Business Agenda - Issue 27 by Malta Business Bureau

Agenda Business

ISSUE 27 Summer 2016 NEWSPAPER POST

The official publication of the Malta Business Bureau

Splendid Isolation: Whatâ&#x20AC;&#x2122;s next for the United Kingdom? The experts weigh in

In this issue: Parliamentary Secretary Ian Borg discusses Maltaâ&#x20AC;&#x2122;s upcoming EU Presidency | Maltese EU diplomat Dr Julian Vassallo shares his career highlights | Investigating the Internet of Things and the business opportunities that come with it |

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Cover Story

What Will Become of

Brexit?

Across the world, news of Brexit quickly turned from shock and celebration to panic and confusion, even among those who voted for it. But what happens now? Here Jo Caruana speaks to four experts who try to determine what’s next.

part, it is still lingering today. “I have to admit that I never thought it would happen,” says MEP Marlene Mizzi. “The British are generally known to be very conservative so it seemed impossible that they would vote for such a huge change. But it happened! Looking at the situation now I hope the choice was the right one to take. Either way, it must be respected.”

he announcement of the Brexit referendum will doubtlessly become one of ‘those’ moments in history – the ones you never forget. I had been sitting glued to my TV screen for 10 hours or so watching the votes tumble in, but somehow dozed off midway between Nigel Farage’s premature 10pm admission of defeat and David Cameron’s morning resignation.

What could possibly have happened? The internet and news stations were awash with panic as people realised that the perceived impossible had happened: the UK had voted to leave the European Union. Now what?

Marlene Mizzi That ‘now what’ seemed to echo around the world, without much forthcoming in return. And, for the most

MEP Roberta Metsola says she was saddened but not overly surprised by the result. She explains that there were a number of misconceptions and myths about the EU that were clearly going to have an effect on people voting.

“While we may regret the choice of the British people, we have to make sure that their will is respected and we should not drag out this situation longer than necessary. This is what democracy is all about. And make no mistake: out is out. Anyone who thinks you can take all the benefits of the EU without the costs or responsibilities does not know what they are talking about. “That said, I think that both the UK and Europe would have gained the most from having a strong UK voice within a reformed EU. The United Kingdom has always been a leader in Europe and they will be missed around the table. But I have to admit that, sometimes, I don’t recognise the picture of the EU painted by the UK tabloids. The EU is often blamed for many ills, some of them fairly so but most of them not. I defend the EU project as a cause for peace, free movement and free trade. It has helped defend environmental standards, security, workers’ rights and fundamental rights – which, interestingly, have often been fashioned after British practices.”

Rob Luke Meanwhile, British High Commissioner Rob Luke explains that the referendum was always going to be an important moment for the UK and for Europe. “The British people have now spoken through a huge democratic exercise and have voted to leave the EU. It is now for the Government to implement that decision,” he says. And regardless of how people feel about the referendum result, the UK’s next step will be to work with their European partners to negotiate the process of their departure from the

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Cover Story European Union and to define the shape of their future relationship. “Ex-Prime Minister Cameron was clear that he thinks the country requires fresh leadership to deliver the referendum outcome and, consequently, this negotiation will need to begin under our new Prime Minister Theresa May, who will also take the decision about when to trigger article 50 and start the formal process of leaving the EU,” Mr Luke adds. However the uncertainty in the interim has sparked worry internationally, especially on the financial front, as well as among Maltese and other EU citizens living in the UK, and British citizens living in Malta and in other EU countries.

European Parliament, Malta and the UK were very important allies, especially on matters dealing with taxation and financial transaction tax FTT. That alliance will be missed. However, Malta's ties with the UK are healthy and I do not envisage any significant change in this relationship.” Dr Elena Grech, who is Head of European Commission Representation in Malta, explains that the devaluation of the pound is having serious effects. “I think the financial side of things is one of the biggest worries at the moment,” she says. “The stock market has fallen and it looks like the UK is on the cusp of a recession, which could have very negative repercussions – both for Great Britain and for the wider world.” In fact, Dr Grech is already concerned about how Malta could be affected specifically. “British tourists make up around 50 per cent of our visitors, so a UK recession could impact Malta badly if they no longer have the spending power to come here on holiday. Plus, there’s a lot of trade exchange between the UK and the rest of the EU and that could also have very negative consequences if there’s a downturn.”

Elena Grech Ms Mizzi says she hopes the superb relations Malta has always had with the UK will not change, especially where health and education are concerned, as well as the tourism sector. “In the

But Mr Luke is eager to stress that Malta can still have an excellent relationship with the UK. “The UK’s connection with Malta is as important now as ever, both to influence the post-referendum negotiations in our shared interest, but also because our relationship goes far beyond the prism of EU membership. We have been close friends and part-

ners for a long time and that will not change.”

Roberta Metsola He explains that bilateral trade between our two countries is worth €500 million per year, while over 500,000 British nationals visit Malta as tourists annually. “Thus, we only plan to intensify our relationship further. We are strongly aligned to European markets, including Malta’s, and that won’t change,” he says. As for what happens next, Dr Metsola believes it is now the EU’s responsibility to mitigate the uncertainty during this period and bring clarity to the situation as soon as possible. “That is what people expect from us,” she says. “Much of the long-term ramifications of Brexit depend on the results and finer details of the negotiations of Britain’s exit. There will be long and tough negotiations. The one thing that has been expressed by European politicians time and again is that access to the single market depends on acceptance of the

four fundamental freedoms namely: the free movement of goods, the free movement of services and freedom of establishment, the free movement of persons (including free movement of workers), and the free movement of capital. “So negotiation with the UK must include these four principles. This is why it is so disingenuous of people like Nigel Farage to somehow claim that you can have one without the other. It will simply not be possible. At the end of the day, I think this referendum was not won or lost on statistics. It is about change. People’s frustrations with the way the EU sometimes functions is understandable. I share some of them. I am a reformer, so given the chance between fixing a project or burning it down, I would try to fix it. It is essential that the EU goes back to being ‘big on big things and small on small things’.” Ms Mizzi, meanwhile, is choosing not to be positive or negative about what’s to come, but to keep things as realistic as possible. “Britain’s new Prime Minister, Theresa May, is known to be a determined woman and I am sure she will do her best to take the UK out of these troubled waters. She has a herculean task of seeing project Brexit through without too much damage taking place, but I doubt it is going to be easy to deal with EU chiefs. Nevertheless I am confident they will overcome the challenges at hand.” “Speaking personally, and as a person who owns a British franchise, I will be

particularly vigilant on the potential effects on businesses, when the UK is no longer an EU member. There could be bureaucratic changes in the procedures of movement of goods and services in compliance with EU laws and new UK legislation, but this has still to be seen and in the end we will all have to adapt.” Finally, though, Dr Grech agrees that it won’t be easy and requests that everyone should try to stick to together in the months ahead. “I have to admit that no one in Brussels really knows where to start; everyone is disappointed and even the people advocating Brexit themselves didn’t think this would happen. How does an organisation deal with the departure of one of its biggest and strongest members? That remains to be seen. “As we look to the future, I don’t think Brexit will trigger other departures from the EU – if anything I think it could strengthen it – but we certainly haven’t heard the last of this situation. My feeling is that a ‘third way’ may be developed to create a three-tiered Europe, but it’s too early for anyone to know what will really happen, and we certainly won’t be moving along very quickly until Article 50 is triggered. However, I am an optimist and believe change will be good. And with that in mind, Brexit will certainly keep Europe busy for the next few months,” she adds. BA

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Interview

Malta gears up for the EU Presidency,

but will Brexit dominate the agenda?

Parliamentary Secretary for the EU Presidency 2017 and EU Funds Ian Borg talks to Sarah Micallef about Malta’s upcoming presidency, the potential impacts of Brexit and what he expects the island’s primary areas of focus to be during its term.

“

Brexit presents a challenge to the EU at two levels,” states Parliamentary Secretary for the EU Presidency 2017 and EU Funds Ian Borg, speaking of Brexit’s impact on Malta’s upcoming EU presidency.

On a procedural level, Dr Borg explains, there is the issue of what is involved in the exercise of negotiating a withdrawal under the provision of article 50 of the Treaty on European Union. “The most complex and time-consuming aspect of this exercise concerns the way in which the new relationship between the withdrawing country and the EU will have to be defined,” he affirms, going on to add that on a strategic level meanwhile, Brexit raises issues related to the future evolution of the EU. “Questions are being asked about the extent to which the UK vote may reflect a wider undercurrent of misunderstanding and even mistrust of the pace and direction of the European

project by a number of European citizens,” he says, affirming that such matters are expected to dominate the political attention of the European leadership in the months to come. Having said that, Dr Borg maintains, “they should not directly affect the work of the presidency of the Council of the EU, which is primarily concerned with the functional and legislative processes of the Union, except in so far as the focus on the over-riding political issues may shift attention away from the legislative tasks.”

Asked whether he feels that these issues will dominate the agenda, making it difficult for Malta to shift the focus of the presidency to other issues, Dr Borg states, “the implications of Brexit will undoubtedly dominate the political agenda in the immediate future, including the period of Malta's presidency, but this need not directly affect the legislative agenda. At the working level, the Union will still be dealing actively with vital and urgent issues such as migration. There might, however, be less time and attention available for the strategic decisions which are essential to keep

“The implications of Brexit will undoubtedly dominate the political agenda in the immediate future, including the period of Malta's presidency, but this need not directly affect the legislative agenda.”

the legislative process moving ahead at the necessary rhythm,” he adds. There has also been speculation as to whether there is a possibility that Malta will assume the EU presidency for the full year, seeing as the following six months were to be hosted by the UK. To this the Parliamentary Secretary counters that the decision on how the eventual gap in the presidency schedule is to be filled is a collective responsibility for the whole membership, affirming, “the fact that Malta's presidency immediately precedes the scheduled UK presidency is not one of the more relevant factors in this context.”

Moving on to particular debates within the Union for which Malta found the UK to be a useful ally, such as that regarding tax harmonisation – which has the potential to impact our gaming and financial services industries – I ask, with the UK out of the picture, does he feel that the island will be lacking in support given its small size, forcing it to accept changes that may not be beneficial to the local scenario? “Malta's position on tax, gaming and other issues is that the Union should not proceed on the premise that one size can fit all,”Dr Borg states, asserting that the different circumstances of individual members should be fully taken into account in the processes of cooperation, which cannot invariably be

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Interview

considered as leading towards harmonisation. “This is a positon of principle which we consider is in keeping with the trust and spirit of the EU, and which therefore permits us to continue to make our voice heard,” he says. So what will Malta’s primary areas of focus be, during the presidency?

According to Dr Borg, in its role of President of the Council of the EU, Malta will be responsible to push forward all the priorities of the EU, and within this overall responsibility, will place a special focus on various aspects. Among these, he lists, “migration strategy – implementing both the internal and external aspects of the European

agenda on migration; neighbourhood policy – promoting security and cooperation in the Mediterranean within the framework of an enhanced EU neighbourhood policy; maritime strategy – harnessing the potential of blue growth in Europe’s oceans, seas and coasts for jobs, value and sustainability; single market – deepening the sin-

gle market, especially in services and energy, with a sharper focus on the role of SMEs; social inclusion – creating rewarding job opportunities for all, especially women and young persons; and of course European citizenship – bringing the EU closer to its citizens.”

capitals to highlight and promote our presidency,” he continues, adding that the third major logistical aspect concerns the refurbishment of the Grandmaster’s Palace as the venue for the ministerial and other high-level meetings.

With a few months left until Malta’s presidency, what preparations are currently underway? The Parliamentary Secretary reveals that there are three main logistical aspects on which action has focused, the first concerning human resources and the setting up and training of the teams which will be responsible for managing and chairing the meetings in Brussels of the 150 odd Council preparatory bodies. “For this purpose the staff complement at our permanent representation in Brussels has more than trebled, going from 50 to over 150 officers. A number of officers based in the line Ministries in Malta will also be involved in the teams which have been set up for this purpose,” he explains.

With so much to plan and do, the question which comes to mind is how much will hosting the presidency cost, in financial terms? While the cost is yet to be defined, according to Dr Borg, he states, “we will certainly be doing everything that needs to be done in order to meet all our obligations without the need of having to be extravagant.” BA

The second logistical aspect concerns planning for the various meetings, events and activities which will be organised during Malta’s presidency. “This involves work related, among other things, to transport, accommodation, hospitality, accreditation, interpretation, catering and liaison. Around 200 meetings ranging from informal Ministerial to technical level meetings will be held in Malta between January and June next year. Moreover, a number of cultural and social events will be organised in Malta, Brussels and other

“Malta's position on tax, gaming and other issues is that the Union should not proceed on the premise that one size can fit all.”

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Editorial Publisher Content House Group Mallia Buildings 3, Level 2, Triq in-Negozju Mriehel BKR 3000 Tel: (+356) 2132 0713 Email: info@contenthouse.com.mt www.contenthouse.com.mt

Joe Tanti

Brexit â&#x20AC;&#x201C; And how we should respond to it On 23rd June, the United Kingdom voted to leave the European Union, in a vote that is bound to change the evolution of the European Union for good, for better or for worse. There is no doubt that the vote affects EU citizens and businesses profoundly, and measures must be sought to not only mitigate the effect of Brexit, but also to rise stronger from it. Speculation is rife as to how Britain leaving the EU will affect us all. Despite all the uncertainties surrounding Brexit, one probability is that this process will have a somewhat negative impact on the Maltese economy, at least in the short to medium term. Maltese manufacturers exporting to the UK will surely feel the pinch, as British companies selling in their domestic market will, in all likelihood, benefit in the short term from a decreased cost-base due to a weakened Sterling, making their products more competitive. The major impacts of Brexit could be felt in the Tourism and Financial Services sector. Almost a third of incoming tourists arrive from the UK, and a weaker sterling would have a negative impact on the purchasing power of UK nationals. It is possible that this will lead to a decline in the number of British tourists visiting Malta, with an effect being felt across related industries such as hotels, restaurants and retailers. This is particularly so in the

winter, given that the local industry highly depends on the UK market particularly during the shoulder months. However, tourism operators seem rather upbeat with the notion that the domestic tourism industry is diversified enough to be able to weather the initial shock of Brexit. Turning to Financial Services, while the diversification of the industry is likely to mitigate the impact of Brexit, it is likely that Maltese-based investment funds may generate fewer service exports, should the UK asset management industry slow down. In addition, Maltese banks that have significant exposure to the UK are likely to experience a deterioration in their asset quality, which would limit profitability. Questions remain as to how the EU should respond to Brexit. The economic fall-out resulting from Brexit should be used as a catalyst to com-

plete the single market in order to strengthen cross-border business and offset any significant economic losses resulting from the UK withdrawing membership. Thus, the EUâ&#x20AC;&#x2122;s response must be strong and firm towards further harmonisation and removal of remaining regulatory fragmentation and non-tariff barriers within the single market. Also, while the EU should allow the UK flexibility as to when the notorious Article 50 of the Treaty is triggered, firm and decisive action is needed quickly in order to stifle unnecessary speculation which is destructive to business. While the EU should be understanding and constructive in its approach, any disingenuous attempt by the UK Government to delay requesting official withdrawal of membership, which in its end would extend political and economic uncertainty in Europe, is unacceptable.

Lastly, any deal reached with the United Kingdom must not come at the expense of the political, economic, and financial cohesion of the European Union. Should the UK request access to the single market, the EU must be firm in conveying the position that this cannot possibly be achieved without accepting each one of the four freedoms of movement of goods, services, capital and people. These four freedoms are intertwined in existing single market legislation, and it would be destructive to imagine one without the other. For our part, the MBB will be keeping the local business community informed on the negotiations as they develop and the implications of the outcome. In the coming days, the MBB will also be issuing an initial position on the subject, which will evolve as the negotiations progress.

Malta Business Bureau Cornerline, Level 1, Dun Karm Street, Birkirkara, BKR 9039 Tel: 00356 2125 1719 Email: info@mbb.org.mt infobrussels@mbb.org.mt www.mbb.org.mt

The Malta Business Bureau is a nonprofit 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 Deputy Editor: Martina Said Design: Nicholas Cutajar Editorial Team: Ana Vella, Daniel Debono, Mark Seychell, Sarah Micallef, Jo Caruana and Marie-Claire Grima Publication Sales Manager: Matthew Spiteri Advertising Sales Executive: Kurt Cauchi Advertising Sales Coordinators: Lindsey Napier and Marvic Cutajar Business Agenda is the quarterly publication of the Malta Business Bureau. It 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 by Mailbox Distribution Services, part of Mailbox Group. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

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Employment

Expats at

work The number of foreigners working in Malta has ballooned over the past seven years. Marie-Claire Grima looks at what’s drawing them in, what’s keeping them here and whether there’s any truth to the old chestnut of foreigners taking Maltese jobs.

ow many foreign people live and work in Malta? More than 27,000, at last count. To put the figure into perspective, the number of foreigners working in Malta is greater than the population of Birkirkara, the island’s largest town. While 23,000 people live in Birkirkara, more than 27,000 foreign nationals live and work in Malta across the entire spectrum of the workforce. In terms of numbers, the foreign workers in Malta could easily form their own electoral district. Who are they? Where are they coming from? And more importantly, why are they coming here?

The most obvious reason for Malta’s allure is its rosy economic outlook, which is better than that of several

the Union. The economic progress of the country has been very strong and industries are experiencing growth in their markets. This type of growth invariably leads to the need of an increase in the number of vacancies,” says Employment and Education Minister Evarist Bartolo.

Evarist Bartolo other countries, including many fellow EU member states. “Malta has close to full employment at the moment. The unemployment rate is the second lowest in the European Union, with youth unemployment being the lowest in

In fact, the greatest number of foreigners at work tend to be at opposite ends of the labour spectrum, mostly filling up positions that either cannot or will not be taken up by Maltese workers. As economist Gordon Cordina points out, “Malta is attractive to foreigners seeking work because of the growing number of sectors where Maltese citizens do not have sufficient skills, such as gaming, finance, IT and tech, or in jobs which residents do not want to perform

“Of course, … industries such as finance, education and gaming will be affected by the UK leaving the EU, however the country is fully prepared to minimise the negative impact and maximise the opportunities which will invariably arise.” Evarist Bartolo at ongoing wages. Thus, the availability of skills imports is useful to fill lacunae in the resident skills base, enabling economic activity which directly or

indirectly then generates jobs in a more general way.” The movement of foreigners into the Maltese labour market has

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Employment been significant, following Malta's accession to the EU in 2004, as figures continue to rise. In fact, the number of foreign workers in the labour force has more than doubled in the last seven years. The total number rose from 9,821 in December 2008 – when foreign workers still made up a relatively paltry 6.1 per cent of the 161,000-strong national workforce – to 27,145 or 14.7 per cent – in July 2015, according to data from the Employment and Training Corporation. Italians, Britons and Spaniards topped the charts in terms of nationality. The sharpest rise was seen among Spanish workers, who flocked to Malta as Spain was lashed by the global financial crisis, battering their chances of employment. The number of Spaniards in Malta rose from 34 in 2008 to 1,027 in 2015, a whopping 1,600 per cent increase. However, Italians in Malta have been by far the most prolific in terms of numbers. There were 4,023 Italian nationals working in Malta in July 2015, marking a 780 per cent increase over that in December 2008. “A diverse workforce is important because Maltese individuals get to work with their European counterparts and build technical skills which may be difficult to find in Malta. The Maltese are not losing jobs to EU nationals or third-country nationals. On the contrary, the local market supply is below the demand requested by the industry. Diversity, even in the job market, is crucial and the strongest economies in the world have a very wide base of

skill-sets in their labour market,” Minister Bartolo says. The changes to the make-up of Malta’s workforce have had an impact on Government revenue too. A report by the Central Bank of Malta found that 16 years ago, revenue from foreign workers accounted for just 2.4 per cent of personal income tax and national insurance contributions. By 2014 this share had risen to 10.1 per cent. The amount of revenue collected from foreign workers increased nine times in this period, at the same time as that from Maltese workers doubled, and foreign workers boosted average annual potential GDP growth by 0.6 percentage points. Malta’s EU accession made the island a favourable place to live and work for many EU nationals. With the United Kingdom having voted to leave the Union, the question that has to be asked is what kind of challenges and opportunities will now materialise for Malta and the businesses operating within it? “For now it is unclear what sort of position the UK will negotiate with the European Union and the timelines it is looking at. Malta is not attractive only because of Brexit – Malta is attractive in itself. The advantages of investing in Malta may be accentuated because of Brexit, but they are certainly very strong on their own,” Mr Bartolo says. “The language, strong national institutions, stability, low criminality, standard of living, financial and economic structures, and ease of adaptability are among the chief reasons

so many investors choose Malta. Of course, in a globalised world, industries such as finance, education and gaming will be affected by the UK leaving the EU, however the country is fully prepared to minimise the negative impact and maximise the opportunities which will invariably arise.” In any case, Malta’s attractiveness and its thriving economy could prove to be a double-edged sword for foreigners who come seeking streets paved with gold. The dark underbelly can be seen in the figures related to illegal employment – this year saw the rates of foreigners in illegal and unregistered employment overtake the number of Maltese in such situations. Inspectors flagged 887 such cases involving foreigners between January and May 2016. On the other hand, the number of irregularities related to Maltese work-

indicate that the Maltese labour supply is almost exhausted,” he said. Could Malta ever reach a saturation point, where foreign workers would come seeking jobs only to realise that there is nothing for them here? “Whether this happens or not depends entirely on the growth of the economy. The economic performance of Malta has been among Europe’s best and the business environment at the moment is very optimistic. Government is working very hard to keep this up and we will continue to do our best to help current industries grow, while cultivating new ones. At this moment in time the main challenge ahead of us is how to cater for the demand of jobs resulting from such a high-performing economic performance. If the supply is not met in the medium and long-term it may provide difficulties for local busi-

“It is essential that we now develop from skills imports to Foreign Direct Investment in the form of human capital.” Gordon Cordina ers during this same period was significantly lower at 741. Employment and Training Corporation chairman Clyde Caruana was quoted by the Times of Malta as saying that this confirmed the ever-increasing challenge faced by employers in certain sectors to engage Maltese workers. “This year’s numbers

nesses, which is why it is so high on the Government agenda,” Mr Bartolo says. Dr Cordina opines that he hopes that foreigners are not coming to Malta simply to seek work in an unplanned manner, but are sure of their work opportunities before they actually decide to make the move. “Issues may

Gordon Cordina eventually arise if certain low skills no longer remain in demand, and foreign workers do not have the opportunities to improve their skills, or cannot easily move to other locations where their skills would be required,” he says. “It is essential that we now develop from skills imports to Foreign Direct Investment in the form of human capital whereby foreign workers would become an integral part of the economy to the extent of passing skills on to resident workers and students.” BA

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Food & Drink

The beauty doesn’t just lie in the food:

Championing great restaurant design While the Maltese have always been known to love their food, the local restaurant scene has really come into its own over the last decade or so, not just in terms of the variety and quality of the cuisines available, but also when it comes to restaurant décor and ambience. Sarah Micallef takes a look at five local eateries that are championing the importance of great restaurant design. Zest

n old Maltese proverb goes, ‘l-ewwel ma tiekol, l-għajn’, and while it could (and should) be applied to food presentation, it can also certainly extend to the place in which you’re dining. As more locals venture away from the islands and travel more extensively, our tastes and expectations continue to rise, and the demand for a quality experience when dining out rises with them. Many of us are no longer content to sit at a plastic-covered table in a shoddy eatery that dishes out good but ordinary food, we want an exceptional dining experience in beautiful surroundings – and today’s restaurants are taking note. Both established and up-and-coming eateries are increasingly developing an eye for modern design and aesthetics, resulting in some truly fabulous places to enjoy a great meal.

ZEST One of the first modern eateries to put décor on centre stage right alongside the food is Zest in St Julian’s. Opening its doors in 2002, Malta’s first Asian fusion restaurant, according to director Erika Cassar Rouvelas, is “where East Meets West in both dining and décor, effortlessly blending the best of Asian taste with European refinement.” The concept was clear from the outset, she says, and was interpreted to perfection by designer Pippa Toledo. “A design element that is unique to Zest is its location within a converted townhouse on the first floor of the boutique Hotel Juliani in Spinola Bay. The history of this unique setting is preserved and appreciated in original architectural details found throughout the restaurant, particularly in its façade, lounge and bar.”

Zest

Describing the restaurant’s overall design as modern, fresh and elegant, Erika adds that the chosen colour palette reflects the colourful Asian cuisine that inspires the menu, “and the signature pink found in our logo repeats throughout the restaurant in unexpected places such as custom lighting and bold statement walls.” Speaking of the importance of aesthetics within a restaurant, she continues, “we eat with all of our senses – most importantly taste, but also sight, smell and touch. Ambience is no less important than any other aspect of a meal. We have always put aesthetics first at Zest, and we are encouraged to see that new restaurants are following suit.”

DIAR IL-BNIET Opening its doors in January 2014, restaurant and farm shop Diar il-Bniet in Dingli boasts an entirely different concept, but puts equal emphasis on décor and ambience. The idea came about when siblings Dorianne Kurtcu and Darren Mifsud, whose family has been in the farming business for years, wanted to create something using their family's produce. “We like to use

the saying ‘from farm to fork’ because that is literally how it is at Diar il-Bniet – the farmers produce vegetables and fruits which we then plate and serve. We make sure to keep everything local and traditional, from the food and packaging to the interior décor,” says Dorianne, who had a vision for how the place would look from the outset. Dorianne’s travels to various countries with different cultures served as the inspiration behind Diar il-Bniet’s vibrant rustic look, which was made a reality with the help of a local design agency. Today, she describes the overall design as “traditional and rustic, mixed in with a touch of industrial and also involving upcycled items which make it more interesting and vibrant.” Indeed, as a firm believer in the importance of restaurant aesthetics, Dorianne maintains, “as we say in Maltese, ‘l-għajn l-ewwel li tiġbed’,” adding that she is pleased to see that restaurants opening up today are paying more attention to design – “people are becoming aware that the design of the place is as important as their products.” Diar il-Bniet

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Food & Drink Photo: Alan Carville

Diar il-Bniet

SALT Another local eatery with a firm focus on design is Salt in Bugibba, which has been open for about a year and a half. Here, owners Nicky Saliba and chef Isaac Saliba enlisted the help of Sean Cassar, founder and lead designer at Design HUB Malta, to realise their vision. “Due to the extensive space within the restaurant, the design was achieved by incorporating different sections within the space – starting from the entrance reception and bar, leading on to the lounge area with a fireplace, glass wine cellar, seating, chef’s table, open kitchen and private dining area on the upper mezzanine. We also incorporated a range of different light fittings, which as a whole, enhance the general dining aura within the space,” says Sean. Speaking of the effect achieved, Nicky and Sean explain that while the restaurant is rich in design detail,

it remains playfully conceptual. “All elements were custom-designed by Sean and locally fabricated. Details even extended to customised vintage frames, pendant light fittings and wire screens.” The pair agree that aesthetics are paramount in today’s restaurants. “We invested in branding and design knowing that it was the final piece of the puzzle. We had the chef, the experience and the level of service required. All we needed was a concept and dynamic design, which made the space not only aesthetically pleasing, but also functional and comfortable.”

TAPROOM Last May, stylish new restaurant Taproom opened its doors in Valletta. Director Georg Albrecht Heine explains, “the concept is that of a brasserie and bar – serving breakfast, lunch and dinner, and turning into a bar at a late hour.”

the main feature, the ‘Tap Table’, which accommodates up to 22 people at one go. From here, diners can enjoy a view into the kitchen through a large opening in the wall. Speaking of how Taproom’s style – a mixture of industrial design paired with early 1930s chic – came about, Georg explains, “we wanted to create something new and different, which hadn’t been done in Malta so far.” “I think aesthetics are the most important thing, not only about a restaurant, but about every room you enter. The design style is not important as personal opinions differ, but it is important that the chosen design follows through with every single detail,” Georg continues, affirming that in the case of a restaurant, the interior design does not end with fixtures and furniture, but extends to glasses, cutlery, chinaware and “even the sugar container”.

Six booths are positioned towards the front of the restaurant, leading up to

Salt

Taproom

Asked whether he feels that restaurants are beginning to pay more attention to design than they did in the past, Georg believes that it is all part of a general change. “People are spending more money on food and drink than they used to. Going out for dinner was rare for the majority, but nowadays, many go out several times a week and

love to experience new things. With the help of the internet, everyone has become a food and design critic, which makes it harder to please everyone, but attention to detail, design and aesthetics paired with good service is the key to set you on the right track. Finally, all you need is good food!”

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Food & Drink Mark went on to appoint Adrian Mangion and Warren Falzon from Archi+ to bring his vision to life, which they did beautifully, following a two-and-a-half year project. The resulting design is one he describes as having a mixture of influences, much like the concept of the restaurant itself, but the most important thing is the attention to detail. “We went through the textures and colours we used meticulously – everything has a lot of thought behind it. One area I also really invested in is the bathrooms. Here we included brass tubing, black Marquina polished marble and mosaic tiles,” he adds. The

Above & Right: Brass & Knuckle

BRASS & KNUCKLE Another newcomer which opened at around the same time is Brass & Knuckle in Naxxar, which pairs fine textures and materials to achieve a cool, modern aesthetic. Owner Mark Zammit comes from seven generations of

butchery, and brought extensive experience garnered through his travels and industry knowledge to this, his latest project. Branching away from the family butchery business about ten years ago to focus on the delicatessen, Mark was

inspired by the food halls in Globus in Switzerland, Harrods in the UK and Printemps in France, saying, “I always imagined incorporating our strengths, the delicatessen and butcher shop, with what we love doing best – cooking. That is where the whole idea for Brass & Knuckle came from,” he says.

branding, meanwhile, was entrusted to Steve’s & Co., who “did a great job”. Mark believes that this renewed attention to restaurant design and aesthetics among restaurants opening today is an exciting development, and is certainly picking up steam. “I’m seeing a lot of the younger generation investing in restaurants,” he says, counting himself among them. “We’re all full of ideas and bursting with energy! It’s not just about the food and service anymore. You need to attract clientele through the details. I think it’s extremely important in 2016.” BA

BUSINESSAgenda | Summer 2016

Society Photos: Alan Carville

“I wanted to join the diplomatic service of the EU before it was even invented” From Bruges to New York and Manila to Ankara, Dr Julian Vassallo, together with his wife and three young boys, has travelled far and wide. Martina Said meets him at his Valletta apartment to find out about the colourful career of this Maltese diplomat.

“

I worked as a part-time journalist while studying law at the University of Malta, reporting court and parliament, and it was perfect because it showed me that I was not going to become a traditional lawyer,” says Julian Vassallo. “I covered a few trials by jury, saw all the lawyers going around the court in their flowing capes and realised that it was not for me.”

He made the decision to walk away from a career in law some 20 years ago, and has never looked back. Dr Vassallo’s involvement in the European Law Student Association (ELSA) provided opportunities for career experiences overseas, and after graduating, he applied for a post in the Foreign Ministry, for which he was accepted. “I joined the Ministry in September 1996, went straight to the College of Europe in Bruges on scholarship but after I had been there for three weeks or so, Malta voted to freeze our application to join the EU. So there I was in Bruges, studying advanced European Political Studies and thinking ‘what on earth am I doing here?’” He likens this scenario to the way most young British people must be feeling following Brexit, a result which Dr Vassallo says he wasn’t surprised by. “The British were asked a simple question and they gave a simple answer. I feel sorry for the younger Brits, but I think there is a good part of Britain

that needs to grow up, and realise that although the country has a lot going for it, it will be weaker and less relevant on its own. One can see Brexit as the last spasm of the British Empire. For Europe, I think it has been a jolt, but it does provide opportunities to explore areas for integration which Britain continuously blocked.” Before delving into the beginnings of his diplomatic career, Dr Vassallo, who was posted to Turkey towards the end of last year for his most recent diplomatic mission, let us in on the current developments in Turkey following an attempted coup by the military on Saturday 16 July. “When the coup hit Turkey, the EU Ambassador was away and I found myself reporting on it to the top levels in Brussels in a very 21st century manner. I sat there with my tablet, phone and TV, gathering WhatsApp messages from the well-connected political team and feeding hungry Brussels,” he asserts. “It all seemed under control until helicopters appeared outside our window and started firing on the national TV station headquarters which had been taken over by the coup leaders. I then found myself slipping a message to Brussels that my kids were safely away from the windows, sleeping on mattresses by the front door. The next day, the shooting had stopped but the aftermath was tense. Many see the

coup as but one episode in an ongoing battle for the soul of the country.” Moving on to the early days of his diplomatic career, the next opportunity that came his way made up for the idle time spent in Bruges. Dr Vassallo, who had only just started out as a diplomat at the time, took a shot at applying for a post in New York at the Maltese Representation to the United Nations (UN), a post he held from 1999 until 2003. “It was a dream post and an amazing experience for all sorts of reasons: it was the time of the dotcom boom. Then came 9/11, where suddenly the work of the UN focused on combating terrorism; the war in Afghanistan and the run-up to the Iraq war, which was a real lesson in diplomacy gone wrong.” On the Iraq war, Dr Vassallo adds “it was like watching a car crash in slow motion – even I, as a young diplomat, could see long before the war broke out that the decision to go to war had been taken a long time before, and the results of the Chilcot Inquiry today put that to rest.” Despite the tense and edgy climate during that time, however, he says that the post in New York was an extraordinary one, where he worked under the wing of Ambassador Walter Balzan. “I remember some of his regular guests for small dinners at the residence were three ambassadors: there was Russian

“When the coup hit Turkey… all seemed under control until helicopters appeared outside our window and started firing on the national TV station headquarters.” Ambassador Sergey Lavrov, Egyptian Ambassador Aboul Gheit and Singaporean Ambassador Kishore Mahbubani. As it turns out, he chose well – Lavrov is now Foreign Minister of Russia; Aboul Gheit was the next Egyptian foreign minister, and Mahbubani almost became Secretary General of the UN. Ambassador Balzan had a good nose,” he smiles. At the end of the post in 2003, he was keen to return to Europe, which is when Dr Vassallo got posted to Brussels in the run-up to Malta joining the EU in May 2004. “The delegation was expanding rapidly, and we were the guinea pigs, learning the ropes and attending meetings without having a right to vote, to help us understand what’s coming. I was foreign relations counsellor at the time, dealing with sanctions, EU peacekeeping operations and the likes, very much the legal nitty gritty of foreign policy.”

The night Malta joined the EU, Dr Vassallo and his wife, Céline Cervi, were in Malta hosting a baptism party following the arrival of their first son Lucas. “We had a party in this flat in Valletta, which we had just bought, and then went off to watch the celebrations at the Grand Harbour. It was quite a day!” Dr Vassallo went on to work with Javier Solana, the High Representative for Common Foreign and Security Policy for a few years, focusing on Mediterranean-Middle East issues following the Iraq War when there was a push for Arab reform. “The Berlin Wall had crumbled, the world had changed but the Arab world was still stuck in its old ways. Javier Solana was determined to make a difference and we tried many different things: investing more money in these countries, tying the investments to political reforms, and trying to bully, for lack of a better word, people like former Egyptian President Hosni Mubarak to slowly make political

BUSINESSAgenda | Summer 2016

Society “One can see Brexit as the last spasm of the British Empire.”

can’t say I’m scared or really worried for myself or my family.” From Malta to New York, Manila to Ankara, how does Dr Vassallo and his family cope with regularly upping and resettling in a different country? He says that, primarily, your partner has to be on the same wavelength. “If your partner doesn’t want that lifestyle, it is not going to work. You can drag your partner once, but not for the rest of his or her life if they don’t want it. If you are on the same wavelength, then it has a lot of positives, because it is incredibly rewarding to live in different places and stay there long enough to understand the place much better than you would as a tourist.”

reforms. But they would always tell us not to push them too hard, because if they had to go, the Muslim brotherhood and the Islamists would take their place. Then what followed was the Arab Spring and we all know what happened.” Dr Vassallo says that Solana’s team was the nucleus of the European External Action Service (EEAS) which he works for today. “I wanted to join the diplomatic service of the EU before it was even invented, back when I was in Bruges, so I knew that if it ever came into being, I would want to be a part of it. In that sense, I am doing what I always hoped to do.” During his time working with Solana, Dr Vassallo got offered a job in Malta as head of the European Parliament Office, which he decided to accept in 2006. “One of the hardest things about working for the EU is that it’s very difficult to work in your own country, so this was an opportunity that I couldn’t give up and I did it for family reasons, against the advice of many, but I have no regrets.” The Office’s primary role was to explain the EU to the Maltese, giving Dr Vassallo the opportunity to combine his experiences gained from working in the EU with work for his home country. “The nice thing about working for the Maltese diplomatic service is that you’re working for your own small community, but of course on most issues you are not a primary actor.” In 2011, after five years in Malta, he applied to join the EEAS which had just been set up, and soon after was posted to the Philippines. “I had been to New York before I moved there and Brussels too, but the Philippines was a real

leap in the dark. I remember reading up about it before we left; all the stories about typhoons, earthquakes and crime – I was uprooting our family and taking them to a country where there are risks. That can be quite tough.” In fact, he admits that landing in Manila was a shock. “You touch down in a country with your family, my wife was pregnant with our third child at the time, where you don’t know a soul, where you have to build friendships from the ground up, start a new job and understand a new culture. It was the rainy season and the city felt so polluted. I thought we had landed in a Mad Max movie,” he jokes. During his four-year stint in the Philippines, Dr Vassallo was working on the South China Sea crisis which was a hot topic at the time. In July, the international tribunal in The Hague ruled in favour of the Philippines over disputed waters of the South China Sea. “I remember going to visit the Defence Minister about the South China Sea crisis – he’s a minister, I’m a diplomat, but they don’t make a big fuss about rank and status. Out of the corner of my eye I noticed a showcase in his office. You’d think he’d have a range of medals or some military memorabilia but no, he had a whole vitrine of Star Wars keepsakes – it tells you a lot about how they’re able to not take themselves too seriously! They are an incredibly warm and friendly people.” His next and most recent move to Turkey towards the end of last year meant a diplomatic mission that was on the other end of the spectrum to that in the Philippines. “The Philippines is a country that, in terms of ranking of importance to the EU, is not very high,

so you’re often drawing Brussels’ attention to what is going on there such as the booming economy and the trade opportunities it provides. In Turkey, it is absolutely the opposite. We are in the limelight all the time, primarily because of the migration crisis. What’s going on between Turkey and the EU at the moment is diplomacy at the highest level.” Based in Ankara, his work focuses primarily on Syria and The Gulf, from a Turkish foreign policy perspective, as well as migration. “The EU-Turkey deal on migration is very complex. Turkey is a big and proud country, they are very tough negotiators but a pleasure to work with because they are serious,” he asserts. “What we’ve seen in the

Aegean – whereby effectively Turkey prevents migrants from crossing the Aegean and from our side we provide them with funding to take care of migrants and open a channel of regular migration to Europe – they’ve done their part of the deal. The deal has been criticised a lot, but the fact that men, women and children have stopped dying trying to cross the Aegean has to be a good thing.” His move to Turkey has also coincided with a spate of terrorist attacks that have been rocking the country since late last year. “The situation has degenerated since we arrived, and it does impact your quality of life, but I still think that the odds remain so low that I

Dr Vassallo and his wife are parents to Lucas, 12, Toby, 8 and Harry, 4, and while settling down in a new place at the beginning is hard, it has ways of bringing them closer together as a family. “It makes you go out there as a family to explore and meet people. You have to stick together and that makes you more solid as a unit. And you learn to do lots of things together too – in the Philippines we learned to surf together, where else would we have learnt to do that?” On a concluding note, Dr Vassallo considers the best part of diplomatic work to be meeting and working with such a range of well-rounded, high-calibre people. “Diplomats are very often multi-faceted – they are legal minds with knowledge of culture, languages, humour, and in your daily work, you get to exercise your knowledge of history, geography, languages, and what you’ve learnt about human psychology.” And the hardest part? “That would be listening to boring speeches at the UN.” BA

BUSINESSAgenda | Summer 2016

MBB News MBB publishes Annual Report 2015/6 – Special 20th Anniversary Commemorative Edition The MBB has recently published a special edition of its Annual Report, commemorating the organisation’s 20th anniversary since its foundation in 1996. The report thoroughly outlines the various actions undertaken by the organisation throughout the year in both Malta and Brussels. The report features updates on the organisation’s considerable success over the past year in which a number of key milestones have been reached. Moreover, the report boasts high-profile features, reflecting upon the MBB’s past achievements and thoughts for its future endeavours.

Business Agenda News Updates MBB REDESIGNS WEBSITE The Malta Business Bureau has recently launched a freshly designed website www.mbb.org.mt. The website has been given a rejuvenated identity so as to give its members the most accurate, up-to date information and share its knowledge and expertise in the field of EU matters. The most noticeable change to the MBB’s new website is the uncluttered theme and visual design throughout, making it faster and easier to navigate and 100 per cent more user-friendly. The MBB has also made use of accessibility features which support screen-reading software for persons with a visual impairment.

Looking forward, the MBB is now seeking to give Maltese businesses more added value than ever through undertaking a three-pronged approach; reverting back to its roots of focusing on lobbying business interests in the EU, implementing EU policy through projects, and making Malta’s current and future employers more conversant on EU policy and processes.

Malta Chamber President Anton Borg was voted Vice-President of BusinessEurope during the organisation’s General Assembly, held as part of its Council of Presidents meeting in The Hague on 20th May. This is the first time that a Maltese official will occupy a Vice-President’s post at BusinessEurope; a prestigious role that will fulfil a two-year term. The MBB congratulates Mr Borg on his recent appointment and augurs him well for his new role, in which he will represent the organisation in high level political events – particularly during Malta’s EU Presidency 2017.

The new site is divided into six main sections: About Us, MBB News, Services, EU News, Projects and Media & Events, each of which can be easily browsed through, allowing visitors to locate the information they need, including free electronic versions of all the MBB’s publications and reports. These can also be made available in a downloadable PDF version upon request. The MBB would like to thank Cyber Space Solutions web developers for the provision of their commendable service and quality work.

MBB ANNUAL BOARD MEETING

May - June MBB PROMOTES WATER SAVINGS BEST PRACTICE On 13th May, a national MCAST – WSC Water Conference was held to discuss and promote micro solutions towards more efficient and effective water systems, particularly in small island states. The MBB, represented by Geoffrey Saliba, participated in this conference and presented a number of water savings solutions in businesses and hotels. These solutions had been predetermined through the MBB’s LIFE+ Investing in Water Project (2011-2014).

5th May MBB CEO MODERATES RESEARCH & INNOVATION CAFÉ Joe Tanti was invited to moderate a full-day event organised by Malta Enterprise in collaboration with the Malta Council for Science and Technology on 5th May. The event, held at Giardini Lambrosa, was organised to create awareness and motivate local stakeholders interested in R&D&I to consider various programmes available. Joe Tanti encouraged participants to look deeper into the available opportunities, highlighting that these are accessible from both a local and international dimension. Mr Tanti reiterated that assistance and guidance are free for all who wish to pursue this opportunity of funding to make their ideas reach the market. The event was supported by the Enterprise Europe Network.

20th May MALTA CHAMBER PRESIDENT ANTON BORG ELECTED VICE-PRESIDENT OF BUSINESSEUROPE

Subsequently, on 27th June, a LIFE Info Day was organised by the LIFE National Contact Point within the Ministry for Sustainable Development, the Environment and Climate Change. The MBB was represented by Marija Elena Borg and Geoffrey Saliba. The latter delivered a presentation on both the outcomes of the MBB’s LIFE+ Investing in Water Project and on the ‘LIFE experience’ in particular – the pros, cons and lessons learnt throughout the duration of the project.

1st June New MBB offices in Brussels The Malta Business Bureau has moved its Brussels operations to a highly strategic location at the centre of the European quarter. The offices are now situated at the well-known Rond-point Schuman, where the European Commission’s ‘Le Berlaymont’ and the European Council buildings are located. Dar Malta, serving as the Maltese Permanent Representation to the EU, as well as the European Parliament are also in the vicinity. The MBB Brussels office can be contacted at: Malta Business Bureau, Rond-point Schuman 6 – Level 5, 1040 Brussels, Belgium. T: +32 485 469 737; E: infobrussels@mbb. org.mt

The MBB has the expertise and will take on the opportunity to increase its relevance to the Maltese business community. With Malta’s EU Presidency fast approaching, MBB will play a more prominent role in pushing our business priorities on an EU level as well as promoting what Malta has to offer in terms of business opportunities.” Mario Spiteri – Outgoing President The Annual Board Meeting, held on 31 May, was held in the presence of the Presidents of the Malta Business Bureau’s parent organisations the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. During the meeting, outgoing MBB President Mario Spiteri who had been in the driving seat of the organisation for the past two years, stepped down from his post at the end of his term. Mr Spiteri wished his successor Dr John Vassallo, now MBB President, the very best in driving the organisation forward. “After 20 years of service, we should look back at how the MBB has developed and what it has achieved. Most of all, we should look forward at the bright future for the MBB and its members. The future is what we make of it.” Dr John Vassallo – MBB President

BUSINESSAgenda | Summer 2016

MBB News 9th June MBB EU Affairs Manager participates in the Brussels Economic Forum MBB EU Affairs Manager Daniel Debono participated in the 16th edition of the Brussels Economic Forum, focusing on how a revamped European Monetary Union (EMU) and next generation structural reforms, supported by the Investment plan for Europe could serve to boost jobs and growth in the EU. In his 5th Tommaso Padoa-Schioppa Lecture, European Central Bank President Mario Draghi emphasised the importance of policy alignment to fulfil the EU's economic potential. Other keynote speeches were made by European Commission Vice-Presidents Valdis Dombrovskis and Jyrki Katainen, Commissioner Pierre Moscovici and EIB President Werner Hoyer. The event also included four panels which discussed the lessons learned from economic adjustment programmes.

20th-21st June MBB DELEGATION IN BRUSSELS An MBB delegation, led by newly appointed President Dr John Vassallo, has held high-level introductory meetings with MEPs and Malta’s Permanent Representative to the EU, to mark the beginning of his MBB Presidency. Individual meetings were held with Ambassador Marlene Bonnici, Deputy Permanent Representative Neil Kerr, and MEPs Dr Roberta Metsola, Dr Alfred Sant and Dr Miriam Dalli. The MBB delegation led discussions on various topical issues relevant to each MEP, on Malta’s Presidency of the Council of the EU in 2017, as well as on the MBB’s own two-year strategy. The MBB will be setting up meetings with MEPs David Casa, Marlene Mizzi and Dr Therese Commodini Cachia in the near future.

22nd June MBB CEO participates in EEN Tourism Sector Group, Paris The Enterprise Europe Network Tourism and Cultural Sector Group was held in Paris on 22nd June. MBB CEO Tanti joined Chair

of the Group, Maria Raffone together with international group member counterparts.

sallo in his capacity as MBB President, Nicholas Zahra, Paul Bugeja and George Micallef.

During the meeting’s reporting session, Joe Tanti reported on the already-implemented activities and achievements of the MBB together with the local consortia including the work carried out in the first half of 2016. The focus for the Sector Group’s future activities will hone in on a greater delivery of advisory service outcomes for EEN clients in the hospitality industry.

Dr Vassallo encouraged the MHRA to begin preparing position papers together with its members to submit to the local government so as to begin negotiating bilateral agreements with the UK and also take greater advantage of Malta’s position in the Commonwealth.

27-28th June ZAAR Promoted at biggest business event ZEST Malta’s local crowdfunding platform ZAAR gained significant exposure at the biggest local business event of the year ZEST organised by the Take Off Business Incubator at the University of Malta and the Malta Communications Authority. ZAAR, represented by newly appointed manager Matthew Caruana was allocated a stand on which to promote its services during the two-day event. The event brought together a community of entrepreneurs, talent and expertise to challenge the existence of both barriers and opportunities that lie beyond.

8th July MBB President participates in MHRA BREXIT info session The potential effects and impacts of the recent decision taken by the citizens of the UK, in relation to Malta’s tourism sector, were discussed in a BREXIT information seminar organised by the Malta Hotels and Restaurants Association (MHRA). The session brought together a panel of local experts, including Dr John Vas-

15th July MBB CEO SPEAKS AT GOOGLE event MBB CEO Joe Tanti was invited to partake in a panel discussion at the Growing and Thriving Online event. The session was hosted by MEP Therese Comodini Cachia in collaboration with Google, on Friday 15th July and was aimed at providing local start-ups and businesses in Malta with inspiring experiences and concrete examples and tools on how to develop their business online. MEP Comodini Cachia stated: “the immense enthusiasm that this event has generated among businesses and start-ups is a sign that we have embraced digital innovation and want to grasp the opportunities that digital tools offer.” The event was also addressed by Google representatives Enrico Bellini and Diego Ciulli together with MEP Michal Boni. Other speakers were digital strategist Alex Grech, entrepreneur Paul Doyle and fashion blogger Caroline Paris. BA

BUSINESSAgenda | Summer 2016

Marketing

The art of

captivating customers In an increasingly globalised world, companies must think outside the box in order to keep their customers and audiences intrigued and engaged, making the role of marketing departments and agencies more significant than ever. Martina Said speaks to various marketing experts and business leaders to find out what it takes to get their message across effectively. How do MaltaPost’s services to companies help the latter fulfil their own marketing strategy? MaltaPost offers a one-stop shop for the design, printing and delivery of a brand’s marketing material. We can create the right promotional material, print and deliver a company’s message to its domestic and business audiences through one complete and efficient service. How do MaltaPost’s services help companies stand out in their field? Through the use of our comprehensive address databases we can help companies reach their desired target segment by delivering them to specific households or areas depending on the nature and message of their marketing material. In this way, clients can reduce their costs and maximise the return of their marketing campaign. What role does social media play within your company? Consumers have taken to the internet to carry out numerous activities, particularly shopping. Through this medium, consumers are able to look through a variety of purchase options from the comfort of their home or office. The internet provides a visually pleasing experience whereby customers can zoom into the intricate characteristics of an item prior to making a purchase decision. However nothing beats being able to physically hold an item in one’s hand and use all senses to appreciate its value.

Yolande Spiteri, Head of Customer Experience at MaltaPost How long have you been involved in the field and how do you think it’s changed over the years? I’ve been involved in marketing and communication for over ten years. Through my experience and studies in Corporate Communications and Public Affairs, the importance of segmentation and creating targeted messages to different audiences were continuously highlighted. Nowadays, through social media and the internet, customers and brands have been drawn closer together. Whereas before brands would create messages targeted to ‘target audiences’, nowadays businesses talk directly to customers in a personalised manner. This can be easily seen through Google and Facebook’s customised adverts, which personalises one’s search engine and social media adverts based on their demographic information and interests.

Nowadays, marketers must look beyond appealing to one sense due to the barrage of media messages that customers are bombarded with, and brands should appeal to more than just sight. This boils down to a basic physiological concept that runs deeper than any marketing theory and draws on the importance of appealing to more than one sense. To this end, marketers should realise that the material they produce should give the feeling of the product they want to sell. A glossy, elegantly designed flyer printed on environmentally-friendly paper communicates luxury and social responsibility whereas an ill-written, clichéd advert expresses lack of professionalism. Conscious of this, MaltaPost provides a series of unaddressed and addressed delivery services for marketers. Its one-stop-shop is able to provide clients with a design service which will help communicate all the client’s brand’s assets, printing options as well as insertion of documents in envelopes and their final delivery. Taking a consultative role, MaltaPost’s Business Relations Representatives support clients in developing an attractive promotional product to gain the attention of potential customers. One can get in touch with the MaltaPost Business Relations Team to learn more about the options available by sending an email to business@maltapost.com.

Sergio Montebello, Managing Director at Fibonacci Marketing How long have you been involved in the field and how do you think it’s changed over the years? I have worked in marketing for the past ten years, working my way up from Marketing Executive to Managing Director of my own marketing agency. The marketing sector, just like everything else, has become increasingly digital. Where once a good television advert would suffice, today’s marketer has to encompass a variety of different channels to ensure marketing success. As an agency, how does Fibonacci Marketing help businesses in their marketing endeavours? At Fibonacci Marketing, we offer clients a variety of marketing solutions to help them reach their business goals. Whether it’s securing better Google rankings, increasing traffic to their websites, generating leads from their social media platforms or designing and printing effective marketing collateral, we offer a comprehensive service to fully support our clients. What role does social media play within your company? Social media is an important part of anyone's marketing strategy, and we go to great lengths to leverage it as much as possible for our clients. Believe it or not, Twitter is a fantastic tool for generating leads. While a lot of people in Malta would say that it hasn’t quite caught on, I would beg to differ.

BUSINESSAgenda | Summer 2016

Marketing Kevin Filletti, Sales & Business Development Manager at Attrans Ltd How long have you been involved in the field and how do you think it’s changed over the years? I’ve been working in sales for the past 20 years but it’s only recently that I got involved in marketing. However, what I can say is that marketing methods have changed considerably over the years – especially with the introduction of social media, marketing is increasingly moving to digital advertising. How does Attrans Ltd’s current marketing campaign position your brand on the market? This year Attrans is celebrating its 40th anniversary, and so our marketing efforts are focusing on this achievement. In fact, we’re highlighting this milestone in all our adverts, stationery and marketing tools.

Photo: Inigo Taylor

Kay Vella, Head of Recruitment at Betting Connections How does Betting Connections’ current marketing campaign position your brand on the market? At Betting Connections, we focus heavily on building our brand through word-of-mouth both locally and internationally. We do this mainly through sponsoring events related to the local community and indeed the iGaming industry. In fact, during the UEFA Euro Cup this year, we sponsored the popular FanZone at Spinola Bay. This was a fantastic opportunity to build awareness and brand recognition not only among job seekers and clients but also among those visiting Malta. We are also sponsors for iGaming events such as SiGMA, Battle of Malta, MiGs and many other industry events. In addition, we will be sponsoring and participating in Malta Sports Day to help raise money for local charities. What role does social media play within your company? Social media has indeed proven to be a very important part of our strategy here at Betting Connections. It allows us to interact on a more personal level with the public and helps us share relevant and tailored content with the right audience. It also gives us a chance to show who we are as a company and provide some insight into what it is like to work at Betting Connections. We are always posting pictures from our office, from events and of our staff on the social media pages.

How does your company’s marketing strategy help it stand out in the competitive market of logistics? Since we’ve been in the business for 40 years, we have gained lots of experience which we use to give a better service to our customers. Nowadays, Attrans is recognised as an international company and since 2008, we started setting up our own offices in Italy, The Netherlands and Slovenia. Having our own network helps us give that little bit more to our customers – for instance a client calling the Attrans office in Italy or The Netherlands is able to speak directly to Attrans personnel. This gives us a competitive edge over our competition. What role does social media play within your company? The strongest medium, in my opinion, is Facebook, as it turns out to be the most effective online marketing tool and it can reach a very vast audience. Owing to this is the fact that people spend more time on Facebook over any other social or online media. As a company, we use both social and printed media for our advertising campaigns, although we are very selective and concentrate more on media that offer a stronger B2B aspect.

BUSINESSAgenda | Summer 2016

Marketing Michael Debono, CPA, CEO of DConsulta Limited

Andrea Agius, General Manager at Nectar How long have you been involved in the field and how do you think it’s changed over the years? Nectar was established 25 years ago. Back then, its founder, Charles Abela, who was already in the sector as an established wholesaler, had the vision of marketing quality-focused brands as the key to success for the years to come. The Fast Moving Consumer Goods (FMCG) industry in Malta has been through different phases since then, but one can consider Malta’s EU accession and, more recently, the introduction of a main hard discounter as two key milestones within this sector. Changing trends in consumer preferences, quality of products, as well as shopping trends resulting from a shift in the quality of life within the Maltese population also played an important role in the evolution of this industry. This has necessitated a shift in marketing practices throughout the years, in sync with new tools, such as social digital media, which have revolutionised marketing practices. Nectar Group has recently rebranded – what necessitated this and how did you go about it? Nectar is considered a young, energetic and dynamic organisation. We profess a philosophy that embraces innovation and change, and believe that our image needs to portray these principles. The company’s 25th anniversary was a good ‘excuse’ to upgrade Nectar’s branding. The mission ‘Excellence in Distribution’ remains the inspiration and pride of our activity. While the new logo’s colours have been derived from its predecessor, the new identity now incorporates four core elements reflecting local connections and international relations, nature’s goodness represented

through the flower, the resilient honeycomb structure and the bee’s dedication and commitment reflecting Nectar’s work ethic and perseverance. What were the main benefits of this rebranding exercise as well as the main risks? Our new image is fresher and brighter, echoing the way we think and act. It helps us maintain a very current image coherent with latest trends, matching the ever-changing trends within our industry. We believe that the rebranding exercise will eventually help us consolidate our relationship with current stakeholders as well as connect us with new audiences through the livery of our large fleet of vehicles, uniforms, advertising, brochures and stationery among other branded means. Ultimately, we want Nectar to stand out and be identified as an organisation that reflects good values and excellent services. Throughout the rebranding process, we evidently thought of the perceivable risks, but this did not curb our initiative. This was not the first time we went ahead with major but essential transformations, sometimes radical to some extent for our sector, and which ultimately competitors followed. How does Nectar’s marketing strategy help it stand out in a competitive market? Our strategy continues to be that of providing consumers with quality value products. Nectar boasts one of the largest sales forces in Malta, and sustained by all the other elements within the organisation, we service the Maltese islands extensively. Ultimately, it is all about investing in our people, to service our customers for their enjoyment of our products. All this is executed in a professional and sustainable way, which ultimately yields the required returns to continually challenge and improve our route to the market.

How long have you been involved in the field and how do you think it’s changed over the years? In the first part of my career in financial and managerial roles in industry and financial services, I was always keen to know the ins and outs of the financial aspects of the business I worked for and also of the other areas which impacted on the financial picture, namely operations, ICT, sales and marketing. This interest grew in me when 15 years ago I decided to set up my own accountancy and consultancy firm that led to DConsulta as it is known today. With the benefit of hindsight, I can now clearly see that there has been a fundamental change in the way that marketing is perceived as a business function and the way it is implemented, monitored and gauged. ICT has been a driver of this transformation as today marketing has been enhanced with design tools, use of websites, video marketing and social media marketing which has rendered marketing available not only to the bigger businesses but to all businesses, large and small, starts- up or established. What’s the idea behind your current marketing campaign and how does it position your company on the market? As a financial services firm involved in accountancy, company service provision and consultancy for growth and funding, our marketing revolves around name recognition and differentiation from competitors. This necessitates participation via direct advertising, advertorials, interviews and other communications in specialised business or management magazines, coupled with a strong presence in social media spurred by the new website we launched late in 2015. A key decision was to obtain the trademark for the ‘dconsulta’ name which was an important achievement and statement of intent for us as a small-to-medium consulting firm. An important facet of our strategy which we intend to strengthen is the launch of a regular short e-newsletter directed towards our clients and contacts which will be named ‘dsnippet’! How does DConsulta’s marketing strategy help the company stand out among its competitors? The aim of our marketing strategy is to communicate a strong message that we’re a firm that keeps itself up-to-date with technical and business developments and we are managing to convey this via our diverse fare in the content of our blogs which are disseminated via our website and also on social media including twitter, facebook and most importantly LinkedIn. The message that we are effectively conveying via our marketing strategy is that we can not only

take care of your accounting, VAT compliance and advisory and direct taxation compliance and advisory aspects of your businesses, but we are always au courant with latest developments with an eye to identify the right opportunities for your business growth in Malta and abroad. What role does social media play within your company? Social media is the present and future of marketing and we feel that its importance will continue to mushroom in the future. Thus we would like to continue blogging about developments and also participate in electronic fora on various business and related subjects, with special emphasis being placed on LinkedIn, which we feel is the best social media tool for us given that we mostly target B2B businesses in Malta and abroad. We are also interested to widen our social media presence via YouTube and other means and we will continue to test the waters in this sphere, with a view of maximising the potential of our marketing strategy and achieve continued business growth. BA

BUSINESSAgenda | Summer 2016

Business Update

Bank of Valletta SME-Driven

Introducing Cisk Pilsner: a legend to be savoured by those who seek the best Originally brewed by Farsons Brewery in the late 1940s and now being introduced once again, Cisk Pilsner is a premium Pilsner combining a tradition of brewing excellence and passion with the finest quality Pilsen malt and Noble hops of the Saaz variety. Cool, crisp and immensely satisfying, with an alcohol content of 5.5 per cent, Cisk Pilsner offers the discerning beer connoisseur a remarkably crisp and well-hopped flavour with a rich white head, a delicate bitterness and a superior aroma originating from the rich essential oils present in the Noble hops. Cisk Pilsner is the perfect accompaniment to light pasta dishes and seafood risottos, shellfish, smoked salmon and sweet and spicy, rich-flavoured poultry. Fresh cheeses such as goat’s cheese, fresh mozzarella and light cheddar also pair perfectly with Cisk Pilsner. “The beer market is getting exciting once again, following a period of flat or declining sales in a number of markets across the globe,” says Susan Weenink, Head of Marketing and Communications at Farsons. “Beer consumers are truly becoming interested and engaged with the large number of new beers, mainly craft and speciality beers, which are being launched. Cisk Pilsner is the result of many years of development

and investment, and we are truly excited to have arrived at this point.” Eugenio Caruana, Head Brewer at Farsons comments: “we are very proud of our long-standing brewing excellence and capabilities, and we are confident that the beer connoisseurs out there will appreciate and enjoy this speciality beer. Cisk Pilsner is truly a Pilsner of exceptional quality.” Karl Bondin, Beer Manager at Farsons adds that “Cisk Pilsner is available in 33cl bottles in selected restaurants, bars and pubs across Malta and Gozo, as well as in major retail outlets. Cisk Pilsner will of course also be available at the Farsons Beer Festival which will be held at Ta’ Qali between 22nd and 31st July 2016.” Cisk Pilsner is brewed, packaged and distributed by Simonds Farsons Cisk plc. Simonds Farsons Cisk plcThe Brewery, Mdina Road, Mriehel BKR 3000, Malta. T: 2381 4114; F: 2381 4150; www.farsons.com

SMEs constitute the backbone of the economy, both at the European level and in Malta. However, it would be a mistake to assume that SMEs are one homogenous group, facing the same challenges and opportunities. At Bank of Valletta (BOV), our customer-driven strategy for the SME sector derives from an intimate understanding of the local SME market. This means that we are committed to nurture long-term working relationships with our SME customers. Their basic day-to-day requirements are seen to at branch level, where our people know them and their requirements. More complex business requirements are escalated to the bank’s network of six Business Centres, each responsible for customers within their region. Positioning itself as the Bank for SMEs, BOV sought to find solutions for the specific chal-

lenges faced by SMEs, resulting from their particular characteristics like undercapitalisation, corporate governance and succession issues. To this effect, Bank of Valletta successfully developed the BOV JAIME Financing Package, the first and currently only such financing product offered in Malta. It blends reduced collateral requirements with discounted interests for eligible SMEs. Through this initiative, BOV will be assisting over 700 Maltese SMEs by providing €50 million worth of financing. Further information about the BOV JAIME Financing Package can be obtained from bov.com, or by contacting Bank of Valletta on T: 2275 1529. Bank of Valletta p.l.c. is a publicly limited company licenced to conduct Banking and Investment Services business by the Malta Financial Services Authority.

Nectar Rebrands Following 25 Successful Years Nectar Group of Companies, as it was known until recently, is experiencing a shift in image this year as it undergoes a total rebrand to coincide with its 25th anniversary. Nectar traces its steps back to 1991. Since Charles Abela created his brainchild 25 years ago, Nectar has always worked towards one clear goal, excelling in the industry and promoting Best Practices, Excellence, Society and Teamwork (B.E.S.T.). A ‘promise delivered’. This is the best definition of what we believe a brand is. We make a promise to customers and

colleagues with everything we do, and to be successful we must deliver on that promise every single time. Nectar prides itself in practicing this belief and this is why it has kept steadfastly loyal to its long-standing slogan ‘excellence in distribution’. The new branding encapsulates the company’s development and visually demonstrates this evolution. The new image revolves around the Nectar logo with colour tones that have been modified in order to mirror the company’s bright and vibrant attitude towards the creation of its food

and beverage distribution sector. The symbol which extends from the logo makes reference to Nectar’s global connections and nature’s infinite goodness which lies at its core. The icon resembles a honeycomb which mirrors the resilient structure of the business, whilst inspiration was also derived from the worker bee, whose dedication and commitment are a reflection of the work ethic and collaborative perseverance that define Nectar. This new chapter will drive the Nectar family to keep following its core values with the same pride and a new image. Nectar – Excellence in distribution.

BUSINESSAgenda | Summer 2016

Business Update APS Bank in Malta live with new core banking system, BML Istisharat’s ICBS APS Bank in Malta completes its major technology overhaul. The project has been successfully completed on time and on budget, states the bank’s management. The new platform is the ICBS system supplied by a Lebanese banking software vendor BML Istisharat. The solution is delivered on a hosted basis. This is the first project for BML in Malta. ICBS ousted a legacy Profits system from Greecebased Intrasoft International that had been in place at APS Bank since 2002.

Discover KerraPro KerraPro Pressure Reducing Pads help protect the skin in at-risk patients as part of a pressure ulcer prevention programme. KerraPro shaped pads are made from silicone, which is flexible, hard-wearing and has the ability to redistribute pressure to protect the skin on bony prominences such as the heel or sacrum. These pads are comfortable, yet hard-wearing, shown to withstand autoclave temperatures of 121°C without losing their properties. However, we simply recommend that you wash KerraPro with soap and water – enabling them to be re-used on the same patient and helping to reduce the cost of pressure ulcer prevention even further.

A common problem: A pressure ulcer can occur at the point where the skin is in constant contact with a surface (such as a patient’s bed or chair), or with another part of the body (for example where the knees or ankles rest together). The high pressure that builds up can disrupt the flow of blood and oxygen, causing the skin to break down. An easy and effective solution: KerraPro effectively redistributes this pressure, dissipating it over the pad to protect the skin from pressure ulcers. KerraPro is available from leading pharmacies.

Banking Technology understands Intrasoft bid with a newer version of Profits at the system selection stage. Another bidder was Oracle FSS with its Flexcube core banking system. The selection took place in 2012-2014. According to APS Bank’s head of IT, Jonathan Caruana, BML offered a “feasible proposal, a system that met the majority of the bank’s functionality requirements and a good number of reference sites”. Banking Technology understands the reference sites were BLOM Bank in Paris, IBL Bank in Beirut, BSN Bank in Kuala Lumpur and Commercial Bank of Kuwait. As mentioned earlier, the bank opted for an outsourced delivery (it had a similar set-up with Intrasoft’s Profits). Caruana explains that the bank employs 270 people overall, among which there is only “a very limited pool of developers”.

BML took the responsibility for the implementation as well as business and integration consultancy. It also provided the training programme on the core system. Caruana is complimentary about the vendor’s delivery, saying it provided “experienced and patient trainers with extensive technical and banking knowledge”. The bank’s team handled the setting up of the infrastructure, UAT, end-user training, security testing, project management and data migration development. In terms of milestones, gap delivery and parameter setting was completed in June last year, followed by UAT (until February 2016), data migration and a mock run (April 2016). Go-live took place in June, as originally planned. Article by Tanya Andreasyan reproduced from the London-based website Banking Technology.

BUSINESSAgenda | Summer 2016

Design Design for Europe experts with Ana Vella, Joe Tanti and Caldon Mercieca

Keeping up

with the

innovators

Ana Vella delves into the benefits of the EU’s Design for Europe project and outlines the outcome of a two-day service design workshop held in Malta last month, made available through this European project.

s the EU continues to face new global economic realities, the role of design and innovation has become increasingly predominant in ensuring that the member state economies remain competitive. Innovation success is often benchmarked by those economies which use factors including research and development spending and have a concentration of high-tech companies. Equally

important is the use of design at the helm of innovation. Good design and design thinking are the essence of progressive innovation in the 21st century.

throughout Europe thanks to the excellent coordination and delivery by a 14-partner strong consortium across the EU, led by the Design Council (UK).

The Design for Europe project is a European-wide initiative that enables countries to become leaders in design innovation. Since its inception in 2013, the pioneering project has captured and shared the best examples of design innovation in business, the public sector and policy-making. The project to date has achieved significant impact

In encouraging EU members to adopt design thinking approaches, a variety of practical tools has been made available through the Commission’s project. A number of successful case studies have been recorded to date – all of which are available on a one-stop platform designforeurope.eu. A recent first-of-its kind report The Design Econ-

omy by the Design Council offers an in-depth analysis of the value and contribution design has made to the whole UK economy so far. The Design Council’s study serves as an admirable benchmark for other countries, in revealing the true value of design. Project lead for Design for Europe, Pei Chin Tay explains, “in recognising design as a key economic factor, many British companies both within and outside the design sector, have placed design at the forefront of strategies and investments. On a wider economic scale, we found that, amazingly, in 2013 alone, the design economy generated £71.7 billion GVA. Additionally, the total value of exports where design had made a key contribution was £34 billion. The crucial takeaway is that the design economy grew by 28 per cent in the last five years, a much faster rate than the average.” Last year, the MBB was appointed to become a local ambassador for the Design for Europe project and has since begun a design awareness campaign in Malta, bringing some of Europe‘s top design experts to the island. Its involvement in this project has helped not only to bring foreign best prac-

Design for Europe Welcome Reception

The Valletta Design Cluster (VDC) organised an early evening welcome reception and networking session on 12th June. The event, held at the Fortress Builders Fortifications in Valletta, was organised in honour of this MBB initiative and the Design for Europe experts. It was an excellent opportunity for the workshop participants and members of the local design community to meet and converse with the Design for Europe experts in an informal setting. In his speech, VDC project lead Caldon Mercieca, addressed the audience and warmly welcomed MBB’s special guests Service Design Expert Joep Paemen, Design for Europe Project lead PeiChin Tay and Danish Design Centre Programme Director Christina Melander.

Service design can be seen as the activity of planning and organising people, infrastructure, communication and material components of a service to improve its quality, effectiveness and its economics. PeiChin Tay presenting a copy of The Design Economy to Permanent Secretary for Ministry of Economy, Nancy Caruana

BUSINESSAgenda | Summer 2016

Design the size of a company or its budget are not the most crucial elements for the successful implementation of a service design approach. Rather as with most human endeavours, the level of commitment is the leading indicator of the quality of one‘s outcome.

tices to the local scene but also to extend the network‘s voice to local businesses. On 13th and 14th June, the MBB held a two-day service design workshop, which was attended by 32 participants, namely individuals in top management positions representing 14 local companies and public sector officials who were also interested in learning more about streamlining internal operations and the provision of their services. This opportunity was made available through Design for Europe with the support of the Design Council (UK), the Danish Design Centre and the Enterprise Europe Network. Holistically, service design can be seen as the activity of planning and organising people, infrastructure, communication and material components of a service in order to improve its quality, its effectiveness and its economics.

The workshop, delivered by Design for Europe expert member Joep Paemen, served as a guide to help companies discover and implement new tools and techniques which have been tried and tested by some of the world‘s leading businesses. Mr Paemen reiterated that improvements to service design would entail a targeted effort and commitment by those responsible for steering the direction of their business to take on board the provided methodological approach towards improving internal resource efficiency, enhancing client interaction, use and satisfaction with the company’s range of services leading to improved business performance. Participants were urged to take the key elements of the workshop and adapt them to their respective business models. At the close of the workshops, the Design for Europe experts stressed that

While it may be easier not to use design or service design for that matter, its under-use will, in time, make it harder for businesses to remain competitive. Often, the fear of running into financial constraints presents a great hindrance to the integration of various design disciplines within businesses. Outstandingly, these challenges need not be overcome by burning holes in any pockets but rather improving – by way

of thinking and strategy – what could be improved in that which already exists. MBB CEO Joe Tanti is of the opinion that “the backing of national agencies and other key institutions is necessary to continue supporting businesses in their pursuit of innovation and designdriven activities. This support is necessary in driving forward growth and stronger, forward-looking communities.”

*The Design Economy is available in paperback on Amazon.co.uk

Good design and design thinking are the essence of progressive innovation in the 21st century.

BUSINESSAgenda | Summer 2016

EU Policy

A New

sive, this sort of technology is, increasingly, a part of our lives.”

Frontier I From temperature control at home to automated processes within national power systems, the Internet of Things is transforming the way things get done. Here Jo Caruana investigates this exciting technological leap and discovers the associated opportunities for business.

t was 1932 when author Aldous Huxley penned his masterwork Brave New World, a futuristic novel set in 2540 that foretold of a realm in which, among other things, technology took control. And, while his predictions have not quite come true (thankfully – they weren’t very positive!) we are certainly taking strides towards a world in which technology can exist without the involvement of us humans – we may need it but, increasingly, it doesn’t need us.

“That, in a nutshell, is the ‘Internet of Things’,” explains Malta Business Bureau President John Vassallo, in his capacity as Vice-President of EU Affairs at Microsoft. “It is all about technology that allows inanimate objects to speak to one another without the involvement of humans. And while it may all sound quite far-fetched and impres-

Take smart lighting, for instance, which automatically adapts depending on the natural light available or the weather. Or liquid presence detectors, which are programmed to sense water in data centres or warehouses to prevent breakdowns and corrosion. Yes, humans programme them but, after that they are self-sufficient and on their own. “We can trace this sort of technology back around 40 years, when technology that could transmit messages in one way or other was developed,” continues Dr Vassallo. “At the time embedded software would transmit a message when prompted, such as a remote control to turn on the TV or an air-conditioner. Now, air-conditioners can actually be programmed to come on, on their own, when the room reaches a certain temperature; humans aren’t even required to press the button anymore.” Going further into detail, Malta Communications Authority chairman Edward Woods explains that the IoT is essentially driving the next major economic and societal disruption brought about by the internet. He believes this improvement in communication will enable the creation of a smarter environment, which senses, analyses and adapts, and which makes our lives easier, safer, more efficient and userfriendly.

John Vassallo “History has shown us the speed at which technology can change the world. The IoT promises to expedite this by hyper-connecting people, organisations and their data, to billions of objects. IoT is not a future pos-

BUSINESSAgenda | Summer 2016

EU Policy “It’s very important that our privacy is protected as the IoT starts to become more mainstream and part of our daily lives.” John Vassallo sibility but a current reality – it is happening, and is happening fast,” he says. With that in mind, Dr Vassallo lists more examples of how he believes the IoT will start to infiltrate our lives more and more. “Imagine a future where you’re driving down the road and it can automatically measure the speed you’re going at, whether your tyres are pumped up enough, and whether you’re up-to-date on your insurance payments. A variety of sensors will be speaking to one another to measure all of that, and you won’t necessarily even know about it. “Similarly, the house of the future will also get on with a lot of things without your involvement, such as restocking your fridge. Once you have used an item in a recipe, the fridge will know and will automatically order it from the store. “Now, this is all well and good, and there are some huge benefits. For instance, another key one relates to Data Driven Decision Making, which takes both the possibility of human error and the ability to cheat or change information out of a process. But there are also a number of concerns, particu-

larly when it comes to privacy. After all, do we want large corporations, or the government, knowing whether we’ve paid our insurance or what we’ve had for dinner? Plus, do we want to be so reliant on the internet and electricity that whole countries could grind to a halt if something goes wrong? That’s where vital regulation comes in, as it’s very important that our privacy is protected and that things are properly planned when the IoT starts to become more mainstream and part of our daily lives.” In fact, Dr Woods goes on to explain that while the technology is global, regulation for IoT is local. “The MCA, through its foresight activities, is making sure that policies, enforcement mechanisms and instruments are pro-market and facilitate the introduction and uptake of new technologies, whilst fostering a fair, trusted and secure environment for society and the economy. “Thus there is a need to move into testing and deployment of IoT technologies in real-life settings to reduce uncertainty about business models and promote investment and risk-taking. In fact, the MCA’s Test and Trial

framework facilitates access to spectrum resources for testing the deployment of loT services and related technologies such as 4.5G. Trials facilitate the testing of business models and gauge user perception, and also play an important role in addressing security and trust issues in a holistic manner.

Edward Woods “This is further strengthened by the MCA’s introduction of regulations for the electronic identification and trust services for electronic transactions (eIDAS) which enhance the security, uptake and use of online services such as the IoT and cloud computing.” There are also plans afoot to further boost Malta’s online infrastructure for the development of IoT and enabling technologies. After all, this is the highway on which this technology and related services are carried. “Without it, and without continued investment by the private sector to ensure resiliency and sufficient capacity, we would not

be witnessing the progress we have to date,” Dr Woods continues. “So, through its pro-market regulatory approach, the MCA is facilitating the continued investment of the private sector in infrastructure, from connecting homes with fibre-optic, fostering the deployment of Wi-Fi services on a nation-wide scale and facilitating the imminent deployment of networks which support IoT in Malta. Mobile data traffic is also projected to increase exponentially with the uptake of IoT. Mobile network operators will therefore need more bandwidth to meet customer demand, which will necessitate further investment in this regard. Spectrum is a key element in fulfilling this demand. The MCA plays a key role in ensuring the allocation and efficient use of national spectrum resources whilst fostering a high quality of service in the communications environment.” As for the business world, both Dr Vassallo and Dr Woods have advice for local companies keen to consider progression into the IoT. “The MCA attributes a great importance to activities that nurture the development of the communications sector, including IoT, and invites all relevant private and public stakeholders to engage in a collaborative, open-innovation context, where effort is required to align interests, shape opinions, develop business models and provide a common understanding of the benefits of the IoT ecosystem,” Dr Woods says.

“Learn, test and trial, and take the risk. Businesses interested in getting involved with IoT should invest time and resources in acquiring the relevant knowledge, whilst openly collaborating with the MCA and other relevant stakeholders to test and trial the new and innovative business models emerging as part of the IoT ecosystem. Through its Information Society and Innovation activities the MCA promotes the uptake of digital technologies, whilst supporting innovative business models in digital technologies. We are here to extend a helping hand to anyone wanting to take the leap.” Dr Vassallo endorses this. “There are so many opportunities out there for businesses interested in moving into this field – and I can’t even say ‘sector’ because just about every sector out there touches upon the IoT in some way, from waking up in the morning using an alarm clock that detects light, to buying oil or gas for the region. Business minds need to think about how normal activities can be made more practical using software or sensors that do not depend on humans to transmit a message. This is an exciting century we live in – it’s already happening, and this is the time to jump on board.” BA

“Learn, test and trial, and take the risk.” Edward Woods

BUSINESSAgenda | Summer 2016