Issue No. 59 - 2014
Special Feature:
• Frozen in Time & deprived of data pg 07
• Developing Organisation Knowledge pg 17
• Sole Trading vs LTD: pros & cons pg 24
Emanuel Camilleri
Francis Farrugia
Neville Cutajar
www.the-executive.biz
The Executive 1
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Issue No. 59 - 2014
The Executive
Editor’s Letter
H
uman Resources as a term is not much in fashion, instead of which we are today urged to simply say ‘People’. This stems from the fact that resources may be commoditised, and thus, abused. And in 2001, the International Labour Organization’s revisiting of its 1975 ‘Recommendation 150’ on Human Resources Development resulted in the “Labour is not a commodity” mantra. But what is a commodity? According to the Oxford Dictionary, it’s nothing more than a raw material that can be bought or sold (such as copper or coffee). And raw material, from an accounting perspective, is all those component parts currently in stock that have not yet been used. The definition goes further to say that there are two subcategories of raw materials, which are direct materials (materials incorporated into the final product, such as a portrait’s canvas) and indirect materials (such as the artist’s easel). This all seems to me to be synonymuous with people, and with managing them. People are an indirect material employed in creating or assembling a final product. Yours truly, for example, is busy hammering away at his long-suffering keyboard and is thus clearly definable as a means to an end; the end being the output of issue no 59. And our illustrious contributors are a priceless source of stock. Why should this irk us? And how could the clarity lead to abuse? Whilst not all subjects are specifically devoted to the management of People (though most are), they all nonetheless speak about human matters. A case in point is the article arguing benefits (and lack thereof) of not opening a limited liability company, instead choosing to operate as an indivual. This issue has focused intensely on issues pertaining to HR, and I wish to thank not only our esteemed regular suppliers of stock, and our customers, but also those who contributed to the HR elements of this issue, namely being Josef Said of Konnekt fame, whose insightful article is presented to us on page 29; and our Special Feature contributors as displayed within the Table of Contents. Jason Attard
editor@the-executive.biz Publisher & Editor in Chief Jason Attard
Editorial Advisor Victor Calleja
Design & Layout Jason Attard
Photography Charles Calleja, Foto-ish the Studio
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Issue No. 59 - 2013
The Executive
Contents
INFORMATION SYSTEMS 07.
PEOPLE
Frozen in Time and Deprived of Data
Developing Organisation Knowledge
Emanuel Camilleri
Francis Farrugia
FINANCES
24. Sole Trading vs LTD: pros & cons
17.
Neville Cutajar
PEOPLE
LIFESTYLE
INTERVIEW
29. The Evolution of Recruitment in Malta Josef Said
53. Global warning
40. Dennis Camilleri: Trade Finance Expertise you can Bank on
Victor Calleja
SPECIAL FEATURE: HR Dakar Software Systems
Outdoor Living
AIS Technology Ltd
DataByte
MITA (Digital Malta)
Kinetix
pg. 22
pg. 27
pg. 38
pg. 47
pg. 49
pg. 51
Contributors
Emanuel Camilleri
Josef Said
www.the-executive.biz
Francis Farrugia
Dennis Camilleri
Neville Cutajar
Victor Calleja
The Executive 5
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Issue No. 59 - 2014
The Executive
INFORMATION SYSTEMS
Frozen in Time and deprived of data
Emanuel Camilleri
Information is the basis for all decisions. One of the dilemmas facing today’s manager is that on the one hand they seem to be suffering from information overload, yet on other hand, they often complain about shortage of information needed to make vital decisions. Many large organisations are caught in a time-warp; they seem to be continually rotating at an operational (“Automation” era) level. They cannot break away from the operational level by climbing the information system and information utilisation ladder to the tactical and strategic stages. In such a scenario Information Systems are primarily used as administrative tools rather than strategic devices.
I
am often asked how Malta, particularly Government, rates in the application and usage of ICT. This is not a simple question to answer. There are a number of aspects that need to be considered when contemplating an answer to such an innocent question. What exactly are we rating? Are we rating the Information Technology facilities? Are we rating the Information Systems? Are we rating the Information Utilisation aspect? Ever since the mid sixties has terminology used within the Information Technology industry been confusing. Hence, we need to know exactly what we are discussing. In general terms, Information Technology refers to the computer hardware (including communications equipment and the physical network) and operating systems
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(including the network management systems). Information Systems mainly refer to the management information systems or more precisely the application systems. Some examples of information systems include the accounting system, human resource management system, health information system, and so on. Hence, the information systems are basically the organisational administrative systems. Finally, Information Utilisation refers to the exploitation of the information that is generated by the information systems for decision making purposes. As one may appreciate there is a very close relationship between Information Systems and Information Utilisation, since the latter is dependent on the information generated by the former.
Synopsis There is a very close relationship between Information Systems and Information Utilisation, since the latter is dependent on the information generated by the former. One can reasonably state that from an Information Technology point of view, many organisations do have state-of-the-art technology. However, from an Information Systems and Information Utilisation point of view, many organisations have a long way to go before they can be considered to be state-of-the-art in this domain.
The Executive 7
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Issue No. 59 - 2014
The Executive
Now that the terminology is somewhat clearer, an important issue that needs to be addressed later in this article is the responsibility for the promotion, continual enhancement and applicability of the three aspects defined above. The objective of this article is to discuss a number of pertinent issues, and highlight that the Information Utilisation aspect appears to be an orphan and is continually being neglected by the various strata of management. The Application and Usage of ICT Generally, in terms of Information Technology (using the previously mentioned definition), there is very little doubt that most large organisations, particularly Government, have state-of-the-art computer hardware and operating systems. The major reason for this is that Information Technology is easily obtainable, is relatively inexpensive and is unilaterally applicable www.the-executive.biz
Information Systems
across the organisation. Furthermore, Information Technology is constantly being enhanced by information technology manufacturers and plays a vital role in the management and administration of organisations. In other words, if organisations do not adequately invest in Information Technology they are simply left behind at the most basic management level. It becomes a lot more difficult when addressing the utilisation status of Information Systems because the issue is closely related to the strata of management; different levels of management. Hence, an Operations Manager has different roles and is confronted with decision types that are distinct when compared with the CEO/ Chairperson of the organisation. The former has an operations function whilst the latter has a strategic one.
Decisions are made by different grades of people within an organisation. Furthermore, these different grades of people require different types of information systems and information depending on the type of decisions they make. Moreover, the size of the organisation determines the level of overlap of the decision types undertaken by an individual. For instance, a manager working in a very small organisation may be required to make strategic, tactical and operations decisions at any particular point in time.
“
If organisations do not adequately invest in Information Technology they are simply left behind at the most basic Traditionally, Information Systems were specifically aimed at the management level. operations level. The objectives were to process data faster and produce the various reports and other outputs cheaply and quickly. This was the era of “Automation”. The 1960s were mainly concerned with operational management to resolve administrative concerns
”
The Executive 9
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Issue No. 59 - 2014
The Executive such as increasing productivity at a lower cost. The 1970s and 1980s were related to the “Informational” era, which was mainly concerned with tactical management, utilising information to ensure that the organisation was in step with the strategic objectives. The 1990s and the 2000s were related to the “Transformational” era, which is mainly concerned with using information for making strategic decisions and gaining competitive advantage. However, many large organisations are caught in a time-warp. They seem to be continually rotating at an operational (“Automation” era) level. Some are operating state-of-the-art applications, while others have a number of obsolete information systems. These organisations may have the latest e-Commerce, m-Commerce, eGovernment and m-Government systems. But when everything is taken into account, these organisations are still considered to be focused on operational management. They cannot break away from the operational level by climbing the information system and information utilisation ladder to the tactical and strategic stages. In such a scenario Information Systems are primarily used as administrative tools rather than strategic devices. As previously stated, the Information Utilisation aspect is very closely related to the Information Systems exploitation. A lack of tactical and strategic information system means a lack of information utilisation at these levels. One aspect depends on the other. Therefore, generally one can reasonably state that from an Information Technology point of view, many organisations do have stateof-the-art technology. However, from an Information Systems and Information Utilisation point of view, many organisations have a long way to go before they can be considered to be state-of-the-art in this domain. www.the-executive.biz
Information Systems
Who is Responsible? In 2012, Gartner Executive Programs conducted a global Chief Information Officer (CIO) survey and received responses from 2,053 CIOs from forty one countries and thirty six industries. Gartner reported that survey results indicated that analytics and business intelligence were first and second respectively in the top ten technology priorities for CIOs for 2013. The others included (in order of priority) mobile technologies, cloud computing, collaboration technologies, legacy modernisation, IT management, customer relationship management, virtualisation, security, and enterprise resource planning. The issue is: Who is responsible for climbing the Information Systems and Information Utilisation ladder? Is it the IT/IS technical professional/organisation or the User (organisational management). In my opinion the CIO/IT Organisation has the responsibility to provide the technical tools and associated systems at the tactical and strategic level and not just focus on the operational level. On the other hand, the User must be trained and be receptive to use analytics and business intelligence for decision making purposes.
In other words, it is the User who must recognise that the organisation has a tremendous wealth of information that is generated by the operational Information Systems and that this information may be utilised for decision making purposes at a tactical and strategic levels (besides the operational level). Therefore, the responsibility for climbing the Information Systems and Information Utilisation ladder is jointly owned by the technical professional (CIO/IT Organisation) and the User (Management). The former must make the tools (such as Data Mining, Decision Support Systems, Executive Information Systems and other statistical tools) available and encourage their usage, whilst the latter must either recruit (or/and develop) management professionals who are competent in building business models and specifically in the analysis and interpretation of information. It is stressed that building business models and specifically analysing and interpreting information is a User (management) function.
“
Survey results indicated that analytics and business intelligence were first and second respectively in the top ten technology priorities for CIOs for 2013
”
Education System Another issue is whether the education system has the potential to develop graduates with the appropriate skills related to building business models and specifically analysing and interpreting information. The answer to this question is definitely yes. The University of Malta, Department of Statistics has specific courses related to Statistics and Operations Research, where students may combine these studies with Mathematics, Banking and Finance, and other business disciplines. The major concern here is whether the Industry, that is those that employ; appreciate the professionals that are completing such courses. It seems that a majority of these professionals are being recruited by the e-Gaming industry and NSO. Whilst this is not a bad thing, one would like to see a more general acceptance of these professionals across all industries, particularly in the management of the Public Service (throughout all Ministries) and other large enterprises. The Executive 11
Issue No. 59 - 2014
The Executive
Information Systems
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Conclusion Whilst having state-of-the-art Information Technology is to be applauded, it is equally if not more important, to have state-of-the-art Information Systems and Information Utilisation applications. Many entities (including numerous Governmental organisations) are caught in an endless IT development cycle that focuses on the operational aspects. Operational information systems are a must because it is these systems that directly serve the client and generate the vast amount of information that organisations currently hold. However, organisations must strive to break away from just having traditional operational systems and push towards introducing information systems that address tactical and strategic management issues. Furthermore, management must recognise that www.the-executive.biz
information is a corporate asset, and like any other corporate asset, it must be seriously utilised. Management must also recognise that the benefits that are generated from investing in state-of-the-art information decision systems far outweigh their cost. Obviously, a major concern is having qualified professional managers that are competent in the use of analytical and business intelligence tools, such as data mining capabilities and sophisticated statistical analysis. However, such professionals (admittedly not in large numbers) do exist and are being fostered by the University of Malta (Statistics Department) but executive organisational managers must appreciate these talents. It is important to note that the demand for such professionals across the industry will influence the supply.
The education system has indeed the potential to develop graduates with the appropriate skills related to building business models and specifically analysing and interpreting information.
Dr. Emanuel Camilleri currently occupies the post of Chairman Privatisation Unit, Ministry for the Economy, Investment and Small Business. Previously he was Director General (Strategy and Operations Support), Ministry of Finance. Emanuel has extensive local and overseas experience in information management applications, and holds academic qualifications in information management, accountancy, engineering and business management. The Executive 13
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Issue No. 59 - 2014
The Executive
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The Executive 15
Issue No. 59 - 2014
The Executive
People
Developing Organisation Knowledge Francis Farrugia
T
he first approach we will be discussing is the tacit knowledge approach. Tacit knowledge can simply be defined as the knowledge that exists in the heads of individuals. Organisations must make the best use of this knowledge by encouraging individuals to share their ideas with their work colleagues to develop new insights together that will lead to the creation of new knowledge within the organisation. Therefore, to make good use of the tacit knowledge of individuals, managers are urged to identify the knowledge possessed by various individuals in an organisation and then to arrange the kinds of interactions between knowledgeable individuals that will help the organisation perform its current
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Many are aware of the importance of implementing effective knowledge management in organisations. However, the challenges are not few! This article discusses two basic approaches in identifying and managing knowledge in organisations and how these can be managed to develop a knowledge creating organisation.
tasks, transfer knowledge from one part of the organisation to another, and/or create new knowledge that may be useful to the organisation. The Challenges of tacit knowledge
One of the main advantages of the tacit knowledge approach is that it is a relatively easy and inexpensive way to begin managing knowledge. The essential first step is a relatively simple one, identify what each individual in the organisation believes is the specific kinds of knowledge he or she possesses. Managers can then use this knowledge to assign individuals to key tasks or to compose teams with appropriate sets of knowledge to carry out a project, to improve performance in current processes, or to try to create new knowledge in the organisation.
However, if knowledge remains tacit in the heads of individuals, then the only way to move knowledge within the organisation is to move people. Moving people is often costly and time-consuming and may be resisted by individuals who fear disruptions of their careers or family life. Even when knowledgeable individuals are willing to be moved, an individual can only be in one place at a time and can only work so many hours per day and days per week, thereby limiting the reach and the speed in transferring an individual’s knowledge. Leaving knowledge tacit in the heads of individuals creates a risk that the organisation may lose that knowledge if any of those individuals becomes incapacitated, leaves the organisation, or, in the worst case, is head-hunted by competitors.
The Executive 17
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Issue No. 59 - 2014
The Executive
The challenge firms face as they become larger, more knowledge intensive, and more geographically dispersed, is for their managers to know ‘what they know’. A common initiative within the tacit knowledge approach is to improve understanding of who knows about what in his/her organisation. This can be achieved by developing contact information for each person about the kind of knowledge he/ she possesses. Explicit Knowledge We now look at the explicit knowledge approach which holds that knowledge is something that can be explained or articulated and made explicit by individuals such as by being disseminated within an organisation through documents, drawings, standard operating procedures, manuals of best practice, and the like. Information systems are usually seen as playing a central role in facilitating the dissemination of explicit knowledge over company intranets or between organisations via the internet. A good example of effective use of this approach is when an organisation embarks on a new project, designers of the project are given a manual of design methods and techniques from the team that had previously worked on a similar project. By the end of the project the new team would then be required to have improved design methods and techniques, developed and documented more efficient and www.the-executive.biz
People
flexible delivery processes and develop an improved design manual to meet the product and production goals for its project. This manual would then be passed on to the next design team given the task of developing the next project. In this way, the organisation seeks to capture the knowledge developed by its personnel during each project and to systematically leverage that knowledge in launching the work of the next project team (Spear and Bowen 1999).
but resists requests by the organisation to do so. At the heart of such resistance is usually a belief that an individual’s job security or position of influence in an organisation depends on the tacit knowledge that he or she has and that the organisation needs.
The key advantage of this approach is that when individuals articulate their knowledge in a document, or other form of explicit knowledge asset, it should be possible through use of information systems to quickly disseminate that knowledge throughout an organisation or indeed anywhere in the world. In effect, converting tacit knowledge into explicit knowledge creates an asset that is available 24/7 and is free from the limitations of time and space that constrain the dissemination of tacit knowledge by moving individuals.
Another challenge is assuring that knowledge articulated in one part of the organisation is not ignored by any of its other parts simply because they prefer to stay close to their own familiar knowledge. One approach to managing this concern is the implementation of organisational best practices. One way of achieving this is to set up a committee of experts responsible for a knowledge evaluation process that examines the applications of knowledge articulated within the organisation, and defines the best practice in applying that currently available knowledge.
The Challenges of explicit knowledge
To gain benefits from an explicit knowledge management approach, a number of organisational challenges must be overcome. Individuals may not have sufficient skill or motivation to articulate their useful knowledge. Another challenge arises when an individual is capable of articulating his or her knowledge,
Overcoming such fears is likely to require a profound rethinking of the employment relationship in many organisations, especially with regard to key knowledge workers.
“
Another challenge is assuring that knowledge articulated in one part of the organisation is not ignored by any of its other parts simply because they prefer to stay close to their own familiar knowledge.
”
Implementing such a process for assuring that an organisation’s best knowledge and practice are actually used requires a high degree of organisational discipline in adhering to the organisation’s current best knowledge. Such discipline will normally require building a high degree of organisational trust that the expert committee is obThe Executive 19
Issue No. 59 - 2014
The Executive jective, impartial and transparent when deciding what is best knowledge and best practice. Conclusion The tacit and explicit knowledge management approaches thus involve different practices, and one might ask which approach is the best for his/her organisation. As with most alternative approaches to management issues, the answer is not one or the other but a mix in the right combination. The challenge is then to find the right combination and balance of tacit and explicit knowledge management approaches. What the right combination and balance may consist of will vary with a number of factors. These may include the technology the organisation uses or could use, the market conditions it faces, the knowledge intensity of its strategies and operations, the current attitudes of its knowledge workers towards the organisation, the degree of geographical dispersion of its knowledge workers, the resources available to the organisation to invest in developing infrastructure and processes for its knowledge management practice, and so on. It is suggested that organisations that are starting on their implementation of systematic knowledge management approaches should in most cases begin with tacit knowledge management practices as described above. Such practices are relatively inexpensive, fast to implement, and less challenging than
People
the full-blown explicit knowledge management practices. Implementation of tacit knowledge management practices should be seen and communicated within the organisation as only the first step in an evolving management process that will eventually include more formal and systematic explicit knowledge management practices. When the respective advantages of tacit and explicit knowledge management practices can be combined, an organisation should be able to develop and apply new knowledge faster and more extensively than organisations that do not try to manage knowledge or that use only tacit or only explicit knowledge management practices. Thus, the eventual goal for most organisations will be to devise and implement hybrid knowledge management practices in which explicit knowledge management practices complement and significantly extend their initial tacit knowledge practices. This will create what Nonaka (1991) called a ‘knowledge creating company’. This is depicted in Figure 1 where knowledge is converted from one form to another through a number of techniques, namely: socialisations (e.g. between master and apprentice), Articulation (making tacit knowledge explicit), Combination (combining different forms of explicit knowledge) and Internalisations (the process of allowing explicit knowledge to become tacit over time).
Synopsis If knowledge remains tacit in the heads of individuals, then the only way to move knowledge within the organisation is to move people. Moving people is often costly and timeconsuming and may be resisted by individuals who fear disruptions of their careers or family life. Another challenge arises when an individual refuses to share knowledge. At the heart of such resistance is usually a belief that an individual’s job security or position of influence in an organisation depends on the tacit knowledge that he or she has and that the organisation needs. Overcoming such fears is likely to require a profound rethinking of the employment relationship in many organisations, especially with regard to key knowledge workers.
References are available upon request.
Ing. Francis Farrugia occupies the post of Head of the Standardisation
Directorate
of
the
Malta Standards Authority (MSA). He also lectures at the Henley
Figure 1 – The Knowledge-creating organisation www.the-executive.biz
Management College in Malta. The Executive 21
Issue No. 59 - 2014
The Executive
Company Highlight: Dakar
We cannot deny the fact that everyone loves a good spreadsheet. However, if your company employs more than a hundred employees; Human Resources (HR), tracking performance, training, and succession planning using spreadsheets is the stuff of nightmares. Spreadsheets and paper-based processes cannot provide deep, real-time insight into how employees are performing or how to make them—and your company - more effective. HR can be especially difficult for growing businesses. Things seem so simple when you have just a handful of people. However, as teams start to grow, information needs to be organised and managed, company policies need to be enforced and the responsibilities of the HR team quickly expand.
Human Resources Information Systems (HRIS) Is it time to give up your spreadsheets?
W
ith all the manual entry involved to maintain spreadsheets and documents, it is inevitable that mistakes will occur. It is also extremely difficult to track and manage HR processes that may require approval from multiple people. When a company starts to grow, these problems only worsen. Nowadays, HR management software is far more than simply a web-based repository of employee information. Human resources software has evolved into becoming a fully fledged centralised source of real-time, rich and up-to-date employee data. This software enables company business leaders to make strategic decisions and improve overall business efficiency and performance. A centralised human resources software solution such as the DakarHR system empowers employees and their managers to communicate on how individual goals relate to the company’s goals and to ease the process of HR performance on these goals. Ensuring that your employees are constantly aware of your company’s vision can contribute to the company’s core mission. With all the HR related information gathered in a single place, easily accessible via the Internet 24/7, managers are able to view and manage employee information with feedback gathered throughout a company, creating a richer and more complete picture of an employee. 22 The Executive
The most highly sought after human resource software solutions include a centralised database of employee information beyond the basic HR hire date and salary information. Many include an employee directory, performance appraisals, leave management, organisation charting, overtime approvals, employee scheduling, payroll and ultimately a consolidated database of all employee information which is visible throughout the entire company. Due to the fact that employees are comfortably sharing information about themselves on a deeper level, they are encouraged to collaborate along lines not previously realised. The DakarHR system is robust enough to function as your main HR data solution, integrating seamlessly into other systems such as performance appraisals, time & attendance, benefits, payroll and accounts. This eliminates time-consuming data duplication and reduces the likelihood of human error in the data entry process. With pre-configured and also customisable reports and auditing capabilities, the DakarHR system has the ability to meet regulatory compliance and answer key HR-related questions all within one centralised system. You can use this data to pinpoint and analyse trends throughout your company and generate customised reports empowering executives, managers, and frontline employees to run “what-if ” scenarios and use strong data analysis to make more informed decisions. www.the-executive.biz
Issue No. 59 - 2014
The Executive
Company Highlight: Dakar
Do you have the right HR tools? Not if you’re still using spreadsheets for your recordkeeping. One of the reasons why HR Departments in small and midsize companies do not use a true HR information system (HRIS) is the perception that they can’t afford one — this is simply not true! The DakarHR system is a fully comprehensive and affordable HR solution. Your people are a powerful resource and recognising top talent is essential to keeping them. However, if you rely on spreadsheets, you will never really know who your top talent is or what they’re contributing. With HR tools designed to identify and incentivise high performers, the DakarHR system ensures that you hold onto your top performers. A recent survey found that businesses with tightly
aligned talent processes experienced 40% less turnover of high performers and had a 156% greater ability to “develop great leaders.”
Nowadays, HR management software is far more than simply a web-based repository of employee information.
Spreadsheets can’t bridge the gap between people management and your CEO’s business goals. An integrated HR management system such as the DakarHR system helps you find and keep the best talent, plan for succession, and spend less time on data gathering—and more time on strategy. So where do you start? Contact us today for a free no obligation demonstration of the DakarHR system fully integrated with the Dakar Payroll. Over the past 20 years Dakar Software Systems has helped over 1600 clients develop their HR systems with tools that are both powerful and easy to use.
(end of Company Highlight)
20 Years of service to the HR industry in Malta
D
akar Software Systems is now 20 years old. The company began operating officially in 1994 when David Schranz, founder, CEO and Chief Software Architect, registered the company as a limited liability company in Malta. It was the beginning of what, years down the line, would be Malta's leading software house specialising in people management solutions. In fact, for many years, Dakar has been considered as the de facto standard in human resources software in Malta. Now in its 20th year of operation, Dakar Software Systems has a team of 20 persons who are all fully qualified in the IT sector, dedicated to offering specialised support services to its clients which today number over 1,700 companies in Malta and abroad. All Dakar software products are designed, developed, marketed and supported by the company.
Dakar Software Systems is the industry leader in Payroll and Human Resources software applications, with a presence in practically every sector of the Maltese economy. Dakar is predominantly present in the banking, finance, insurance and auditing sectors, at corporate and manufacturing clients, in the hospitality and health care services sector, in the technology and gaming industry, in the construction sector, and in most Government Departments, Corporations and Ministries. The Government of Malta is Dakar’s largest client. Dakar also has a strong presence in the North African market and also in Europe. The Dakar Payroll system is our flagship product with well over 120000 employees in Malta and Gozo paid directly via the Dakar Payroll system. The Dakar HR suite also consists of the Personnel, Time and Attendance, Rostering, Training, Recruitment, and Performance Appraisal modules, as well as numerous other related applications. Today, all of these products are web based primarily because of the prevailing trend that emerged a few years ago for the need to host the handling of personnel transactions over the company intranet, by means of web portals, kiosks, or over the internet. Booking absences, claiming reimbursement of expenses, clocking in and out of the office, authorisation of overtime, and employee performance appraisals are just a few of the tasks that can now be done online. Dakar Software Systems was the first company in Malta to launch an internet based payroll SaaS system, back in 2001. The Software as a Service product was designed to cater for companies employing less than 100 employees. It was given a face lift in 2010 and was marketed under the brand name of Salaroo. Today there are over 250 companies in Malta using Salaroo. Salaroo is a cost effective, maintenance-free web based payroll system that may be accessed via any computer browser by simply typing www.salaroo.com Dakar is proud to have been of service to the HR community in Malta for the past twenty years and the company looks forward to the future with commitment, drive and enthusiasm to continue enhancing and expanding its products’ portfolio to accommodate the ever changing demands of the HR industry in general. For more information, kindly contact Dakar Software Systems on (+356) 2137 4078 or at www.dakarsoftware.com www.the-executive.biz
“Our deep insight into Payroll and HR systems enables us to develop technology based and cost effective solutions that add value to our customers businesses all over the world.” The Executive 23
Issue No. 59 - 2014
The Executive
Finance
Sole Trading vs LTD: pros & cons Safer segregation of multiple businesses Limited financial liability
Neville Cutajar
Companies have more credit weight
Claiming back expenses
a simple share capital transfer
Information is more exposed
Costlier compliance
LIMITED LIABILITY COMPANY
One of the most common questions persons looking to start their business ask is whether they should start as a sole trader or else whether to set-up a limited liability company. This short article aims to provide the reader with a synopsis of the pros and cons of both approaches and list down the factors one should consider in arriving to a decision.
Cumbersome transfer of assets
SOLE TRADER
I
n the past, the most common factor that used to Business convince sole details kept traders to conprivate vert to limited liability companies was tax savings. However, since 1990 both the top personal tax bracket as well as the company tax rate has been stream lined at 35%. With the recent increases in the tax brackets, where an individual earning up to Euro 60,000 is taxed at 29% there is very little tax incentive to justify, on its own, the conversion of a business to a limited liability company.
24 The Executive
Cheaper compliance Personally responsible for business debts
Complication may arise out of multiple business concerns
Limited Liability An important factor that, in our opinion, is even more important than taxation, when evaluating such a decision, is the question of LIMITED LIABILITY. This principle is rarely understood by a person starting up his business. But in simple terms as a sole trader, your business creditors
have access to all your business assets as well as all your personal assets. As a limited liability company the only assets they can claim on are the business assets provided that no fraudulent activity or wrongful trading was committed whilst trading under a company name. www.the-executive.biz
Issue No. 59 - 2014
The Executive
Finance
This can be looked at as a RISK UMBRELLA that protects the personal assets of the trader should the business encounter any type of financial storm. The problems can result from the trader’s inability to repay his/her creditors or from claims by a client, an employee or any third party seeking redress in court against the trader for presumed damages suffered. Continuity The transfer of the business assets from a sole trader to his heirs can sometimes be very cumbersome requiring the opening of the will, transfer of legal titles to property etc. This can also be very costly, especially where a will is challenged in a court. Such a challenge can spell the death knoll for such a business. In the case of a company, as this is a legal person in its own right, the only procedure required is the transfer of ownership in the share capital. Its legal rights and obligations on its property, assets, debtors, creditors, bank facilities and employees are not disturbed. Therefore the business should encounter few problems in continuing to trade. Credit Facilities First of all, the major providers of credit finance in Malta do not have any preference since through their review for the granting of loans and/or overdrafts to companies, they always ensure that the directors provide a personal guarantee on the company’s facilities secured by their personal/business assets. Many trade creditors nowadays have become much more restrictive as to credit terms in view of their experience over the past few years when bad debts have become a common reality. But an increased reporting to the Registry of Companies and Inland Revenue, as well as to other authorities such as the National Statistics Authority by limited liability companies; as well as the current ease by which anybody can obtain copies of such reports, provides more weight to both banks and trade creditors, www.the-executive.biz
and these tend to give a company more weighting in view of this requirement. From these reports, at least, when they have any doubt, they can obtain a limited amount of financial information on their customer. These matters are furthermore corroborated by the fact that companies are auditied. Accounts of limited liability companies are normally prepared by qualified accountants according to international reporting standards and covered by an auditor’s certificate as to their truth and fairness, and therefore the reliability of such financial information is more secure and credible. In the case of a sole trader banks can demand a copy of the accounts but in most cases these are not prepared to any specific standards and nor are they audited. Multiple Owners When the business has more than one owner, and these are not husband and wife, the registration of a company is normally more advantageous. Under Maltese law, the administration of jointly owned property, including business assets, is subject to mutual consent. Therefore, unless all parties agree to it, no action can be taken. Also unless a detailed partnership agreement is signed by all parties, such partnership is bound to run into difficulties at some date or another. These problems can become even more serious should one of the partners die, when the heirs have a right to be paid his/her share of the business which can mean the disposal of important business assets. In the case of a company, these issues are normally covered by the Memorandum and Articles of Association in which, the partners become shareholders. Such a document, when properly drawn up, will normally cover for most eventualities, including the process of decision making when unanimous consent is not possible. This will ensure that the business will continue to function.
In the case of the death of one of the shareholders, the company’s activities need not be affected severely, since the shareholders are distinct legal persons from the company itself. Multiple Businesses When a trader has more than one business, it is always advisable to incorporate each into a separate company thereby ensuring that the problems of one business will have no effect on the other business. Distinctly different businesses are like a boat floating on stormy water. If two boats are tied together, when one goes under it will normally pull the other one with it. So it is advisable to leave each boat floating on its own. Conclusion For the above reasons, an incorporated business normally enjoys more prestige, both with its suppliers and its customers. Customers tend to think that a company has a better organisational structure, is more professional in its approach and has less chance of closing shop in the near future than a sole trader. But suppliers, especially overseas ones, tend to look down on non-incorporated businesses as being small, unregulated and difficult to check for credit rating. There is also the issue of brand value since most companies normally trade under a brand name whilst most self-employed persons trade under their name. Neville Cutajar is 3a’s Managing Partner and Director and has extensive business experience working as an Accountant, Auditor and Consultant with a top mid-tier accountancy and audit firm. He was one of the founding members of 3a in 2008, with the vision of providing fresh, innovative and personal service to businesses both in Malta and abroad. Neville may be contacted at: info@3amalta.com; or tel: (+356) 2757 2757. The Executive 25
Prevention and Early Resolution of Conflict
Mediation Training Institute (MTI)
Established in 1985, MTI is the foremost provider of training, certification, licensing and consulting in Workplace Conflict Management and Mediation.
MTI Malta
Help good employees do good work together!
”In the life cycle of
Offered in more than 20 countries worldwide... Now available in Malta!
every conflict, there
Short training programs on Workplace Conflict Management and Mediation:
large enough to be
is a point when itʼs recognized, but small enough to be resolved”
The Self-as-Mediator Seminar™ (8 hours) The Manager-as-Mediator Seminar™ (12 hours) Who should learn Managerial Mediation?
Materials & Resources: • •
Workbook “Managing Differences” Sourcebook Quick-reference Cards Assessment Instruments
Put the tools of the professional mediator into the hands of any employee who is responsible for the co-operative works of others.
• •
Organisational leaders can quickly learn Managerial Mediation to negotiate productive work relationships and find solutions to business problems caused by conflict – even when none were thought possible.
For information about customised in-house training or public seminars, please contact:
Topics • • • • • • • • •
Discover what Conflict is Costing your Organisation When Mediation works and when it wonʼt Consequences and Types of Conflict Preliminary Meetings with Employees Contracting for Agreement Managing the Context Video Demonstration Practice by Learners …and more!
Successful participation leads to being awarded the MTI Certificate of Competence.
Herman Zandt MTI Certified Trainer, MBA (Henley), Accredited Mediator (CEDR, London)
E-mail: Malta@mediationworks.com Phone: (+356) 2702 7286
Country Representative for Malta:
Syrtis (Malta) Limited
Effective solutions for the business world!
2, Antonio Agius Street ● Floriana FRN1131 ● Malta (EU) Phone: (+356) 2702 7286 ● Fax: (+356) 2540 1331 ● E-mail: info@syrtis.eu ● Internet: www.syrtis.eu Syrtis (Malta) Limited is a limited liability company under Dutch management duly registered at the Malta Company Registry (C46967), VAT Department (MT19404417) and Trade Licensing Unit (License Nr.: 18/292) and acting in compliance with the Data Protection Act (IDPC Notification: 10638).
Issue No. 59 - 2014
The Executive
Company Highlight: Outdoor Living
Build your Team... ...and Find the Treasure!
Speaking to the team-building experts at Outdoor Living, The Executive discovers the many activity options on offer, including the inimitable Wildgoose Treasure Hunts that are now available in Malta.
I
t’s not quite a normal day at the office when you spot one of your staff members rushing across the capital city – iPad in hand and desperately searching for a clue. Elsewhere, your other team members have their heads together as they gather information against the clock, excitedly working to solve the puzzle and find the treasure. No, this may not be a typical day at the office for you and your colleagues, but it is certainly a day that is going to lead to great things. It is a day when you all focus on one, lively activity that increases creativity and has lasting effects that will give you successful, new ways of working together for years to come. Perfectly-organised, this type of activity – a dedicated teambuilding activity – is also best left in the hands of the experts, who will know exactly how to tailor your day for you. One such authority on the topic is Outdoor Living – easily one of Malta’s most established and respected team-building companies which, for 10 years, has been helping teams to effectively build their skills in a common direction, aiding them to brilliantly-boost communication and work towards a shared goal. Each of their activities is executed in a fantastically-fun way that really engages everyone in attendance. Thus, they offer options to suit every occasion, with a vast portfolio of full and half-day programmes. “We have now created a jam-packed, state-of-the-art treasure hunt that can take participants all over Malta,” explains Danica Fava, director of Outdoor Living. “It’s such fun and there are all sorts of themes to fit any occasion, including our City Explorer, Pub Explorer, Spy Catcher, Island Explorer, Around Malta in 60 Minutes and more. We can even tailor each hunt to the individual needs of our corporate clients using bespoke challenges, so that will make it wholly unique to the organisation in question.” So why not take your team on a treasure hunt that will positively transform the way they think about their workplace? Or challenge them to any one of the brilliant activities in the extensive Outdoor Living portfolio? It will be an experience that you will all cherish, and learn from, forever!
Wondering about the benefits of team building? Here’s some! It will improve productivity as your employees learn to work together work effectively and produce work more efficiently. Team building activities often give employees the chance to highlight ways of improving processes, policies or procedures that have had limited productivity in the past. Increased motivation is also a fantastic side effect of team-building. Employees will become more confident, will gain the trust of their fellow employees and will see that their employers are willing to invest in their success. One of the biggest challenges of day-to-day business is quick problem-solving, and team building helps with this too. Through activities, team members work out how to overcome barriers and achieve their goals in the best manner possible. Finally, it also boosts creativity, as it takes people out of their usual environment and gives them something new and exciting to work on. It helps them to use their imagination and transfer their new skills back to the workplace.
For more information kindly contact the Outdoor Living Team on 2138 1102 or info@outdoorlivingmalta.com. www.the-executive.biz
The Executive 27
Find us on
Issue No. 59 - 2014
The Executive
People
The Evolution of Recruitment in Malta C Josef Said
Over the past 20 years the landscape of the Maltese labour market has changed significantly. Employers remain very demanding about their needs, particularly as their businesses are exposed to increased competition. As they change into more knowledge driven outfits, however, the small scale of the market and the relatively low percentage of those in the working population with tertiary qualifications makes finding the right talent a challenge. www.the-executive.biz
andidates today are very selective about who they work for, where they work and particularly under what conditions they work. The choices open to them also make them far more fickle than their forefathers ever were. Jobs are no longer for life or even half a lifetime. Whereas 20 years ago people might have been expected to remain with the same employer for six to eight years, now on average they move on after three to four years. The emergence of social networks and technology has changed the process of recruitment substantially, but more importantly, it has increased the speed of it exponentially. 20 years ago the recruitment process would have taken at least two months from start to finish. Today when an employer receives a CV they are interested in, within minutes they can call the candidate on their mobile to request an interview, potentially making a job offer within the week. You might think of this as obvious, however in 1994 only two out of every 100 people had a mobile phone and interviews were set via paper mail. Technology has not only accelerated the pace of recruitment, it has also made it more transparent. Companies can seek information on candidates which was not volunteered during the interview, while candidates can see what the employees of their prospective employer have to say. Previously, if a jobseeker missed the Sunday Times, they were likely to have missed an opportunity. The The Executive Executive 29
Issue No. 59 - 2014
The Executive
People
Today, candidates have round the clock access to job boards and recruitment agencies, while employers have access to updated databases such as LinkedIn. In a competitive global marketplace education has become ever more critical. Education is now a requirement, not a luxury if one is to succeed in the workplace. As a result, university graduates have trebled over the past decade however figures are still a third of what Cyprus churns out from its higher education institutions. Although a lot has been done by MCAST and private education establishments, Malta still needs to produce more and better quality graduates. There are now more women graduating from university than men. In the 1980s only 33 per cent of graduates were women, in 2013 this figure was 59%. Whether through need or desire, or both, it has now become acceptable for women to pursue their own careers and with that, financial independence. The introduction of Malta Qualifications Recognition Information Centre (now National Commission for Further and Higher Education (www.ncfhe.org.mt) has also enabled more mobility within an EU perspective making educational achievements recognised EU wide. Another key factor in the changing shape of recruitment in Malta has been the European Union. When Malta joined the EU, it removed barriers and gave people the opportunity to study and work abroad. This created an exodus of local professionals, particularly medical staff, engineers, accountants and lawyers. The EU has also brought an influx of foreigners. These people have not taken over local jobs, but in many instances have taken on those jobs locals no longer want or where local supply is very limited. The number of recruitment agencies in the market has grown from only three in the 1980s to more than www.the-executive.biz
A more diverse workplace increases productivity and innovation.
30 active agencies today. Notwithstanding this growth, more than 90 per cent of job vacancies are still filled through word-of-mouth. Networking and contacts have always been key and will remain so. Given the particular expertise recruitment agencies have, companies now have the ability to identify the right candidates more quickly and efficiently than they could before. Social attitudes and values have changed significantly. Today worklife balance, flexibility and working conditions have become more important. Internationally documented generational differences are very present in the Maltese workplace. These differences stem from the very different socio-economic factors that each generation experienced. Generations coming from the poverty stricken post-war era have a very different work ethic centred on hard work and loyalty, which are very different values from the work life balance and freedom oriented generation of today. Finally, the evolutionary road has also led us to increased diversity in the workplace. We not only have more women pursuing their own careers but also have more culturally diverse workplaces. Employers are today more open than ever before to engage non Maltese Nationals. Apart from matching demand, it is well documented that a more diverse workplace increases productivity and innovation.
The labour force in Malta has become more sophisticated, more technologically savvy, better educated, more competitive, but less willing to sacrifice family and friends at the expense of work, and finally, more diverse. As a result, recruitment has evolved to become by far a more complex and specialised process than what we have been used to in previous years.
References: • www.gapminder.org http://goo.gl/ GLqXrm • Source: timesofmalta.com http://goo. gl/4XBGv1 • Source: University of Malta http:// goo.gl/RLIOCF • Source: University of Malta http://goo. gl/abvnGW • Source: University of Minnesota http://goo.gl/pTlnRr
Josef Said occupies the post of Managing Director at Konnekt. Konnekt was established in 2007 and has evolved into one of Malta’s largest and most innovative recruitment agencies. Josef may be contacted on tel (+356) 2123 4010 or info@konnekt.com The Executive 31
Simple to DEPLOY yet so POWERFUL in its use (image) Copyright © 2014 Epicor Software Corporation or subsidiary or affilliate thereof. All rights reserved. Rev 2/14
With EPICOR ERP Version 10, we’ve taken our visionary blend of rich global functionality built on agile technology, and eliminated complexity to make ERP easier to use, more collaborative and more responsive. It’s a great experience across multiple devices and deployment choice. Change your relationship with ERP. It’s time to drive growth and collaboration throughout your business.
EPICOR ERP is exclusively represented in Malta by Epicor’s Platinum Partners aspBI: Malta Offices: - aspBI | 23, Regent House, Bisazza Street, Sliema, Malta Tel +356 35 505 957 | Fax +356 21 343 551 | office.malta@aspbi.com
Issue No. 59 - 2014
Company Highlight: Epicor ERP
The Executive
Transforming business relationships Customers are changing, the world in which they operate is changing, the technology their employees use is changing, and so Epicor ERP is changing too. There is a competitive advantage to be gained if you offer a superior customer experience and the companies who can respond to market demands quickly, who are agile enough to adapt to the changes around them, who can leverage the knowledge, experience and skills within their own organisation and of their supply chain partners are the ones who gain this advantage.
T
hose who leverage enterprise resource planning (ERP) solutions to drive efficiency and customer service will compete effectively, but those who adopt a more mature approach to customer experience that goes beyond price and delivery performance and builds collaborative relationships are the ones who become market leaders. Collaboration is the key. Today company managers and CIOs are looking for ERP solutions that combine quality and reliability, with visionary technology that can help them meet ever changing business requirements. A solid ERP platform can help an organisation not only reduce costs and streamline processes, but also increase the flexibility and agility that’s needed to succeed in a competitive marketplace. With Epicor ERP version 10 is a visionary blend of rich global functionality built on agile technology, without complexity to make ERP easier to use, more collaborative and more responsive. Guided by the needs of today’s users Epicor has streamlined the experience across multiple devices and expanded the deployment choices. The result is an inspired solution that changes your relationship with ERP to drive growth and opportunity throughout the business. Epicor ERP 10 sees the introduction of a number of exciting new applications and technologies that can reinvent the way
www.the-executive.biz
companies operate. Based on the five principles of collaboration, choice, responsiveness, simplicity and mobility, it is designed to help organisations work better, both internally and externally, leveraging the knowledge and experience of the people and systems connected together throughout the supply chain. With Epicor ERP companies gain a technology platform that can support them as they conduct business today and in the future – on any device, anytime, anywhere in the world. It is an enterprise solutions that support growth and expansion into new markets – regardless of whether that is within a country such as Austria, a region such as Europe, or worldwide. With a history of innovation, industry expertise and passion for excellence, Epicor ERP provides the single point of accountability that local, regional and global businesses demand. Epicor offers agile solutions that can help organisations take advantage of trends such as social media, cloud computing and mobility, both now and well into the future. Epicor ERP is based on a 100% Microsoft stack making it easy to maintain and upgrade as well as providing a cost-effective platform that is reliable and secure. Represented in Malta by Epicor Platinum Partner asp.BI forming part of the asp. group headquartered in Austria with regional offices in Malta and US carrying over 25 years of experience in performance improvement and implementation strategies. You can find further information at http://www.aspbi.com The Executive 33
34 The Executive
www.the-executive.biz
Issue No. 59 - 2014
The Executive
Executive Humour
Executive
HUMOUR
“No, the end of November is bad for me.”
“Just keep an eye on the wind, OK?”
www.the-executive.biz
“Our left hand doesn’t know what our right hand is doing, so we’re only interviewing ambidextrous candidates.”
The Executive 35
ďż˝
aking meetings matter
Discover what distinguishes a meeting or conference at Hotel Phoenicia. Impeccable service. At the Phoenicia we realise how essential it is that the events you plan are extraordinary, so that's what we set out to support. With state-of-the-art facilities and timeless meeting rooms paired to superb dining options, you can look forward to a stress free visit. Our Grand Ballroom will happily accommodate 300 delegates or we can provide you the intimate scale you need with a choice of well designed meeting spaces and business lounges. We also have dedicated Business Services should you need anything during your meeting, and a wide variety of award-winning business dining options that will tempt your taste buds and keep you going throughout the day and night. At the Phoenicia, you will find that we always mean business.
FOREVER PHOENICIA
To make Hotel Phoenicia your special meeting point call our Sales Team on 2122 5241 or email sales@phoeniciamalta.com Hotel Phoenicia Malta, The Mall, Floriana Tel: (+356) 2122 5241 www.phoeniciamalta.com
Issue No. 59 - 2014
EVENTS: The Executive - Hotel Phoenicia Preferred Partners 2014 & 2015
The Executive
The Executive & Hotel Phoenicia: 2014 & 2015
Once again, The Executive has teamed up with an impeccable service provider for its sister entity ‘The Executive Events’ to work with.
T
he publishers of The Executive have since 2006 been organising events under the brand ‘The Executive Events’, wherein the journal’s key advertisers are provided with stands and sponsorship packages during events aimed to delight its readership base. Thus, Malta’s mid to top executive guests are welcomed into a 5 star ambiance of empowering knowledge and networking opportunities. The Executive business journal has been awarded Preferred Partner status by Hotel Phoenica for 2014 and 2015, and The Executive Events are to be hosted by the Hotel Phoenicia for this period. Guests will in this manner also be introduced to the Hotel’s wonderful facilities and service provisions.
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The Executive Events has been in operation since 2006, and its mission is to simultaneously add value to the reader’s experience from the journal, and to corroborate the customer value proposition to its key customers. Thus, sponsorship participation in these events is yet another means by which the journal adds value to its key customers. The luxury 5 star Hotel Phoenicia is situated at the entrance to Valletta. Hotel Phoenicia hosts a range of conference services, as well as a choice of meeting rooms and banqueting settings. The complimentary WiFi throughout the Hotel together with the selection of venues make this the ideal location any event. All this is paired to superb dining options to keep you going throughout your occasion. The Executive 37
Issue No. 59 - 2014
The Executive
Company Highlight: AIS Technology Ltd
Employers turn to Biometric Technology to cut costs
Organisations of all sizes use Time and Attendance (T&A) systems to record when employees start and stop work. A T&A system enables an employer to have full information of all employees working hours and helps control labour costs.
A
ttendance control has traditionally been approached using manual systems, time clocks, and timesheets. Increasingly, biometrics is automating collection of T&A data. This technology reduces buddy punching, manual data review as well as payroll error. Biometric Time & Attendance technologies provide additional benefits over traditional employee tracking systems as they increase reliability and reduce costly errors. Payroll is a significant operating cost for many organisations. A small percentage change in payroll error can have a significant impact on operating costs, leading companies to invest in T&A systems that help improve payroll accuracy. However, traditional systems such as sign-in sheets or punch cards are slow and prone to error. Also such systems do not protect companies from “buddy punching” — the practice of one employee signing in or out for another.
1. Reduced Payroll Error and Buddy Punching Reliable biometric technologies reduce the ability of employees to buddy punch or otherwise alter time clock and other payroll-related information. Many organisations can significantly reduce buddy punching by moving from paper timecards that can be shared or borrowed to an electronic T&A system. On average, the payroll error rate is 1.2% of total payroll. Replacing a paper timecard system with an automated one considerably reduces this payroll error. 2. Increased Productivity Biometric T&A technologies provide faster punching in/ out and employee identification. The technology saves on supervision time and reduces the time needed for manual verification.
Biometric systems, such as the handreader, fingerprint reader or face recognition devices, use biometric technology to improve the accuracy of employee tracking whilst eliminating the possibility of buddy punching. The handreader, which is the most common and reliable technology, distinguishes employees by the size and shape of their hand. Fingerprint and facial recognition devices read the unique characteristics of a human’s finger and face to accurately identify each user respectively.
Automated data entry eliminates the need for manual review and correction of information on employee time cards. Managers can easily compile and review employee time keeping activity, and department heads can focus on more productive activities instead of manually approving time records. For example, one company with a paperbased time card system required each department head to physically deliver time cards to the payroll office at the end of each pay period to be checked and reviewed. “Even though the clock added the hours, they had to be scrutinised,” she said. “It became an out-dated thing.”
Benefits from Biometrics Key benefits associated with biometric technology include reduced payroll error through elimination of employee fraud, increased productivity, improved management reporting and improved legal compliance.
3. Improved Morale The company, which replaced their old system with biometric handreader technologies, accelerated the sign-in and sign-out process, thereby increasing the time employees spent working while improving morale.
38 The Executive
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Issue No. 59 - 2014
Company Highlight: AIS Technology Ltd
The Executive
As one HR manager said, “Most of the time when our people are leaving, it’s all at the same time — and they would try to stop working to try to be first to punch out so they didn’t have to wait. Clocking using the handreader takes only 30 seconds a person, and most of that time is people remembering their ID number and entering it.” Automating T&A and payroll management using biometrics also reduces overall payroll administration time. At one government department, management found it was able to redeploy more than one quarter of a person’s time to other activities by eliminating management of paper time cards. Another payroll manager, found her team was able to save more than 30 hours a week in time card review and processing time. Employee self-service can help reduce the number of calls to payroll administrators about leave time and other payroll issues. 4. Increased Savings The potential productivity savings will depend on the number of sites, complexity of payroll rules, and the frequency of time card tabulation and payroll calculation, as well as the level of sophistication of current time and labour management systems. Automated collection and entry of T&A data with handreader, fingerprint or facial recognition devices enables managers to have better visibility into employee work habits and locations — resulting in better tactical monitoring as well as improved audit capabilities. One user, for example, found that management could quickly identify if someone had punched in but didn’t punch out, or had punched in at a different location, and immediately determine why instead of waiting until timecard data had been collected and entered. Another payroll administrator said having near-immediate access to information helped managers to determine if an employee had punched in in one department and then punched out in another. “It’s not a tracking device,” she said, “but it helps us keep track of which department they’re in.” An accurate, auditable T&A tracking system can reduce the costs and liabilities associated with ensuring compliance with employment regulations and union rules and reduce the potential cost of fines or legal action. This is particularly important in organisations with union labour or those employing workers with specific work time limitations. Which Type of Technology is Right for my Business? The choice of the biometric device for an electronic T&A system largely depends on the environment the business is operating in, and whether the device will form part of the company’s electronic security system. In dirty and dusty environments, handreaders offer robust, reliable and accurate results. Handreaders differ in the manner in which they collect data, as they take an image from multiple angles. Fingerprint scanners only take an image from one dimension. Residue left on
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a fingerprint scanner, such as smudges from lotion, grease, dust, or dirt, can create problems for the next user. Fingerprint and facial recognition devices are smaller units and tend to cost less. Like handreaders, fingerprint and facial recognition devices can also be integrated in security systems. Integrating biometric devices in security applications adds protection and increases the cost effectiveness of the technology. Conclusion As companies look to improve operational efficiencies, automating T&A management is a key area for direct savings. Although some organisations have automated some of the payroll management tasks, many remain susceptible to errors and buddy punching. It is estimated, that up to three out of four companies still experience loss from buddy punching. Studies have found that employees are far less likely to attempt buddy punching or other fraud if they believe a system is reliable and accurate. Deploying biometric T&A technologies, such as handreader, fingerprint and facial recognition devices, virtually eliminates payroll errors associated with buddy punching, delivering significant Return on Investment (ROI). Companies supporting paper-based systems can also eliminate running costs while improving efficiencies. The scale of potential returns from implementing electronic T&A systems will depend on the number of employees, facilities, and work schedules involved. It is not uncommon for biometric technologies to deliver payback in less than 9 months. Furthermore, companies moving from paper card are likely to see a faster payback from significant savings in materials and payroll overpayments alone. Darryl Schembri is an engineer with AIS Technology Ltd, a leading engineering firm with over 22 years’ experience in biometric Time & Attendance solutions. AIS Technology has installed numerous T&A solutions at both private and public organisations. Darryl may be contacted on 21 803350 or at info@ais.com.mt
The Executive 39
Issue No. 59 - 2014
The Executive
Q&A: Interview with an Executive - Dennis Camilleri
TRADE FINANCE EXPERTISE you can Bank on
In these last 20 years Malta has changed drastically. It has registered substantial success in keeping economically buoyant in difficult times. But one of the biggest steps the country took was when it ventured, prudently but shrewdly into the financial services sector, moving from a small player to a recognised and envied jurisdiction. Twenty years ago saw the birth of a Malta-based First International Merchant Bank Ltd, which later changed its name to FIMBank plc. It is no coincidence that the growth of the financial services world in Malta happened at the same time and rhythm as that of FIMBank. The journal met up with Dennis Camilleri, FIMBank’s First Vice-President - Trade Finance, to find out all about the bank, its positioning and its special connection to Libya.
40 The Executive
www.the-executive.biz
Issue No. 59 - 2014
Q&A: Interview with an Executive - Dennis Camilleri
The Executive
Insights derived from Dennis’ experiences: Regardless of which growth strategy is selected, a firm’s infrastructure must be in a position and up to standard to support successful execution.
Focus on the core competency, pooling of knowledge and capabilities, to harness the unique ability that the company has. Avoid costly distractions.
FIMBank is headquartered in Malta. The island has provided the Bank with a stable environment, strategic location and access to a pool of highly educated and language-skilled bankers and trade finance specialists.
The bank was set up to specifically venture into a specialised, niche market. To penetrate and be of service in the market the bank expanded its knowledge-base, which was pivotal to its success.
A holistic socio-economic -political challenge exists in Libya and this requires hope, trust and commitment. The world needs to be patient and be ready to provide all the necessary support so that Libya will become an active player in the global economy.
The success of any business comes from the ability to create and maintain meaningful relationships. Remember that when you connect with others in a meaningful way, you automatically become valuable resources for each other.
What is the main strength of FIMBANK?
This is a particularly special year for FIMBANK..
Dennis Camilleri: FIMBank has from its inception focused on Trade Finance. We started out as a simple set-up in a modest office in Sliema; a boutique bank offering specialised trade finance services, with a strong focus on the emerging markets. I believe that our main strength is that of our focus on our core competency – trade finance. Forfaiting, Factoring and Structured Trade Finance remain our three strategic pillars on which we will continue to build our offering of diversified trade finance solutions to customers worldwide. And we are currently present in Lebanon, Egypt, Russia, Dubai, India and Brazil. The Bank has diversified its trade finance activities worldwide and now has a physical presence in more than ten financial centres worldwide.
DC: 2013 was a landmark year for us. Burgan Bank and United Gulf Bank, two highly reputable financial institutions forming part of the Kuwaiti conglomerate KIPCO Group, acquired a majority stake in FIMBank. This year their combined percentage shareholding increased to 80%. FIMBank now forms part of the KIPCO Group, one of the largest diversified holding companies in the Middle East and North Africa, with consolidated assets of US$ 30.5 billion. With this move comes the anticipation of significantly improved prospects to take on new business opportunities, to benefit from better funding resources and therefore strengthen FIMBank’s operating performance even further. This development has truly redefined our future capability.
No doubt this requires a deep knowledge of the markets and commodities. DC: We definitely need an understanding not just of the market and the way it fluctuates but also of the clients, the financial strengths and pitfalls surrounding the transactions and the risks involved. We take on most of the risk so we need to know not just what is happening but what will - or could - happen in the future. This understanding of the markets gives us a good edge on our competitors and we have to rely a lot on the expertise of our professional staff. We also use others’ expertise in the field, seeking out strong associates and partners. Today, because of our experience, expertise and reputation, people, clients and banks trust us and are ready to share their own expertise with us, because they know that we can indeed add value to their business. www.the-executive.biz
How would you describe your strategy in one sentence? DC: We are a leading provider of trade finance, forfaiting and factoring solutions and our strategy is to continue developing our footprint by carefully marshalling our unique capabilities and resources, thus increasing our market share and maintaining our competitive position. In February, FIMBANK Chairman Dr J C Grech chaired a conference in Turkey about Libya Trade and Infrastructure finance. What were the conclusions? DC: Libya is living a post-conflict reality that is not much unlike what is happening in Egypt and Tunisia. The general consensus at this international conference was that the process of change in Libya will undoubtedly happen, but it will need to take its due course and the international community must be ready and The Executive 41
ais
Biometric technologies
timE & attEndanCE - aCCEss Control
face scan
fingeR pRint
Your Existing paYroll sYstEm
Cutting EdgE automatEd paYroll
Your Existing or nEw aCCEss Control sYstEm
Cutting EdgE ElECtroniC sECuritY
Hand ReadeR
SAvE TIME. SAvE MONEy. When ancient wisdom meets cutting edge technology, the result is usually remarkable. We started with the saying ‘time means money’. We added robust, efficient and reliable technology. And we developed a system that integrates our biometric devices within your existing payroll. We also applied this wizardry to give you complete control and monitoring of area access within your building. The results are automated systems that simplify previously lengthy chores into an effortless process. We offer advice and unparalleled support too, so if time means money to you, get in touch today.
AIS Technology Ltd. T: +356 21 803350 E: info@ais.com.mt W: ais.com.mt
SMART OPERATIONS START HERE >
Issue No. 59 - 2014
The Executive
Q&A: Interview with an Executive - Dennis Camilleri
prepared to provide all the necessary support so that Libya will become an active player in the global economy. I would say the main conclusion was for the world to remain patient and be ready to provide the required support. During the conference many expressed the view that not enough has been done to regularise and regulate the market in Libya. What is your position on this? DC: In spite of the general sense of alarm that often pervades media reports: Libya is resource rich; it has extensive foreign reserves; there is no Government Debt and banks have high liquidity. If the private sector were to be given the necessary space to operate, with the Government guaranteeing and supervising governance, the process of change could register some early tangible evidence of success, and could gather momentum as well as credibility. The opportunities for foreign investors to participate in this country’s development are there. Libya requires extensive investment in both its hard and soft infrastructure (particularly in the administrative, legal, ICT sectors). Libya’s banking sector can also become more proactive if the necessary legal structures of recourse and title are updated. The
Libya will have to Even Libyan government officials think this is over-ambitious. Is FIMBank following such developments and are you prepared for it? aim is that by
2015
all banks in
conform to Islamic lending structures.
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DC: The decision to change the entire system to Islamic Finance by the beginning of next year is considered to be over-optimistic by many. Islamic lending structures can vary in intensity and in enforcement and this is an issue that Libya should decide for itself. The available information on the matter is sparse but we are confident that we can find the right approach to continue to do business in the country. FIMBank has a flexible approach to customers’ requirements and we will of course benefit directly from our new Middle Eastern Bank shareholders’ experience in this field. We are confident that we will be in a position to structure lending facilities, placements and trade related transactions on an Islamic or conventional basis. FIMBank now boasts an impressive head office in St Julian’s. Presumably this means that the bank is here to stay for several years to come? DC: This is the strongest signal that FIMBank plans to remain in Malta for the long haul. We have constructed a custom-made office block with a capacity of 8,000 square metres of office space to support our requirements and cater for future growth. FIMBank is intrinsically tied to Malta, employing 192 employees (90% of them being Maltese), hundreds of shareholders and depositors and Maltese corporates trading internationally. Malta is a strategic place to do business. It offers an interesting mix of cultures and will surely serve as a launch pad for our next phase of expansion.
The Executive 43
ENHANCING YOURYOUR BUSINESS PARTNERSHIPS. UNDERSTANDING NEEDS. UNDERSTANDING YOUR NEEDS. DELIVERING EXCELLENCE. ENHANCING YOUR BUSINESS PARTNERSHIPS. ENHANCING YOUR BUSINESS PARTNERSHIPS. DELIVERING EXCELLENCE. DELIVERING EXCELLENCE.
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CORPORATE ROOM RATES AND CORPORATE ROOM BUSINESS EVENTS CORPORATE ROOM RATES AND WeRATES would loveAND to meet up with BUSINESS EVENTS BUSINESS EVENTS you and unveil your professional aspirations. WeWe would love toto meet would love meetupupwith with you andand unveil your professional you your professional Contact ourunveil Corporate Sales aspirations. aspirations. Manager George Liveras on 2311 2101 officeSales hours Contact our Corporate Sales Contact ourduring Corporate Manager George Liveras on or kindly send your queryon to Manager George Liveras 2311 2101 during office hours george.liveras@lemeridien.com. 2311 2101 during office hours or kindly send your querytoto or kindly send your query Start benefitting from our corporate george.liveras@lemeridien.com. george.liveras@lemeridien.com. rates today.
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Start benefitting from our corporate rates today. rates today.
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Issue No. 59 - 2014
The Executive
Company Highlight: FGP
FGP:
Malta’s Leading Garage Door Manufacturer
Founded in 1962, FGP Ltd is Malta’s leading and longest established garage door manufacturer. With over 50 years of experience in the sheet metal and garage door industry, FGP manufactures and installs garage doors and gates to suit virtually any opening.
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ypically, the garage door is the largest moving door in your home or building. It is therefore important to choose a garage door that is strong, secure and dependable. We manufacture a complete line of residential, commercial and industrial garage doors. We offer a great variety of styles, colours and finishes to meet every need and budget. This range includes all types of garage doors such as Overhead Sectional Garage Doors, Hinged Doors, Up and Over Doors, Organ Folding Doors, Sliding Doors, Collapsible Gates and Roller Shutters. These garage doors are produced in galvanized steel, PVC coated galvanized steel and polyurethane insulated steel panels. We also manufacture wooden clad doors and gates.
At FGP we are committed to:
We also offer electric openers for most of our garage doors. A motor can also be installed on an existing garage door. There are a variety of openers with various features and benefits for our various types of garage doors. We also offer motors for swing and sliding gates, as well as parking barriers and parking solutions – such as vandal proof retractable bollards. Our openers also have optional accessories for added safety, security and comfort.
The name FGP has become synonymous with quality garage doors. We are constantly on the lookout for improvement on all our products. We are at our clients’ constant service and provide expert advice. Our many years of experience combined with a commitment to our customer guarantee reaching the best possible practical and economical solution.
Other lines include the supply of High Speed Doors as well as miscellaneous metal works in galvanized or stainless steel such as steel lockers, trolleys, cabinets, sheet metal ductwork and trunking. www.the-executive.biz
• meet the needs of our customers and to strive for 100% satisfaction • provide quality manufacture and installation each and every time and to perform the job to the best of our ability • deliver our products and provide service in the most efficient and cost effective way • provide an excellent aftersales service that results in complete customer satisfaction
Contact Details: FGP Ltd. 109, Valletta Road Luqa Tel: 21673627, 21667107/8 Email: sales@fgp.com.mt | Web: www.fgp.com.mt https://www.facebook.com/FGPLtd Opening Hours: Monday-Friday 8am-4.30pm; Saturdays 9am-Noon The Executive 45
Issue No. 59 - 2014
Company Highlight: DataByte
The Executive
Time and Attendance –
A sure way to manage an unwanted cost
One may perceive the Time and Attendance process to be simply logging the events of people’s moving in and out of a work site mainly for remuneration purposes. Well it is that, but it is also much more. The description above proclaims Time and Attendance in its most basic form as it takes the ‘old’ style mechanical punch clocks duties. Things have come a very long way since the punch card era.
T
he process nowadays has improved exponentially and given business owners much better control of how they pay their wages and salaries more correctly and dramatically reducing the mandatory instinct for employee to get a ‘fast one’ on the boss. We hear of innumerable stories of how employees cheat and some are hilarious at one point and downright corrupt and criminal in another. Technology now offers those with commitment to really address such money leaks from their organisation a multitude of reliable solutions. At a high level one needs to identify uniquely a clocking in/out event by a person and at a site and time that reflects the actual event occurrence. Solutions of this type typically identify a person, accept or reject the event, capture a reason as to why the event is happening and a site from where the event is happening from. A massive problem to address is ‘Buddy Punching’ which is a very common cost leak and which has nothing to do with any familiar sport. It’s about Mr. A clocking In/Out for Mr. B who is nowhere in sight, at least not near his work place anyway! To address this, technology has once again come to our rescue to give us what is probably one of the organisational investments one can do which gives the best return in a very short time. Instruments meant for this purpose must have the ability to recognise a person and that only that one person is making the due event on his/her behalf and nobody else. This is typically done by using biometrics (measurable biological characteristics) where instruments can identify individuals through the use of things like fingerprints, facial dimensions, iris structure, voice
patterns, and hand geometry etc. Technology alone however may not get you to do the extra mile. A team of support personnel should always accompany the solution you go for before as well as after you commit. But more than identification of individuals, management would like to have information as to where the person has created the event from, at what exact time the event was logged, and/or the reason for the event happening. In this way unnecessary and/or incorrect overtime payments will be avoided, late events will be disciplined and costs saved, safety considerations as to the whereabouts of individuals are enhanced, remuneration of individuals happens more fairly and with much better efficiency and free from error. Management can also run production management and project costing profiles more effectively. DataByte Limited has been active on this market for over two decades. This long number of years has given our support team the opportunity to meet with most of the labour events and patterns that are worth noting to compile personalised Time and Attendance solutions for real value added. Our research and development has induced us to garner a strong knowledge pool in the matter and so we can offer optimal service to both new entrants as well as experienced clients in the field. This long experience has put us as market leaders and the obvious choice for your business of controlling the event management of your employees. This offering also aligns itself to create a seamless integration to the company’s own payroll service so that we can offer our clients with a total solution.
Link up to www.databyte.com.mt or call DataByte on 23456 300 and join the hundreds of companies who give us good testimony. www.the-executive.biz
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Issue No. 59 - 2014
Company Highlight: MITA - Digital Malta
The Executive
A Leap Forward for ICT in Malta Malta has been in need of a cohesive ICT strategy for a long time, and that strategy is now in place thanks to the launch of Digital Malta – the new, national digital strategy for 2014-2020. Following on from an extensive consultation phase with over 240 key stakeholders, Digital Malta is set to boost and transform the use of ICT across all businesses domains. Aside from encouraging the use of ICT in education, in the community and within government, this will also ensure that as many companies as possible make the next leap forward towards bigger successes. “The Digital Malta strategy has been tailored to the needs of specific industries, and it will address several factors that have been holding ICT back in recent years,” says Tony Sultana, MITA Executive Chairman. “Now everybody needs to work together to make the future of ICT in Malta a success.”
M
any issues will be tackled head-on, including the limited access to financing, insufficient capacity to innovate, the restraining size domestic market, as well as the clear misalignment between the ICT education curriculum and actual ICT industry needs. Digital Malta presents a number of initiatives to support the application of ICT across the sectors and will strive to encourage at least 33 per cent of SMEs to be selling online by 2015. Over and above that, Digital Malta will now mark the launch of ‘ICT Malta’, which will strive to attract ICT investment onto the island and assist local ICT businesses to work within the global market. In line with this, specific plans will focus on fostering collaboration between the main local players in areas of strength that could enhance Malta’s profile as a centre of ICT excellence.
There are also plans in place for the establishment of a ‘forum for the transformation of industries through ICT’; this will work to develop programmes that raise awareness about how ICT can help business sectors to transform themselves and become more profitable, among other aspects. Following on from the launch of Digital Malta, several initiatives are already planned for introduction during 2014. These include the development of an eCommerce Strategy to set out Government policies, the launch of annual eBiz awards to promote ICT talent, launch the MITA Innovation Centre at SmartCity Malta, and increased free Wi-Fi accessibility around Malta and Gozo, among many others.
For more information on Digital Malta, including details on its goals, guiding principles and initiatives, please visit digitalmalta.gov.mt. www.the-executive.biz
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Premier Cars Malta is the island’s largest stockist and importer of luxury premium and exotic vehicles.
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www.the-executive.biz
Issue No. 59 - 2014
Company Highlight: KINETIX
The Executive
Kinetix: Is Your Data Safe?
Curt Gauci is director and co-Founder of Kinetix IT Solutions, a local leading IT Systems Integrator. Kinetix are HP, Cisco, Microsoft, Kerio, Trend Micro and Symantec certified partners.
Maltese businesses assume that they are operating off the radar and therefore exempt from security threats and disasters. Does this argument hold water? Threats to your company’s critical business data present themselves in various forms; from data leaks, hardware and system failures, human error and viruses to burglary, power surges and blackouts, amongst others! I do not believe that being ‘off the radar’ is an argument that hold ground, as whilst you may believe you are not at risk for mailious targets of data leakage, there are a number of other accidental or otherwise intentional ways that data may fall into the wrong hands, be misplaced or lost and all of these have consequences for any business. When it comes to disasters, although thankfully Malta is not particularly affected by natural disasters, any of the other disasters mentioned here could happen to any firm. International research and reports state that of the companies that lose their data in disaster`s such as these; 90% are out of business within two years and nearly 50% never reopen their doors at all. If this alone does not sound any alarm bells, simply think of the repercussions – the time and money lost should you experience a massive system failure and lose all your business data.
Are business continuity and disaster recovery solutions complex to deploy? How cost-effective are these solutions? Business Continuity and Disaster recovery are a form of insurance to protect your IT assets when a disaster strikes. Just like good insurance, the best business continuity and disaster recovery solutions should provide great protection, with minimum hassle, at a justified cost. At the end of the day the cost of deploying such solutions is nothing compared to the peace of mind you get knowing that your critical business data is secure and there is no risk of loss of productivity and revenue.
How can a business achieve a high level of preparedness in view of threats and disasters? In a typical business continuity planning scenario, a disaster would be presented and company leadership would then be challenged with how to best return to business as usual in the aftermath of the event. However in many cases, the emphasis is typically within the technical and data recovery sphere – namely the recovery of the systems and applications that enable the business to continue to operate. At its core, disaster recovery planning is an exercise which focuses on the data centre and information technology components of an organisation, two elements which are now considered mission critical for many organisations very survival.
Data and network security are also essential. What data protection and security systems do you offer? Data Leak Prevention and Security solutions identify confidential data, tracks that data as it moves through and out of enterprise and prevents unauthorised disclosure of data by creating and enforcing disclosure policies. Since confidential data can reside on a variety of computing devices - servers, databases, PCs, point-ofsale devices, flash drives and mobile devices - and move through a variety of network access points there are a variety of solutions that can tackle the problem of data loss, data recovery and data leaks. We work with the client to design a solution to prevent information leaks in case of loss of device, network violations and virus threats, as well as brand defamation due to malicious, inappropriate or fraudulent activity on a network.
Unprotected data is a real business risk because data is generally regarded as a company’s first or second most valuable asset, right on par with people. Equally important with backing up data is the ability to recover that same data in a timely fashion to keep your business up and running in the event of a disaster. Specific decisions regarding disaster recovery steps will largely depend on the type of business and its most immediate needs. www.the-executive.biz
For a business, any downtime is translated into loss. What data recovery solutions do you offer? At Kinetix, we have years of experience in the field and specialise in comprehensive and affordable disaster recovery solutions that offer superior protection of your critical business data and minimise the adverse effects of a major unplanned outage on your business. We are also certified partners of Microsoft and have implemented the Microsoft Hyper-V virtualisation platform, a renowned disaster recovery solution, in some of Malta`s leading companies.
Kinetix have been behind some of the largest implementations of disaster recovery and data loss prevention solutions on the island, to what do you owe this success? If I had to sum it all up the following would best describe how we go about our work: We are Client oriented, We have the right people with the right expertise, We only work with Best of breed products. The Executive 51
WHERE LIGHT IS LIFE. PONSOMBY STREET, MOSTA MST4032 2143 2571 INFO@VCT.COM.MT WWW.VCT.COM.MT MON-FRI 08.00-18.00 THU 08.00-20.00 SAT 09.00-12.30
Issue No. 59 - 2014
The Executive
Lifestyle
Global warning
I’m writing this while a gale is blowing, with the rain coming down in its proverbial canine and feline proportions. I’m not a great lover of rain or wind and I can’t say I ever get too raptured by seeing the YouTube top 100 videos of Fido and his bosom friend Pussy. Actually I lie. I do love dogs - even owned one once. I also acceded to my wife’s and children’s wish to have a cat, which one day magically multiplied to five cats. And I did love them all. But I still hated the fluff on all my black trousers which seemed I had just had a tumble in a haystack. Not that I know what a haystack looks like. And the only tumble I would get is to look for the proverbial pin not to lie in amorous rapture. The hay would make me sneeze and the smell would make me puke. www.the-executive.biz
Victor Calleja
As even the least perspicacious of you would have guessed I’m a sort of city boy - from the nether parts of stylish Sliema - so I never had too much connection with anything farming or nature. Coupled with all this I also had an allergy to anything manual or mechanical. I could never build anything like those planes and ships we were given as presents when we were young. My brother was a genius at building cars, cranes and drawbridges with Meccano. Like most things of my childhood Meccano disappeared, its place taken no doubt by a tablet of sorts. I dreaded the nuts and bolts and pieces of metal that had to be screwed together to build with Meccano. But I loved it when the elder sibling built anything to my specifications.
Sometimes I even asked for tractors and barns. As far as I remember he whizzed up the machines in no time but never provided the hay or animals, so I remained rather cut off from anything truly agricultural. What scares me is this. If the sea and wind and rain keep pelting us with their new found fervour we could all go into a cold spell. Lately it has been opined that we are on the brink of entering a mini iceage. Never sure whom to believe - is it global warming or global freezing? I’m too confused to even understand. I forgot to admit another of my mental blocks anything sounding or resembling anything scientific is pure dross to me. Or to admit something further The Executive 53
Issue No. 59 - 2014
The Executive - I never understand anything connected to science. Even Greek or double-Dutch is easier on my brain. By the way - what the hell is double-Dutch? Anyway I remember once reading that Malta and the rest of the south of Europe was going to be hotter than ever and that the temperatures in Britain and thereabouts were going to be like ours now. So off to sunny Blighty for a balmy holiday in the sun we all will go while Malta becomes too hot to handle. Further south it seems will be just a burning bush. Then the other prediction is that the ice-caps will melt and we will have too much sea to handle and the sea level will rise. So maybe that is why so many high-rises are rising in Malta. Top floor will give us a good view and maybe a hope to survive while the waves do their lapping dance.
Lifestyle
All these cataclysmic prophecies make me wonder how I will survive these grim times. My DIY prowess is a rung lower than the bottom. I can’t start a fire even with matches let alone with two sticks. I was so bad at knots, opening bottles and erecting tents that the scout-master resigned when my parents forced me to join Baden Powell’s cubs. Anyway if I’m stuck on the top floor of a high-rise building what can I do with a tent or a fire if I lack any animals to cook, water to drink or TV to bore me?
If that is the future then my future is even bleaker than I thought old age would be. When I hop onto a spacecraft to leave this scorched land I want to find it all fully equipped with computers, spas, libraries and beautiful hotels. But then I never trusted the Martians so maybe they already have it all civilised and organised for us.
One of my daughters once announced to me that our only hope is to go to far-off planets and set up a community there. Then a vacancy appeared for a one-way trip to Mars. There’s one Maltese entrepreneur who has applied - because, he said, he loves the challenge and the fact that you have to build your own stuff.
Victor Calleja has been involved in publishing, marketing, and anything concerning the written word, for over thirty years. He is now a part-time but very opinionated journalist who delves deeply into a number of subjects.
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Issue No. 59 - 2014
The Executive
Company Highlight: HSBC
HSBC Malta special offers on home loans and car loans
HSBC Bank Malta’s special offers on home loans and car loans are still available for customers.
F
irst time home buyers taking a HomeStart mortgage of up to €200,000 may enjoy a discounted variable rate of 2.75% for the first 18 months whilst also benefitting from interest only repayments for the first 36 months of the loan. Apart from this HomeStart offer, the bank currently also has two special fixed rate offers - 1.99% fixed until 2 August 2015 and 2.65% fixed until 2 May 2016. HSBC Bank Malta p.l.c. is also offering a special 4.99% fixed rate currently on all car loans taken by 30th June 2014. The offer is available for terms of 2, 3 and 5 years and, if the loan amount is €10,000 or more, for 7 years. “We are committed to help first time buyers and other customers who are buying a property which will be used as their main or second residence. We have therefore launched these fantastic offers to give customers more choice. This year provides an exceptional opportunity for anyone looking to purchase a first property, especially when considering HSBC Malta’s latest offers and the budget measure of a waiver of stamp duty on the first €150,000 of the property price”, said Paul Steel, HSBC Malta’s Head of Retail Banking and Wealth Management. First time home buyers opting for a mortgage with HSBC may also benefit from 3 months’ free premium on new life assurance policies. “This is also a good time for customers to look into buying a car. Besides benefitting from our special rate, customers can enjoy the peace of mind, knowing that the fixed rate will apply for the duration of the loan,” explained Mr Steel. These offers are available for a limited period of time only, and are subject to terms and conditions. More information about HSBC Malta’s offers, products, and services may be obtained online at www.hsbc.com.mt, by calling HSBC’s Customer Service on 2380 2380, or by visiting any of HSBC’s branches in Malta and Gozo.
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