleet that had flown over "more than 40 countries across five continents"a claim China has flatly rejected

While questions remain about that incident, an examination of Chinese state media reports and scientific papers reveals the country's growing interest in these lighterthan-air vehicles, which Chinese military experts have touted for use toward a wide range of purposes, from communication relay, reconnaissance, and surveillance to electronic countermeasures But China has to tread carefully in the current Ukrainian conflict and its closeness to Russia. Such a position can raise global tensions significantly and likely backfire by pushing the US allies further into Washington's embrace, stymieing Beijing's plan to woo some of them away

Corporate

ByKeithZahra

Unity,resiliencesparesEurope recession,sofar

Uncertainty remains very much the keyword in attempting any economic analysis and forecast for Europe and beyond Although the situation remains a very volatile one, and the tense geopolitical situation persists, it is safe to say that things could have been worse

As 2022 approached its latter months, the world’s major institutions and top economists had resigned themselves that recession was an

inevitability – it was a matter of when not if However, as things stand, Europe seems to have averted this predicament, thanks to a mixture of fortuitous turnouts, including favourable climatic conditions, as well as sound and courageous policy decisions

Despite the surge in energy prices and ensuing record-high inflation, the slowdown in the third quarter turned out milder than previously estimated, and in the fourth quarter, the EU economy managed a broad stagnation instead of the 0 5% contraction expected in autumn

Most importantly, the European gas benchmark price has fallen below its pre-war level, helped by a sharp fall in gas consumption and continued diversification of supply sources The resilience of households and corporations has been significant and persistent.

The EU has demonstrated agility and a historical sense of togetherness in its efforts to reduce dependency on Russian energy commodities and strengthen resilience against adverse shocks Halfway last year, the European Council agreed on a ban on almost 90% of all Russian oil imports by the end of 2022, with a temporary exception for crude oil delivered by pipeline

Taking account of the EU member states’ different energy mixes, conditions and circumstances, EU leaders managed to reach an agreement on diversifying energy supply sources and routes, accelerating the deployment of renewables, improving energy efficiency and improving interconnections of gas and electricity networks In Summer, after protracted discussions, EU leaders adopted the regulation on reducing gas demand by 15%. Last month, the EU formally adopted an extension of the voluntary gas demand reduction target for one year until 31 March 2024

A milder than usual Winter, demand restraint and efficiency gains resulted in gas consumption being a quarter below the average price for the same months over the past five years Stepped-up efforts to diversify supply sources have also yielded important results, as evident from a sharp fall in the share of pipeline gas from Russia in total EU imports of gas and the strong increase in imports of seaborne LNG Last Summer, Europe was terrified by the idea of not having the necessary gas supplies to take it through the cold Winter, but the above developments meant that gas storage levels did not drop below 75% of capacity at any one point, only marginally below their level at the beginning of the heating season, and above the seasonal average This has placed on EU countries less pressure on refilling and eased institutional concern about gas rationing going forward.

The earlier-than-expected lifting of coronavirus restrictions, including extensive lockdowns in China is also expected to have a positive impact on global activity, reducing supply chain pressures and giving a boost to international tourism The latest data indicates a recovery of 75% of 2019 travel volumes to Europe in 2022 This strong tourism rebound is expected to continue well into 2023, though at a slower pace. America leads the recovery of long-haul travel to Europe, thanks to short-lived and fewer travel restrictions and the strength of the dollar against the Euro According to the European Travel Commission, based on year-to-date data, almost one in four of reporting destinations saw US arrivals exceed 2019 levels

At the same time, businesses remained resilient, seeking new avenues for growth as consumers resumed spending after the pandemic woes. As a result, employment remained strong, helping households push through the international crisis

Despite the war, unemployment rate in the EU remaining at its all-time low of 61% in December

The Employment Expectations Indicator rose to its highest level since June 2022 in January 2023, although survey findings only suggested a little improvement in labour market shortages While the temporary slowdown in activity is expected to have an impact on employment, the difficulty in filling positions is expected to remain As a result, the Centre for Economic Policy Research expects that the little increase in unemployment anticipated for early 2023 would primarily be a passing phenomenon

Economies resist, but for how long?

Looking forward, as things stand, with a realisation that the war in Ukraine will prolong well beyond Spring, and with the ECB expected to increase interest rates further, the Commission forecasts that GDP will expand by 0.8% in 2023 and 1.6% in 2024 (0.9% and 1.5% in the euro area) Growth inducing factors, including EU funding under the Recovery and Resilience Facility, are expected to help the European economy in these circumstances. Headline inflation is forecast to fall from 9.2% in 2022 to 6 4% in 2023 and 2 8% in 2024 in the EU In the euro area, it is projected to decelerate from 8 4% in 2022 to 5 6% in 2023 and to 2.5% in 2024.

Although there is still a lot of uncertainty around the prediction, growth risks are generally seen to be balanced If decreases in wholesale gas prices translate more firmly into lower consumer costs, domestic demand may increase Yet, given the global concerns, a potential reversal of that decline cannot be completely ruled out China's reopening may strengthen the drive for external demand.

Looking forward, as things stand, with a realisation that the war in Ukraine will prolong well beyond Spring, and with the ECB expected to increase interest rates further, the Commission forecasts that GDP will expand by 0 8% in 2023 and 1.6% in 2024 (0.9% and 1.5% in the euro area).

From a policy perspective, It was reassuring to see how well-coordinated the European response to the Russian invasion was, as well as how willing the EU nations were to modify their previous attitude toward Moscow.

Yet, the true test of Europe's cohesion is yet to come It remains to be seen how far electorates would back their leaders when their quality of life truly suffers. Originally, the widespread indignation across Europe made it simpler to preserve unity But given that Russia is applying more pressure and the possibility that the battle might end in a protracted stalemate, the harshest battle for the European economy might still be on the horizon

Key sources:

EU Winter Economic Forecast

European Travel Commission – Report 2022

Centre for Economic Policy Research

OveraCoffeewithFrMarkCiantarOFM

By James Vella Clark

In2007,FrMarkCiantarOFM,togetherwithagroupofyoungvolunteers,cofoundedagreencommunityspaceforyouthinMaltabasedonpermaculture values,aprojectwhicheventuallyledtothefoundingofanon-governmental organizationnamedInteko.“Theaimisasimpleone-toprotecttheisland’s environment,whileprovidingarefugeforyoungpeoplewhoweredealing withpersonalconflictsandobstaclesatriskofexclusion,”explainsFrMark.

It all started with the founding of Dar Frate Jacoba, and as Fr Mark explains, the initiative seemed to be the beginning of something that needed to spread

“Circumstances, however, pushed us to a different path. The pandemic happened, and with it came the rejection of a project I had long been working on When this happened, I chose to take a step back to reflect I moved to Qawra with my elderly sick father, which turned out to be an amazing experience Being away from everything helped me realise that when circumstances are tough, the best way is to cooperate with life by going with the flow. I started looking at life from a different perspective and felt reborn And with me, Inteko was born too”

Fr Mark reminisced on how he had found his vocation in Ħamrun where he grew up

“As an adolescent, I used to go to my oldest brother’s house next to the church of the Franciscans in Ħamrun and, on Sunday, go to mass there It was ‘love at first sight’ There were young friars in formation back then, and as a youth myself, I was attracted to the idea of becoming one of them They were visibly happy”

Fr Mark and his team work from home with no specific base, but currently, the search is on for a hub for this project

“What we have in mind is a Centre for Integral Ecology which will act as a focal point for the network of people and communities that are striving to re-connect humans with their common home and family The creation of this big family is Inteko’s purpose,” he adds

Through his ongoing work with young people, Fr Mark has come to understand that many of today’s young people are at risk of exclusion due to the lack of affordable housing, which he describes as “a terrible problem”

“I personally think it’s a very unjust situation and that authorities urgently need to address this problem because it is causing a lot of confusion and anxiety amongst the younger generation. On a deeper level, we need to talk straight to young people about their fundamental role as artisans of this changing society where albeit the pain involved in the process, they also need to be told that there is hope ”

As we speak, it becomes clearer how Fr Mark avoids the word ‘solidarity’ and prefers the word ‘compassion’.

“We find compassion when we look within ourselves People are becoming more alienated from what is real, which makes them more aware of their increasing loneliness and drives them to look for happiness in other things. The general crisis of leadership where we lack inspiring personalities who can offer direction to people in this difficult, yet beautiful journey of personal introspection does not help”

“Being compassionate also means believing that people can find their solutions within themselves It is what real education should be about Compassionate people never impose; they inspire, offering support while respecting the dignity of others,” added Fr Mark.

We shift the conversation to nature and the environment, which is what Inteko is all about

“Connecting with nature has a healing effect on land and people, and I have experienced this myself When I lived in Baħar iċ-Ċagħaq, any negative thoughts would fade away with an early morning jog along the coastline as I enjoyed the beauty of sunrise and the smell of the sea and the fresh air And when I farmed the land in Marsascala, the rhythms of the seasons, the growth stages of the crops and the beautiful variety of life forms had a calming effect on me and on our community as a whole”

Can we really aspire to a better environment?

“We need to first stop its destruction, not only of the natural environment but also of our overall quality of life Then, if we want a lasting effect, we must keep educating people until everyone realises what we are missing This requires a true commitment from all sectors of society“

Through Inteko, Fr Mark and his team are already doing their part as they build a network of communities that embody Integral Ecology in their lifestyle

“Our mission is to inspire change makers to help protect our planet and its inhabitants. We are dreamers, and we want to do much more. But besides financial support, we also need passionate people willing to give some of their time to this cause,” concluded Fr Mark

For both volunteering and donating, more details may be found on wwwintekomaltaorg or on the project’s Facebook page Intekomalta

Somequick-firequestions

Favouritemusic/band? Beethoven

TeaorCoffee?Coffee

AplaceinMaltaorGozoyouwouldvisitforinspiration?DingliCliffs

Yourfavouriteseasonandwhy?SummerwhenIfindthetimeforcamping. Alifelessonlearnt?Peoplegrow!

Yourfavouritecomfortdish?Soppatal-armla

Afondmemory?MylongwalksinthecountrysideonSundayafternoonswithmyfather Apethate?Egocentricattitudes

Whatcalmsyoudown? Sportwalking. Ifyoucouldboardaplanetomorrow,wherewouldyougo?Tibet.

PromisingWatercolouristMarkGeoffrey MuscatHosts3rdSoloExhibition

Mark Geoffrey Muscat (b 1986) is showcasing a new collection of watercolours of land and seascapes in what is his third solo exhibition

Having been brought up in an artistic environment, Muscat himself showed a talent for art at a tender age He received a varied artistic education in Malta and abroad He studied Architectural Photography at the Politecnico Di Milano under the tutorship of Professor Marco Introini and pursued painting lessons under the late Harry Alden, Winston Hassall and Jessica DeBattista, as well as Anton Grech at the University of Malta. Having read for a degree at the University of Malta in Architectural & Civil Engineering, specializing in Architectural Design, Muscat later furthered his studies abroad, where he obtained a Master’s Degree at the Bartlett School of Architecture, University College London

His first solo exhibition was held in 2011 at the Auberge d'Italie, Valletta, while his second exhibition was held in 2017 at the Valletta University of Malta campus, while his first participation in a collective exhibition was held in 2007.

The current exhibition, titled ‘UNTITLED’, comprises 26 watercolours that perfectly encapsulate Muscat’s style and technique, one that has matured over the sixteen years in which he has exhibited his work.

Each painting portrays a landscape in which Malta and Gozo feature emphatically A bright palette remains an important feature of Muscat’s paintings, with colours, however, becoming somewhat subdued in this collection of paintings

Earth and cold colours feature prominently, as does the black pen and a black wash that is a recurring feature in Muscat’s work, here visible, for instance, in Marsaxlokk

Muscat’s watercolours are executed in a loose and fluid, wet-on-wet technique which also contains a number of drawn lines. This all prima technique is a testament to a confident hand at work. His experience allows his hand to quickly move across the paper support achieving freshness of execution This watercolour technique allows no room for error whilst also here being exploited to capture the desired atmosphere, such as in Dahlet Qorrot

The exhibition, curated by Dr Charlene Vella, is open till Sunday, May 2, at The Palm Court Lounge, The Phoenicia Malta.

MalteseEngineeringCompanySigns RepresentationAgreementwith GlobalBrandCLARK

Stakeholders,suchasgovernments,consumersandinvestors,are increasinglyencouragingoriginalequipmentmanufacturers(OEMs)to becomemorecarbon-freetobeabletopropeltheirsandtheirrespective suppliers’ESGmetricsaccordingtoanESGreportpublishedlastmonthin Bloomberg.

“Companies like ours are not only constantly expected to review their environmental impact but are also audited on their operative carbon footprint. This is why we have chosen to strengthen our dealership with CLARK, knowing that this company’s full commitment to leverage all the advantages of lithium-ion technology will ultimately benefit us and all those clients who choose to invest with us,” said

David Fleri Soler, Chief Commercial Officer of Express Trailers

“It is in light of this that our engineering company Express Trailers Engineering Ltd, is proud to renew its formal representation agreement with global forklift company CLARK, one of the top brands in the world and a brand which we have been representing for the past 16 years with its fork-lifters and palletisers,” added Mr Fleri Soler

The announcement of this agreement comes as Express Trailers Engineering takes consignment of the first fleet of 10 new battery-operated palletisers operated with Lithium-powered batteries

A leader in the provision of warehouse equipment, CLARK offers a wide range of low-lift trucks and multi-function order pickers with Li-Ion batteries

With more than one million forklifts built and a presence through 450 dealers in more than 90 countries, CLARK is an undisputed leader in the industrial trucks sector, with the manufacture of forklifts and pallet trucks, narrow-aisle forklifts and warehouse equipment for warehousing activity and port operations

GOSupportsDigitisationofBookfor ChildrenWithAutism

AsAprilisthemonthofautismawarenessandacceptance,GOisannouncing itssponsorshipofanautism-sensitivechildren'sbook,afirstofitskindin MaltaforchildrenwithautismandADHD.ThroughGO’ssponsorship,the publicationwillbedigitizedandturnedintoanonlinebookwithvoice-over.

Titled, ‘Mase in Space’, the book is the brainchild of Michelle Mifsud, a speech and language pathologist with a special interest in the field of autism who dedicated her undergraduate and post graduate dissertations to exploring this field in detail She teamed up with her sister Marilyn Mifsud, a writer, and illustrator Sharon Naudi, who together created this book to support children in learning how to make requests and to use for social greetings, amongst others

“Unfortunately, there is still a big lack of resources for children with autism So when these three talented women approached GO for support, we saw this project in its innovative potential to bridge technology with education,” said Antonio

Ivankovic, Chief Commercial Officer of GO

“Most importantly, the promise that this book will be boosting education for a particular segment of society fulfils GO’s mission to support initiatives where no one is left behind,” added Mr Ivankovic who also mentioned how this publication is a scalable project with plans in place to gamify it

The launch was attended by Minister Julia Farrugia Portelli who stated that this project was a step towards the right direction in promoting inclusion whilst taking a more technological approach In her speech, Minister Farrugia Portelli stated that “every child has the right to an inclusive society, and Government’s mission is to ensure that every opportunity’s needs are met to ensure that as a country, we wholeheartedly embrace inclusivity in its entirety”

The idea was conceived in the summer of 2021 when I discussed with my sister Marilyn my wish to write an autismsensitive children's book to be used as a complementary tool for young children in my chosen vocational practice area,” added Michelle Mifsud

“Mase in Space” is a narration that incorporates rhythm and rhyme throughout and will mostly appeal to children who are intrigued by animals and space It has been beautifully illustrated by hand by Sharon Naudi who is not only an artist but also an assistant head with specialisation in literacy and inclusion.

The authors wanted to take all measures possible to make the book inclusive and considerate of the strengths and needs of children on the spectrum

“Before writing the book, we conducted a lot of research to identify, assess and analyse the most commonly mentioned features that are welcome / unwelcome in children’s books when being read by parents to young children presenting with autism, to ensure a book with the most desired elements "

“Owing to the complexity and vastness of the spectrum, it is virtually impossible to quantify an exhaustive subset of the above-mentioned features. However, once the first draft of the book was ready, we presented it in a focus group with parents as well as representatives from the Autism Parents Association as well as ADHD Malta for their feedback ”

“The response was overwhelmingly positive and new ideas continued to be developed namely, the use of speech bubbles with the characters’ faces to support the reader to better understand who is speaking,” added Michelle Mifsud

Although the book is intended as a commercial venture, several copies are being allocated for donation to persons, entities, schools and relevant institutions

EmpoweringSocietyThroughMore InformedHealthcare

Havingjustcommemoratedits70thanniversary,leadinghealthcarecompany VIVIANestablishedanewarmofthebusiness,rootedindecadesof expertise,experienceandastrongprofessionalnetwork.“VivianAcademyis allaboutempowermenttocontinuetoempowerourownpeople,industry partners,stakeholdersandourwidercommunitiesformoreinformed healthcare,”sayHANNAHCREMONA,strategicleadadvisorofthisproject andYANGRIMA,GeneralManageratVivian.

VIVIAN is a long-standing healthcare company with seventy years of experience in the healthcare and pharmaceutical sectors. The company thrives through constantly nurturing relationships with all its stakeholders, especially healthcare professionals and pharmacy, laboratory and clinic owners in both the private and public sectors.

“We have extensive knowledge to share, and we believe that through this knowledge, the Academy will not only ensure that the public is better informed, but we will also be contributing to a more informed and, therefore, stronger industry,” explains Hannah

“In fact, we thoroughly feel that empowered and informed patients are more likely to have a clean bill of health and more positive health outcomes,” added Yan

Hannah continued to explain, “As leaders in contributing to public health awareness over the decades, it is only natural for the company to want to formalise its efforts, expertise and network through this academy In fact, Vivian Academy is being built on three empowerment pillars: its people, its partners and stakeholders and the general public.”

Through the Vivian Academy, the company will continue to invest and offer all its employees personal and professional development through various group training, workshops, coaching and mentorship

“We look at this initiative as a vehicle to nurture more pride and loyalty in our team,” added Yan

“However, considerable investment is also dedicated each year to empowering and educating our frontline partners, namely the doctors and pharmacists, with whom we have a very special rapport. In the near future, this initiative will also be extended to our distribution partners ”

“Finally, Vivian Academy brings together its professional network of experts and inhouse expertise to fill knowledge gaps in the public with workshops and courses We aim to become a hub of empowerment.”

Vivian Academy will seek to become an accredited centre for Continued Professional Development (CPD) for various healthcare professionals.

“At Vivian, we have already started discussions with established training centres in the UK and Ireland to set up affiliated and accredited CPD courses for specific healthcare professionals,” added Yan

Vivian’s maxim ‘Together through Life’ reflects the company’s work and the products it delivers alongside the support and empowerment of people at all stages of their life

“Now, the Vivian Academy is the next level of empowerment, driven by our philosophy that the more informed people are, the better their decisions, which is crucial, especially when it comes to healthcare,” added Hannah.

“Vivian Academy may be ‘new’ as an academy however, it is rooted in a history rich in educating, empowering and engaging all concerned stakeholders at every level before and beyond our everyday work,” she concluded

FocalMaritimestrengthens investmentinGroup’sresourcesas shippingindustryfaces

unprecedentedtransformation

Theconstantchangesaffectingthemaritimeindustryinanincreasingly complexinternationalscenariowerethemainfocusareasofanintensive upskillingprogrammeforthehumanresourcesofFocalMaritimeGroup. Malta’sleadingmulti-disciplinaryspecialistinmaritimeconsultancy, CombinedMaritimeServices,coordinatedthetraining.

The recently introduced oil price caps, as well as increasing Western sanctions imposed on Russia, have significantly impacted the shipping industry considering its central role in international trade. This, however, is just one of many changes that are transforming the maritime industry. These include a stronger-then-ever push for sustainability, supply-side challenges as well as an unprecedented stream of changes in legislation and regulation, included fiscal reforms at international level.

The training focused on how these developments impact services such as ship, yacht and company registration, EU funded projects related to the maritime transportation sector such as short sea shipping and motorways of the sea, the preparation and submission of proposals for tenders related to transport and movement of people and cargo and advice and practical solutions to marine environmental considerations

Godwin Xerri, CEO of Focal Maritime, described the present maritime situation as one of profound change and rising complexity “New business strategies, cutting-edge technology, and evolving laws will significantly impact carriers and forwarders alike Shipping firms are facing a variety of challenges in advancing the green transition, from logistical capacities in fulfilling new regulatory standards to the financial effects this will have on enterprises’ bottom lines In such a scenario, continuous training of our personnel is imperative to adapt to this evolution”

This training was also supplemented by other management-related training carried out by Surge Advisory, a corporate consultancy firm, while personal coaches addressed specific requirements for a number of members of the team.

General Manager Silvan Fleri added that the constant investment in training is part of a wider strategy of the company while also reflecting the increasing importance of good governance within its operations.

“For us, good governance is a fundamental way of going about our business At the same time, our business clients have learnt to expect this from us Because consumers and society as a whole are becoming more and more aware of the value of sustainable practices, business as ‘usual’ is no longer acceptable”

Meanwhile, Focal Maritime has announced the appointment of Ms Ramona Saliba as Commercial Manager of the shipping companies falling under its brand Ms Saliba, who has a twelve-year experience in the industry, more than half of which with Focal, will be responsible for the implementation of the company’s commercial policies and to the relations with clients and principals

Corporate

NOUVSeeingConsistentGrowth inAuditBusiness

“Obtainingacleanauditreportisimportant.Butknowingthatyouraudit reporthasbeendrawnbyafirmwhereintegritytopsitslistofvalues,iswhat willenhancethecredibilityofyourcompanyanditschancesformore businessgrowth,”saysTONIOFARRUGIA,PartnerandChiefOperations OfficeratNOUVastheboutiquefirmprojectsmoregrowthforitsaudit businessthroughanewacquisition.

From a small boutique firm founded in 2008, NOUV continued to grow at a steady pace, and two years ago, it was compelled to relocate to new bigger offices

“The increased demand we are experiencing in this area not only compelled us to onboard several new employees over the past few months, but we are now about to acquire another small but specialised audit firm,” announced Mr Farrugia.

“This important acquisition has already started, and the first employees have already joined the company to start familiarising themselves with the setup and culture at NOUV The rest of the team of 10 to 12 audit people will join

once the acquisition is finalised in May With this acquisition, which should continue strengthening our market position in this sector, our Audit setup will be complete,” said Mr Farrugia

Mr Farrugia, however, points out that NOUV’s strengths go beyond its strong audit arm.

“Notwithstanding the fact that we like to describe ourselves as a boutique firm run by a relatively young team, we are positioned to offer a large pool of disciplines coupled with professionals who hold a wealth of experience In fact, we believe that the biggest strength in NOUV is in terms of knowledge,” he added.

Tonio, together with his partners Mark Aquilina, the firm’s founder, James Sammut, Andrew Naudi and James Sammut who leads NOUV’s growing Sustainability arm, want to establish NOUV as leaders in the sector

“We call ourselves a boutique management consulting firm which means that we handle fewer clients However, contrary to bigger companies, we believe to be in an enviable position to give our clients more importance Being smaller also means that everyone’s input is crucial, everyone has value to give, and everyone at NOUV holds the potential to grow their knowledge further.”

“At NOUV, we thrive on a collective sense of ownership because ownership spells commitment It sets an example that creates the right environment where people feel more supported and empowered to grow professionally So being smaller than other bigger firms also means that we have more flexibility to develop our ideas more and to adapt our work more to our client’s expectations,” added Tonio.

Today, NOUV employs over sixty employees, but its quest for more growth continues

“We always projected more growth, which is why a few months ago we took over 200 sqm of new additional space beneath our current offices where we shall have a dedicated training centre for the growing operations of NOUV Academy, two additional offices and an open plan area with all the relevant facilities”

“Meanwhile, we are also opening up vacancies for the posts of Business Advisor in Energy and Environment, Business Advisor in Health and Safety and a Senior Accountant We are first opening up these positions internally in line with our commitment as a firm to encourage internal growth”

Tonio stresses the importance for businesses to keep pursuing growth but even more crucial remains the fact that growth has to happen in a sustainable manner

“We believe in sustainable growth for companies who want to last and leave an enduring impact. This is how we guide our own clients to grow. In this day and age, sustainability is crucial in all aspects of a business. This is why NOUV invested in the acquisition of Tuning Fork two and a half years ago to be in a position to offer top-notch advice on ESG matters and on sustainability”

Tuning Fork came with its own Academy and an established portfolio of over a hundred expert accredited and non-accredited training courses in relation to ISO standards in Management and Leadership, Governance, Sustainability, Project Management, Automotive, Health & Safety and Hospitality

“Courses are mostly sought by people in management and leadership positions as well as those responsible for auditing of ISO standards with clients across all industries including pharmaceutical companies, manufacturing and gaming companies The message that growth also comes from knowledge seems to be setting in and this is good!”

YOUR PURPOSE IS YOUR BIGGEST ASSET

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