BUSINESSAgenda THE OFFICIAL PUBLICATION OF THE MALTA BUSINESS BUREAU ISSUE 35 | WINTER 2018/2019
COULD A NO-DEAL BREXIT BE ON THE HORIZON? Philosopher Kenneth Wain discusses the state of modern-day society
NEWSPAPER POST
Malta’s MEPs share their views ahead of the upcoming European Parliament elections
OFFICIAL SPONSORS OF BUSINESS AGENDA
Is Malta still affected by seasonality in its tourism sector? The experts weigh in
BUSINESSAgenda
CONTENTS ISSUE 35 | WINTER 2018/2019
20
60
20 COVER STORY
60 INTERVIEW
Rebecca Anastasi reaches out to five leading figures to take a closer look at what lies ahead.
Incoming Eurochambres President, Christoph Leitl, chats to Joanna Demarco about the EU’s greatest obstacles and how to address them.
BREXIT: IS IT CRUNCH-TIME FOR BRITAIN’S RELATIONSHIP WITH THE BLOC AND MALTA?
30 MEET THE MEPS
“THE EU IS SLEEPWALKING INTO A SKILLS CRISIS” – EUROCHAMBRES PRESIDENT
71 NEWS
MALTA’S MEPs: TACKLING CHALLENGES AND SEIZING OPPORTUNITIES
As the date of the European Parliament elections draws nearer, Sarah Micallef speaks with Malta’s MEPs about this last fiveyear legislature. 43 TOURISM
IS TOURISM SEASONALITY IN MALTA COMING TO AN END?
The Malta Business Bureau’s latest business and news updates 86 CULTURE
MUŻA SET TO “BREATHE NEW LIFE” INTO MALTA’S ART SCENE
Rebecca Anastasi speaks to Heritage Malta to find out about the newly-inaugurated National Museum of Art, MUŻA.
96 96 SOCIETY
“THE BIGGEST PROBLEM FACING MODERN SOCIETY IS HOW TO COME TO TERMS WITH TECHNOLOGY”
A leading thinker in the Maltese public sphere for decades, Kenneth Wain shares his views on a wide range of fascinating subjects with Marie-Claire Grima. 102 BUSINESS PROFILE
USING THE FUTURE TO STEER THE PRESENT
Lewis Pitcher catches up with Morgan Parnis, CEO of Business Leaders Malta, to learn about his experience on the trials and rewards of internationalisation.
Lewis Pitcher meets local tourism experts to discuss the yearround state of the island’s tourism industry.
COVER ILLUSTRATION Cover illustration by Nadine Noko, created exclusively for Business Agenda
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BUSINESSAgenda EDITORIAL
W H AT H A P P E N S N E X T ?
“Can we be sure that this is crunch-time for Brexit or is this a mere cliffhanger?”
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BUSINESSAgenda EDITORIAL
PUBLISHER
I am very pleased to present this year’s second edition of MBB’s Business Agenda magazine. As we are nearing the end of an exciting year and moving swiftly into the next one, Business Agenda takes us through the ambiguities, the certainties and the challenges that lie ahead for the EU. In March 2019, the UK is set to be officially leaving the EU, the impact of which is imminent – however, can we be sure that this is crunch-time for Brexit or is this a mere cliff-hanger? What about the implications of a no-deal scenario? In our cover story on page 20, we reach out to experts and take a closer look at the various scenarios that may present themselves over the coming months ahead of next year’s deadline, and how they’ll affect the EU, Malta and local business, as well as Britain. Also, looking at the year ahead, Business Agenda takes an economic outlook on page 60 in an interview with incoming EuroChambres President, Christoph Leitl, on the current skills and migration challenges in the EU, the future of the Union after Brexit, and the pivotal role that Chambers play within this context – ensuring that the right conditions for business growth remain steady in the EU. With EP elections just around the corner, on page 30, Business Agenda meets with Malta’s incumbent MEPs who give their take on what Malta has accomplished during this fiveyear legislature, what they think are the coming challenges and opportunities for businesses, and what can be done at a political level to address them.
An expert analysis on the current state of the eurozone economy and on what it takes to complete the Economic Monetary Union by leading local and international economists on page 110 makes our EU Policy feature in this issue particularly interesting. In it, our commentators give their take on the EU political challenges which lie ahead when trying to create the necessary measures that support a single currency. We turn to four prominent figures in our Tourism feature on page 43 to understand their views on how a steady growth in shoulder months has indeed translated into no shoulder periods for Malta’s tourism sector. Industry specialists tell us what this means for the tourism industry and its stakeholders, also offering their valuable insights on the way in which businesses are treating different tourism seasons nowadays. In our Business Profile feature on page 102 we shift our focus onto yet another dynamic local entrepreneur, Morgan Parnis, who will inspire our readers with his entrepreneurial drive to succeed in tapping international markets. Finally, Business Agenda meets with philosopher, leading educator and public thinker Professor Kenneth Wain on page 96, who shares his views on European liberal values, the sweeping wave of populism in the EU and why lifelong learning is so crucial to survival. I hope you enjoy reading this issue and augur our readers a good ending to the year and a prosperous new one ahead. Joe Tanti MBB CEO
Mallia Building, 3, Level 2, Triq in-Negozju, Mriehel BKR3000 T: +356 2132 0713 info@contenthouse.com.mt www.contenthouse.com.mt
Malta Business Bureau The Exchange Buildings, 64, Republic Street, Valletta, VLT 1117 T: (+356) 2125 1719 info@mbb.org.mt infobrussels@mbb.org.mt www.mbb.org.mt The Malta Business Bureau is a non-profit making organisation acting as the European-Business Advisory and Support Office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The MBB has two offices, the Head Office in Malta and the Representation Office in Brussels.
EDITOR Joe Tanti EDITORIAL COORDINATORS Ana Vella and Martina Said DESIGN Nicholas Cutajar EDITORIAL TEAM Jo Caruana, Joanna Demarco, Lewis Pitcher, Marie-Claire Grima, Rebecca Anastasi and Sarah Micallef HEAD OF ADVERTISING SALES Matthew Spiteri BRAND SALES EXECUTIVE Estelle Duca ADVERTISING SALES COORDINATOR Elena Dimech Business Agenda is the bi-annual magazine of the Malta Business Bureau. This issue covers the period November 2018-May 2019. Business Agenda is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels. Articles appearing in this publication do not necessarily reflect the views of Content House Ltd or those of the Malta Business Bureau. All rights reserved. Reproduction in whole or in part without written permission of the publishers is strictly prohibited.
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BREXIT: IS IT CRUNCHT I M E f o r B R I TA I N ’ S R E L AT I O N S H I P W I T H T H E B L O C A N D M A L TA ? With Britain expected to leave the EU at the end of March 2019, time is running out for Theresa May and her Cabinet to effectively negotiate the terms of Brexit. But, what are the implications of a no-deal scenario for the UK, Europe and Malta? Rebecca Anastasi reaches out to five leading figures to take a closer look at what lies ahead.
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The Brexit referendum in June 2016 was a sign of things to come. Trump, the rise of nationalism across Europe and Bolsanaro’s recent presidential win in Brazil can all be seen as symptoms of the same disease which continues to afflict nations trying to negotiate a space within a new world order. Indeed, it’s now been two years since Britain voted out of the European Union, but the terms of the break-up with the continent remain fraught with contention: will the UK remain in the Customs Union? Will there be a hard border in Ireland? How will decisions made in Westminster and Brussels affect the day-to-day lives of British and European citizens? The issues Brexit has laid bare have not been easy to resolve, and question marks have been raised over the validity of the 2016 vote. With more than 1,500 of the UK’s top lawyers recently calling for Theresa May and her MPs to back a second referendum – what they call a ‘people’s vote’ on EU membership – and talk of extending the transition period, it’s clear that too much still hangs in the balance. “There is legitimate tension despite the progress achieved so far,” Malta’s Minister for Foreign Affairs, Carmelo Abela, says. “The agreement that member states had hoped for has not yet been achieved.” Minister Abela notes that while progress has been made on the structure and architecture of the potential future declaration, there are concerns which still have not been concluded. “In this regard, the issues related to the Irish border and governance need to be resolved urgently. Failure to do so will threaten the timely conclusion of the Withdrawal Agreement, and subsequently its entry into force, including any transitional arrangements.”
should solutions continue to prove elusive. He refers to the protests held in London calling for the ‘people’s vote’, stating that it is too early to say whether another Brexit referendum is to take place, but emphasises that “this is a decision for the UK authorities to take.”
“Post-Brexit, with both Malta and the UK forming part of the Commonwealth, this relationship shall remain strong.” CARMELO ABELA
Yet, how will the reality of Brexit – or of a no-deal scenario – affect Malta’s relationship with the UK? “Post-Brexit, with both Malta and the UK forming part of the Commonwealth, this relationship shall remain strong,” Minister Abela asserts. He underpins this view on the “longstanding bilateral relationship” between the two countries, with exchanges of “a political, cultural and economic nature enriching both countries,” and with bilateral arrangements, in fields such as health, education and defence strengthening the historical bonds which tie the two nations. Indeed, the Minister notes that the “movement of capital and people shall not be affected by the implementation of the EU Settlement Scheme,” which will permit Maltese living in the UK and Maltese aspiring to go live in the UK to apply for Settled or Pre-Settled Status, allowing them to enjoy the same rights as UK
The Minister emphasises that “the ideal scenario would be for the UK to exit the EU with a deal,” but noted that “the EU, including Malta, is preparing for all possibilities, including that of a no-deal Brexit”
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citizens beyond 31st December 2020. This is bound to have positive effects on trade between the two countries, according to Minister Abela, who emphasises that “both countries will continue working together to further strengthen their relationship.” These sentiments are echoed by the High Commissioner of the United Kingdom to Malta, Stuart Gill, who affirms the “strong and unbreakable history” shared by Malta and Britain. “We have tackled past challenges together, and we will do so in the future.
scenario,” he asserts. Indeed, he underlines that the UK is “working hard to resolve those differences,” stating that it is in no one’s interest to crash out of the bloc without a deal, and that he expects Britain and Malta to continue strengthening their economic relationship, whatever the outcome of the current negotiations. “The UK is leaving the single market. And we have always been clear that we accept that our relationship with the EU will change as a result, but that doesn’t mean that we can’t have
“Negotiations are always tough, but we have always been clear that we do not want or expect a no-deal scenario.”
Our partnership will continue to survive and thrive,” he says. This friendship is bound to continue despite Britain’s exit from the EU, according to the British High Commissioner, who goes on to draw attention to the UK government’s focus on establishing “a fair Withdrawal Agreement to secure an ambitious future economic and security partnership between the UK and the EU that everyone agrees will be in all of our interests.”
He also refers to the rights of British and Maltese citizens living away from their home countries, saying that “protecting our citizens has always been at the forefront of our discussions.” Indeed, the draft Withdrawal Agreement secures the rights of EU citizens and their family members living in the UK, and UK nationals living in the EU, according to Mr Gill. “Although there are still many aspects to agree on as part of the overall future framework, including in educational links such as Erasmus+, I do believe that the UK-Malta relationship will continue to grow, mature and prosper,” the British High Commissioner states.
PHOTO: INIGO TAYLOR
STUART GILL
a future economic partnership that reflects the unique starting point that already exists between our two economies,” Mr Gill insists. He explains this means achieving ‘frictionless’ trade which “protects supply chains and reduces the need for customs and regulatory checks in a way that respects the integrity of the EU’s single market while reducing the burden and cost to businesses both in the UK and Malta.”
In this regard, he points out Theresa May’s recent announcement that 95 per cent of the Withdrawal Agreement was settled, though acknowledges that issues around how to ensure there is no return to a hard border between Northern Ireland and Ireland remain. “Negotiations are always tough, but we have always been clear that we do not want or expect a no-deal
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PHOTO: DOI - CLODAGH FARRUGIA O’NEILL
COVER STORY
George Vella, Malta’s former Minister of Foreign Affairs, concurs. “Be it a hard Brexit, a soft Brexit, or a no-deal Brexit, I am confident that UK-Malta relations, based as they are on long-standing historical, economic, social, and language ties will remain strong and buoyant in spite of EU membership institutional constraints,” he says. This is despite the “impasse in discussions” on the future shape of trade between the EU and the UK, as well as on how to monitor customs, compliance, regulatory and VAT checks, without having a hard border between Ireland and Northern Ireland. “Following the outright rejection of Theresa May’s ‘Chequer’s Plan’ in Salzburg, and with the plans for a November Summit on hold, the prospects for any Withdrawal Agreement between the EU and the UK, look bleak,” Dr Vella asserts. However, he stresses that the prospect of a no-deal scenario are “ominous” to both Britain and the bloc. “Neither side wants this outcome. Getting a Brexit deal through Parliament is already difficult, let alone a nodeal,” the former Minister states. Indeed, he expresses hope that the outstanding issues will be resolved “given that, according to Michel Barnier, agreement in withdrawal talks has already been achieved” on the status of ‘pre-2020’ European citizens in the UK, and vice-versa, and on financial commitments – such as the European Social 24 | WINTER 2018/2019
Fund, regional policy, research and educational initiatives – during the transition period. Moreover, with specific reference to Britain’s relationship with Malta post-Brexit, the former Minister is confident that the alliance will continue to prosper. “UK-Malta relations existed well before our EU membership. Our common membership to the Union consolidated those relations. Whichever type of future partnership the UK people decide to have with the EU after March 2019, bilateral relations between our two countries, especially in health, education and resident’s rights, will undoubtedly be upheld,” he asserts. This is also underlined by Kenneth Farrugia, Chairman of Finance Malta, who says that Malta and Europe’s relationship with the UK is likely to be “beneficial” since “a no-deal scenario would be detrimental to both the UK and the bloc, and it would be a pity if a no-deal is driven by the Irish border issue.” While acknowledging “the sensitivity around the Irish border,” Mr Farrugia believes “there is much more at stake in the event of a no-deal,” particularly with regards to the financial sector. “Irrespective of whether the UK is in or out of the European Union, it will remain in Europe and equally it will, for the foreseeable future, remain the most developed financial centre in the region. A no-deal is neither
“Whichever type of partnership the UK people decide to have with the EU after March 2019, bilateral relations between our two countries will undoubtedly be upheld.” GEORGE VELLA
in the interest of the UK and nor that of the European Union,” he says, since it will “create greater uncertainties in this regard and will be detrimental to all parties.” Mr Farrugia notes the uncertainties which continue to plague negotiations, including issues of trade and migration, though he is convinced Malta will be able to negotiate special concessions with the UK. “Freedom of movement was a key anchor issue in the UK’s referendum and undoubtedly the outcome in this regard will be linked to the eventual trade deal that is being negotiated between the EU and the UK. But, I am sure that the discussions are driven to minimise, as much as possible, the friction that border controls bring with them,” he says. Whatever the outcome of the current negotiations, Mr Farrugia is “absolutely certain that the very strong ties between Malta and the UK will not be negatively impacted.” Indeed, he asserts that Brexit will “give both countries the scope to strengthen existing
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ties also by way of Malta being a member of the Commonwealth alongside the UK.” Expressing a divergent opinion, Mark Harwood, the Director of the Institute for European Studies and Senior Lecturer in European Comparative Politics at the University of Malta, states that Brexit is expected to hit the island – and, indeed, the entire political and financial system – hard. “Research has shown that Malta would be one of several EU countries which would be hit the most by Brexit, due to our close links, but I think the impact would be negative for everyone, including global markets.” Dr Harwood attributes this to the UK being “one of the largest economies in the world and the financial capital of Europe,” and he is even starker in his assessment of a no-deal scenario which, he thinks, would benefit no one, despite there being a chance of this occurring. “This is for two reasons.
“Irrespective of whether the UK is in or out of the EU, it will remain in Europe and equally it will, for the foreseeable future, remain the most developed financial centre in the region.” KENNETH FARRUGIA
The first is that things have become far too complicated from the UK side, both in terms of the political dynamics within Theresa May’s own party (and her dependency on the DUP which is complicating negotiations over the Northern Ireland border) as well as the wider involvement of Parliament, which is making it impossible to balance the pro and anti-Brexit interests of the Members of the House. The second factor is that I think the UK did not expect the EU to maintain such a united front. It is actually quite amazing that it has,” he states. Yet, notwithstanding the current impasse in negotiations, Dr Harwood explains that a second referendum is highly unlikely since it will not achieve the mandate through British Parliament. “While some conservatives are not in
favour of leaving the EU, the party is now coaxing the issue as one of democracy: that it would be illegitimate to challenge the first referendum result. From this angle, it makes it difficult for ‘Bremainers’ within the party to support a second referendum. In terms of the Labour party, they see that it would be better to push for an early general election than a second referendum. With such narrow margins for and against Parliament’s involvement in the Brexit process, I think it even more unlikely that a referendum bill would manage to pass the House at this stage.” In this context, Malta’s relationship with the UK will have to be reconfigured, as both nations seek to establish different priorities in their respective relationships to the bloc and other jurisdictions around WINTER 2018/2019 | 27
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the globe. “Malta may become less important for the UK as it pursues bilateral relations outside the EU,” Dr Harwood says. “For the UK, Malta grew in importance in 2004 when Malta became an EU member state, since every vote counts within the Council, so countries like the UK had a vested interest in securing Malta’s
cooperation. Without the UK’s involvement in the Council, its interest in all EU member states will wane,” the academic stresses. Whatever form the partnership between Malta and the UK takes, “relations will stay robust,” though “Malta’s priority will be its relations with the other 26 members,” Dr Harwood concludes.
“Research has shown that Malta would be one of several EU countries which would be hit the most by Brexit.” MARK HARWOOD
BUSINESSAgenda MEET THE MEPs
M A L TA ’ S M E P s : TA C K L I N G C H A L L E N G E S AND SEIZING OPPORTUNITIES As the date of the European Parliament elections draws nearer, Sarah Micallef speaks with Malta’s six MEPs about what Malta has accomplished during this five-year legislature, as well the potential difficulties and prospects that lie ahead for local business.
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BUSINESSAgenda MEET THE MEPs
ALFRED SANT With the EP elections just around the corner, what would you consider your primary achievements to have been during this legislature, in relation to business? I kept a focus on the EP’s role in strengthening the eurozone, not least in pushing towards a Banking Union and a Capital Markets Union – which have a great influence on business affairs in Malta as well as the rest of Europe. I also tried to generate a greater awareness in Malta about the impact of economic and social decisions at EU level on the local economy, such as with regard to financial services, gaming, tourism, Gozo affairs and reputational threats. What do you feel are the main challenges and opportunities faced by local business within the current climate? What can be done, on a political level, to help businesses overcome them? The main challenge is how to maximise the positive effects of the current unprecedented rates of economic growth in Malta while preparing to be in a good position to counter the adverse conditions that the inevitable downturn will bring with it. This applies equally to firms which operate mainly in the local market and those which are export-oriented. Much of what needs to be done has to come from the companies themselves, with Government watching out to keep the environment businessfriendly, providing support to start-ups and new investment, while jointly with the private sector keeping up with changes in EU rules and policies that could affect our position significantly.
election campaign that followed. What I believe any Presidency should provide are a clear and realistic setting of the agenda; swift and sensitive management of a number of priorities that have been identified, fitted to doable targets; and one or two themes that are of particular interest to the Presidency, so it can use them to set its own stamp on its period in the chair. How do you see the upcoming election unfolding? The extreme right and the populists will make breakthroughs, though perhaps less than what is being imagined, because their voters too will quite likely not vote in significant numbers. The socialists will not do so well, the EPP also but to a lesser degree. Some are assuming that French President Macron could act as a game changer; which is possible but I’m not so sure it will happen. The likelihood is of a further splintering of the European Parliament into groups of
deputies, tied together by ad hoc arrangements – this would make coalitions more necessary but equally, more difficult to achieve. What should Malta’s political and legislative priorities be for the upcoming EP term? To get the maximum funds possible for Malta-based projects from the MFF perspective covering the years 2020-2027. To ensure that eurozone reform, though much needed, does not apply one-sizefits-all solutions that restrict the operating modes of Maltese banks and financial institutions. To work towards an equitable and effective EU-wide immigration policy. To adhere to and apply EU rules on the environment, while taking care that Maltese enterprises are able to implement set guidelines without getting hurt in the process. To establish ‘alliances’ with likeminded states in the Union, given that with the departure of the UK, we will have lost a player whose interests on many points coincided quite closely with ours.
What do you consider to be the primary effects of the Maltese Presidency on your work within the EP? What do you hope to see from the new Presidency? When work on the Presidency was at full flood, there was general acceptance in the EP that Malta was doing a very good job. That however got upstaged by the Egrant controversy and the WINTER 2018/2019 | 31
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DAVID CASA With the EP elections just around the corner, what would you consider your primary achievements to have been during this legislature, in relation to business? During this legislature, I have focused on many aspects related to business, but in particular as the EPP Coordinator in the Employment and Social (EMPL) Committee, I helped steer most of the legislative process towards a more social market economy, which not only helps foster economic growth, but focuses particularly on its workforce. I believe that SMEs and microenterprises are the backbone of our EU economy and are all the more important to Malta. In all the legislation that I have been involved in I have consistently ensured that unnecessary burdens on SMEs are removed. Such legislation ranges from Omnibus, the simplification of EU Funds, the revision of the Posting of Workers, Youth Employment Initiative and the European Pillar of Social Rights. What do you feel are the main challenges and opportunities faced by local business within the current climate? What can be done, on a political level, to help businesses overcome them? One of the main issues I see affecting business is bureaucracy, which is something that must be minimised. From an opportunity perspective, I am currently working on the Work-Life Balance Directive which would drastically improve the rights of employees who are raising their children or are the primary caregivers. At the same time, some businesses are better placed than others to introduce these measures, and the right safeguards must be put in place to prevent placing a disproportionate strain on business. I am working to ensure that the right balance is reached.
What do you consider to be the primary effects of the Maltese Presidency on your work within the EP? What do you hope to see from the new Presidency? It is unfortunate that Government opted not to utilise the full potential it could have garnered through my role as EPP Coordinator of the biggest political party in Parliament within the EMPL Committee and as Head of the PN Delegation. Unfortunately, the Maltese Presidency of the EU Council was also undermined by the widespread corruption in Malta. The role of the upcoming Presidency will be difficult in that it will most likely scamper to close as much legislation as possible before the end of this legislature. It could be frustrating as once election mode sets in, national and political agenda priorities will make it more difficult to achieve a good compromise, but it might also work in favour of the Presidency and be easier to close certain legislative files, particularly those which are politically rewarding. How do you see the upcoming election unfolding? The upcoming MEP elections are an important stepping stone to choose who we want representing
the Maltese islands where it matters. What we have earned over decades of hard work must not unravel due to the actions, and often inactions, of those who should be setting an example. Should I be trusted to once more carry out my mandate, I vow to relentlessly fight institutionalised corruption and ensure the provision of all necessary means of protection and basic freedoms for journalists, among many others. What should Malta’s political and legislative priorities be for the upcoming EP term? The upcoming term, as well as the election preceding that, will be a struggle between populist and responsible politics. The former has made an unfortunate resurgence over the past few years and threatens to dismantle a lot of what we have worked for. The protection of journalists is also an extreme priority. It is unacceptable that over the past year, three investigate journalists exposing government corruption have been assassinated in Europe. This is unheard of in a democratic, functioning, free Union, and we must unite to ensure that our values and moral direction are calibrated. WINTER 2018/2019 | 33
BUSINESSAgenda MEET THE MEPs
MIRIAM DALLI With the EP elections just around the corner, what would you consider your primary achievements to have been during this legislature, in relation to business? “The mission I set out for myself at the start of this legislature was to contribute to make Europe more innovative and competitive. In a new global economy, developing new sectors and niche markets is essential for the creation of jobs. I can summarise my work over this legislature under two key areas: the Green and the Digital economy. In my work I always set out to focus on creating new opportunities for investment in cleaner technologies. This was amplified further in my work on legislation promoting cleaner vehicles. The future is about clean energy and through this piece of legislation I wanted to ensure that Europe has the right policy framework to shift its resources towards the creation of new, cleaner technologies. This is instrumental towards a more competitive Europe but also to ensure that future generations live in a clean and healthy environment. In a digital economy, there is a strong need for young individuals to have the necessary support to start their businesses. In collaboration with the Malta Chamber of Commerce and student organisation AEGEE, I launched a policy document to promote young entrepreneurship which was presented to the Maltese Government and the European Commission. A number of these policy measures were also introduced locally, including the Seed Investment Scheme which provides access to finance to startups. I am currently working with a global software player on a project that will seek to ensure that we bridge the gender skills gap in the use of IT. What do you feel are the main challenges and opportunities faced by local business within the current climate? What can be 34 | WINTER 2018/2019
done, on a political level, to help businesses overcome them? So as to be equipped for the challenges of the future we need to devise a national economic vision. Through this vision, we can align our national resources and in particular our education towards the future. We need to be proactive and ensure that our secondary school education is by design tailored towards gearing our children to the economy of the future. What do you consider to be the primary effects of the Maltese Presidency on your work within the EP? What do you hope to see from the new presidency? We managed to showcase Malta’s abilities in getting things done. We are the smallest member state, however we concluded a number of very important legislations within significantly shorter than average timeframes. The Austrian Presidency has now gained momentum and there is a push to close a number of very important legislations including those related to cleaner vehicles, drinking water and single use plastics.
How do you see the upcoming election unfolding? We need to be united as a nation and stop all attempts to tarnish our country’s reputation. The need for this is often the topic of my meetings with Malta’s business community. We are in agreement that we should all, regardless of our political differences, stand by our country and not give others a field day to create obstacles for our economy. What should Malta’s political and legislative priorities be for the upcoming EP term? Migration, fair taxation, the environment and education, to mention a few. Migration and taxation have always been a top priority of successive Maltese Governments at an EU level and this will certainly not change. Malta has become a model country in its success in turning the economy around and reaching record low levels of unemployment. I now believe it is time to start doing more when it comes to sustainable development and the environment.
BUSINESSAgenda MEET THE MEPs
one-size-fits-all approach. Maltese and Gozitan businesses also want access to their representatives – and as MEPs, it is essential that we remain in close contact with the business community. What do you consider to be the primary effects of the Maltese Presidency on your work within the EP? What do you hope to see from the new Presidency? A number of good accomplishments were achieved, but I would have liked to see more concrete results, particularly on migration and a more successful attempt at changing the one-sizefits-all approach so prevalent across the EU policy spectrum. I must also add that our Presidency was overshadowed by the lack of action by the Prime Minister to address the concerns with Minister Konrad Mizzi before the Presidency, which did not help our credibility.
ROBERTA METSOLA With the EP elections just around the corner, what would you consider your primary achievements to have been during this legislature, in relation to business? One of the main themes throughout my work has been to ensure a level-playing field for Maltese citizens and businesses. It is also why I am proud to have had such a prominent role in the EP’s anti-corruption drive. Corruption is the anti-thesis of good governance and fair business practice, and we must stamp it out.
Gozitan businesses know what to expect with Brexit looming. This legislature, I drafted the EP’s position on immigration and asylum, which outlined MEPs’ position on one of the most controversial topics being discussed. I was also elected as the EPP’s Coordinator in the Civil Liberties, Justice and Home Affairs Committee, the Vice-President of the Parliament’s Petitions Committee, the Chair of the Asylum Contact Group, as well as heading the Parliament’s groups on RMDs that affect so many Maltese and Gozitans’ health – so it’s been a busy few years!
We have also worked on concrete issues as diverse and important as ending unjustified mobile phone roaming charges; making EU funds accessible; making Malta and Gozo’s voice heard during EU Budget negotiations; having a coherent EU blockchain strategy; putting women’s rights at the forefront of EU policy and making sure Maltese and
What do you feel are the main challenges and opportunities faced by local business within the current climate? What can be done, on a political level, to help businesses overcome them? The need for easier access to finance and reduction of bureaucracy, improved working conditions and pushing back against the tendency towards a
How do you see the upcoming election unfolding? I hope to see more candidates who believe in Europe being elected. Malta and Gozo need to have people in the EP who understand the need to protect the single market and who understand the essential role played by the EU in a globalised world. What should Malta’s political and legislative priorities be for the upcoming EP term? Malta needs to ensure that whoever is elected is able to coordinate and work together. Perhaps it is not always evident, but the six of us agree on far more than we disagree on. As regards aims for the next years, we need to see a greater focus on migration; leading the digital agenda; ensuring Gozo’s status as a region; funding that is accessible and protecting the rule of law across the EU. We need to be in as many different committees as possible – it makes no sense to have us all concentrated in the same few committees. We need better representation in committees like those dealing with transport, agriculture, regionality and more. WINTER 2018/2019 | 37
BUSINESSAgenda MEET THE MEPs
MARLENE MIZZI With the EP elections just around the corner, what would you consider your primary achievements to have been during this legislature, in relation to business? The top priority in everything I did during my mandate as an MEP was to be the voice of the citizens, and to represent the interest of my country. This is amply demonstrated by the important dossiers which I have been given, which include the legislation on the Single Digital Gateway and the abolition of data roaming charges. Other dossiers include Standards for the 21st Century, which addressed the importance of including all stakeholders when setting standards, dossiers dealing with the importance of investing in culture and education, as well as dossiers addressing animal welfare. The fact that I won MEP of the Year for my contribution within IMCO is also very satisfying. What do you feel are the main challenges and opportunities faced by local business within the current climate? What can be done, on a political level, to help businesses overcome them? In a competitive scenario which the EU offers, the biggest challenge is running a sustainable profitable business with healthy growth prospects. The EU is a market of 500 million consumers and the opportunities are enormous for those who can up their game to beyond our shores. Politicians and the EU need to understand that businesses, big and small, are the backbone of the economy, and so they must ensure economic and political stability. Politicians must also understand that as legislators they control the speed of the economy of their countries, while being influenced by global trends and events, and therefore they must ensure that their finger is consistently on the pulse of the nation. Only then can they adjust their policies to fit current scenarios. Politicians must also appreciate the value of the workers and ensure that fair conditions 38 | WINTER 2018/2019
prevail. Labour laws must be fair for the employees, but must also be fair on employers, without imposing unnecessary burdens on them. They must ensure that the educational system is producing the right qualifications in order to populate the labour market with the right skills, and ensure a robust financial services system which attracts the trust of investors and encourages growth and investment. What do you consider to be the primary effects of the Maltese Presidency on your work within the EP? What do you hope to see from the new Presidency? Even though Malta’s Presidency came at a challenging time for Europe, Malta set an ambitious to-do list and succeeded in implementing many important reforms. Being part of the negotiating team to end tariffs on roaming, I was particularly satisfied that the Maltese Presidency kept the EP’s promise and managed to close the file which abolished the unfair roaming charges. I urge the new Presidency to improve the overall investment and ecosystem for small and mediumsized enterprises in Europe. More than ever, we need to create the right environment for SMEs and entrepreneurs through the elimination of barriers and through the adoption of proper incentives, such as access to affordable financing and to appropriate skills and expertise. How do you see the upcoming election unfolding? The upcoming election will see the electorate voting for candidates who will have their country’s interest at heart. The electorate is no fool and knows who worked in their interest and in the interest of our country. They also know who sacrificed the interest of and humiliated their country and its citizens to gain political kudos. Malta is far from perfect. No country is. But it is nowhere near how it has been portrayed in the EP and in the international fora, and for that, a price will be paid in the coming MEP elections.
What should Malta’s political and legislative priorities be for the upcoming EP term? The main priorities should be migration, the digital single market, education, the creation of jobs and safeguarding our financial services sector. Malta must keep on working to be a leader of innovation in various fields, as it has done in respect to the digital single market and blockchain, having been the first state to regulate crypto-currency through national legislation. On the other hand, we must keep up our fight to ensure that tax regulation remains the competence of a member state, where a one-size-fits-all approach will not work. Apart from these legislative priorities, Malta must work hard to bring its reputation back. Malta and its representatives will start with an undeserved reputational deficit next term, and climbing back to where we in truth should be, is going to be the biggest challenge of them all.
BUSINESSAgenda MEET THE MEPs
FRANCIS ZAMMIT DIMECH With the EP elections just around the corner, what would you consider your primary achievements to have been during this legislature, in relation to business? One accomplishment which I am very proud of is a new draft EU law which will ensure further opportunities for Maltese businesses. This law will allow for providers of online platforms and search engines to implement a set of measures in the contractual relations they have with online businesses. The main objective is to ensure transparency and fairness with retailers, hotels, restaurants and businesses which make use of such online platforms to sell and provide their services to customers in the EU. I have been working hand-in-hand with the Malta Business Bureau to achieve the best possible outcomes for businesses and workers. What do you feel are the main challenges and opportunities faced by local business within the current climate? What can be done, on a political level, to help businesses overcome them? After holding a meeting with a delegation of Maltese business leaders and listening to concerns from stakeholders, it becomes apparent that from a business side, challenges are mainly due to the mismatch of skills. Businesses are in need of fair and transparent conditions, especially when it comes to online platforms, which are the main communication points enabling businesses and customers to make contact. I believe that we, policy-makers, have not only an opportunity but also a responsibility to act on existing legislation and improve the situation. In fact, I am currently working on the company law package being discussed in the Committee on Legal Affairs.
During the Maltese Presidency, Malta managed to attract more attention towards the strengthening of small- and medium-sized enterprises. I have sought to represent Malta’s small business community at the EP, determined to communicate the difficulties and concerns of people working in this sector. Malta, as well as the EU as a whole, needs to mobilise and set incentives for all sources of investment, public and private, ensuring SME access to capital. The next Presidency should be looking at promoting these issues whilst encouraging publicprivate partnerships, innovation, transparency and fair competition. How do you see the upcoming election unfolding? I would like to see the upcoming election unfolding on the basis of people understanding that irrespective of whatever political opinion they may have about local issues, the EU makes a significant difference in matters pertaining to our daily lives, on issues that
determine how we can enjoy and benefit from new opportunities in the future, and how we can rise to new challenges. On that basis, people need to recognise the need to vote and choose whomever they consider can best represent us within the EP in a competent and honest manner. What should Malta’s political and legislative priorities be for the upcoming EP term? There are various issues which Malta should focus on, such as creating fair, transparent and innovative business strategies. Add to this improving working conditions, focusing on health issues, increased funding for research, agriculture and seeking further growth for the business sector by being able to tap into the opportunities that should intensify through our membership of the EU and knowing how to maximise those benefits. Malta has registered the highest satisfaction rate within the EU, and that in itself augurs well.
What do you consider to be the primary effects of the Maltese Presidency on your work within the EP? What do you hope to see from the new Presidency? WINTER 2018/2019 | 41
BUSINESSAgenda TOURISM
PHOTO: VIEWINGMALTA.COM/CLIVE VELLA
IS TOURISM S E A S O N A L I T Y I N M A L TA COMING TO AN END?
Lewis Pitcher meets four prominent figures in the local tourism sector to discuss their thoughts and predictions on the year-round state of the island’s tourism industry. In light of the excitement surrounding the establishment of current and future tech-based industries in Malta, notably iGaming and blockchain, the tourism sector’s role as one of the pillars of the Maltese economy risks being overlooked. The tourism industry, however, is booming; what’s more, the sector – previously regarded as largely a summer-only industry – is rapidly becoming a more stable, year-round business.
“Figures from recent years confirm the huge progress the country has made in achieving a more even distribution in the volume of tourists visiting the islands throughout the year,” states Gavin Gulia, Chairman of the Malta Tourism Authority. “The total number of tourists attracted to Malta in Q1 of 2017 is close to the volume generated in Q2 of 2010, whilst the figure of total inbound tourists in Q4 of 2017 surpassed
that of Q3 of 2010. This goes to show that while seasonality is still a concern, it is being gradually eradicated.” These figures are supported by statistics issued by the Malta International Airport, which show an average of around 20 per cent increase in traffic yearon-year for each of the last four years for the period of December to March, with arrivals in January and February close to doubling since 2015. WINTER 2018/2019 | 43
BUSINESSAgenda TOURISM
Dr Gulia shares statistics that further indicate a huge increase in tourist numbers in the first few months of 2017 compared to 2016, most notably a 24 per cent growth in inbound tourists over Q1 and a substantial 46 per cent increase in January alone. According to Dr Gulia, a change in strategy supported by the MTA and the Ministry for Tourism is a contributing factor. “Early ventures in promoting Malta as a tourist destination were based on the assumption that the UK was the obvious and natural source market, and that British tourists wanted a Mediterranean version of home. For many years, the major emphasis remained on the coastal dimension and the cultural aspect took a backseat role. For a destination like Malta, blessed as it is with a 7,000-year unbroken line of human development and activity, cultural tourism needed to rise to become a very important cornerstone of tourism strategy.” Cultural tourism has indeed been a major focus for the tourism industry as a whole, as Dr Gulia highlights. “Today, the Maltese islands host over 400 varied events throughout the year. These range from musical festivals to general music events, as well as sporting and cultural events. The MTA, together with the Ministry for Tourism, has recently been focusing on festival tourism, a growing niche in the industry. The majority of these festivals happen outside the busy peak months of summer, thereby attracting visitors during all months of the year.” Simon de Cesare, President of the Malta Business Bureau and hotelier, claims that the rapid growth in shoulder month tourism derives from a number of sources. “The current reality is very different to what is was a decade ago. Traditional summer months always fared well due to the type of holidaymaker we were attracting. The trick was and remains how to fill the gaps in the shoulder months and the low season. All stakeholders have worked tirelessly to address this. Hotels have looked
at other markets, namely ones targeting cultural tourists, as well as corporate events, such as conferences and incentive trips, while Government has sought to increase connectivity through incoming airlines. The expansionary strategy of Air Malta, as opposed to previous strategies of containment and downsizing, is also helping in terms of seat capacity.”
“Figures from recent years confirm the huge progress the country has made in achieving a more even distribution in the volume of tourists visiting the islands throughout the year.” GAVIN GULIA
Mr de Cesare believes, however, that a problem may arise in the not-so-distant future. “The concern today is the number of new hotels coming on the market within the next few years. Malta has never had such a period of continued growth in tourism, but although this doesn’t appear to be abating, one has to consider that the number of incoming tourists cannot continue to grow due to the limited size of the island. At some point, these numbers will stop increasing and may even reduce. At that point, one has to wonder what will happen to the oversupply of beds in our market.” George Micallef, Senior VicePresident of the MHRA and a hotelier, brings to the fore another challenge which continues to rear its head. “At a time when the industry is struggling with problems related to the shortsupply of human resources,” he argues, “employers are finding it increasingly difficult to sustain the necessary levels of employment required for higher year-round occupancies. The winter months used to be the time when stretches of vacation leave are taken by employees, and a time devoted to the upkeep and maintenance of the properties. Higher occupancies during the lean months now pose a challenge which needs to be addressed.” Mr Micallef is nonetheless positive about the current market situation, claiming that the spread of tourism to the winter months is widely welcome as it offsets the massive strain previously put on all members of the industry during this period each year. “Malta nowadays distinguishes itself from
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BUSINESSAgenda TOURISM
“Traditional summer months always fared well due to the type of holidaymaker we were attracting. The trick was and remains how to fill the gaps in the shoulder months and the low season.”
other traditional Mediterranean destinations and is marketed as a cosmopolitan, sophisticated city-type destination, with a rich cultural base that offers a range of active holiday choices and appeals to a wider range of interests and age groups.” Genevieve Abela, Chairperson of the Executive Committee for the Tourism Business Section, is also positive about increased activity in the sector during the shoulder months. “The beauty of this kind of growth is that the spill-over effect ensures that business flows to both larger and smaller businesses alike. These include the surrounding community, restaurants, convenience shops, private transport service providers, artisans and so on. The businesses that are most flexible to exploit market forces early enough and adapt accordingly will end up thriving.” Dr Gulia agrees and underlines another spill-over effect of the shift in tourist arrival patterns. “One element contributing to the move away from specific types of tourist is the novel types of accommodation available, ranging 46 | WINTER 2018/2019
from boutique hotels and small guest houses to self-catering accommodation, all pertaining to the concept of a shared economy. Tourism is absorbed and spread within a wider territory, as opposed to the previous geographical concentration over two or three major areas on our islands.” However, Ms Abela highlights one of the greatest challenges brought about by higher visitor numbers, one which has significant implications beyond the tourism sector. “There are approximately five tourists coming over to Malta for every person that resides here. Having an all year-round business reduces seasonality issues and as a result certain services are gridlocked by demand. The increase in shoulder month tourism and in the number of tourist arrivals during peak season takes its toll on the current infrastructure, which now needs upgrading to cater for this growth.” She adds that a strategic plan for services such as transport and tour guides is required. “With the introduction of free transport for students, we’re experiencing an untenable situation with regards
PHOTO: ALAN CARVILLE
SIMON DE CESARE
to transport availability and exclusivity for tourism services. Shared transport, both in terms of scheduling and quality service, has created a critical situation that needs to be addressed. On the other hand, we are seeing a decrease in the number of tour guides and thus availability, and just as importantly, the variety of languages offered. Whilst most applaud Government and private sector initiatives to attract new markets, there needs to be a holistic approach which also considers services that new markets need. Guides available beyond the traditional English, Italian, German and French are limited.
BUSINESSAgenda
“Malta nowadays distinguishes itself from other traditional Mediterranean destinations and is marketed as a cosmopolitan, sophisticated city-type destination.” GEORGE MICALLEF
PHOTO: FRANCIS MICALLEF
TOURISM
Despite the challenges and concerns voiced by the spectrum of business figures, the overall message is that the future looks bright. Every corner of Maltese business, from the more direct players such as restaurants and entertainment providers to less obvious beneficiaries such as convenience shops or even hair salons, is receiving a welcome boost. Towns dependent on tourism, such as Bugibba and Qawra, previously famously and visibly quiet in winter, have the opportunity to thrive year-round.
For Dr Gulia, the MTA as well as the Government, this has been the goal all along, and suggests that further investment will be made in the future. “The most important element in dealing with increased numbers is to ensure that the host community derives direct benefits. It is imperative to avoid situations whereby the host community bears the brunt of a huge volume in terms of tourism but does not benefit from any direct economic, financial or social impacts. On the contrary, right now Maltese communities stand to gain directly.”
PHOTO: RENE ROSSIGNAUD
“The beauty of this kind of growth is that the spill-over effect ensures that business flows to both larger and smaller businesses alike.” GENEVIEVE ABELA
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BUSINESSAgenda PRESS
As well as DasCoin, Mr Mathias is behind Das33, the world’s first vetted ICO platform. With extensive experience in finance and technology, the Princeton graduate is a blockchain entrepreneur. Mr Mathias sees blockchain as the next step in the digital revolutionary process, saying, “the internet revolutionised the accessibility of information, making it widely available to all, and changing how we go about our personal and business lives in the process. Smartphones then revolutionised how we receive and view information. Blockchain is set to revolutionise how we use and give value to that information.” That’s why blockchain is at the heart of Das33. “We’ve created a platform that uses blockchain technology to tokenise smart contracts in an immutable digital format. This offers early-stage companies the ability to grow their enterprises without having to dilute existing equity or incur costly debt,” explains Mr Mathias. “Das33 offers a new way of aggregating resources for new enterprises, and does so in an incentivised, performancerelated manner.”
BLOCKCHAIN: T H E S TA R T o f A NEW ERA Michael Mathias is CEO of DasCoin, a blockchainbased cryptocurrency creating a fast, secure and scalable digital asset system. Aiming to become the world’s first mainstream digital currency, DasCoin is focusing on greater compliance, wider distribution and increased transaction capacity to reach its goal.
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Via the platform, a company can make use of a unique digital token format, called ‘premium tokens’. Premium tokens enable a company to offer a pre-defined premium to token holders based on the company’s achievement of a key performance indicator. One of the first adopters of the Das33 platform is Greenstorc, a company specialising in bringing affordable, clean energy to all. Using the process of Organic Rankine Cycle (ORC) technology, Greenstorc is able to create zero emissions heat-to-power from industrial and agricultural waste heat. Mr Mathias believes that the Das33 platform is mutually beneficial to investor and investee. “The investee gains access to a wider pool of investors, thanks to a large community and low minimum investment amounts. For investors, there’s the opportunity to
BUSINESSAgenda BUSINESS UPDATE
participate in potential growth opportunities, with specific rewards given for success, all without sacrificing liquidity.” The system also provides additional security for investors, with all premium tokens vetted before being presented to the Das33 community. “Objectives and milestones are clearly defined and the system automated, with rewards paid into a digital wallet,” says Mr Mathias. How important will blockchain technology become? “The importance cannot be overstated; it has the potential to have significant impact across almost any industry. There are so many possibilities,” states Mr Mathias. “DLT (Distributed Ledger Technology) is at the heart of it all.” “In essence, blockchain is a new kind of database. A decentralised digital ledger that holds records of data in a tamper-resistant or ‘immutable’ way,” explains Mr Mathias. As a decentralised system, blockchain gives access to many users, each of whom may inspect or add to the data, without altering or deleting it. Mr Mathias expands, “with DLT, transactions become quicker and more efficient; there’s no need to wait for a centralised entity to process information.” One element of blockchain – as utilised by Das33 – is the smart contract; the marriage of computer coding with traditional agreements. Conventional coding has long taken the form of ‘if X occurs, do Y’ and is ideal for carrying out the terms of contracts. Smart contracts allow for fairer practice. As Mr Mathias explains, “by placing agreements on a public blockchain, the execution of those agreements is taken out of the hands of a single party. Smart contracts are immutable, once the terms are agreed they cannot be changed. And once the terms of the contract have been met and validated, the transaction cannot be prevented from occurring.” By utilising cryptocurrency,
transactions are made more secure. “Cryptocurrency cannot be counterfeited and eradicates any potential for a double-spend problem. Transactions are sped up and available 24/7, with no need for banks and middle-men to shift funds around.” As decentralised currency, cryptocurrency is available to all and presents opportunities for everyone to be included in financial systems.” Mr Mathias believes that the integration of blockchain stands to benefit many local businesses, throughout a variety of industries. “The property sector could benefit from having the land registry on the blockchain, therefore creating an open, reliable and immutable record of land registry. The transfer of titles could be conducted far quicker via the blockchain, while purchases could be executed via smart contract.” Blockchain technology could revolutionise the local banking industry too, speeding up and securing transactions and cutting down on fraud, while errors can be reduced with codified instructions generated by smart contracts. Insurance companies could benefit from using smart contracts, as used by Das33, as customers know that payout is automatic and immediate when criteria are met. “This could help insurance companies eliminate fraud, with no need to rely on customers’ versions of events and instead use independently verified data,” says Mr Mathias. Cost can be reduced, with payouts made on a simple yes or no decision via smart contract, without human intervention or investigation. “Let’s use a travel insurance payout, for example. The customer has a cancelled flight, the flight cancellation is confirmed automatically via an external source and payout issued via blockchain.” Blockchain will help the iGaming industry continue to expand by providing greater transparency between players and operators. Mr Mathias says, “payout processes
could be streamlined and sped up via smart contracts, while funds could be moved quicker between player and operator by utilising cryptocurrency. There are also the obvious data security benefits of information being stored in an immutable format on the blockchain.” Shipping is another industry that could benefit. Shipping items worldwide requires a lot of paperwork, in a variety of languages, with multiple laws, procedures and organisations to navigate along the way. “Standardising procedure and placing information on the blockchain will lead to greater efficiency and smarter cargo handling. With a shared, up-todate database, deficit and surplus containers can be matched, preventing wastage.” Even legal services could benefit from blockchain by adopting smart contracts, with legally binding agreements created without the need for physical signatures on original documents. By digitising the process, time is saved and the potential for the loss or spoiling of legal documents is prevented. Mr Mathias concludes, “blockchain is perhaps the single biggest development in the history of finance and technology. The benefits of blockchain will be felt across multiple industries, with processes sped up and streamlined, data secured, and costs reduced.” “Its immutable nature provides an obvious weapon in the fight against fraud. With smart contracts, agreements can be automated, streamlined and secured, whilst tokenisation can open investment – and investing – to all. Its ability to decentralise financial processes can offer financial inclusion to everybody, at all levels of society.” Get in touch on E: support@das33.io; www.das33.io
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BUSINESSAgenda BUSINESS LIFESTYLE
THE WAT E R
of life Whisky has always had a dedicated following in Malta, but nowadays,
devotees are taking an almost scholarly approach to the enjoyment of this ancient spirit. Marie-Claire Grima speaks to two experts to find out about what makes a whisky a winner.
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BUSINESSAgenda BUSINESS LIFESTYLE
Whisky is a drink with definite staying power – after all, it has been around for nearly a thousand years. The amber liquid oozes glamour, power and masculinity – think Don Draper in the first few seasons of Mad Men – but it also calls to mind warmth, comfort, and Christmas, the celebration of dear family members and friends. In Latin, it used to be known as acqua vitae – the water of life – and the new generation of whisky fans have indeed imbued it with new life through their passion and enthusiasm for the drink, and appreciation of its various aspects.
and even the time of year. “When winter approaches, most people tend to look for peated whiskies which offer a warm and smoky flavour, reminiscent of a fire burning on a cold rainy day. On the other hand, as spring approaches, people tend to look for lighter, more elegant whiskies. I think most people look for a whisky that takes them back to their childhood, when their grandfather would secretly give them a tipple. They also look for limited-edition whiskies that offer the palate a particular taste even if it isn’t to their liking.”
“A whisky has become more of a statement of who you are as a person, as opposed to the generic drink it once was,” says Andrew Abela, Wine Boutique Manager at Franks. “Appreciation for highquality limited-edition whisky has definitely been on the increase lately in Malta. I remember how the market was five years ago, when people were beginning to discover the diverse range of single malts and learning how a single malt is different to a blend. For most people, including myself, it was like discovering America – a continent that already existed but we made it our own, eager to learn and explore its seemingly new frontiers. The opening of new whisky bars of course helped, as did the countless whisky tasting sessions that we hosted, along with other suppliers on the island. Today people seem to have gotten accustomed to specific whisky styles, for example peated or smoky versus fruity and elegant.”
The mark of a master distiller is the ability to create a fully-balanced whisky, that ticks all the boxes in equal measure, Mr Abela says. “The best whiskies I have tried were always elegant, in the sense that they would first tempt you with their seductive smell, like perfume. Once you taste it and swirl it in your mouth, you begin to understand the difference in its layers, and how one component cascades gently into the other. It’s like a story that unfolds but each part takes the right amount of time to develop.”
Mr Abela says the market for whisky is quite diverse, and depends on various factors, including the drinker’s age, gender,
However, he believes that the most important aspect is the length of time it takes for the taste of the whisky to dissipate. “I’ve tasted some whiskies which take up to five minutes to develop and change. For me, that is a sign of a whisky that has been given a lot of thought; it doesn’t necessarily need to be a single malt or an old whisky.” When tasting a fine whisky, Mr Abela advises drinkers to approach it with no pre-conceptions, to sit with it and analyse the spirit. “Take your time and engage with it. Let
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BUSINESSAgenda FOOD & DRINK
it speak to you and don’t put any ice in the tumbler or smoke any cigars – your palate has to be as clean as possible.” He says that an aged whisky is something that the producer would have poured a lot of resources into to get just right, and advises the drinker to approach it as a unique, artisanal product, with many years of effort behind it. “After all, a smart phone is a product that takes less than a few months to produce, while a whisky will have taken 15, 18 or an even greater number of years to produce. Every barrel is going to be different and by extension, so is every bottle.” Personally speaking, Mr Abela’s favourite brand of whisky is Springbank, a family-owned distillery in the west of Scotland. “As a distillery it is perhaps the most old-fashioned whisky in terms of the way it is produced and since it is still family-owned, it has a certain uniqueness about it. My favourite expression is the humble 12-year-old, which is bottled at 52 per cent ABV, which gives you a real kick! Since the barrels are aged in a coastal town, they retain a slightly salty flavour; however, the barrels the whisky is aged in are ex-sherry barrels, giving it a sweet aftertaste.” Of course, he admits he won’t turn down a more mainstream whisky like Jamesons, or Johnnie Walker Black.
“I think most people look for a whisky that takes them back to their childhood, when their grandfather would secretly give them a tipple.” ANDREW ABELA
Franks has been at the forefront of cultivating a more sophisticated appreciation of whisky in Malta. “Our first major event was the master class with Jim Murray – author of the annually updated Jim Murray’s Whisky Bible – who is considered to be the world’s leading whisky guru. I still remember meeting him for the first time – his strong character was rather intimidating at first, however we got along so well that we became personal friends. We have also launched two simultaneous whisky schools with Camilleri Paris Mode and The Chophouse. The latter is in its fifth year and still going strong!” However, there are two whisky initiatives that Mr Abela has overseen which he is proudest of. The first is the Kilchoman Two Isles single malt – a Scottish single malt aged in Maltese wine barrels, giving it a marvellously particular timbre. “It was a brainchild of mine which developed when I was working with the Kilchoman distillery. Whilst filling up barrels, the idea
struck me of ageing a whisky in a Maltese wine barrel to give it a flavour of our fantastic wines. I contacted a local producer of fine wines and as the saying goes, the rest is history,” Mr Abela smiles. The second is the extraordinarily popular Malta Whisky Fair, an annual event held in the Phoenicia Hotel’s majestic ballroom, which is now in its third year. “This was an event that was on my mind for quite a while and I must say it would not be possible without the help and support of all the suppliers that take part,” Mr Abela says. “Although it is fully organised by Franks Gentlemen’s Essentials, each supplier contributes in his or her particular way to make it a massive success.” Another Maltese company which has brought whisky appreciation to the forefront is Farsons. Farsons General Manager, Pierre Stafrace, says that in Malta, there have been small groups of whisky-lovers and collectors on the island, as well as long-established ‘whisky clubs’ WINTER 2018/2019 | 55
BUSINESSAgenda BUSINESS LIFESTYLE
between friends. “However, over the last few years, we have seen a significant increase in the number of people wanting to find out more about whisky and wanting to experiment with different whiskies from all over the world,” he says. Farsons has organised a number of whisky tastings at its Farsonsdirect outlet and other venues. “We’ve had tastings of different expressions of the same whisky brand; for example, five bottles of The Glenlivet, of various ages, which show that a fine whisky has the same hint of character underlying the different varieties in the range. We also organise The Whiskey Trail, which presents whiskies from different parts of Scotland, and from different countries, highlighting the various expressions which this wonderful, golden liquid can take, influenced by the region in which it is made.” Mr Stafrace observes that, currently, single malt whiskies are very fashionable. “Whisky-lovers are seeking them from all over the world – from Sweden to Japan.” Consequently, blended whiskies may have fallen somewhat out of favour, which Mr Stafrace believes is unfair. “A fine blended whisky is the result of a long and difficult process of blending different whiskies to achieve a single, consistent character, and can also be complex and full of character.” To fully enjoy a fine whisky, Mr Stafrace emphasises the importance of following the proper procedure of tasting, which includes first looking at the colour, and then looking at the ‘legs’ left by the liquid when you swirl the glass. “The thickness of these legs gives you an impression of how full-bodied and textured the spirit will be. Then, nose the whisky – in other words, hold the glass at a comfortable distance from your nose and breathe in the aroma. Then take a sip and ‘chew’ on it, identifying different flavours. Then swallow (or spit, depending on the tasting) and note how the flavour stays on your tongue, how long is its finish. After tasting the whisky
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“A fine blended whisky is the result of a long and difficult process of blending different whiskies to achieve a single, consistent character, and can also be complex and full of character.” PIERRE STAFRACE
neat, you may want to add a few drops of water, which can bring out new flavours and aromas.” To Mr Stafrace, an exceptional whisky all boils down to what he calls character – “which is not just about flavour and aromas, but about a special liquid which fills your palate with satisfaction and has you craving another sip as soon as you swallow the first.” He says that the appeal of whisky can vary immensely between people, and that a whisky that tastes amazing to one person will draw a neutral or even negative response from another. “Because of the personal nature of taste, I wouldn’t even hazard a guess as to which is the best whisky in the world. At the end of the day, although there are certain set technical standards, it is still a question of personal preference. It is all about education – and enjoyment. A great whisky is best when shared with friends!”
BUSINESSAgenda
PHOTOS: ALAN CARVILLE
SECTION TITLE
AN OPEN DOOR TO VENTURES OF ALL SIZES With new regulations and various changes affecting the industry, it is no surprise that it has been a challenging year for companies such as Jesmond Mizzi Financial Advisors. Joanna Demarco speaks to Jesmond Mizzi about the company’s evolution as it shifts towards its own managed funds, opening the door to smaller investors and business ventures, and seeing challenges as opportunities. This year proved to be a year of significant changes for the financial services industry and all those connected to it. Whilst European Union regulations such as the MIFID II and the GDPR were enforced, Brexit-related developments continued to unravel and international trade disputes arose. Jesmond Mizzi describes the year as “challenging”, leaving his company with no alternative but to adapt, however, taking challenges
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into its stride and viewing them as nothing but opportunities. In fact, with the introduction of the Merill SICAV two years ago, the company was “quite prepared for the changes,” says Mr Mizzi, who believes that an innovation like the Merill SICAV succeeds in removing some of the strain off the investors they work with. The nature of the SICAV (société d’investissement à capital variable) is that of a
diversified vehicle, a collective whole. “In the past, we had relationships with different fund managers both locally and abroad, and we would encourage investors to invest in a variety of them,” he says. “What we did with Merill is that we brought them all together under one cap. Therefore, the vehicle we are reporting is one vehicle, which in itself is diversified.” This decreases the load when it comes to aspects such as reporting, whilst keeping their philosophy unchanged. “We have not changed our philosophy of having an open architecture,” he adds. “And, whereas before a client would have received a portfolio evaluation with 30 items, today they receive a report on the SICAV with fact sheets on factors such as top holdings, performance, price movement and guidelines. We have not changed the way in which we operate, but rather, we
BUSINESSAgenda CASE STUDY
are packaging it in a different way.” Now offering three types of funds, a core-holding fund, high income fund and equity fund, the Merill SICAV accommodates a variety of target markets, from high-net-worth individuals to those investing a few thousand euro. Mr Mizzi believes that offering such personalised funds is a bonus which the company takes pride in, when compared with local competitors. Mr Mizzi goes on to emphasise the opportunity which the SICAV fund presents to smaller clients, who he predicts will struggle against bigger investors within the everevolving structures. “As regulation increases, practices need to be more streamlined,” he says. “Unfortunately there will come a time when the very small investor will find it very difficult to receive a service from companies if the latter do not consider it worthwhile to meet such clients. With the SICAV, this means that the smaller client still receives a great service.” Essentially, the SICAV provides the opportunity for small investors to have a discretional portfolio, which is generally associated with larger investors. “We have retained this idea of a discretional portfolio but have made it available to everyone,” he explains. “The industry is still in its early days but we think that as it expands, and changes, more people will come on board.” As Jesmond Mizzi Financial Advisors shifts increasingly towards its own managed funds, the SICAV, in fact, is looking to expand, with a new sterling-hedged sub fund launching in the near future, allowing for investors who own sterling to diversify their assets. However, funds are not the only prime focus of the company this year. As the conversation progresses, Mr Mizzi turns to another project which his company is focusing on; the Prospects MTF Vehicle, which was introduced by the Malta Stock Exchange in 2016, and is slowly growing and evolving.
This new addition in the local capital market opens doors for small companies which, prior to its introduction, had limited opportunities. Such a market targets either those small enterprises in search of raising capital, or established companies looking to raise finance for specific projects. “This is a new market, so investors are still getting acquainted to it,” explains Mr Mizzi, who is closely following the reaction of clients towards such novelties. “Because the amounts are smaller in that there is a smaller amount of bonds in issue, it presents its own risks and concerns of liquidity, but as they develop, there is more trading. If these companies are new, they carry more risk, but investors are being compensated with a higher income. And normally, we link risk with reward.” If Mr Mizzi and his company believe that the market is appropriate for a specific client, the company takes it on board, acting as manager. “We are currently very active in this area of our business,” says Mr Mizzi, “and I do believe that this is an area which will grow.”
The company has been perceptive and responsive to each new reality, resulting in a larger team and a growing compliance department, as well as the strengthening of its technological capacities to respond to the constant technological changes. Although adapting to technological advancements is an ongoing priority for the company, he emphasises his firm’s belief in personal contact, which he states will remain at the core of the company. “We insist on personal contact. Our business is still very much face-to-face and we enjoy providing clients with a lot of our time.” “We now have a staff complement of 34 and are keen to address whichever challenges come our way,” he says. “Each challenge is, in itself, an opportunity. We take on challenges and go about things slowly and surely. Then, once we are fully prepared, we go to the market.”
With all eyes on growth, Mr Mizzi turns to other dynamic forces which are being addressed by his company in order to adapt to a rapidlychanging industry. He highlights blockchain, the shifting relationships between a bank and its clients, the increase in foreign companies looking to raise capital in Malta, and the transforming Information Technology industry.
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“THE EU IS S L E E P WA L K I N G I N TO A SKILLS CRISIS” – EUROCHAMBRES PRESIDENT
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Elected as the Eurochambres President for a second term, Christoph Leitl is faced with a number of ongoing and imminent challenges, including Brexit, ‘patchwork’ national laws and an emerging skills crisis. As Eurochambres – the association of European Chambers of Commerce and Industry – marks its 60th anniversary, Joanna Demarco speaks to President Leitl about his concerns, and the ways Europe can address them.
Whilst the European Union currently represents only 7 per cent of the world population, it accounts for 25 per cent of the world economy, and for more than 50 per cent of global, social and environmental expenditure. With these statistics in mind, Eurochambres President Christoph Leitl claims that Europe needs to “wake up”. “What I mean by this is that many people have lost confidence in the European project,” Mr Leitl elaborates. “Nationalism, egoism and populism, are widely spread in Europe, as opposed to unity and solidarity. There are fears concerning globalisation, technological innovation and migration.” Amidst such uncertain times, President Leitl’s plan for his tenure instils confidence. “The next European elections and the outcome of the Brexit negotiations will be decisive for the future of Europe. In this context, my mandate is focused on giving the economy a strong voice in these challenging times,” he says, “working with the EU institutions to make businesses more competitive and successful, and to make Europe more open, with free trade agreements with all parts of the world.” A hurdle in the way of a ‘more open’ Europe is the varied
national regulatory regimes. As highlighted in the Declaration of Entrepreneurial Rights, which is issued by Eurochambres and outlines courses of action that should be taken between 2019 and 2024, the ‘current patchwork’ of national regulatory regimes is a cause for concern.
“The next European elections and the outcome of the Brexit negotiations will be decisive for the future of Europe.”
In this regard, Mr Leitl has no doubt that further harmonisation of national laws is the way forward. “If we want consumers to be able to enjoy the same highquality products across Europe, we need to create a level-playing field,” he says, pointing to the field of consumer protection as a commendable example. “If the conditions are the same everywhere, then businesses know what to expect in other member states and consumers also know what rights they have when purchasing from a foreign trader. This is beneficial for all parties and provides for a stable framework.” However, protectionist policies remain a concern, making the feat all the more challenging. In fact, according to the European Commission’s latest Trade Barriers Report, there were 396 active trade and investment barriers in place at the end of 2017, a number which Mr Leitl acknowledges as a “historical record”. “The figure confirms yet again that a continued rise in protectionism affects EU exporters,” he explains. WINTER 2018/2019 | 61
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“Chambers across much of the EU27 are providing advice and support to businesses on how to adapt to Brexit; hoping for the best, while preparing for the worst.”
Moreover, although the G20 – an international forum that brings together the world’s 20 leading industrialised and emerging economies – last year discussed the harm which protectionism causes to the global economy, Mr Leitl fears that not much has changed since. “Despite the fact that pledges by G20 leaders to reject protectionism were once again repeated at the last G20 Summit in Hamburg, the nine countries with the highest number of trade barriers still in place, are all G20 economies. At the same time, the multilateral trading system is under the greatest strain in recent history, with its dispute settlement system being in acute danger of becoming dysfunctional in 2019 if World Trade Organisation (WTO) members don’t manage to unblock the situation,” he argues. “Nonetheless, with the strong support of Eurochambres, the current Commission is on track to become the most successful
in terms of negotiated trade deals, removing tariff and nontariff barriers for European companies in key markets such as Japan, Mexico, Vietnam and Singapore, to name a few,” he points out. “Equally, the Market Access Partnership is proving an effective tool for our businesses in removing trade irritants all over the world in a concerted action with the Commission and industry, including the Eurochambres and member states.” He claims, however, that what is being done is not enough. “More efforts will be required by us to defend multilateralism and rules-based trade, and we must remain vigilant and ready to combat new trade irritants whenever they appear.” With multilateralism in mind, the subject diverts to Brexit; the concerns it is currently generating, and the expectations of companies as an outcome of this process. “Brexit is of course most worrying for those businesses that have
direct or indirect commercial relations with the UK,” he asserts. “Among these are many small businesses, and they remain confused about the timing and parameters of the process.” While he believes that the possibility of a no-deal scenario is increasing every day, he is positive that some form of agreement will be reached. “I remain confident that both sides will manage to reach an agreement and avoid a hugely damaging and disruptive situation,” he says, adding however that “the uncertainty would not end there, as future relations will then need to be negotiated, but avoiding a no-deal Brexit is the priority for now.” A no-deal Brexit would mean that the United Kingdom and Europe would not have been able to come to an agreement on the United Kingdom’s withdrawal, the results of which are ambiguous, and would signify a weak political relationship between the two. “At the same time, our members are united on the need to preserve the integrity of the single market. Meanwhile, Chambers across much of the EU27 are providing advice and support to businesses on how to adapt to Brexit,” he says; “hoping for the best, while preparing for the worst.” Although Brexit takes the spotlight for the main economic issues currently being dealt with within the European Union, other significant, perhaps more overlooked issues, nonetheless, remain a cause for concern. One of these issues is the shortage of
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to support the enterprises “in the complex and resource-intensive process of integrating refugees in their workforce.” A way to go about tackling this issue, Mr Leitl proposes, is by establishing an SME integration grant using unspent European Social Funds. “I’m convinced that the benefits of such a scheme, not just in terms of integration, but also in addressing increasing skills shortages, would significantly outweigh the costs,” he says. “So, this humanitarian crisis is also a socio-economic opportunity.”
skilled staff within the EU, which Mr Leitl labels as a “pressing issue.” During the European Parliament of Enterprises held at the beginning of October, 84 per cent of entrepreneurs from all over Europe, including Maltese entrepreneurs, claimed that it is harder to find staff with the right skills today than it was five years ago. “This confirms an extremely worrying trend that prompted me to warn EU leaders that the EU is sleepwalking into a skills crisis,” he says. Concerned about the situation, Mr Leitl called a Skills Summit of EU leaders and stakeholders in order to determine short-, medium- and long-term actions with the aim of addressing the issue. Some of these actions include supporting small- and medium-sized enterprises (SMEs) with the integration of migrants and refugees, better skills forecasting techniques, and upgrading the provision of apprenticeship schemes. However, despite all this, he points out that responsibility for education and training “largely remains at national or even sub-national level, so the EU has very few policy tools to ensure that such measures are delivered well and coherently. This, in my view, requires reflection,” he says.
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The integration of migrants and refugees is not only significant to prevent a skills crisis from ensuing but also to avoid a social crisis from occurring within member states. Echoing the words of European Parliament President Antonio Tajani, Mr Leitl reiterates “without work, there is no dignity.” “Even upon their safe arrival in the EU, there remains the risk that this humanitarian crisis becomes a social crisis if the economy is not ensured. We need to put into place mechanisms that will enable refugees to secure employment,” he says. He points to SMEs as the main source of job creation within the EU, explaining that it is for this reason that it makes sense
Helping out SMEs when it comes to migrant integration in the workforce, however, is only one aspect of creating an environment which is healthy enough for enterprises to flourish. Mr Leitl mentions other potential contributory factors, namely having a clear understanding of the post-Brexit situation and implementing clear regulatory and administrative rules within the EU relating to aspects such as VAT regulations, insolvency and securing finance and market access for the scalability of companies and investments alike. Such an environment, the Eurochambres President hopes, would actualise the objective of the association, to, together with the European Commission, European Parliament and member states, “ensure that Europe is the best place in the world to run a business and to do business.”
“Despite the fact that pledges by G20 leaders to reject protectionism were once again repeated at the last G20 Summit in Hamburg, the nine countries with the highest number of trade barriers still in place, are all G20 economies.”
BUSINESSAgenda CASE STUDY
S TAY I N G A H E A D OF THE CURVE With a deep-rooted local presence and a constant eye on the future, MeDirect has long established itself as a reputable frontrunner in the local banking sector. Martina Said chats with various members of
banking regulators. MeDirect enjoys strong tier one capital ratios, which the bank has achieved through the prudential and robust management of its available capital in terms of the risks it undertakes when lending and trading. These factors have contributed to the significant growth in its customer base – which values stability and reliability as important factors in the current financial services climate.
With €1 billion assets under management and €2 billion deposits held on behalf of their 50,000 customers, MeDirect is Malta’s third largest banking group in terms of its balance sheet size. Founded in 2004 (originally as Mediterranean Bank), MeDirect remains Maltese at heart, international by design and direct by nature, and prides part of its success on its commitment to retain the core values upon which it was founded 14 years ago.
culture, undertaking a number of Corporate Social Responsibility initiatives, together with national organisations,” says Nicol La Ciura, Group Head of Wealth at MeDirect. “The bank’s sponsorship of the Malta Rugby Football Union dates back to 2010, and it has been the Manoel Theatre’s main benefactor since 2011. The bank employs around 300 people hailing from 25 different countries, representing a diverse and multicultural environment.”
MeDirect operates on an international level in parallel with its domestic operations, with a subsidiary online bank in Belgium and a strategic team in the United Kingdom. “It also enjoys a close partnership with Morningstar – a globally renowned team of professionals that provides independent investment research and advice,” says Ms La Ciura. “MeDirect’s refreshingly direct approach to banking is exemplified by its online banking platform, as well as by its transparent fees, offering its customers superior value for money in terms of savings, investments, trading, deposits and foreign exchange.”
“The bank is keen about its core Maltese identity, running four branches in Sliema, Mosta, Paola and Gozo. MeDirect has always been passionate about supporting the Maltese community and
As a core domestic bank, MeDirect is subjected to comprehensive checks and assessments by the Joint Supervisory Team, which includes both the European Central Bank and the local
Business Agenda chats with members from the MeDirect team to find out about the bank’s core products, its various divisions and its competitive edge over other banking and financial institutions.
the bank’s team to find out more.
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“MeDirect offers a range of fixed term deposits and savings products, including the Me Savings Accounts, which represent an innovative product in the local savings landscape and combine the benefits of competitive rates with the flexibility of accessing savings with a one-, three-, six- or 12-month notice, depending on the option chosen,” says Nicol La Curia. “We also offer a wide selection of investment products, including model portfolios, which are baskets of funds, aimed at achieving specific investment objectives. Starting from as low as €5,000, one of the main advantages of the MeDirect model portfolios is the amalgamation of different funds into one investment portfolio. This provides customers with a better spread of risks, as well as a personalised profile, based on the investor’s risk appetite.” The range of model portfolios available at MeDirect typically includes 10 funds, whereas most retirement plans available on the market are only limited to four funds. MeDirect’s model portfolios are built on the strategy set forward by Morningstar, which is an independent investment research company, and therefore does not have any vested interest in recommending one investment over another. “Therefore, customers can be confident about receiving unbiased advice from the bank’s team of professional financial experts. Unlike life insurance plans, the model portfolios sold by MeDirect do not incur any administrative fees, other than a very competitive initial investment fee. Since there are no restrictions on model portfolios, customers can sell them at any time, thereby releasing their funds without incurring any exit fees,” says Ms La Ciura. “We offer over 4,000 financial instruments, which are all tradeable through our state-of-theart online platform. These include over 300 local and international bonds, as well as over 400 funds
from 72 different fund houses. MeDirect also gives its customers access to 20 exchange markets with over 3,000 equities and 200 exchange traded funds.” MeDirect’s customers can view and manage all their savings and
“Customers can be confident about receiving unbiased advice from the bank’s team of professional financial experts.”
PHOTO: JAN ZAMMIT
NICOL LA CIURA, GROUP HEAD OF WEALTH
investments together on one online platform, accessible 24/7, in a completely secure way. The bank’s state-of-the-art platform serves as a one-stop-shop, making it easy to open accounts, make payments, invest and trade online in a convenient, quick and secure manner. “Unlike most local banks, MeDirect offers most of the payments made through its online platform, free of charge. In addition, our Malta branch staff is available to give customers a demonstration on how to use the platform, on a dedicated PC, within each branch.” Ms La Ciura asserts that locally, bonds are the most popular investments as traditionally, the Maltese have shown a marked preference for income-driven investments. “Our customer base also includes a cluster of investors who trade shares, on local, as well as international, exchanges. While catering for both these investor preferences, our philosophy is also to empower our customers to make informed decisions regarding their finances. We encourage our clients to participate in their preferred asset class, industry or country by investing in, for example, a bond or equity fund. These types of investments provide the added benefit of diversification through a basket of different bonds or shares, as opposed to having direct exposure to one, or a few companies.” The customer service offered by the bank is one of the main factors that continues to contribute to MeDirect’s high rate of customer retention, says Ms La Ciura. “Over the past year, our Customer Service Centre has received more than 22,000 calls, totalling 1,500 hours of talk time. This means that on average, we deal with a customer’s enquiry within four minutes,” she explains. “The bank’s high rate of customer satisfaction is built on the solid foundations of superior customer service, professional expertise and state-of-the art technology, which enables us to offer our customers low-cost and high-quality financial services.”
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CHARLES CINI, HEAD OF CORPORATE BANKING
PHOTO: JAN ZAMMIT
MeDirect offers a full range of corporate banking and financing services to the local business community, including payments, foreign exchange, investments, project financing and lending. “Over the last four years, we have developed our corporate lending team to assist commercial financing needs, subject to a minimum deal size of €1 million and robust lending criteria. Furthermore, together with Charts, we are able to consider composite loan funding and bond issues, in support of particular finance requirements,” says Charles Cini.
To support the business operations and cash flows of its corporate customers, MeDirect provides a range of accounts where excess liquidity can be deposited and easily accessed, while earning a return depending on the deposit term. “Customers generating multicurrency cash flows can manage their foreign currency inflows and outflows accessing real-time exchange rates, available on our online platform. This enables them to take direct control of their foreign exchange requirements, either by planning ahead and acquiring currencies when the rate is most advantageous or by making foreign currency payments directly
“Our online platform gives customers access to 16 currencies and to more than 70 currency pairs, also providing them with realtime quotations.” from their euro account. We also offer investment services to local asset management companies, giving them direct access to MeDirect’s brokerage and wealth management platform.” Mr Cini asserts that the bank seeks to provide its customers with a good turnaround and direct attention to their business requirements. “Our systems have been well developed over the years, and our online platform gives customers access to 16 currencies and to more than 70 currency pairs, also providing them with real-time quotations. The live currency pairs are refreshed at one-second intervals, and embed a low bid/offer margin, making our exchange rates very competitive. Corporate customers can execute payments from the same platform in a matter of seconds. On average, a payment is processed within six seconds.” Through this innovative platform, MeDirect customers can benefit from intuitive and efficient FX conversions, while they can also monitor the market and manage risk by deciding when to exchange. “Our one-stop-shop solution for corporate FX and payments gives our business customers full control of pricing for their foreign exchange requirements,” says Mr Cini.
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PHOTO: ALAN CARVILLE
CASE STUDY
DAVID MALLIA, CHARTS – HEAD OF PRIVATE CLIENTS
Charts started its operations in 1985 and has grown into a leading provider of wealth management, investment solutions and corporate finance services to companies that need to raise capital to execute their diverse business strategies. “MeDirect’s acquisition of Charts has brought the bank the goodwill and trust that Charts has created among its diversified customer base through its professional expertise in wealth management throughout the years,” says David Mallia. “While being a small operation, Charts has gained a well-deserved reputation locally as a key expert in stockbroking activities, client asset portfolio management, as well as corporate finance.” Testament to its professionalism and tailored corporate services, Mr Mallia asserts that Charts has earned a strong reputation in corporate financing, raising an aggregate value of €1.7 billion through over 80 corporate finance transactions over the past 18 years. “These include IPOs for the likes of Premier Capital, Corinthia
Group, Izola Bank, Halmann Vella, International Hotel Investments, Pendergardens, GAP Group and MIDI plc. Raising finance for corporate clients requires the alignment of a company’s business strategy with its financing requirements, and Charts is wellversed in supporting companies throughout the entire IPO process. This includes the preparation and execution of a listing, advising on regulatory issues and continuing listing operations. We have specialist knowledge of deal structures and project funding.” Asked about current investment trends, Mr Mallia asserts that the local ageing population is concerned that their pension will not allow them to enjoy their desired quality of retirement, after having put years of hard work into planning, financially and otherwise, for their golden years. “People are increasingly living a good quality of life which they wish to continue enjoying once they retire. Therefore, our customers look for an income stream to be active even after they retire,” he explains. “Many individual customers are looking into investing in property, particularly since property yields have increased over the past years. However, people do not always realise that real estate can be illiquid and cannot always be easily converted into cash. While property can look like a very good prospective investment on paper, a turn in the market can make it difficult for an investor to convert it into cash, should the funds be required urgently and
unexpectedly,” says Mr Mallia. “We have also noticed a trend among younger generations who, at around 30, are already committed with loans but at the same time, are focused on enjoying lifestyle experiences, such as travelling and furthering their education. As a result, millennials do not start building future savings until a later stage. They are often assisted financially by their parents, with their income being initially curtailed as they join the workforce at an older age.” Mr Mallia concludes that, at Charts, the team is committed to helping clients make plans for their future, so that they can meet their financial objectives. “We firmly believe in bespoke client service, where we not only provide professional advice but also relationship management, built on the trust earned over the years. This is at the heart of the Charts philosophy, which we will continue to operate now that the full Charts team has become a division of MeDirect.” MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority under the Banking Act (Cap. 371) and the Investment Services Act (Cap. 370). Charts is a division of MeDirect Bank (Malta) plc. If you invest in financial products you may lose some or all of the money you invest. The value of your investment and any income deriving from it, may go down as well as up. A commission or sales fee may be charged at the time of the initial purchase for an investment and may be deducted from the invested amount, therefore lowering the size of your investment. Investment products may be affected by changes in currency exchange rate movements thereby affecting your investment return therefrom.
“MeDirect’s acquisition of Charts has brought the bank the goodwill and trust that Charts has created among its diversified customer base throughout the years.” WINTER 2018/2019 | 69
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NEWS the International Labour Organisation (ITC-ILO) and BusinessEurope. The programme consisted of three sessions: promoting the relevance of being the voice of businesses at national and EU level, focusing on current economic debates in Europe, and paying special attention to social dialogue and industrial relations. 6TH JULY
MBB ORGANISES ENERGY EFFICIENCY BUSINESS BREAKFAST As part of the ‘Investing in Energy’ project, MBB hosted a number of business breakfasts showcasing proven successful energy efficient strategies for commercial entities, enabling an exchange of ideas between businesses with similar operations, whilst also encouraging the take-up of energy efficiency practices.
Throughout the academy, participants obtained a thorough understanding of the various challenges faced by business organisations and the expectations of their members, whilst also training on advocacy and lobbying techniques within the context of the EU.
Mark Marmara, Green Manager responsible for the Environment at BOV, shared the bank’s experience of introducing a new cooling system for the server room. Ing. Jonathan Bonett from Camilleri and Cuschieri Consulting Engineers also provided technical details on the system implemented by BOV. The new system has contributed towards shaving off 600,000 electricity units, translating into a 60 per cent reduction in energy consumption. During the final months of the project’s duration, MBB also held various consultations with local energy auditors in order to gather feedback on the current situation within Malta’s businesses relating to energy efficiency. The feedback gathered which highlights issues ranging from businesses’ investment priorities, capacity and financing has been compiled into a published report.
MBB is hosting a final event on 6th December 2018 marking the closure of the ‘Investing in Energy’ project. Key stakeholders as well as businesses are invited to participate.
30TH AUGUST
MBB BRUSSELS OFFICE MEETS PARLIAMENTARY SECRETARY AARON FARRUGIA AND MALTA’S EU PERMANENT REPRESENTATIVE AMBASSADOR DANIEL AZZOPARDI
MBB EXECUTIVE COMPLETES EMPLOYERS YOUNG PROFESSIONALS ACADEMY COURSE IN TURIN
MBB’s Head of Brussels Operations Daniel Debono and Senior Advisor Mark Seychell met the Parliamentary Secretary for EU Funds and Social Dialogue Aaron Farrugia, and the incoming Maltese Permanent Representative to the EU, Ambassador Daniel Azzopardi. During the meeting at Dar Malta in Brussels, an exchange was held on the EU political agenda, particularly on the latest Brexit developments and the forthcoming EU Budget – negotiations of which are currently underway within the Council. MBB’s legislative priorities were also discussed.
MBB EU Policy Executive, Sarah Abdilla, participated in the Employers Young Professionals Academy (EYPA) organised by the International Training Centre of
Both agreed to continue strengthening their communication and collaboration in the interests of Malta and the Maltese economy.
29TH-31ST AUGUST
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13TH-14TH SEPTEMBER
ANNOUNCEMENT: MBB MALTA OFFICE RELOCATION
MBB CEO PARTICIPATES IN SINGLE MARKET FORUM EVENT, RIGA
As of 3rd September, the MBB started operating from its new office in Valletta. The main telephone number and email addresses have remained unchanged.
Following a moderator role for the 2017 and 2018 Single Market Forum (SIMFO) events in Malta, MBB CEO Joe Tanti was invited to attend the ‘SMF Closing Event 2017/2018 – 25 years, European, free and single’ event in Riga. SIMFO is an annual European Commission initiative where citizens, businesses and EU policy-makers assess the implementation of the single market. It allows stakeholders and the public to share their experience in practice and to discuss their policy recommendations for the future. The outcomes of the events contribute to policy evaluation and play a part in monitoring the implementation of the single market.
The new address is 64, The Exchange Buildings, Republic Street, Valletta. T: 2125 1719 E: info@mbb.org.mt
The event’s stakeholder workshops and information sessions focused mainly on the various benefits brought about by the single market as well as on what the expectations are and what still needs to be done. The Commission is expected to publish the final report for 2017/2018.
24TH-25TH SEPTEMBER
4TH SEPTEMBER
MBB CHAIRS FOCUS GROUP DISCUSSION ON SOFT SKILLS IN THE TOURISM INDUSTRY On 4th September, MBB CEO Joe Tanti chaired a Focus Group Discussion as part of the Needs Analysis phase of the EU-funded INCOME Tourism Project. The aim of this discussion, which was attended by both business representatives and academics, was to develop a Master List of the soft skills which are most relevant to the local industry. The outcomes of this discussion were further supported by a number of interviews which were held with other business representatives, entrepreneurs and academics, as well as online questionnaires which were completed by both current tourism students and alumni. Following this event, MBB Executive, Marija Elena Borg, and MUHC Manager, Alexia Pace Kiomall, met up with representatives of the INCOME Tourism project consortium in Split, Croatia, to assess the initial feedback that was received in each respective country, and to determine the way forward.
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MBB CEO PARTICIPATES IN EUROPEAN ALLIANCE FOR APPRENTICESHIPS REGIONAL SEMINAR, TIRANA MBB CEO Joe Tanti was invited to represent Eurochambres at the European Alliance for Apprenticeships (EAfA) event held in Tirana, Albania. EAfA is a platform managed by the European Commission in close cooperation with EU social partners which brings together governments with other key stakeholders (such as business associations, individual companies, chambers, vocational education and training (VET) providers, youth representatives, etc). The common goal is to strengthen the quality, supply, image and mobility of apprenticeships in Europe. The EAfA has so far mobilised not only EU member states and a large number of stakeholders to engage in quality apprenticeships, but also all five candidate countries – Albania, Montenegro, The Former Yugoslav Republic of Macedonia, Serbia and Turkey. The seminar enabled exchange of views on effective apprenticeships and work-based learning systems in the candidate countries.
BUSINESSAgenda NEWS
28TH SEPTEMBER
BUILDING SUSTAINABLE BUSINESSES: CONFERENCE ON FINANCIAL LITERACY FOR ENTREPRENEURS
Together with the Mediterranean Bank Network (MBN), MBB organised a conference on financial literacy for entrepreneurs as part of the EU-funded INVEST project. During the conference, local entrepreneurs asserted that one of the key factors to establishing a sustainable and successful business is continuous learning. Education, flanked by experience, provides entrepreneurs with tools that enable them to examine their product roadmaps and accurately define their company’s short-term and long-term goals. Evarist Bartolo, Minister for Education and Employment, highlighted that the focus of good education is holistic learning. “It does not make sense to speak of differences between academic and vocational education – the only real difference is between good and poor education,” remarked Minister Bartolo. Expressing his willingness to continue supporting initiatives that seek good practice from other European countries, Aaron Farrugia, Parliamentary Secretary for EU Funds and Social Dialogue, added that the education and training of entrepreneurs can be supported by EU funds. Project Co-ordinators Marika Huber and Marija Elena Borg presented a finalised version of the INVEST Financial Literacy training model offering 30 free hours of training. This toolkit has been specifically designed to address existing gaps in financial knowledge, within both the Maltese and wider EU markets.
fintech, cryptocurrencies and other technological developments, financial literacy becomes even more relevant.” MEP Metsola added, “a greater focus on financial literacy skills will go a long way in preventing business failures. It will also ensure that those who do fail, will be more likely to be granted a second chance.” MBB President Simon De Cesare invited all entrepreneurs in attendance to be among the first to benefit from the INVEST Financial Literacy Toolkit. He asserted that this toolkit has the potential of making a significant difference among the members of the business community, particularly “when considering that in Malta, micro entrepreneurs account for 93.5 per cent of total enterprises and employ 32.5 per cent of the labour workforce.” Speaking on behalf of the HSBC Malta Foundation, CEO Andrew C. Beane officially endorsed the INVEST project. He announced the commencement of a partnership with MBB, with the intention of extending the lifetime of this project by reaching out to a wider target audience. The training model is a free and publicly available online toolkit. For more information on the INVEST project and the toolkit visit www.investproject.eu or contact project co-ordinators Marika Huber and Marija Elena Borg on E: info@mbb.org.mt
MEPs Miriam Dalli and Roberta Metsola commended MBB’s work in the area of promoting financial literacy – a key priority on a European level. “Increasing financial literacy,” MEP Dalli explained, “would mean that existing jobs are protected and additional ones are created.” She continued “in an age where technology is re-shaping the financial industry with
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currency and ICO centre. The event served as an official platform promoting blockchain technology and its related business opportunities, currently leading the change in regulating the blockchain and cryptocurrency technology. This ground-breaking legislation is said to position Malta as a cutting-edge hub for companies seeking to establish themselves in this space, as well as a place for individuals to innovate and develop this exciting technology.
5TH OCTOBER
KICKING OFF A FOOD WASTE PROJECT IN MILAN
POLICY EVENT ON ONLINE PLATFORMS
The EU LIFE FOSTER project was launched in October 2018 as a Europe-wide initiative seeking to reduce food waste in the food services sector. The project targets trainers at VET centres who incorporate best practice food reduction techniques into their curricula, as well as students who implement these techniques during their work placements at restaurants. During the project’s duration, practical activities and workshops for chefs and restaurateurs will be organised.
MBB organised a business seminar with the European Parliament Liaison Office (EPLO), on the proposed EU Regulation on Fairness and Transparency for Business Users of Online Services, with the participation of MEP Francis Zammit Dimech who is the Parliamentary Rapporteur for the Legal Affairs Committee on the proposed regulation.
Organised by the project lead ENAIP NET, the meeting in Milan brought together for the first time all partner organisations from Malta, Italy, Spain and France, giving them the opportunity to identify their priorities and timeframe, as well as to share their own experiences in the areas of sustainable development. MBB CEO Joe Tanti and Project Manager Geoffrey Saliba attended the meeting on behalf of MBB.
The event served as an opportunity for citizens to put forward their thoughts on this draft law whilst still being discussed in Brussels, and in this way, to be part of the European law-making process as their thoughts would be reflected in Parliament’s position and possibly in the final text. Support was mostly expressed for the draft regulation on the perception that it will protect smaller and independent businesses, particularly vis-à-vis the industry giants.
1ST-2ND OCTOBER
On 1st November, Geoffrey Saliba had the opportunity to present this project, as well as MBB’s previous LIFE project, during an info session organised on 1st November by the Ministry for the Environment, Sustainable Development and Climate Change. The principal aim of the event was to help businesses better understand how EU LIFE funding may be used.
3RD-5TH OCTOBER
MBB ATTENDS ZEST – DELTA SUMMIT, MALTA Representing the MBB, Senior Executive, Ana Vella, was invited by the Malta Communications Authority (MCA) to attend ‘Zest – Delta Summit Edition’ event. MCA is now an official Innovation Partner for the Delta Summit, which for the first time in October 2018, ran a parallel track within the summit exclusively dedicated to all things technology, communication and innovation. The Summit was Malta’s first official conference, launching the island’s position as a regulated virtual 76 | WINTER 2018/2019
Being the most representative sector in the room, the discussion also put emphasis on the importance of the proposed EU regulation for the hospitality sector, observing that over 50 per cent of guest nights in Europe are booked through Booking. com. This has given the latter enormous leverage over accommodation providers when setting the contractual terms of the business relationship. The event saw the active participation of representatives of the Ministry of Economy, Investment and Small Business, as well as representatives of the Malta Hotels and Restaurants Association, the Malta Chamber of Commerce, Enterprise and Industry, and GRTU Malta Chamber of SMEs. Full event press release may be found on www.mbb.org.mt
BUSINESSAgenda NEWS
MBB-CHAMBER DELEGATION ATTENDS EUROPEAN PARLIAMENT FOR ENTERPRISES EVENT IN BRUSSELS
Presidents from the Employers Group, Stefano Mallia and Kylä-Harakka-Ruonala Tellervo. During these meetings, the delegation raised a number of concerns on the impact and developments related to Brexit, the upcoming European Parliament elections, EU regional policy, and the future EU Budget.
On 10th October, a Maltese delegation composed of delegates from the MBB and Malta Chamber participated in the fifth edition of the European Parliament for Enterprises event organised in Brussels by Eurochambres and the European Parliament. This event gives entrepreneurs a platform to voice their thoughts, questions, frustrations and suggestions directly to the European institutions and senior EU officials.
The business delegation was made up of David Xuereb, Simon De Cesare, Charles Zahra, Marisa Xuereb and Hugh Arrigo. They were accompanied by MBB CEO Joe Tanti and Malta Chamber Head of Policy Andre Fenech, as well as Daniel Debono and Mark Seychell from the MBB’s Brussels representative office.
10TH OCTOBER
MBB President Simon De Cesare commented on the importance of protecting the single market, which is central to the EU project. Mr De Cesare further noted that, “Europe remains one of the best places in which to live, work, and do business in the world; but the EU process needs to be reaffirmed and reinforced to continue guaranteeing our success and future prosperity.” Malta Chamber Deputy President David Xuereb highlighted the problem of skills mismatches between the supply and demand of labour in the EU. Mr Xuereb stated, “we cannot afford this to go on. We need to be more selective in promoting and boosting the supply of skills to produce high value-added output. The increasing digitisation of society and the world of work demands this.” During the visit, the delegation also had the opportunity to meet up with Malta’s recently appointed Permanent Representative to the EU, Daniel Azzopardi. Meetings were held with Members of the European Parliament, including David Casa, Francis Zammit Dimech, Marlene Mizzi and Miriam Dalli. The delegation also visited the European Economic and Social Committee and met two ViceWINTER 2018/2019 | 79
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12TH OCTOBER
MBB PARTICIPATES AT MALTA INNOVATION SUMMIT MBB CEO Joe Tanti and Senior Executive Ana Vella were invited to attend the second edition of the Malta Innovation Summit (MIS) on Friday 12th October. This year, the Malta Business Bureau collaborated with MIS, supporting its promotion of innovation at all levels – business, start-up, local, international, personal and across industry levels. The event welcomed an excellent line-up of top international innovation speakers, expert panels and exhibitors, including MBB, giving participants the opportunity to learn and explore innovation best practices, as well as to network with like-minded attendees.
19TH OCTOBER
BUSINESS SEMINAR ON THE FUTURE EU BUDGET At a business seminar on ‘The Future EU Budget’ co-organised by MBB and the European Commission Representation in Malta, stakeholders spoke of the private sector’s need to increase tapping into direct EU funds, so as to address challenges in the areas of innovation, environment and labour market, among others. The event, moderated by MBB Head of Brussels Operations Daniel Debono, helped foster debate on the implications of the next EU Budget on the Maltese economy and businesses, including the impact of a reduction in Cohesion Funds. It also explored business’ expectations as well as EU funding opportunities presented to them. Simplification, flexibility, consolidation and less bureaucracy were some of the topics discussed.
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The high-level debate saw the participation of Aaron Farrugia, Parliamentary Secretary for EU Funds and Social Dialogue; Simeona Manova, Policy Analyst for the MFF in DG Budget European Commission; Stefano Mallia, EESC Employers Group Vice-President; Jonathan Vassallo, PPCD Director General; and Andre Fenech, Malta Chamber Head of Policy.
This event was held as part of a series of events on different policy areas in view of the ongoing discussion on the Future of Europe, organised by MBB and the European Commission Representation in Malta. The next event will be held on Friday 23rd November and it will focus on the Future of the European Single Market. The full event press release may be found at www.mbb.org.mt
BUSINESSAgenda NEWS
22ND-26TH OCTOBER
MBB PARTICIPATES IN ENTERPRISE EUROPE NETWORK ANNUAL CONFERENCE IN VIENNA Ana Vella, MBB Enterprise Europe Network (EEN) Project Manager, attended the EEN Annual Conference held in Vienna, Austria. The event brought together hundreds of business advisers and network partners from all over the world, as well as representatives from the European institutions and key external stakeholders. This year’s edition was organised in partnership with the Austrian Federal Economic Chamber and the Austrian Research Promotion Agency.
building and nurturing regional innovation ecosystems is crucial for the future of the Network. Other interactive workshops introduced Business Cooperation Centre colleagues from Latin America and India, providing an opportunity for participants to develop future action plans for new common projects. Some of the workshops held in a ‘world-café’ format helped participants to understand how they can support their local manufacturing SMEs to get Micro Grants for transnational Key Enabling Technologies (KET) expert collaboration.
Workshops and high-level sessions provided participants with insights into the vision and plans for business and innovation support for SMEs as of 2021, as part of the wider debate on the future of Europe. Other sessions also explored the benefits of open innovation platforms and initiatives, with examples from Italy, The Netherlands and Singapore. Network partners were given an opportunity to learn why WINTER 2018/2019 | 83
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29TH-30TH OCTOBER
DESIGN4INNOVATION PARTNERSHIP MEETING IN RIGA MBB Senior Executive, Ana Vella, was invited by the Valletta Design Cluster to participate as a stakeholder representative of MBB at the fifth Design4Innovation project partnership meeting in Riga, Latvia. The Valletta Design Cluster is one of the project’s key national stakeholders – its main partner being the Valletta 2018 Foundation. Other European partners include design promotion agencies such as the Barcelona Design Centre, innovation centres and enterprise support agencies. PDR, a major international design consultancy based at the Cardiff Metropolitan University, is the project lead partner. The meeting, organised by Investment and Development Agency of Latvia (LIAA), focused on developing a vision and actions for the action plans established over the previous months. The partners revisited the Design Ecosystems in their respective countries, whilst also taking a look at the actions from existing design action plans with the aim of the eventual launch of a successful Action Plan for Design-driven Innovation in each partner country.
Design4Innovation is a collaborative project running between 2017 and 2021, aiming to promote design as a tool for user-centred innovation, and is funded under the Interreg Europe Programme of the European Commission.
MBB APPOINTED AMBASSADOR FOR WORTH PARTNERSHIP PROJECT IN MALTA WORTH is a dedicated project supporting innovative ideas within the fashion and lifestyle industries including textile, footwear, leather and fur, furniture and home decoration, jewellery and accessories. The project provides designers, SME manufacturers, crafters and technology firms with a platform to develop creative concepts and the opportunity to enter a transnational partnership. Backed by the European Union, WORTH offers partnerships funding, coaching, market positioning, networking and international product showcasing. WORTH is about supporting innovative design-driven ideas, whereby the added value clearly lies in design concepts by integrating disruptive techniques or technologies in a creative way. Companies participating in the WORTH Open Calls can receive: • Funding of up to €10,000 for each project • Coaching and advice • Product market positioning and branding • Participation at two international events • Networking and cross-sector collaboration • Product development. For further details and to start your WORTH Project journey, get in touch on E: info@mbb.org.mt
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PHOTOS: HERITAGE MALTA
CULTURE
M U Ż A S E T T O “ B R E AT H E NEW LIFE” into M A L TA ’ S A R T S C E N E Malta’s upcoming National Museum of Art has been some time coming, but will it meet the cultural sector’s high expectations? Rebecca Anastasi speaks to Heritage Malta to find out. Valletta’s year as Capital of Culture is coming to an end and, while there will be time for analysis and critical observations on whether the title – and the foundation – has kept its promise of inspiring a cultural resurgence on the island, all eyes are now on its flagship projects in their race to the finish line. The Valletta Design Cluster, based in the Civil .. Abattoir (Il-Biccerija), the Malta International Contemporary Arts Space (MICAS) at the San Salvatore Bastion in Floriana, and MUŻA, Malta’s new National Museum of Art in the capital, have been in the works for some time now, but, the latter has been the first one to be inaugurated, with the ceremony having taken place on 10 November, and with its doors to be officially open to the public soon. So, what can the island expect from this “national-community art museum” – as described on its 86 | WINTER 2018/2019
official website – and this cultural site which has been termed “the first of its kind”? With over €10 million invested in the project (funds which were acquired under the European Regional Development Fund and through Valletta 2018), the assumption is this cultural attraction will be an unalloyed success. Heritage Malta underlines the exceptional nature of the project, expressing its confidence in the project’s ambitious nature and calling it “a game-changer on the local art scene” which aims to be “a resource of inspiration, a means to question and a way to empower,” also describing it as “one of the most ambitious arts and culture projects which Malta has ever embarked on.”
“enabling access” and providing “participatory experiences”. It thus aims to redefine the idea of a museum, rethink Malta’s historic artistic collection, and reinterpret the actual space which has been chosen to house the collections, according to Heritage Malta. “It aims to do so by cutting across all knowledge levels, transforming a traditional museum experience into a more accessible engagement. The exhibits shall be more of a resource at the service of the community, fostering a sense of identity that goes beyond territory, gender and other perceived or factual identity constructs. All this irrespective of the works’ background, knowledge, aspirations and ambitions,” the entity asserts.
The entity states MUŻA will usher in “a new era in the eventful history of museums in Malta” by placing “the public at the very centre” through
This has necessitated a radical overhaul of the site chosen to house the new museum – the 16th century Auberge d’Italie, located
BUSINESSAgenda CULTURE
“The exhibits shall be more of a resource at the service of the community, fostering a sense of identity that goes beyond territory, gender and other perceived or factual identity constructs.” just behind Pjazza Teatru Rjal, and which had already experienced various reincarnations, starting life housing the langue of Italie of the Order of the Knights of St John and becoming, more recently, the home of the Malta Tourism Authority, before this moved to Smart City. “The auberge itself needed extensive restoration interventions to bring it in shape for its new exciting identity. Constructed in stages over the span of 400 years, the building had been moulded to serve the requirements of the time. However, to enable the auberge to tell its written and unwritten history in its totality, it was necessary for the interventions to retain and make legible all the surviving layers found within. The intention was not to reconstruct but to evoke the memory of what once was,” Heritage Malta says. The renovation project was not without its challenges, however, and elements deeply embedded in the history of the building were brought to light. “Re-discovered spaces included the traces of the Scala-Grande, as described in archival sources, which was the main staircase that once connected all the floors of the building,” the entity details. “New findings also revealed the auberge’s original kitchen with its hardstone flooring, and the curved marks of the hood on the walls of what once was the kitchen fire pit, still holding remains of soot.”
Much has also been said of the green-powered nature of the renovation, with the project already on the receiving end of international prizes and accolades for its innovative measures designed to bring the building up to 21st century standards. “The project sought to optimise on the intrinsic passive energy-efficient features which were already present in the historical building,” Heritage Malta outlines. “Its thick wall construction, in globigerina limestone and earthen fill, provided the structure with a high thermal mass to delay the dissipation of heat gains or losses. Vernacular elements such as the central courtyard provided natural crossventilation and natural lighting across the building.”
The layout of the space was also designed to encourage participation with the exhibits, Heritage Malta says. “The new museum intends to reach out to people who may have never been interested to visit it, so it was purposely designed to welcome the public throughout it.” There are two entrances – one on Merchants Street and the other on Jean de Valette Square – including a passageway which acts “as an extension to the urban landscape of the capital city”. The historical courtyard was also left open and accessible to “serve as a smooth transition from outside to inside, allowing people to wander freely, choosing whether or not to observe the artistic displays.” Therefore, the aim, according to Heritage Malta was to allow the space to be developed into a “cultural venue which blurs the boundaries between object and public”, and which encourages the public to interact with the exhibits. The works of art themselves will include the collection originally housed in the National Museum of Fine Arts in South Street as well as ones “selected for their ability to tell a story”. Together, these artworks are being “carefully placed to create visual links and comparatives. Portraits were located to serve as visual links
Moreover, its “energy-efficient infrastructural system” was introduced to ensure the building maintained its temperature and energy-supply in equilibrium in moments which could cause a disruption – such as in the case of “extreme weather conditions and environments,” according to the entity. To this end, the original apertures were restored, using double glazing moulded to the thickness of the walls; sensors have been placed to “measure performance levels and prompt the necessary adjustments when required”; and photovoltaic panels and water management measures have been implemented. WINTER 2018/2019 | 87
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across all galleries, often hanging past access points to entice visitors to explore further inside,” Heritage Malta explains. Preparations for the exhibits have been underway for some time and this has allowed the museum’s curators and project managers to “take a thorough stock-take of the entire collection” which was on display in the South Street museum. “This led to some interesting revelations such as the square piano. Being
the only musical instrument in the collection, all the necessary conservation efforts were made to ensure that its original function is brought to light in order to include it among the MUŻA prestigious exhibits,” Heritage Malta says. Furthermore, canvases, panel paintings, flatworks, majolica vases, wooden sculptures, and plaster reliefs are among the works which have been restored, ready to be rolled out once MUŻA officially opens to the public.
“New findings revealed the auberge’s original kitchen with its hardstone flooring, and the curved marks of the hood on the walls of what once was the kitchen fire pit.”
And, indeed, while the programme of events has not yet been announced, Heritage Malta is convinced MUŻA will serve “as a one ‘weave’ experience, bridging building and contents as complementary connections”, and breathing life into “a new approach which acknowledges the roots of a historic past while at the same time, projecting them into the future.”
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BUSINESSAgenda LIFESTYLE
WHEN CHRISTMAS means BUSINESS Christmas is one of the busiest times of the year for shops and restaurants, not just because of all the families and friends getting together, but also because of all the staff parties and corporate gift-giving going on. Marie-Claire Grima speaks to a number of companies that are making Christmas memorable for their business clients. The Christmas period is characterised by a flurry of gettogethers and parties, of events formal and informal, all of which serve as a celebration of the year gone by, and the chance to look ahead to the next one. Staff parties abound at this time, with most companies seizing the opportunity to thank their valued employees for a job well done. Naturally, with parties come presents, and nowadays we are absolutely spoiled for choice when it comes to finding the perfect gift. But where to start looking?
“Christmas at our shop in Portomaso is characterised by a very full shop with lots of newly stocked products from our many brands, and the festive atmosphere of the season,” says Fabrizia Cleland, founder and director of the luxury goods shop Cleland & Souchet. “We offer all our retail and corporate clients our friendly and professional service, including free-flowing complimentary refreshments served from our adjacent C&S Wine Café, ranging from a barista-prepared hot coffee to a chilled glass of Prosecco. There
is also lots of fun activity in the giftwrapping area as each gift is made to be beautifully presented and a real pleasure to give and to receive.” Fabrizia says that C&S will be launching several new brands and products this festive season from each of the three areas in which the company specialises. “From the luxury area, we will be launching Lalique jewellery, home decoration and fragrances together with the new collections from Christofle and Baccarat. In our home area, it will be our first Christmas with Philippi WINTER 2018/2019 | 91
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“Where else could you find anything from a good bottle of wine to an exclusive piece of jewellery, to a hand-made luxury backgammon board to a box of chocolates under the same roof?” FABRIZIA CLELAND
and Guzzini, and we have beautiful new gifts from our existing brands. In our gourmet area, we are introducing new wines, more premium spirits and several new fine foods from around the world, including limited edition Dolce & Gabbana panettones.” The shop is designed to offer clients a truly unique selection of brands and gifts that cannot be found anywhere else in Malta, Fabrizia says. “Our products range from world-leading luxury brands to inexpensive gift items and seasonal classics like our hampers, wines and spirits, so there really is a fantastic choice available at many different price levels. Where else could you find anything from a
good bottle of wine to an exclusive piece of jewellery, to a hand-made luxury backgammon board to a box of chocolates under the same roof? It also helps that parking for patrons is free and easy to use at any time of the year!” Indeed, Cleland & Souchet’s coveted hampers have by now
“Christmas at the Salini Resort is all about giving our patrons a warm, festive and memorable season, thanks to our serene surroundings and the tailor-made options we have available.” MANDY GRIMA
reached iconic status. “Each is filled with delicious fine foods and wines, which are exclusive to us, and then beautifully presented in our custom-made luxury gift boxes with a personalised gift card. The prices start from €30 including delivery.” However, if you’d rather buy something else as a corporate gift, Fabrizia recommends Philippi. “They are specialists in the production and design of gifts that are unlike anything else on the market.” Naturally, Cleland & Souchet offer all their clients gift wrapping and delivery service. So that’s the gift-giving part sorted. But what about the place where you’ll be hosting your Christmas party? If you’re still on the lookout for a place to bring together family, friends, colleagues, or all of the above, the peaceful Salini Resort provides a very appealing option. “Christmas at the Salini Resort is all about giving our patrons a warm, festive and memorable season, thanks to our serene surroundings and the tailor-made options we have available,” says sales manager Mandy Grima. “The Salini Resort has been recently fully renovated to high standards, with impressive attention to detail; the décor and colour palette reflect the natural beauty of Malta and its warm colours and scenery. All of our elegantly designed venues boast spacious terraces with fantastic views, and great overnight packages are also available.” WINTER 2018/2019 | 93
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complete with wine and water, live entertainment, and a champagne toast at midnight!” Salini also has a dedicated events team that will help you put together your annual Christmas party or get together. “We have a great selection of menus for different tastes and budgets, to suit your needs. Get in touch with our friendly and professional staff, who will make sure to add that touch of magic to your event,” Mandy says. “We are also offering some great overnight deals, for those of you who wish to make the most out of it; and our spa and hairdressing salon are also teaming up with us, offering freebees and discounts to groups who book with us!”
Karl Cassar, Chef at Seasons Caterers
The Salini Resort has put together a jam-packed calendar of inhouse events, keeping the festive atmosphere burning brightly, starting with a Christmas tree lighting ceremony, in the first week of December. “The opening to Christmas cheer at the Salini Resort will consist of an evening full of Christmas carol singing, mulled wine, mince pies, and a scrumptious buffet dinner at the Coastline restaurant,” Mandy says. An elegant Christmas market will be held on Sunday 16th December, transforming the resort into a cheerful Christmas haven for all the family, with Christmas carols, hot, fragrant mulled wine, the traditional imbuljuta with chestnuts, an art exhibition by local artists, traditional cribs, children’s activities, artisanal delicacies and gifts, local hand crafts and more. “This has no admission fees, so any donations to our chosen Christmas charity will be appreciated,” Mandy says. “All proceeds will be donated to Feed a Family this Christmas. The vendors at the market will be giving a contribution from their sales to this charity as well.” Of course, the Salini Resort will also be hosting traditional buffets, lunches and dinners on Christmas Eve, Christmas Day, New Year’s Eve and New Year’s Day, with live entertainment and a spectacular 94 | WINTER 2018/2019
“Each event is different, with the only common factor being the high quality of the product Seasons Event Caterers offers.” KARL CASSAR
choice of enticing, culinary delights. “This year we will also be opening our doors for the popular early Christmas Breakfast, with free, accessible parking; we are sure this will make life easier for many!” Mandy smiles, adding that the crowning glory to this magical season will be the Resort’s black tie New Year’s Eve gala dinner. “Close your year with a fine-plated dinner,
Then again, you might not be looking for a location to host your Christmas do at all, and simply need somebody to provide the catering, and make sure your guests leave satisfied by your cuisine and hospitality. This is where Seasons Event Caterers come in. “We have provided catering and event management services for many high-profile entities,” says Corporate and Events Manager, Rosanne Sammut. “We provide a catering service at outside catering venues, offices and even private residences. We are also the exclusive caterers at the Terrace at Is-Suq Tal-Belt, a unique historic venue in the heart of Valletta.” Executive Chef Karl Cassar, together with his team, has come up with a selection of Christmas menus for the festive period. “Each and every event is different, with the only common factor being the high quality of the product Seasons Event Caterers offers,” Mr Cassar says. “It could be a staff party, a corporate or networking event or a private function. We cater for seated and stand up receptions, or even a simple delivery. And if you want your event to really stand out and impress your guests, Seasons Event Caterers also offers dedicated food stations.”
BUSINESSAgenda SOCIETY
PHOTOS: ALAN CARVILLE
“THE BIGGEST PROBLEM FACING MODERN SOCIETY IS HOW TO COME TO TERMS WITH TECHNOLOGY”
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He has been a leading thinker in the Maltese public sphere for decades, and his voice remains an important beacon of European liberal values. MarieClaire Grima meets powerhouse philosopher Prof Kenneth Wain and finds out why he thinks history is safer than philosophy, his views on the sweeping wave of populism, and why lifelong learning is so crucial to survival.
It should come as no surprise that Prof Kenneth Wain, one of Malta’s most eminent philosophers, as well as one of its leading educators and public thinkers, is a firm believer in the idea that philosophy should serve a social purpose. “When I talk about being a philosopher, the assumption is you’re all about theory, and that the practical world just goes past you. People think that you live somewhere in the clouds. I think that’s a mistaken view of what philosophy is. It needs to be brought into the public sphere,” he says. “I don’t think you can dichotomise yourself and distinguish between your public engagement, and yourself as a philosopher. My philosophy is always going to influence my behaviour as an intellectual – one who takes public stances – and vice-versa. My philosophical interests, besides education, are very much practical matters, such as ethics and politics.” A quick glance through Prof Wain’s lectures at the University of Malta brings up a list of philosophical topics enmeshed with societal concerns – issues such as ‘Becoming a Responsible Citizen’, and ‘Understanding the Self and Others’. But he sees strands of philosophy everywhere he goes, infiltrating public discourse through the most unexpected vessels. “Philosophy enters public thought through different conduits. Whether you like it or not, everything is conditioned by what you think, and what you think is
conditioned by what you learn. Our legislation is made by Parliament, but it’s drafted by lawyers. Lawyers attend a Philosophy of Law course at University. If you look at the kind of law we have and the kind of arguments that are presented in its favour, it’s conditioned by that philosophy, which is based on natural rights theory – a very continental Catholic approach.” While the underlying foundations of philosophy in Maltese public life are visible to an eye as experienced
“After we joined the EU, a lot of the old values that were taken for granted in the past started being challenged. Nowadays, we have a more pluralistic society.”
as Prof Wain’s, he believes that locally, there’s a lack of interest in the subject, which stems from fear of looking at the unknown – which is why he believes that many more people are amateur historians, rather than amateur philosophers. “I think it’s because we are so upset with our colonial past, and our post-colonial identity, that perhaps where we’re coming from and what we are seems to be more important. History is safe. You trace out a story, and a narrative of some kind – it’s the past. Philosophy takes risks. Very often, you go against the grain. You may find your own beliefs undermined, and you may find yourself constrained to change your beliefs. If they are beliefs you hold very dear, it may be very difficult to do so.” Has this happened to him? “Of course. I have changed my mind a lot over the years, a great deal. I am a committed Democrat, liberal, pro-choice, with an open mind, and so on. That commitment may be expressed in a particular way at one point in your life, but it may be expressed in a different way with learning, with experience, after hearing what other people have to say. If you don’t grow in that way, you grow stagnant and you die.” But processing change can be challenging, especially if those changes are happening all too rapidly, with no feasible direction, nor an end in sight. “The biggest problem facing modern society is how to come to terms with technology,” Professor Wain says. “So far, we’ve been thinking of technology in a materialist way, solely as equipment; but WINTER 2018/2019 | 97
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walls built by Communism. “One thing which we don’t realise about Communism is that for a very long time, the people of Eastern Europe were hived off from the rest of the world. The walls that Communism built, with all those restrictions and censorship, created a bubble, where there was no exposure to liberal values. That’s why nowadays liberal values are foreign and strange to them, and why so many old Communist countries are arguing and refusing to embrace them.” “I believe that without liberal values, the world would not be a good place. Even people who don’t describe themselves as liberals want to claim liberal freedoms – the freedom of association, of lifestyle, of speech and thought. Anti-liberals and those who are against democracy are attacking the system with its own weapons – they use the same kind of discourse in order to justify policies and views which are anti-liberal. Both democracy and our liberal values need to be defended or else they will be lost. And history has shown us that they can be easily lost. In fact, even though the scapegoats nowadays may be different, the discourse is the same as it was before the Second World War.”
technology is a way of life, with a very deep impact on society, thought, and human relations,” he says. “This is something that even the Greeks realised – even Heidegger warned about it. Technology is the new religion.” “Like every other important revolution, it will take a good deal of time before it’s absorbed and it finds its own equilibrium. We are living through a particularly difficult time because I don’t think that equilibrium has been found yet, and we tend to take things to extremes. Artificial intelligence 98 | WINTER 2018/2019
and robots raise a whole deal of philosophical questions – about being, about existence, about ethics, about our relations with each other. It’s all very interesting.” Another issue that concerns him greatly is the new wave of populism sweeping through the US and Europe. He singles out Hungary’s far-right Prime Minister, Viktor Orbán, and says that Europe is currently divided into two camps – the Western European camp, which embraces liberal values, and the Eastern European camp, which spent so many years behind the
While Malta may never have become a fully-fledged Communist nation, it was certainly secluded and cut-off for many years following independence, and Prof Wain – who was a leading ‘Yes’ voice in the run-up to the 2004 EU referendum – believes that joining the bloc provided Malta with benefits in nearly all possible spheres. “At the time, I argued that in a world that was becoming increasingly globalised, being isolated is not a good thing. With Brexit, the British are going to find that out soon enough. Although I do worry about the EU, the benefits we have enjoyed from joining it have been plenty – economically, culturally, socially. After we joined the EU, a lot of the old values that were taken for granted in the past started being challenged.
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“My belief is that education should be mainly about opening up the horizons and minds of students, so that they can learn how to think critically and creatively. This is important in education and in business.”
Nowadays, we have a more pluralistic society. People are more prepared to ask questions.” Over the years, Prof Wain has played a critical role in Malta’s national educational policy development, and in the establishment of the national curriculum. Looking at the education system in 2018, he worries that the ‘philosophy of management’ has taken over education. “In our postmodern society, what Lyotard described as ‘master narratives’ such as justice, equality and religion have been replaced by a different kind of ethos – performativity. Performativity calculates everything and values it in terms of its efficiency and effectiveness, its ability to give good outcomes. That’s the philosophy of management – managing knowledge, managing change, managing this and managing that. This kind of jargon has infiltrated everything. It’s at home in the world of business, but now it’s found its way into the world of education too.”
chaired a committee to report to the Minister of Education on how we see the future of schooling in Malta, it was one of the four values that we mentioned – but there are other values, such as equity. The language of education has become too skill-based, as if skills are the only kind of knowledge that exists. That’s a very impoverished view of knowledge.” This leads to the question of what is education, really, and what purpose should it fulfil – a subject that could consume aeons of discussion, endless theses, and never arrive at a satisfying conclusion. “What education is, is quite a controversial subject,”
Prof Wain says, understatedly. “We tend to confuse education with other things. My belief is that education should be mainly about opening up the horizons and minds of students, so that they can learn how to think critically and creatively. This is important in education and in business. If it’s not learned in school, it becomes difficult to do so when you’re older.” “I’ve written a lot about lifelong learning and I think that perhaps for me, the major task of the school is preparing lifelong learners. It’s a central plank of educational policy in the EU, right next to employability. Lifelong
He laments the fact that schools are now run by ‘management teams’ instead of headteachers or assistant heads, and that educators are being trained to become ‘school managers’ rather than teachers. “Everything is assessed according to outcomes. It’s too instrumentalist. I’m not saying ‘delivering the product’ to children efficiently is not commendable; indeed, back in 1995, when I
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learning is something which has been forced on us because of the accelerated change brought about by technology. People today change jobs and occupations all the time, sometimes radically. I’ve met past students who are doing all kinds of jobs, who are not working in something that they were trained in. In a rapidly changing world, there’s uncertainty and risk in employment, and lifelong learning is what you need to be able to do in order to be employable. It implies flexibility. It’s very important. But in Malta, ‘lifelong learning’ is only identified with evening courses, so we make mistakes like early specialisation, which runs counter to the idea of employability. Specialisation should only start at post-secondary stage. You should keep students’ horizons open for as long as possible.” Besides all his other commitments, Prof Wain is currently engrossed in revisiting the ethics curriculum for secondary school-age students who opt out of religion classes – an option which was introduced a few years ago – and preparing teachers to be able to teach this subject, which is still quite novel in Malta. “The teaching of ethics has grown. Since we’ve designed the curriculum, which was a very new and interesting experience, I’ve had time to look back on what we did, and I found myself asking again, ‘What are we trying to do? What’s ethics about?’ I’m examining it in a critical way,” he says. Having secured a contract with a major British educational publisher, he is also preparing to publish a book on ethics and ethics education – “hopefully, next year.” But that’s not the only thing he intends to publish. “I’m determined to get back into literature,” he says. “It’s never really left me, it’s what I am at heart. My intention was never to teach philosophy. I only wanted to learn more about it so it could help me with my literature – I had become interested in existentialism, and the only way I figured out I could deepen my literary writing was by studying
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philosophy, so I decided to study it.” It ended up becoming a lifelong career, but the love of writing never waned. “I am a poet, who’s also a philosopher. It’s a difficult combination,” he says, with a wry half-smile. He says he has finished the first draft of a historical novel about Franz Kafka, one of the very same existentialists who drew him into philosophy – “dramatising and fictionalising his life.” It all seems to have come full-circle, somehow. With such a lengthy list of accomplishments to his name, I ask what he would like to be remembered for most. “The most important thing for me is that I leave a positive mark behind. I
want people to remember me as someone who made a positive contribution to things. I need to leave the world better for my children, and grandchildren, and anyone who survives me, better than I found it. One of the things that gives me most pleasure in life is when former students come up to me and tell me I used to teach them. And visiting the two independent schools which I helped found, 25 years later, and seeing students that I’ll never teach, laughing and having fun – that gives me a lot of satisfaction. It’s something enduring. I’m pretty Nietzschean in my contentment. These are the things that make it all worthwhile.”
BUSINESSAgenda BUSINESS PROFILE
PHOTOS: ALAN CARVILLE
USING THE FUTURE TO STEER THE PRESENT
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The world today is getting smaller; deals, contracts and files can zip across the globe in a second, and we think nothing of talking to someone thousands of miles away as if they were in the room with us. More and more, companies are operating across borders and continents. Lewis Pitcher speaks with Morgan Parnis, CEO of Business Leaders Malta, on the trials and rewards of internationalisation, as well as the pitfalls that should be avoided. Moving a business to another country is an arduous and often costly process to begin, regardless of your destination or point of origin. In the case of businesses in Malta, the shift can seem daunting as most foreign markets are inherently larger. However, when approached methodically and thoughtfully, internationalising a business can be highly rewarding and profitable. One person who is experiencing success in the international markets is Morgan Parnis, CEO of the wide-ranging Business Leaders Malta, although internationalisation was, by his own admission, not the original aim of the Group. “The company started off by organising one business conference which brought together business leaders in one room to discuss a number of topics that were of interest to the local business community. This was roughly 10 years ago, and for the first five years, that’s pretty much what the brand did. We decided to translate that brand into a company five years ago,” says Mr Parnis. After its founding, the company branched out significantly. “The arm we retained was the conferences and business events arm – the smallest arm – then added a market research arm, the Academy of Business Leaders, and a software development arm. Our software portfolio includes employee engagement systems, school management systems and more recently, an events app – several of these applications have international exposure at this point.
Both our market research and software arms have progressed far beyond what we anticipated over these last five years.” As Mr Parnis explains, at least a part of this success is down to some innovative planning. “We were born completely digital, from day one, which is not common in the industry. Today, all our market research is carried out through dynamic digital reports, which are business intel reports that our
“When the company took off, we started by taking stock of the world first and looked at the direction it might go rather than sitting on what was happening at that moment.”
clients can use to pick and choose which information they need at any particular time. It gives our clients power that they might not have with other systems and saves them looking through endless amounts of data. This is currently used not only in Malta but in eight separate countries and in 10 separate languages. This last point in particular is excellent for us, as it means we are not limited to the size of the market in Malta, and through it, we are able to take a bigger piece of the local pie, so to speak, with a combination of new contracts, new clients and mergers with other key players in the industry.” Where, in most cases, establishment and pedigree is a great help to a business, in today’s rapidly shrinking world, a fresh perspective is equally valuable. “We do have perhaps an advantage in that, being established only five years ago, we are not part of the older generation of the industry that formed at a time when international markets were usually out of reach. Thanks to the company being designed to scale to international markets from the start, rather than having to adjust to them later, we have been able to compete on even ground with companies that have long established experience in the industry.” The company’s outward-looking approach proved to be key to its business strategy. “Adopting a strategy of keeping up with, rather than following, the latest trends in both business and technology, WINTER 2018/2019 | 103
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“Knowing from the start what is financially available to your company is a vital consideration that needs to be researched properly.”
helped us to grow internationally,” says Mr Parnis. “When the company took off, we started by taking stock of the world first and looked at the direction it might go rather than sitting on what was happening at that moment. While we are still a small company by European standards, I think that this approach has helped us stand out and look attractive to potential clients. We are able to provide innovative services and solutions that many across Europe simply don’t have at their disposal.” Mr Parnis sees a fundamental issue in the thought processes that many Maltese companies have when considering internationalisation. “I think several Maltese companies make the mistake of relying a little too much on other entities, like the Malta Chamber or Malta Enterprise, whose role is to support businesses in the internationalisation process and not set it up. Companies need to do their own legwork and take ownership of their internationalisation ventures.”
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This is spoken from personal experience: “for instance, our research led us to conduct business only in one region of a country, such as London in the UK or a specific area in Germany. Through our international research arm, Esprimi, as well as my own experience with Mdina International Ltd in these markets, we discovered that business could be conducted quite differently within a single country,” he explains. “If a company tries to enter a market without an understanding of such matters, or not knowing what other similar services are already active in that market, or even common business practices in that region, it will probably end badly. Trying to operate the same way abroad as we do in Malta probably isn’t going to work.” Of course, setting up shop in foreign lands is never a simple task, regardless of plans and experience. “There have been and still are challenges that we face in
international markets. Thankfully, due to the business culture we have here in Malta, it was relatively simple to adapt to places like the UK or Ireland. However, with other countries it was a whole different ball game,” says Mr Parnis. “When working with companies from Poland or the Baltic countries, for example, the cultures and requirements are so different; it can be a huge shock, especially when it requires one to adopt a different strategy to different regions. For instance, the regions in the former West and East Germany have entirely different business cultures.” There are areas where experience can be vital, often in the simplest lessons learned. He states, “some advice I would pass on to fledgling companies in this regard is to make sure to grab the low-hanging fruit. If you have contacts or some kind of establishment in one country that could easily help you expand in that market quickly, it is always better than choosing what may be an attractive market about which you know nothing. Don’t make it harder than it should be. From there you can always start making more connections, develop and grow further, and then get to other markets a little later.” Mr Parnis reiterates that preparation and research are essential. “One of the stumbling blocks we found, as can be expected with internationalisation, is financing. Obviously, to export products or services requires significant funding, which can be especially problematic for companies such as ours whose main focus is services. In Malta there is a marked distinction between the products and the services markets; in the case of the former, the manufacturing sector, for example, can be eligible for levels of funding that the services market does not have access to,” he asserts. “Knowing from the start what is financially available to your company is a vital consideration that needs to be researched properly, as well as knowing which services or platforms are already in place that can be exploited to avoid unnecessary costs.”
BUSINESSAgenda BUSINESS UPDATE
FIND THE RIGHT INTERNATIONAL PARTNERS WITH TRADEMALTA Business is about relationships – and nurturing the right relationships could make all the difference to the future internationalisation of your business. Many times, the success of a market entry attempt depends on the partner a company has in the target country and the valuable insight it is able to provide with respect to market dynamics, key entry modes and competition.
business associate with direct experience in the target country is a valuable asset for any company wanting to expand overseas.” And there’s more, as TradeMalta is continuously providing its clients with opportunities to approach potential foreign representatives and customers through the support it offers on trade missions and at trade fairs.
At TradeMalta, a variety of services have been crafted specifically to help Maltese companies connect with potential associates and representatives overseas – and they can all be accessed through the organisation’s state-of-the-art Internationalisation Knowledge Platform, which it launched recently.
With that in mind, TradeMalta will really help to cut down on the amount of time and effort that you would need to put into developing your internationalisation plan on your own.
Among these services, TradeMalta is able to identify potential representatives and distributors through the global B2B Kompass database, which provides a strong search tool that allows users to access reliable global business information for over 11 million companies operating within specific sectors and markets. The database also provides valuable contact details to be able to make first-contact with these companies and potentially start a collaboration. “Beyond that, we can also assist companies by guiding them on how to obtain the right information from reliable sources, as well as by providing them with preliminary market research on the countries they are interested in,” explains TradeMalta CEO, Anton Buttigieg. “We also facilitate one-to-one meetings between local SMEs and foreign companies in key geographical markets, because we believe that having a
“Our revamped portal has been designed to take the edge off the sometimes-challenging process of going global and focuses on giving interested businesses all the help they need,” Mr Buttigieg continues. “It is a complete service, and our genuine aim is to encourage and support local entities to become successful players in the international market. We encourage interested companies to take a look, and to apply for any one of these services online.” To find out more about TradeMalta’s dynamic new platform and its internationalisation services, visit www.trademalta.org The Internationalisation Knowledge Platform was part-financed through a project under the European Regional Development Fund, European Structural and Investment Funds 2014-2020. TradeMalta is a public-private partnership formed between the Government of Malta and the Chamber of Commerce, Enterprise and Industry. Currently, TradeMalta falls within the remit of the Ministry for Foreign Affairs and Trade Promotion.
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MANAGING WASTE AT WORK WISELY In 2016, at 642kg per capita, Malta recorded one of the highest rates of waste generation in the EU. Undoubtedly, waste management in Malta requires further collective effort from all sectors; individuals and companies alike. As a start, companies can decide to commit to implementing good waste management practices in support of the Waste Hierarchy, especially waste prevention, reduction and reuse, as part of their Corporate Social Responsibility. Waste prevention and reduction can present companies with potential incentives to move a step further towards a greener economy, especially in terms of cost savings. This is a plus in addition to the environmental benefit that can be achieved from diverting less waste to landfill. With the current rate of waste generation and disposal, the landfill that is currently in operation is estimated to reach its full capacity in the next two years. Waste reduction by businesses can be effective through the introduction of simple measures, such as: • Liaising with suppliers to reduce unnecessary packaging; be it stationery, toiletries and production materials and machinery; • Ordering the right amount of stock and responsibly planning to use any perishable material before its endof-life; • Internal memos should be sent by email and saved electronically; • Maintaining any equipment, process tools or hardware at regular intervals to minimise premature end-oflife and breakdown possibilities, whilst prolonging their lifetime; be it the office’s air conditioner or the large industrial machinery; • Procuring and producing products which are ecodesigned and which can be upgraded or dismantled for repair; • In collaboration with NGOs, excess food from work events can be donated and distributed to those in need; • Incorporating the waste management theme in teambuilding activities and CSR. While every effort to reduce and recycle waste can be made, some waste can still be generated; which is why reuse is a key element in the Waste Hierarchy, to ensure that less waste is disposed of. Here are some effective reuse tips for the business sector: 108 | WINTER 2018/2019
• Donating items to local charities or organisations; • Refurbishing or decorating premises while integrating the upcycling concept; • Reusing paper material like envelopes, unnecessary documents and other printed material; • Investing in products/equipment which waste less and which are easier on the environment, like eco-friendly cleaning supplies and refillable toner cartridges; • Considering the use of bi-product materials for integration in the production process of new products; • Organising an item swap day as part of the organisation’s team-building activities and finding a new owner for unwanted items. For any remaining waste that has been generated and can only be disposed, it is imperative to ensure the availability of a proper waste separation and collection system. Similar to the recent introduction of the household nationwide collection of organic waste, kitchen or canteen waste can be collected separately and can be sent through the engagement of a private waste collector for treatment, energy recovery and compost instead of landfilling. Introducing battery bins will also ensure that such hazardous waste is kept separate from other waste. Separately collected waste must always be delivered to authorised waste management facilities through the engagement of an ERAapproved waste collector, depending on the waste stream that is being transported for appropriate processing. For some particular waste streams, such as electronic waste, a consignment note procedure is necessary to accompany the waste during transportation. Some product suppliers also offer the service of taking back old electronic products from the client; which procedure is monitored by ERA and which can also provide necessary information on how businesses can avail themselves of these services. These services are aimed at helping individuals and businesses do their bit and sort out their waste responsibly. For more information visit www.dontwastewaste.gov.mt
BUSINESSAgenda BUSINESS UPDATE
TRANSACTION MONITORING IS A KEY COMPONENT OF AML COMPLIANCE Nowadays, it has become mandatory for compliance teams to think about regulation in a holistic way, and to find improved methods of managing the vast amount of transactional data being collected each day. Organisations must comply with Anti-Money Laundering (AML) rules, with the main purpose of detecting and reporting suspicious activity. This is effectively achieved through the use of an AML transaction monitoring solution. By monitoring and analysing cash deposits, withdrawals and wire transfers, AML transaction monitoring software can provide the compliance team with a complete view into a customer’s profile, risk levels and predicted future activity. THE NEED FOR A HOLISTIC APPROACH There is a growing focus on monitoring every transaction, which leads to the importance of adopting a broad-based approach towards dealing with business risk. Organisations need to be able to identify potentially unusual financial transactions which might subsequently prove to be suspicious within the context of existing AML regulations. The mapping of these data points is critical for a full picture of the client’s profile, their commercial activities, private wealth distribution and management structure. Although many organisations have implemented robust and costly Know Your Customer (KYC) solutions, the problem often remains in the identification of suspicious
transactions. This tends to involve submitting large amounts of alerts, many of which are false positives, without any form of analysis. Consequently, compliance teams are flooded with information which reveals very little intelligence. AXON AML TRANSACTION MONITORING The AXON transaction monitoring solution helps organisations detect suspicious behaviour quickly and effectively. It optimises transaction monitoring by automating processes in order to minimise unnecessary alerts, while also offering real-time tracking and reporting functionality. With AXON, compliance teams become more accurate and efficient in their monitoring of potentially fraudulent behaviour. Visit www.computimesoftware.com or get in touch on E: info@computimesoftware.com to learn more about AXON and how it can help your business remain AML compliant.
A ONE-STOP SHOP FOR COMMERCIAL PROJECTS Adore More is Malta’s leading distributor for apertures, offering a varied selection made from PVC-U, thermal aluminium systems and thermal solid wood systems, providing a superior level of insulation and security. With partners including Koemmerling, Schuco, Elvial and KBE, and over 10 years of experience in the industry, Adore More can help you bring your vision to life in an agile, cost-effective manner by assisting you on all aspects of your project. From fire-resistant and completely sound-proof main doors to UPVC sliding and folding systems, as well as blinds and shading systems for both internal and external use, Adore More endeavours to offer the highest level of service and the broadest selection of quality brands and products in the four key areas of specialisation: doors, windows, blinds and outdoor shading solutions, whilst continuously innovating and setting the standard of excellence in the aperture industry in Malta and Gozo. For more information, contact Adore More on T: 2145 6570/2145 6560; E: sales@adoremore.eu; or visit www.adoremore.com.mt
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COMPLETING THE ECONOMIC AND M O N E TA R Y U N I O N
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The Euro project is incomplete and has been since it was first introduced. But plans are in place to reform it, streamline it, and create a deeper and fairer EMU. Jo Caruana speaks to financial experts to find out what will happen next.
The Economic and Monetary Union (EMU) is an umbrella term for the group of policies aimed at converging the economies of member states of the European Union at three stages. First launched in 1990 when exchange controls were abolished and capital movements were completely liberalised in the European Economic Community, the euro became a real currency in 1999, with a further eight countries adopting it between then and 2015, when the most recent addition – Lithuania – signed up. Since then, the EMU has brought so much to European business – and beyond. “There is no doubt that the introduction of the euro has brought huge benefits to businesses and citizens alike through reductions in exchange rate risks, greater price stability and transparency, more attractive financing conditions, and increased trade,” explains James Watson, Chief Economist at BusinessEurope, the Confederation of European Business. “The urgency businesses place on completing the EMU, strengthening trust in the euro and creating a more stable environment for business investment stems from businesses’ strong belief in the benefits of the Euro Area, not the fear or the cost of its abandonment.” Progress in reforming the EMU in the past years has been extremely slow. Despite this, steps have recently been taken towards finally completing the Union, including the swift adoption of the first wave of measures proposed as part of the Capital Markets Union, and the acceleration of the delivery of the
next set of actions, as part of the Five Presidents Report. “Following the economic crisis, the EU made important progress in strengthening the EMU, including the development of the Banking Union and the strengthening of the Stability and Growth Pact,” continues Mr Watson. “But, since the publication of the 2015 Five Presidents Report on completing the EMU, progress has admittedly been too slow, with the lack of political guidance from leaders at summits this year on the future reform path for the EMU being particularly disappointing.”
“Macroeconomic resilience can only be built through microeconomic competitiveness, which in turn calls for the full respect of the principle of subsidiarity.” GORDON CORDINA
“We need to act now to strengthen the EMU so we have the resilience to deal with the next crisis, whenever, and from whatever direction it comes,” he adds “For example, while average annual government lending in the Euro Area is now below one per cent of GDP, overall government debt levels remain above 80 per cent on average.” Economist Gordon Cordina says that the EMU will only be as strong as the economic fundamentals of the countries within the eurozone will allow it to be. “In an ideal world, regions within the EU are globally competitive, able to flexibly attract highly-productive resources, generate substantial incomes for the people, and for governments to be able to efficiently provide public goods and services without incurring unsustainable debts,” he says. “In this ideal world, there would still be rules to follow for all to benefit from the use of a single currency, but such rules would not be onerous because economies WINTER 2018/2019 | 111
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would be generating sufficient wealth.” “The realities of the EMU are, however, characterised by sets of economies running at two, or perhaps three, speeds, with significant concerns about the financial sustainability of a number of governments throwing the entire system into paralysis,” adds Dr Cordina. “Rational reforms to the rules of fiscal discipline and general standards of prudent banking behaviour are welcome, but they can never make up for fundamental problems in productivity and competitiveness. The EU seems to be expending far more effort on the former, rather than the latter.” As a result, he thinks the EU project needs far larger budgets and efforts aimed at strengthening economies and societies from the root upwards. “Macroeconomic resilience can only be built through microeconomic competitiveness, which in turn calls for the full respect of the principle of subsidiarity, in that decisions will have to be taken at the levels where they are likely to yield the best results,” he says. “This would entail a territorial approach to policy-making, where supranational institutions would be there to monitor and guide rather than to decide.” Asked about whether the eurozone is prepared to take on new members, and for his views on the Reform Support Programme being established under the new Multiannual Financial Framework, Mr Watson highlights that a deeper EMU underpinning strong growth, competitiveness, investment and prosperity for all its participants would be the best way of encouraging more member states to take the necessary steps to membership. “We need to reinforce the EU role through the European Semester in increasing growth, competitiveness and convergence through ensuring that all member states implement agreed growth and employment
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“We need to act now to strengthen the EMU so we have the resilience to deal with the next crisis, whenever, and from whatever direction it comes.” JAMES WATSON
enhancing reforms,” he says. “An annual survey of BusinessEurope’s members suggests that only 20 per cent of such reforms are satisfactorily implemented by member states. We therefore welcome the increased focus in the proposed EU Budget on supporting structural reforms and hope that the proposed structural reform delivery tool can be a further incentive for member states to implement such reforms.” Mr Watson adds that he welcomes the European Commission’s proposal for an investment protection scheme – the European Investment Stabilisation Function. “We support strengthening the long-term stability of the EMU and its ability to handle asymmetric shocks through access to a Euro Area stabilisation fund, fully conditional on member states implementing structural reforms and without increasing the overall
tax burden. While it is clear that we will need to build up the capacity of this fund in future years, if it is to have a decisive role in increasing Euro Area stability, such a scheme can also play a role in improving the quality of public expenditure by increasing the emphasis on high-quality public investment,” he explains. Finally, as we look at the challenges the EMU is likely to face in 2019, all eyes are on Italy and whether its populist government is able to keep its electoral promises while also respecting the EU’s fiscal rules. With this in mind, Dr Cordina says that economic management is like walking a tightrope – but questions whether higher spending to stimulate growth is the solution for the Italian economy, considering the alarming rate of public debt. “Too little government spending produces a demand-side
BUSINESSAgenda EU POLICY
recession,” he says. “Too much spending paralyses a government’s ability to access capital markets and to continue to effectively function. The obvious solution is to focus on quality productive spending capable of generating durable jobs and sustainable capital growth, shifting away from waste. But governments are rarely known to win elections on this type of political platform.” “On the other hand, the European project must accomplish far more to meet the needs and requests of the societies it is serving, which once again leads to the importance of efforts based on the valorisation of the economic and social potentials offered by each and every territory within the Union, moving away from one-size-fits-all solutions which in reality would fit no one,” he concludes.
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