Business Agenda Summer '17 by Malta Business Bureau

Agenda Business

ISSUE 31 Summer 2017 NEWSPAPER POST

The official publication of the Malta Business Bureau

Fired up – Can Government exceed last year’s economic growth in 2017?

In this issue: EU Affairs and Equality Minister Helena Dalli on what lies ahead FOR her new ministry and the highlights of Malta’s eU Presidency | As Brexit negotiations move forward, what challenges will the EU’s business community face? | Chef Michael Bradbury looks back on a 25-year career aboard the world’s most luxurious yachts | Latest Business & EU News

BUSINESSAgenda | Summer 2017

Cover Story

Government aiming for

6.5 per cent economic growth in 2017 With the electoral storm relegated to recent memory and a Labour Government re-confirmed by a large margin, the question is now whether the economy’s momentum can be maintained, and what the Government plans to do about it. Manuel Zarb speaks to Economy Minister Chris Cardona, MBB President David Zahra and Economist Gordon Cordina on the way forward.

overnment is aiming to achieve 6.5 per cent economic growth in real terms in 2017, whilst ensuring a surplus of at least 0.5 per cent of GDP, says Minister for the Economy, Chris Cardona. If achieved, 2017 will exceed an already exceptional year in 2016, when GDP growth reached 5 per cent. “The surplus achieved in the last four years gives the Government an opportunity to invest more in economic and infrastructural projects which will impact the lives of the Maltese. We will continue working to ensure that the economic results achieved will continue to grow and consolidate, increasing the number of quality jobs across all levels of society,” says the Minister. Dr Cardona goes on to establish the Government’s sectoral priorities for the coming years. “Going forward, we will be consolidating our efforts to continue promoting Malta as a centre of excellence in a number of ICT sub-sectors, such as cybersecurity, internet

and digital-based operation and big data. We will also be focusing on precision metal engineering and water management, whilst also targeting energy-efficiency projects. The advanced manufacturing and food sectors are also yielding positive results, and have potential for greater growth.” Speaking on the ease of doing business in Malta, where the country is still lagging, Dr Cardona acknowledges that there is a lot of room for improvement. “Besides the ease of starting a business, we are aware that a number of procedures are still bureaucratic. Government is committed to reduce these by another 30 per cent, which also requires a change in mentality of the way public service is delivered. The Minister asserts that Government will be setting up the Malta Business Council with the private sector, to act as a watchdog and ensure bureaucracy is reduced while increasing Malta’s competitiveness. A unit within Malta Enterprise to assist SMEs in setting up their business will also be established.

vative activities, typically carried out by micro firms.” Dr Cordina also identifies policy priorities for the Government to tackle. He asserts that a concerted effort should be aimed at the development of the global lifestyle hub concept for Malta over the medium term. Well-balanced and properly sequenced investment in economic, environmental, social, cultural and human capital are key to sustain quality growth. “In addition,” he continues, “economic strategies are needed to diversify within and away from overweight sectors, and away from excessive dependence on tax competitiveness. Opportunities from Brexit should also be exploited.” Malta Business Bureau President, David Zahra, meanwhile, asserts that the financial services and iGaming sectors are expected to remain major drivers of growth throughout this legislature. “The continued availability of specialised human resources, both developed domestically through a responsive education infrastructure and through the attractiveness of our island for

technical people from other countries, as well as the supporting corporate tax environment, will continue generating business in these sectors,” he asserts. “However, it would be a mistake to rest on our laurels with the success of these economic sectors. The new administration must focus its energy on ensuring further diversification of the Maltese economy, with the creation of new sectors focusing on areas characterised by research and innovation.” Dr Zahra also emphasises the need to improve the ease of doing business in Malta. He highlights that key priorities for business growth should include the introduction of mechanisms to improve ease of access to finance, and a sustained commitment to address over-regulation, which has skewed the way businesses commit human capital internally, snuffing creativity and business development. Speaking on the outcome of the general election, Dr Zahra believes the Government has been given a strong second mandate to continue delivering the political and economic pro-

“We will continue working to improve the business simplification exercise we started last year, wherein a number of administrative procedures that were prolonging the time taken to start a business in Malta have been eliminated or simplified significantly,” says Dr Cardona. “In fact, a business can now start its operations within one week from application, compared to the minimum three weeks which existed before.” Leading economist Gordon Cordina delves into the economic sectors which have done well in the recent years. “Recent growth was balanced between ‘new economy’ and ‘traditional economy’ activities. The newer economic sectors tended to be more volatile, while traditional sectors generally enjoy more stable growth. Between 2011 and 2016, gaming was the fastest-growing sector, accounting for more than 20 per cent of growth. The consumer and tourism sectors, as well as the professional and technical sectors, have also seen high growth. On the other hand, manufacturing was in decline save for a few pockets of inno-

“Going forward, we will be consolidating our efforts to continue promoting Malta as a centre of excellence in a number of ICT sub-sectors.” Chris Cardona

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Cover Story gramme it initiated in 2013, but its promise of good governance has left much to be desired.

“The new administration must focus its energy on ensuring further diversification of the Maltese economy.” David Zahra

“Over the past four years, Malta has experienced positive economic performance, and in this respect the outcome of the election is not surprising. Despite this, however, Government has fallen short of living up to its promise of good governance and strengthening the rule of law, and this has damaged Malta’s reputation and weakened Malta’s hand in defending policy positions that are strategically advantageous to it,” he asserts. “Government is expected to continue implementing the economic and social reforms required for the sustainability of growth and creation of more jobs. More so, it is expected to take immediate measures to strengthen our governing institutions and restore our reputation abroad.” In the near future, Dr Zahra continues, this administration will be tasked with negotiating Malta’s share of the EU’s Multiannual Financial Framework post-2020. “We recommend that Government develops a strong strategy to maximise on the opportunities that Malta can benefit from through EU funding, keeping in mind the economic support companies require in every stage of the business lifecycle, capital infrastructures for better traffic management as well as products to improve our tourism product, among others.”

Moving on to the financial surplus achieved by Government this year, Dr Gordon Cordina emphasises that it should be viewed within a context, alongside a number of key pressures to look out for. “Threats to sustainability stem from the high dependence of revenues to economic activity, and increasing ratios of welfare expenditure to GDP. The fiscal balance appears to be vulnerable to a downturn in economic growth.” Warning that the health of the economy cannot be taken for granted, he cautions that vigilance is required to maintain it. “Risks do exist, among them excessive dependence on individual sectors and firms, a slowdown in the housing market, ongoing restructuring of state-owned enterprises and activities, including air and land transport, and the public sector wage bill. On an international level, the uncertainties surrounding Brexit and EU-wide corporate tax reform are also significant.” However, he also highlights opportunities. “The availability of qualified individuals on the job market will further increase demand for office space, which rose by 48 per cent between 2011 and 2015. The development of niche markets, such as that for super yachts which is worth €150 million annually around the world, is another opportunity.” Minister Chris Cardona asserts that, in the past four years, Malta has attracted a record number of foreign projects, and the demand for industrial space is now greater than ever. “We are adopt-

ing methods in land allocation that are smarter and more sustainable to make the best of our limitations,” he explains. “In the coming months, works will commence on the regeneration of the Ta’ Qali Crafts Village, now branded as an Artisan Village. We will also be working to increase the capacity of industrial and manufacturing space within Xewkija Industrial Estate through the creation of a tech hub at the ex-MDP

site, together with the redevelopment of the Tal-Ħofra site that are currently being negotiated with the private sector. Another project in the pipeline is to promote Malta as a destination for start-ups. A lot of work has been done already, and we believe Malta can be successful if the adequate resources and set-up are available.” BA

“Well-balanced and properly sequenced investment into economic, environmental, social, cultural and human capital are key to sustain quality growth.” Gordon Cordina

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Interview

Of change, opportunity and

evolving new roles Minister for European Affairs and Equality Helena Dalli tells Martina Said about the primary achievements of Malta’s EU Presidency, Malta’s opportunities post-Brexit, and the challenges she faces within her newly-established Ministry.

fter six months of intense activity, June 2017 witnessed the culmination of Malta’s turn steering the Presidency of the Council of the European Union for the very first time. Locally and beyond our shores, the Maltese Presidency was hailed a success, but to what extent? Minister Dalli says the results speak for themselves. “The chief task of any Presidency of the Council is to lead discussions between EU governments, at various levels, and to negotiate draft laws with the European Parliament. I was very pleased to read the report by POLITICO which praised Malta’s ability to negotiate deals to push through legislation in dozens of policy areas. In fact, our Presidency has been one of the most successful in terms of the number of agreements it has brokered with respect to EU laws,” she asserts. The success achieved is down to the hard work carried out over the past four years in preparation for the Presidency, says Dr Dalli. “We owe a great deal of gratitude to the team that has been coordinating the Presidency in Malta as well as to our extremely capable officials at Dar Malta and in the various Ministries in Malta. I also believe that the Presidency attested to the esteem enjoyed by the Prime Minister and by our cabinet colleagues. This Government means what it says and everyone knows where she or he stands with us even in terms of our European policies.” The securing of a number of deals across many dossiers is one significant milestone achieved by the Maltese Presidency that Dr Dalli is proud of. On a personal level, however, she states “I was very happy that we convinced all member states to agree that the EU will sign the Council of Europe’s Istanbul Convention on preventing and combating violence against women and domestic violence, thereby reaffirming its leading role in ending violence

against women and tackling all forms of discrimination based on gender. All member states have already signed this Convention, but the signature of the EU as a whole will ensure greater complementarity between national and EU levels, and enhance the Union’s potential to play a more effective role in international fora.”

“Our Presidency has been one of the most successful in terms of the number of agreements it has brokered with respect to EU laws.” Moving on to her new ministerial responsibilities under the re-elected Labour Government, Dr Dalli admits that her ministerial portfolio is not entirely new to her, as she retained many of the responsibilities entrusted to her in the previous legislature, particularly those relating to equality, social dialogue and employment relations. “I am honoured that the Prime Minister has once again entrusted me with spearheading the Government’s drive towards equal rights for all. I am also proud that the first Bill presented to the newly-elected House of Representatives is the Marriage Act and other Laws (Amendment) Bill which, once approved, will amend the Marriage Act and other Laws such as the Criminal Code, the Civil Code and the Civil Unions Act, in order to ensure full marriage equality for all our citizens.”

Photo: Ray Attard Dr Dalli asserts that, although having the legal infrastructure in place for full marriage equality is a big step forward, equality does not stop there, and depends on other factors. “The Government is committed towards initiatives conceived in the previous legislature, such as the establishment of a fully-fledged Human Rights and Equality Commission based on the Paris Principles, which would also be autonomous from the Government and fall under the direct responsibility of the Parliament, just like the Ombudsman,” she explains. “In our electoral manifesto, we have also committed ourselves to a better representation of women in

decision-making, including at the highest levels, through a reform of the electoral law aimed at ensuring that more women are elected to Parliament.” A responsibility new to her portfolio, however, is European Affairs – a challenge Dr Dalli states she faces with confidence, “though fully aware that I am stepping into the shoes of Louis Grech who, together with Ian Borg, did such a great job which culminated in a highly successful Presidency of the Council of the European Union,” she asserts. “My first task was that of bringing the Presidency to a conclusion. Now, I am taking stock of the situation, including both

the structures in place, such as the Permanent Representation in Brussels and the EU Secretariat within my Ministry, as well as processes in relation to the way EU affairs are handled in Malta.” A development she’s satisfied with is the fact that MEUSAC now falls under the remit of ‘European Affairs’. “One has to see how this vehicle for social dialogue, recently established as a Government agency in order to provide it with a better standing, can play an even more important role not only in engaging stakeholders such as the social partners and civil society in the EU decision-making process

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Interview “It is important that at EU level we focus more on what matters to people and, moreover, strengthen our communication with citizens as we have tried to do during our Presidency.” locally, but especially in bringing the EU closer to citizens,” says Dr Dalli. “This was, after all, one of the main aims of our Presidency and something we shall be continuing to push for, particularly in the context of the debate on the future of the EU post-Brexit.” On the issue of Brexit, Dr Dalli reiterates what Prime Minister Joseph Muscat stated during his meeting with the MEUSAC Core Group, namely now that the MT Presidency is over, Government can be fully focused on Brexit. “The Government has set up a Brexit team which is also geared towards analysing the effects of Brexit on various sectors. Obviously, much will depend on the withdrawal negotiations themselves with the two sides having agreed to tackle first the matter of the rights of EU citizens in the UK and of UK nationals in the EU27 once Britain leaves the EU (the so-called ‘Brexit bill’), as well as the border issue, particularly in relation to Ireland. Once sufficient progress has been made on these issues, the EU and the UK will start negotiating the nature and scope of the future relationship

of the UK with the EU once it exits the Union.” Dr Dalli adds that, during the MEUSAC meeting, the Prime Minister had also announced that a task force with the private sector would be set up to see how to attract investment to Malta, and that through the MEUSAC structures, the Government would keep social partners updated on the ongoing ‘Brexit negotiations’. “It is important that an agreement is reached by March 2019, because otherwise EU law will simply cease to apply to the UK unless the EU Council unanimously decides to extend the two-year period stipulated in Article 50 of the Treaty on European Union,” she asserts. “In terms of trade, ‘no deal’ would mean that the UK would have to abide by World Trade Organisation rules which could mean the re-introduction of customs, checks and tariffs. Both sides have, however, expressed confidence that a deal can be reached. As stated by the European Commission’s Chief Negotiator, Michel Barnier, ‘for both the EU and the UK, a fair deal is possible and far better than no deal’.”

A consequence of Brexit, which poses a major challenge for the EU, centres on shaping the future of the European Union after losing the member state with the second largest economy. “In March, the European Commission published a White Paper on the future of Europe in which it presented five possible scenarios for the evolution of the Union. On 25 March, the Heads of State or Government of the 27 member states issued a Declaration in Rome in which they pledged to work for a Union ‘that is safe and secure, prosperous, competitive, sustainable and socially responsible, and with the will and capacity of playing a key role in the world and of shaping globalisation.’” Furthermore, Dr Dalli continues to stress the importance of the social dimension of the EU, noting that it is pivotal to re-connect the EU with its citizens. “Citizens need to feel that the EU is having a direct, positive impact on their quality of life. Hence, it is important that at EU level we focus more on what matters to people and, moreover, strengthen our communication with citizens as we have tried to do during our Presidency.” Throughout the Maltese EU Presidency, the Malta Business Bureau participated and collaborated on various projects, making its resources and European network available. Dr Dalli lauds its efforts, stating that the MBB “played a supporting role in several events that took place in Malta, and served as an intermediary between Maltese public officials and the European business

community through the MBB’s representation office in Brussels.” Such an alliance, she continues, reaffirms the Government’s commitment towards public/private collaboration. “I consider that this is the best way to ensure we are effective particularly within the EU fora. I will support initiatives that will seek to enhance stakeholder engagement as this provides the best guarantee that we maximise

all opportunities of our membership of the EU,” Dr Dalli concludes. “What the Prime Minister told social partners regarding a private-public task force on attracting investment to Malta in the wake of Brexit, is one concrete example of Government’s commitment. I am also willing to engage directly with all the relevant stakeholders, including the MBB, on how our collaboration may be further developed in the coming years.” BA

BUSINESSAgenda | Summer 2017

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

MBB CEO Joe Tanti

A great momentum for a deeper European Single Market Following the publication of the Single Market and Digital Market Strategies by the European Commission in 2015, a great number of legislative and non-legislative proposals have been published over the past two years that have gone through or are in the process of going through the scrutiny and approval process by the EUâ&#x20AC;&#x2122;s co-legislators, that is, Council and Parliament. The European Single Market has been established since the beginning of 1993, but nearly 25 years later, do we truly have one? In theory, yes. The free movement of goods, services, capital and labour are well accepted principles. For instance, the reaction of EU member states to Brexit was to preserve the Single Market, and keeping the four principles intact is an utmost priority. But does this mean that the Single Market is operating as such and is free of barriers? Certainly not. European manufacturers of products that are not subject to EU harmonised technical standards still encounter difficulties to put their goods on the market of other member states, as the mutual recognition principle is not functioning as it ought to be. This prompted the European Commission to revise the Mutual Recognition Regulation as part of its Goods Package that will be published in September this year. Services providers in Europe continue to be subjected to various administrative barriers when attempting to offer their services cross-border, both of a temporary nature as well as for per-

manent establishment. These were supposedly addressed by the 2008 Services Directive, but lack of implementation and lack of enforcement by EU member states forced the European Commission to come up with a Services Package that was published in January this year and is currently undergoing discussions at EU level. Capital markets in Europe are evidently still underdeveloped compared to the United States and other innovation-driven economies, such as Japan and Korea. The Capital Markets Union is another project that is gradually building blocks to facilitate cross-border investment and access to finance opportunities across the EU. The free movement of people is not only about citizens travelling in a Schengen area, but also the right for people to lawfully work in other countries, permanently or temporarily. This area is well regulated, but the Commission felt the need to intervene last year with the Mobility Package to revise the Coordination of Social Security Regulation and the Posting of Workers Directive respectively.

The Single Market also needs to respond to modern and emerging realities. The Digital Economy has been earmarked by some as the fifth freedom of the Single Market. Substantial work is taking place in this area on harmonising contracts for goods and services provided digitally, e-commerce, access to online content and a copyright framework. And a new dimension has emerged over the past few years, with the development of the collaborative economy, which is somewhat a reaction to the recent global economic and financial crisis. This has taken many by surprise, not so much for its innovative offerings and the use of digital technology, but by the extent it has grown in a relatively short period of time, exerting pressure on traditional business models and regulatory frameworks as we know them. Here the EU needs to find a balance as to how it manages the collaborative economy; between guaranteeing high-level standards of employee and consumer protection, and allowing sufficient space for such industries to

innovate and provide a wider offering to consumers. All in all, the European Single Market is a project in motion and through developments in the last two years it has garnered a good momentum. However, it is evident that for the project to be completed it requires not only proposals and agreements at EU level, but also strong implementation and enforcement locally. We can no longer tolerate a situation whereby everyone agrees that a single market benefits everybody in society, but then member states do not meet their responsibility nationally on issues they would have already agreed to at EU level.

Most of the topics referred to above were discussed at the Single Market Forum â&#x20AC;&#x201C; an annual event that was held in Malta this year on 19 June. As CEO of the Malta Business Bureau, and acting upon the invitation of the Maltese EU Presidency, I had the privilege to moderate this event. For more information on the outcomes of the discussions, I invite you to see a special report published on our website www.mbb.org.mt

Malta Business Bureau Cornerline, Level 1, Dun Karm Street, Birkirkara BKR 9039 Tel: (+356) 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, Sarah Micallef, Jo Caruana, Marie-Claire Grima, Manuel Zarb and Rebecca Anastasi Brand Sales Manager: Matthew Spiteri Brand Sales Executive: Amy Schembri Advertising Sales Coordinator: 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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Focus

Keeping it in the family With a considerable majority of Maltese businesses being family-owned and run, the issues of regulation and succession are finally being given their due importance through the introduction of the Family Business Act. But what exactly does the Act consist of, and what are the tangible benefits it will provide to a family business? Marie-Claire Grima learns more.

he family business in Malta is the motor of the economy. Although this may seem like a platitude, it’s an undeniable fact – as many as 98 per cent of all businesses in Malta are SMEs, and the vast majority are family-run, accounting for about 80 per cent of local jobs. However, their lifespan usually isn’t very long – due to a combined lack of succession planning and financial planning, many family businesses do not manage to transfer their family business beyond the second generation. Only around

20 per cent of family businesses in Malta have a robust, documented and communicated succession plan in place, a figure which is actually higher than the global average of 15 per cent. But when one considers just how much of Malta’s economy hinges on successful family-run companies, it’s undeniable that there’s a lot of room for improvement. Enter the Family Business Act, which is there to assist in the regulation of family businesses in Malta and their transfer from one generation to the next,

as well as encouraging businesses to improve their internal organisation and develop a succession plan for the longterm running of their business. “This new legislation has been designed after hearing the concerns of family businesses and listening to those who care about their future,” says Dr Nadine Lia, the Regulator for Family Businesses. She states that many small businesses fail not because of external forces such as competition or the economy, but because the owners fail to have a long-term plan when it comes to the future of the business. “It is not their success but their succession that is their Achilles’ heels. It is not their lack of creativity but their lack of discipline that fractures their governance. Therefore, the primary aim of the legislation is to encourage the regulation of family businesses, their governance and the transfer of the family business from one generation to the next.” Dr Lia says that one of the main challenges of the Family Business Act, which was drafted after endless research,

consultations with businesses, collation of statistics and discussions with stakeholders, was defining what a family business consists of. Creating the right definition entailed deep considerations on the core dimensions of what constitutes a family, looking at family logic, dimensions of family continuity, family values and family relationships and their business models. In the Act, a family business can qualify for registration if, in the case of a public limited liability company, the majority of the shares including the rights are held, whether directly or indirectly, by at least two owners who are family members within the same family, with at least one family member formally involved in the general governance, proper administration and management of the company. Following registration, family businesses will be eligible for benefits available under this legislation which include any assistance or relief granted in terms of the Duty and Documents Transfers Act, Malta Enterprise Act,

“It is not their success but their succession that is their Achilles’ heels. It is not their lack of creativity but their lack of discipline that fractures their governance.” Nadine Lia, Regulator for Family Businesses

Business Promotion Act and in terms of any other law as may be prescribed by regulation. “Registered businesses will also be able to brand themselves as official family businesses – something of a unique branding,” says Dr Lia. A company that certainly holds its family legacy dear is Smart Supermarket, one of Malta’s oldest establishments of the kind. Director Matthew Grech belongs to the third generation of the family. “My grandfather Carmelo Grech was something of an entrepreneur and was involved in a number of business ventures. In the early 60s, he founded the Smart Shirt textile factory which was later transformed into Smart Supermarket in 1981. He then passed the business on to his children, the second generation family members. Over time, a number of share transfers occurred resulting in the majority of shares held by two siblings, Lawrence Grech and his sister, Helen Ciantar. Today, the third generation members are also involved as directors within the company,” says Mr Grech. He believes that while no two companies are the same, be they family-run or not, family businesses tend to re-invest most of the profits of the company back into the business rather than paying them out through dividends. “Generally, this is the result of a culture of legacy and a commitment towards a long term vision,” Mr Grech says. “Another way family businesses are different is the way that they

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Focus bring about unique challenges with regard to succession; in part due to the unique dynamics of every family business and how these affect the succession process, and in part also due to the actual process of transferring the shares between family members and the various implications this may have, such as stamp duty on the transfer.”

such benefits since we have not yet started succession planning. When the time comes for our succession planning and implementation, the Family Business Act will make the process easier and less costly; with incentives such as reduced stamp duty on transfers and possibly with other available grants.”

Mr Grech asserts that the Family Business Act comes into play to ensure a proper and safe transition of the business with minimal disruption to the employees and families they support, business partners and ultimately the customers. “This legislation could also be an enabler for smaller, cash-tight businesses with a relatively high asset value to transfer the business, who may have otherwise not done so due to costs such as stamp duty.”

The restaurant and catering business is another arena where family-run businesses are prolific. One of these is the highly sought-after Tartarun, which opened its doors in 2009. Before that, it was a restaurant called Harbour Lights, which opened in the early 90s, owned by brothers Joseph and Saviour Schiavone. After a successful run of nearly two decades, Joseph saw that the restaurant had additional potential, so he bought his brother’s share, in order to be able to pass it on to his sons, James and Stephen, who transformed it into Tartarun. Tartarun was soon followed by its sister restaurant, a prestige dining project in Smart City called Wejla. Saviour and Joseph remained partners in the kiosk right opposite Tartarun, which is still named Harbour Lights.

“The benefits of the Family Business Act are truly appreciated and welcomed,” adds Mr Grech. “In all honesty, before the Family Business Act emerged, I hadn’t really thought about

“When the time comes for our succession planning and implementation, the Family Business Act will make the process easier and less costly; with incentives such as reduced stamp duty on transfers.” Matthew Grech, Director, Smart Supermarket

“Family-run businesses think long-term and are happy with a consistent small profit, rather than feeling pressured to make money as fast as possible,” says James Schiavone. “Reputation is given top priority, which tends to be noticed when handling complaints and compensation. There’s also consistency over a long period of time – if a family member runs the kitchen, although

the staff may change as the industry suffers from high turnover, the product remains the same.” “When seas get rough, a family-run restaurant tries to fight the storm as opposed to just closing and investing somewhere else. On a negative note, unless the family conducts itself professionally in certain areas such as distribution of work and salaries, tensions can lead to unnecessary litigation. However, having a good amount of family-run restaurants is ideal for the local restaurant scene as well as Malta’s tourist product. Preserving and motivating families to keep their business going is beneficial for both parties.” BA Find out more about the Family Business Act and how it can help your company at www.economy. gov.mt

“Family-run businesses think longterm and are happy with a consistent small profit, rather than feeling pressured to make money as fast as possible.” James Schiavone, Founder, Tartarun

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Case Study

FIMBank Launches

Digital Banking Platform Chris Trapani, Head of Cash Management and Senior Vice President

Chris Trapani, Head of Cash Management and Senior Vice President at FIMBank tells Manuel Zarb that the Bank’s recently launched digital banking platform, FIMBank Direct, is a key milestone in its journey, and is pivotal in maintaining its status as a trade finance specialist.

ince its inception in 1994, FIMBank has established itself as a leader in trade finance, factoring and forfaiting solutions, with a presence in a number of different financial and trading centres around the world. The Bank’s finance solutions are customer-driven and tailormade, aimed at optimising business performance and supporting growth with a result-oriented approach.

The Bank’s Head of Cash Management and Senior Vice President, Chris Trapani, is clear on FIMBank’s objective going forward. “The Bank’s goal is to build a strong and selected customer base by offering a specialised range of corporate products,” he says. “These are accessible through a secure digital banking platform, with access to international settlements in USD and other main currencies, local payments, term deposit products and dedicated foreign exchange/treasury services.” Asked how customers are catered for by the Bank, Mr Trapani explains that customer service is at the heart of FIMBank’s way of doing business. “The Bank’s strategy revolves around efficiently catering for corporate and individual needs, providing international banking support through a dedicated team of Relationship Managers and a specialised Helpdesk. We can provide business customers with immediate assistance for payments and evidence of transactions promptly, whilst also providing high value for same day, next day and bulk payments.” A key aspect in achieving this goal, Mr Trapani explains, is the Bank’s new digital banking platform, FIMBank

Direct, which is a core part of FIMBank’s strategy. “FIMBank Direct is geared to become one of our primary channels to cater for our customers’ international business needs. The system is set up for corporate activity, with the necessary security and authority levels, supporting a wide range of business activities. Through FIMBank Direct customers can transact using international currencies such as USD, in a similar fashion as that for local settlements.” FIMBank’s flagship system for local retail deposits, Easisave, is fully integrated within the FIMBank Direct platform. “Easisave customers will continue to benefit from a no FIMBank fees and charges framework, with the aim of growing this brand further into a European household name for deposits. Currently, Easisave Savings Accounts and Fixed Term Deposits are being rewarded with a competitive interest rate.” Asked about the security accompanying the FIMBank Direct platform, Mr Trapani asserts that measures have been implemented to ensure customers can tend to their banking needs in a secure manner. “Considering that FIMBank is a player in the international trade finance space, delivering a bespoke security framework is of utmost importance to settle internationally with efficiency and high security. Delivering such a framework is of high importance in maintaining trust with customers.” Mr Trapani emphasises that the Bank has invested heavily in the security component of FIMBank Direct, and the FIMBank CAM App is one of its innovations used to authenticate custom-

“FIMBank Direct is geared to become one of our primary channels to cater for our customers’ international business needs.”

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Case Study “FIMBank CAM allows customers to use FIMBank Direct without the need to hold a physical internet key or hardware token. It allows our customers to log in and perform transactions, anytime and anywhere.” ers and transactions on this platform. “FIMBank CAM allows customers to use FIMBank Direct without the need to hold a physical internet key or hardware token. It allows our customers to log in and perform transactions, anytime and anywhere. It also protects our customers from the most recent types of cyber threats, something which traditional tokens do not have the capacity for. Through this digital transformation, the Bank is set to provide a fully dedicated solution to corporate or individual customers demanding efficient service, international reach and dedicated support. Customers are able to transact and communicate in an authenticated fashion, accessing a wide range of deposit products, transfers and other requirements they may have.” Moving on to the Bank’s core business and typical client, Mr Trapani outlines FIMBank’s international credentials. “Being a trade finance specialist, the Bank’s target customer would be a corporate entity requiring international transactions and related activities. Our core pillars revolve around trade finance solutions including factoring, forfaiting and treasury.” Highlighting the Bank’s advantages as a key player in international trade finance, he asserts that FIMBank’s global set-up and wide correspondent network is able to deliver effectively for any international and national banking service. “We are supported by key global institutions such as Deutsche Bank and Commerzbank, who service us for our correspondent banking needs in various currencies, including USD and Euro. Through FIMBank Direct we are able to assist customers with their trade finance requirements, as well as their general banking needs. FIMBank is particularly geared towards high-value international settlements, and our digital banking platform is designed to support such services.” Mr Trapani offers a number of reasons why corporate customers should choose to bank with FIMBank. “FIMBank Direct offers robust capabilities geared towards wholesale and corporate banking, giving possibilities of immediate settlement opportunities for same day, next day and spot options. Authentication on FIMBank Direct allows customers to bank securely at the level required with peace of mind. This is complemented with competitive USD deposits for the short to medium term tenors.”

“FIMBank Direct offers robust capabilities geared towards wholesale and corporate banking giving possibilities of immediate settlement opportunities for same day, next day and spot options.” Corporate and wholesale banking services offered include balance view and management, the ability to book single or multi-currency payments, and access to statements and advices, while benefitting from competitive foreign exchange rates. The different types of multi-currency payments customers can make include SEPA, NonSEPA and internal FIMBank account transfers, he explains. FIMBank Direct, says Mr Trapani, is aimed at delivering a high value-added service advantage, designed to drive and support specialised businesses

in an efficient and cost-effective way. This will ultimately contribute to the smooth operation of the business entity or individual depositor. Whilst corporate customers are FIMBank’s primary target, a range of options are also available for individuals looking for a competitive retail banking solution. “Retail customers may open savings/current accounts and fixed term deposits at competitive interest rates, having access to a number of services offered through FIMBank Direct. Such customers will also benefit from a no FIMBank fees and charges framework,

where they are only required to place the minimum initial deposit during the account opening stage.” BA For further information visit www.fimbank.com/direct or contact the FIMBank Helpdesk on T: 2132 2102 or E: helpdesk@fimbank.com

BUSINESSAgenda | Summer 2017

Business Update Past Winners of the NESA Initiative 2016 Department of Contracts (Ministry for Finance), Mellieħa Local Council and Malta Business Bureau together with the University of Malta 2015 Malta Employers’ Association and Għajnsielem Local Council 2014 Malta Business Bureau and Naxxar Local Council 2013 The Malta Chamber of Commerce, Enterprise and Industry and Ħamrun Local Council 2011 The Malta Chamber of Commerce, Enterprise and Industry, and Victoria Local Council

Representatives of Dun Manwel Attard, Young Adult Education, Resource Centre, Wardija

2010 Junior Achievement (Young Enterprise) and Mellieħa Local Council

National Enterprise Support Awards 2017 Earlier this year, the Commerce Department in collaboration with the Policy Development and Programme Implementation Directorate within the Ministry for the Economy, Investment and Small Business organised the seventh edition of the National Enterprise Support Awards (NESA). These awards are not just a competition but are intended to foster more awareness of the importance of entrepreneurship both on a local and a national level.

he competition was divided into three sections. Section A was open to Local Councils; Section B was open to Ministries, Departments, Public Authorities and Entities and Public-Private Partnerships; and Section C was open to NGOs, Trade Unions, University of Malta, Professional Associations, Public and Church Schools, Public Educational Institutions and Business Organisations. A total of 10 applications were received across the three categories.

The Qormi Local Council won Section A with the initiative ‘Qormi, the City of Bread and Wine... and not only’. San Lawrenz Local Council was the runner-up with the initiative ‘Regeneration of the San Lawrenz Village’. The Mellieħa Local Council won a consolation prize with the initiative ‘Il-Mellieħa: Ħolqien ta’ Klima Pożittiva għall-Intraprenditorija’. The Contracts Department within the Ministry for Finance was the winner of Section B with the initiative ‘Facilitating Participation in Public Procurement’.

Section C was won by the Malta Employers’ Association with ‘The Maltese Business Story’ initiative. Dun Manwel Attard, Young Adult Education, Resource Centre, Wardija obtained second place with the initiative ‘Setting Up Our Social Enterprise’ while the Gozo Tourism Association won a consolation prize with the initiative ‘Entrepreneurship Awards – Life Time Achievement Awards’. Since the National Enterprise Support Awards serves as the national phase for the European Enterprise Promotion Awards, two of the competing projects were chosen by the Selection Committee to represent Malta at the European level. The two projects were submitted by the Malta Employers’ Association and Dun Manwel Attard, Young Adult Education, Resource Centre, Wardija. These two projects will now represent Malta at the prestigious European Enterprise Promotion Awards which will be held as part of the SME Assembly to be organised in Estonia in November 2017. BA

Representatives of the Malta Employers’ Assocation

BUSINESSAgenda | Summer 2017

Society

Life on the High Seas

Chef Michael Bradbury has toured the globe in super yacht kitchens – and has recently found his base in Malta. He talks to Jo Caruana about the perceived glamour and hard graft life aboard the world’s most luxurious boats.

ichael Bradbury excitedly chats about his 25-year career – he’s clearly very passionate about the decades he spent at sea and the many exciting places that his dynamic career path has taken him to. “It’s been an incredible adventure,” he smiles, “from the shores of Malta to far-flung destinations like Bermuda. I definitely saw and experienced more than I could have ever imagined as a chef on land.” So how did Michael end up leading a galley and living life on the high seas? “Well, it all started with a job interview back in the early 90s,” he reminisces, explaining that he got into cooking because he wasn’t very good at spelling – or any kind of academic schooling. “I was working as a contract catering manager when a colleague – who had left the company I was working with a few months earlier to take up a job on a cruise ship – called to see if I might be interested in doing the same. To be honest, I was quite fed up of my situation at the time and eagerly headed off to see if I could make the job mine.” It turns out that he could because, within weeks, he’d gained the approval of his new boss Captain Jack Waters and he was jumping aboard the Eugenia Costa, an old cruise ship that has recently been renamed the Edinburgh Castle.

soon headed off to tour the world, taking Michael with it. “I spent three years as a chef on that ship, and I loved the lifestyle,” he says. “But we were made redundant at that point, so I had to think of Plan B. That’s when I found myself in New York, and a friend suggested that I travel to Miami to chef on a super yacht.” The idea appealed to him, so he went from one side of the United States to the other in search of his next job. “I was down to the last eight dollars in my pocket with no job and no food,” he recalls. “It was definitely the scariest moment of my life and I had no idea what I was going to do – so I was lucky to have managed to get a job on a 40-metre motor yacht called ‘Inspiration’ later that same afternoon.” And so began his 20 years aboard super yachts. “I enjoyed almost everything about the lifestyle,” he says, explaining that he worked on around 30 yachts throughout his career – some for short week-long charters and others for longer. “The last yacht I worked on was called Samax, and I spent 10 years aboard cooking for the Russian owner. I must have loved it, as I wouldn’t have spent 10 years doing it if I didn’t!”

“I only had two hot plates and a baby Belling oven at my disposal but I had to ensure those men never went hungry.”

“When I joined it was being completely refitted,” Michael continues. “So the first few months were spent cooking for the crew of 280-or-so people. It was quite a challenge! I only had two hot plates and a baby Belling oven at my disposal but I had to ensure those men never went hungry. It was definitely a baptism of fire. We didn’t even have a lift on board, so we had to lower the lifeboats down several storeys just to get our food stocks up to the right deck. I look back on it as a ‘character-building experience’.”

Michael explains that cooking aboard a super yacht is very routine, with lots of responsibility when it comes to pleasing the owner, guests and crew on board. Every day would start at 6am when Michael and his sous-chef wife Maddy would get working on breakfast. After that he would usually head to shore to source ingredients – which could prove very challenging, especially in some of the more alternative destinations that they toured.

The Edinburgh Castle – which had, by now, been completely refurbished –

“The crew’s lunch would be served bang on the dot of 12, while our boss

Photo: Jan Zammit

BUSINESSAgenda | Summer 2017

Society “The most challenging aspect was coming up with the 800or-so exciting and differenttasting dishes needed to fill each season’s menu.” would want his three-course lunch at 1pm, followed by various snacks, crew dinner and the owner’s three-course dinner later in the day. Things would go on until around 9pm (on a good day!) and I would be in bed by 11pm so I could restart proceedings first thing the following morning,” he explains. “It was a gruelling schedule but one I grew accustomed to. I guess the most challenging aspect was coming up with the 800-or-so exciting and different-tasting dishes needed to fill each season’s menu,” he says.

Samax – a 20-year-old, 55-metre yacht that was bought for €60 million in the 90s – would spend two 120-day seasons at sea each year, with stints in Malta for maintenance. “That’s how I developed my relationship with Malta,” Michael continues. “When Maddy and I first came here we would stay in hotels. But we craved the normality of life on land, so we soon rented an apartment and, eventually, bought a home in Ta’ Xbiex. I have now been off the yachts for two-and-a-half years and have been enjoying ‘retirement’ – although I have

also started a business, Bradbury YCS, which sources provisions for super yachts here in port.” Now looking back on his 25-year ‘adventure’, Michael says that he wouldn’t change much about it – although he did miss out on much of the regularity of life, like weddings and christenings. “The best bit was getting to travel the world and seeing so many wonderful places. It is an exciting role, with lots of excess and some glamour that people might find hard to imagine – for instance we would often sail off with around €120,000 of produce

in the kitchen, including €300-perkilo cuts of beef. When you’re that rich you can have whatever you want at a moment’s notice!” he says. He does miss the sea sometimes and he hasn’t completely given up on the idea of heading back out to chef on the water. “But I have to say that it would take something particularly special to bring me out of retirement,” he adds with a grin. “Like a round-the-world tour or a particularly hefty pay cheque!” BA

“We would often sail off with around €120,000 of produce in the kitchen, including €300-per-kilo cuts of beef.”

BUSINESSAgenda | Summer 2017

Case Study

Raising Malta’s profile as a centre for innovation Malta has been highly successful in recent years at attracting different industries, but can it ever be a centre for innovation in itself? Marie-Claire Grima speaks to Stas Gayshan and Gor Sargsyan, the two keynote speakers at PKF Malta’s Blueprint for Innovation session, to find out more about what needs to change in order for Malta to become a hub for new inventions.

KF Malta held its first-ever ‘Blueprint for Innovation’ session on 28th June, with the aim of raising Malta’s profile as a research, development and innovation centre, following a number of visits by a PKF delegation to the Massachusetts Institute of Technology (MIT) and the Cambridge Innovation Centre (CIC), the latter managed by Stas Gayshan, to explore links to promote Malta as a potential business accelerator and Life Sciences hub for innovators, inventors and entrepreneurs. The session featured two blue-chip keynote speakers from Silicon Valley and Boston, USA. The first was Stas Gayshan, CEO and founder of Cambridge Innovation Centre (CIC) within MIT University Boston. CIC is an innovation hub which has managed to attract world class start-ups, which have proven to be very beneficial

Photo: Alan Carville

“I strongly believe that innovation is the future of the economy. There’s a constant hunger for problemsolving but you don’t get there without spending money.” Stas Gayshan

BUSINESSAgenda | Summer 2017

Case Study

for the US economy through the generation of premium jobs and its high value-added inventions – it was at CIC that Android co-founder Rich Miner built his unique Google Android software. The second speaker, Gor Sargsyan, is the CEO and founder of an enterprise called QBIT Logic, based in Silicon Valley specialising in quantum computing research.

network. “We want to help each city’s innovation ecosystem become stronger – the bigger and stronger the ecosystem is, the better it is for the world. We don’t know what the next big thing is going to be – it is building it that is the next challenge. What we want to do is stake a lot of bets, and work to make as many of the efforts as possible successful.”

“What we know about innovation today is that it happens at the intersection of interesting people and ideas, as well as the resources that can support them,” Mr Gayshan says. “The challenge for Malta is not ‘can we make innovation happen?’ but ‘can we make it stay?’ Unless resources are appropriately handled, Malta’s bright and talented people will soon find themselves on a plane going elsewhere.”

A company’s success or failure depends on many factors, including the inherent nature and services that the company provides, as well as the market

The role of the CIC is to help entrepreneurs scale their ideas, allowing them to take their projects to the world, and Mr Gayshan is curious about whether Malta can become part of CIC’s global

it is operating in. “If you’re running the world’s smartest coal-mining company in 2017, it doesn’t matter how well you run it because you’re operating in an ever-shrinking market,” Mr Gayshan says. “Companies that do well are the ones that are successful at re-inventing themselves. Look at Blackberry. It was one of the first smartphone companies and ten years ago, everyone had one. Look at who dominates the market nowadays – it’s Android and Apple; Blackberry failed to keep up and nowadays their stocks aren’t worth the paper they’re printed on. Look at Face-

“It’s a competitive world, and an idea needs different resources in order to grow beyond a thought. If someone is an innovator, they’re not necessarily a good businessman.” Gor Sargsyan

book – back in 2005, the question was whether it would ever be as big as Myspace! Except the people at Facebook, unlike those at Myspace, understood how people were using their social network and even anticipated their needs. A failure to understand how people are using your product and to adapt to the changes within the industry will sink your company.” Understanding and improving your product offering requires R&D investment, and for an aspiring innovation centre, Malta lags far behind in terms of the budget it spends on R&D. To Mr Gayshan, this certainly has to change – but it’s not a death sentence. “The genesis of Malta’s innovation problem is that its GDP has grown a lot but the innovation side hasn’t caught up yet. It’s a problem every country would like to have! That said, I strongly believe that innovation is the future of the economy. There’s a constant hunger for problem-solving but you don’t get there without spending money. Malta’s tourist economy will stay, as well as other sectors of the economy, but to actually participate in building the future, you need to fund new research, ventures, projects and ideas.”

“What we have learned in the US is that the bulk of new jobs come from new companies, companies which didn’t even exist five years ago. The best way to secure the future is to invest in the new – it’s just that you don’t always know what the new is. Some things will work, others won’t – there’s a high chance of failure, but the rewards are great. The big question is not whether innovation will be our future but what innovation that will be, and how much of a part does Malta want to play in that.” Meanwhile, in Mr Sargsyan’s home country of Armenia, encouraging and funding innovation has resulted in major rewards for the economy – 5 per cent of the country’s GDP is now generated by start-ups. “We’ve discussed with PKF what they’re trying to do in Malta, and because of the success we’ve had in Armenia, we’d like to share our experience and vision, connect talented people with key people from Silicon Valley and other international tech hubs. Who knows – maybe one of the next big innovators could be from Malta!” Like Mr Gayshan, Mr Sargsyan believes that innovation can come from everywhere, but also that it needs a steady hand to guide it in order to flourish. “It’s a competitive world, and an idea needs different resources in order to grow beyond a thought. If someone is an innovator, they’re not necessarily a good businessman. They need someone to guide them and deliver their idea to completion. If you don’t support and protect growth, an idea can easily be stolen and taken away.” “What we can do is provide some direction on what kind of research they can do. R&D has to be carefully directed so that the research can then be used productively, be it for existing companies or to launch new start-ups. We can mentor ambitious young entrepreneurs, connect them to investors, venture partners, and give them recommendations on how to move forward.” Mr Sargsyan’s specialty areas are artificial intelligence and machine-learning – working with quantum computing in order to solve problems faster. “When working with a software company, almost half of the budget is spent on finding and fixing problems in the soft-

ware – debugging. What we are doing is creating software that will automatically find and fix the problem. The technology learns by itself what the best solutions are, how to solve a problem in the most efficient way; it also suggests solutions. A team of 100 programmers can find and fix the problem in six months – our programme can do it in 20 minutes.” “Technology is moving in the direction of artificial intelligence and machine-learning – it’s a kind of new wave. In the future, lots of things will be automated. This is another reason why it’s so important for Malta to encourage, develop and nurture an entrepreneurial culture, building new things and finding creative solutions. When you have these resources at your disposal, the potential is unlimited.” BA PKF Malta, 35 Mannarino Road, B'kara. T: 2148 4373/2149 3041; E: info@PKFmalta.com

“The challenge for Malta is not ‘can we make innovation happen?’ but ‘can we make it stay?’ Unless resources are appropriately handled, Malta’s bright and talented people will soon find themselves on a plane going elsewhere.” Stas Gayshan

BUSINESSAgenda | Summer 2017

Energy Efficiency for Business and Industry Conference

t a conference held in Valletta on Wednesday 28 June 2017, the Malta Business Bureau and the Malta Chamber outlined their two-year commitment, through the Investing in Energy project and in partnership with The Energy and Water Agency, to foster an energy performance culture among SMEs in Malta.

Highlighting the project’s objective of bringing about real, tangible and measured change, conference host Joe Tanti, CEO of lead partner, MBB, stated that the project aims to encourage around 30 per cent of targeted medium-sized companies within manufacturing, wholesale, retail and import sectors, to take up energy audits. Of these, the project aims that around 50 per cent take up energy performance recommendations.

Hon. Joe Mizzi, Minister for Energy and Water Management, opened the conference stating “the cheapest form of energy is that which is not consumed. The Energy and Water Agency within the Ministry is not only launching incentive schemes for energy-efficiency measures but also creating the necessary awareness to drive investment in this area, and to make sure that all enterprises include energy auditing and energy-efficiency measures in their investment plans. It is essential that enterprises go beyond investments in renewable energy and concentrate more efforts on energy efficiency.”

Economist Bernard Mallia gave insights into the first such study by the Investing in Energy project. The study showed that a sample of 20 of Malta’s largest companies, which had undergone extensive energy audits as part of the Energy Efficiency Directive compliance, have invested just over €6.4 million in energy-efficiency measures for the coming two years. The investment has resulted in savings of over €1 million per annum.

Addressing attendees, Frank V. Farrugia, President of the Malta Chamber, explained “we believe that by mobilising and empowering businesses to act on energy performance, climate change can be countered, the economy can be stimulated, and social opportunities can be unlocked.” Dr Miriam Dalli, MEP, highlighted part of the EU vision. “A clean energy economy will provide an opportunity for ordinary people to earn more money, and it will also provide the chance for others to save money through conservation and energy efficiency. The positive significant impacts we can gain by moving towards energy efficiency and transforming our transportation system are there for us to achieve.” MBB Investing in Energy Project Manager Geoffrey Saliba outlined four key actions the project will take with businesses. These include offering energy audits, technical training workshops for staff, a B2B programme through which best practice businesses will coach relevant businesses interested in replicating their best practice, and economic studies aimed at guiding businesses and energy auditors. The project was launched in December 2016 and will run until November 2018.

The conference also featured presentations by ISO auditing trainer Ing. Joe Caruana, on what energy auditing entails, and from The Energy and Water Agency Senior Policy Officer Ing. Charles Buttigieg, on the authority’s experience with regards to industry’s energy auditing in Malta. Best practice case studies were also presented by representatives from RECA Plast from Italy and Philibert Savours from France, coordinated by STEEEP project leader Nicoletta Favaretto from EUROCHAMBRES, as well as from ALTERN LTD and MCAST.

The Investing in Energy project is run by the Malta Business Bureau in partnership with The Energy and Water Agency and The Malta Chamber of Commerce, Enterprise and Industry, with co-financing from the Regulator for Energy and Water Services and the Ministry for the Economy, Investment and Small Business. For more information contact Geoffrey Saliba on T: 2125 1719 or E: gsaliba@mbb.org.mt

BUSINESSAgenda | Summer 2017

MBB News MBB President, Dr David Zahra

Business Agenda News Updates 18-19th May INTERIM MEETING OF INVEST PROJECT MBB EU Funding Executive Marija Elena Borg participated in the first interim meeting of ‘INVEST – Financial and Forecasting Models for Entrepreneurs’, held at the Museum of Peace in Naples. The meeting served as an opportunity for the project partners to analyse and discuss the results of a survey on financial literacy, which had been specifically developed and disseminated by the project consortium in early 2017. Additionally, and based on this analysis, the partners took the first steps to develop an e-learning training model, with the aim of enhancing financial literacy amongst micro-entrepreneurs.

21st April MBB CEO INVITED TO SPEAK AT ECON SEMINAR

For more information on the INVEST Project visit www.investproject.eu or contact Marija Elena Borg, MBB Executive on T: 2125 1719 or E: mborg@mbb.org.mt

MBB CEO Joe Tanti was invited to speak on the first panel debate which focused on the challenges and opportunities for island entrepreneurship. He emphasised that in Malta’s case – an island with a small local market – entrepreneurs need to consider going international almost immediately if they would like their venture to thrive. On the issue of access to finance, Mr Tanti encouraged the use of online crowdfunding platforms through which entrepreneurs can access investors and backers from around the world.

The MBB thanks Dr John Vassallo, the former President, for his guidance, invaluable advice and utmost dedication throughout his tenure as President and Director of the Board. His commitment saw the organisation develop and increase its impact through advisory and strategic lobbying with the EU institutions. During the Annual Board Meeting, the MBB announced the new Board: Dr David Zahra as President, Mr Kyle Borg as Vice-President, and Mr Charles A. Zahra, Mr Mario Spiteri, Mr Reginald Fava and Mr Malcolm Jones as Directors. The MBB also thanks outgoing Director Mr Norman Aquilina who served on the Board for the past year.

24th May MBB AND UNIVERSITY COLLABORATE ON STUDY VISIT TO ALTARO SOFTWARE As part of the collaboration under the EU-funded Go&Learn Network, MBB and Malta University Consulting (MUC) organised a study visit for University students, at Altaro Software. Participating students were given the opportunity to not only tour Altaro’s offices and the more extensive working spaces of the Malta Life Sciences Park, but also learn about the inner workings of an up and coming Software Company.

This April, the Commission for Economic Policy (ECON) and the European Committee of the Regions (CoR) organised a seminar on ‘Developing entrepreneurship in insular areas: Challenges, opportunities and policy responses’. The event was held in Malta under the auspices of the Maltese Presidency of the EU to encourage and promote entrepreneurship and identify policy responses and practices to mitigate the risks faced by entrepreneurs located on the islands. The wider aim was to foster resilience, combat seasonality and stimulate the sustainable socio-economic development of island communities. The seminar was addressed by CoR President Markku Markkula and Chris Cardona, Maltese Minister for Economy, Investment and Small Business. Other keynote speakers included Marie-Antoinette Maupertuis, member of Corsica's regional authority and rapporteur of the draft opinion on entrepreneurship on islands, and Stefano Mallia, Vice-President of the Employers Group in the European Economic and Social Committee (EESC).

the opportunities it offers for our businesses and the economy in general.”

The objective of the Go&Learn Network is to bring University and Vocational Colleges closer to the business sector. On a local level, MBB and MUC are giving priority to companies and students linked to the EU-priority areas of Science, Technology, Engineering and Mathematics (STEM).

23rd May NEW PRESIDENT FOR MBB Dr David Zahra has been appointed President of the Malta Business Bureau. Dr Zahra graduated as Doctor of Laws at the University of Malta in November 2006 and founded David Zahra & Associates Advocates in 2011, after a number of years practicing with one of Malta’s leading law firms. David is actively involved in corporate M&A, financial services and corporate finance transactions, both locally and internationally. On his appointment as new MBB President, Dr Zahra commented: “It is with pleasure that I am taking on the role of MBB President at an exciting time for the organisation, but also during testing times for the European Union. I am confident that the MBB will continue to be a promoter of EU values, and looking to make the best of

BUSINESSAgenda | Summer 2017

MBB News of the European Alliance for Apprenticeships (EAfA), by highlighting some of its achievements and successes, while also looking at current challenges and the way forward. The conference was addressed by the Minister for Education and Employment, Evarist Bartolo who stressed upon the relevance of apprenticeships in today’s job market as an effective solution to several critical problems.

The second workshop will be held in Malta this September whereby the partners will conclude the creation of this new tool. The pilot DesignShots service produced out of the peer-learning exercises will later be tested by innovation agencies with a number of SMEs in each region. This will entail a company diagnosis regarding the design need of the enterprise.

The conference was also addressed by Dr Silvio De Bono, President of the Board of Governors at MCAST; Mr Detlef Eckert, Director of Skills, DG Employment; Professor James Calleja, Cedefop Director and Mr Arnaldo Abruzzini, Secretary-General of EUROCHAMBRES. Other stakeholders and social partners were among the guest speakers. On the eve of day one, Malta Chamber President Frank V. Farrugia signed a pledge with EAfA to collaborate closely with educational institutions such as MCAST to disseminate more information about apprenticeships amongst its members. The pledge was signed during a reception, held at the Exchange Buildings, commemorating the fourth anniversary of the establishment of the EAfA.

MBB CEO Joe Tanti represents EUROCHAMBRES at the European Commission Working Group on VET under the strategic framework of Education and Training 2020.

29th May MBB EU AFFAIRS MANAGER ADDRESSES INTERNATIONALISATION SEMINAR IN SKOPJE

19th June MBB CEO MODERATES SINGLE MARKET FORUM CLOSING CONFERENCE

MBB EU Affairs Manager Daniel Debono was invited by Western Balkan Chambers to deliver a presentation on SME Internationalisation services and practices provided in Malta. The seminar was part of a European Commission TAIEX capacity building programme that included participants from Chambers of Commerce representing Serbia, Montenegro, Bosnia & Herzegovina, Albania, Kosovo and FYR Macedonia. In his presentation, Mr Debono referred to the various services offered by the Malta Chamber, the Enterprise Europe Network and Trade Malta. He also reflected on the biggest challenges for the internationalisation of SMEs based in small economies such as Malta. Other speakers sharing best-practices were from the Promos Milan, the Czech Chamber of Economy, the Croatian Chamber of Economy, the Hellenic Union of Chambers and CBI Netherlands.

30-31st May COMMEMORATING FOUR YEARS OF EUROPEAN ALLIANCE FOR APPRENTICESHIPS MBB CEO Joe Tanti and Malta Chamber Head of Policy Development Andre Fenech participated in a high-level conference organised by MCAST in cooperation with the European Commission and the Maltese Presidency, entitled ‘4 Years of the European Alliance for Apprenticeships: celebrating success and looking ahead’. The aim of this event was to celebrate the first four years

13-14th June MBB PARTICIPATES IN HORIZON 2020 PROJECT WORKSHOP, LUXEMBOURG MBB participated in the first round of peer-learning workshops for the recently launched DesignShots H2020 project. Through the exercise, Design for Europe (DfE) partners – the Business and Cultural Development Centre (KEPA) in Greece, the National Agency for Innovation and Research (Luxinnovation) in Luxembourg and MBB (ambassador of DfE in Malta) – reviewed the various design-driven innovation programmes that currently exist in the respective partner countries. This kicked off the creation of a Design Options guide that is being developed by the partners and will be disseminated with innovation and business intermediary agencies to provide important tips and recommendations on how to support SMEs in bringing design to a strategic level and add ‘brand value’ through increased customers’ satisfaction. To achieve this, every specific design service should fit into the overall strategy of the company.

MBB CEO Joe Tanti was invited to moderate the Single Market Forum 2016/2017 Closing Conference entitled ‘Generating further momentum for the Single Market’. This event was organised as part of the 2017 Maltese Presidency of the Council of the European Union in collaboration with the European Commission. The aim of this high-level stakeholder conference was to provide an opportunity to note priorities for action on the Single Market especially for SMEs, start-ups and scale-ups and to look forward to continuing working for the implementation of the Single Market. Local entrepreneurs had the opportunity to share their experiences in relation to the Single Market. Marvin Zammit, Managing Director of Mighty Box, a Maltese gamer development studio start-up incorporated in 2014, outlined the challenges his company faces as a maturing start-up trading in the Single Market and worldwide. Managing Director of Evolve, Chris Busuttil Delbridge talked about the journey that his company has travelled throughout the past 10 years and his perspective on what he calls “the big world”. Finally, Dean Micallef, CFO, Attard & Co. Ltd whose origins date back to 1921, focused on the salient points associated with operating a group of companies in Malta within the context of promoting products and services beyond borders. Other keynote speakers included Minister for the Economy Chris Cardona, European Commission's Deputy Director General of DG Internal Market, Industry, Entrepreneurship and SMEs Irmfried Schwimann, Kristin Schreiber, Director – DG GROW, and MEPs Róża Thun and Marlene Mizzi.

BUSINESSAgenda | Summer 2017

MBB News May-July

MBB invited to speak on Sustainable Development at various events During the months of May, June and July, MBB Sustainable Development Manager Geoffrey Saliba, was invited to deliver presentations on MBB’s sustainable development portfolio at three local events, namely: MCAST’s National Water Conference; SOS Malta’s Business with a Heart workshop; and Paragon Europe’s Climate KIK ideation event. Mr Saliba presented MBB’s past and current achievements, primarily the EU Life+ Investing in Water project, the Voluntary Agreement initiative on energy efficiency for Non-SMEs and the Investing in Energy project launched last December. Throughout the presentations delivered, Mr Saliba depicted an overview of the key findings and experiences of each initiative. For more information, contact Geoffrey Saliba on T: 2125 1719 or E: gsaliba@mbb.org.mt

23rd June MBB PARTICIPATES IN EURONANO FORUM 2017, MALTA MBB participated in this year’s edition of EuroNano Forum, a three-day event which focused on how nano and materials technologies can strengthen competitiveness across all European industries. The discussion was also extended to framework conditions such as education, standards, regulations, IPR and safety issues, as well as entrepreneurship and industrial policy. The programme also included sessions on finance and funding through European and national programmes, in particular Horizon 2020, smart specialisation and public-private partnership initiatives. In its capacity as EEN service provider, MBB played a co-organiser role, supporting Malta Enterprise in the successful coordination of the international business to business (B2B) meetings held on Friday 23rd June.

ground in engineering and/or design, showed a lot of interest in the promising work area of Thought3D.

MBB CEO Joe Tanti and MUC Manager Alexia Pace Kiomall participated and reported on the project’s outcomes at the partners’ meeting held at ENAIP offices in Padova on 6th and 7th July. It was established that the project’s Final Conference will be taking place in Milan at the end of September 2017.

14th July DHL shares energy efficiency strategy with industry peers At a business breakfast held at The Malta Chamber in Valletta, DHL Country Manager Charles Schiavone shared DHL Express Malta’s experience about energy efficiency in Malta with business and stakeholder representatives. The event was organised by the Malta Business Bureau as part of the Investing in Energy Project, to share proven successful energy efficiency strategies with relevant businesses. Mr Schiavone explained that DHL Express Malta, an ISO 50001 and ISO 14001 certified entity, has just completed an audit on its 2016 energy performance. In 2016, it managed to increase its energy efficiency by 5 per cent over 2015, despite a 16 per cent increase in workload. Joe Tanti, MBB CEO said “DHL Express Malta adopted an entire strategy focused on maintaining energy efficiency while also identifying and tackling areas for improvement. Their strategic approach is worth emulating, and their altruism in sharing information is appreciated.” Apart from an energy management strategy focused on seven key areas, DHL Express Malta identified a rate of 13 per cent failed first delivery attempts for its residential customers. It then developed and trialled a system of drop-off boxes to improve customer service as well as reduce subsequent delivery trips. A trial in three localities proved successful, and plans are underway to increase

13th July LEARNING FROM THOUGHT3D As part of a number of initiatives under the EU-funded Go&Learn Network, the MBB and Malta University Consulting (MUC) hosted another educational event targeting University students. Thought3D, which is a local 3D printing start-up based in the Kordin Business Incubator (KBIC), was invited to present both the thought process behind its setting up, as well as the opportunities and challenges that the team has encountered throughout the last years. Emphasis was also made on ‘Magigoo’ – a 3D printing adhesive developed and produced by Thought3D with the intention of addressing a very common problem found in 3D printing technology. Participating students, particularly those with a back-

this to 9 localities. The trial resulted in 9 tons of CO2 emissions reduced – and the expansion is expected to increase this significantly. Commenting on these results, MBB Investing in Energy Project Manager Geoffrey Saliba said “many consider energy efficiency to focus purely on upgrades to equipment. Today’s case study achieved success by identifying the least efficient operations, and tackling them through product and process development. Energy efficiency is more than equipment upgrades – it is also business planning.” Attending business and stakeholder representatives raised several points in the following discussion, including the possibility of using night-time deliveries to alleviate traffic, and the use of electric vehicles to reduce pollution. DHL pointed out that Malta’s limited road infrastructure and traffic situation made road operations the least productive amongst its European partners, and consensus was wide that night-time deliveries for business customers is worth exploring, particularly in view of a worsening traffic situation. Amongst the challenges facing electric vehicles are range and battery life, particularly for vehicles carrying heavy loads for delivery. While technology is expected to overcome these barriers, the attractiveness of gas-power or hybrid vehicles was outlined as a potential bridging measure. Attention was also drawn to the importance, and demonstrated local success by implementing businesses, of digitalisation using software that analyses route and vehicle performance. Such software identifies changes which could lead to improved performance and route planning based on real-time information. This was widely agreed to be the way forward in the short term, with DHL revealing plans to use such software as of 2018. This Energy Efficiency Business Breakfast is the first of several that will be organised over 2017 and 2018 by the MBB as part of the Investing in Energy Project. BA

BUSINESSAgenda | Summer 2017

Case Study Photos: Jan Zammit

Photos: Inigo Taylor

St Thomas Hospital:

A New Class of Healthcare St Thomas Hospital in Qormi has quickly gained a reputation for offering some of the most cutting-edge care on the island. Jo Caruana meets members of the team to discover what sets this dynamic healthcare facility apart.

he provision of topquality private healthcare has become a priority worldwide. From those demanding medical procedures of the highest quality in their own countries, to others willing to travel overseas in search of the best treatment, giving rise to the growing niche of medical tourism, the bar has been raised.

Locally, St Thomas Hospital – which opened in Qormi earlier this year – is certainly leading the way. As one of the largest multi-disciplinary private hospitals in Malta, the team here has taken a holistic approach and has strived to create a patient experience that delivers excellence in medical care, comfort, safety and rapid medical services. “Our patients’ comfort is our utmost con-

cern,” says Ryan Buhagiar, a member of the top management team.

Calming and Comfortable

The hospital provides a vast range of services, and it has invested in pioneering medical technology and processes in order to attract leading doctors and surgeons from the NHS who are renowned in their field.

Angele, Ryan and their other sister Kristen – the children of well-known renal consultant and doctor Louis Buhagiar, who is now this hospital’s medical director – were intrinsically involved in the planning of the hospital. “We grew up watching our father in his clinic and, while it was very practical for his patients, we all believed it could be much more comfortable!” smiles Kristen, a doctor. “We’ve tried to make this a nice experience from the moment people walk through the door. Yes, it’s a hospital, but we wanted it to feel like a hotel lobby. All in all, we believe that this helps people feel more calm and comfortable, which in turn alleviates their anxiety and speeds up recovery.”

“As a private institution we understand that our patients do not only perceive outstanding care as the product of technology and procedures – it is the patient experience during the delivery of care that is equally important. We have committed ourselves to treating our patients with the utmost respect, courtesy, kindness and professionalism,” says Angele Buhagiar, who manages other aspects of care at the hospital.

“The patient’s experience is taken into consideration every step of the way.” It’s the little touches that patients, as well as supporting friends and family members, will notice and appreciate at St Thomas Hospital. Aside from the large, welcoming lobby and friendly staff, steps have been taken to improve other aspects too. The rooms, for instance, look more like hotel rooms than those usually associated with a hospital. They’re large and bright – and it’s actually only the bed that gives away that their real purpose is for convalescing and recovery! Everything else has been attractively tucked away into purpose-built panelling that conceals them, while the bathrooms are also spacious and modern. “Another highlight of the bedrooms is the space for visiting guests,” continues Ryan. “We understand how important it is for family members to stay the night when their relative is recuperating, so the rooms also have an armchair that transforms into a comfortable bed for the night. Of course, there are no set visiting times either, so they can come and go as they deem convenient.” And this approach doesn’t stop there – the patient experience is taken into consideration in other aspects, too. “Patients can listen to their choice of music when they’re having an x-ray, when they’re waiting for their operation to start, and even while they’re

BUSINESSAgenda | Summer 2017

Case Study

Surgical specialities at St Thomas Hospital • Endoscopy • Minimally Invasive Laparoscopic Surgery • General Surgery • Cosmetic and Reconstructive Surgery • Orthopaedic Surgery • Pain Management Surgery • Bariatric Surgery • Urology Surgery • Minimally Invasive Orthopaedic Surgery • Plastic and Reconstructive Surgery • Gynaecology

being anaesthetised,” Ryan says. “It’s just another way of ensuring they stay as calm and relaxed as possible.”

The Very Latest Technology

Services at St Thomas Hospital

Aside from patient experience and comfort, it is the provision of the very latest forms of treatment and care that drives the team forward at St Thomas Hospital. The three brand new operating theatres here have been built to the highest specifications and standards in the industry, and are equipped to undertake a variety of simple and complex surgeries. “Each theatre has been outfitted with innovative surgical equipment and technology, providing surgeons with the best instruments for open, orthopaedic and laparoscopic keyhole surgeries,” Angele says. “All of the surgical procedures are conducted with gold standard equipment and processes, by surgeons who love new and minimally-invasive procedures. Nothing is left to chance.” Plus, the hospital is completely digital, thus results are given quicker and images are crisper. “This also means that, while certain procedures needed to be done in the operating theatre

in the past, they can now be done on an X-ray machine, which is much less invasive,” Kristen says. “For instance, we can often carry out a virtual colonoscopy instead of an actual one, mean-

“We grew up watching our father in his clinic and, while it was very practical for his patients, we all believed it could be much more comfortable!”

ing there’s no need for anaesthesia and analgesics.”

A Complete Healthcare Solution St Thomas Hospital has been designed to offer a complete approach to healthcare. For instance, there’s a GP on call around the clock, so it makes for a convenient stop if you’re not feeling well and need an urgent appointment. Turnarounds are usually quick too – be it for minor day surgery or a major in-patient case, the team guarantees

fast and high-quality treatment within days, or immediate urgent treatment. “Across the board, we strive to ensure everything is taken care of in the best and most efficient way possible. The patient’s well-being is at the very core of everything we do,” Ryan adds. BA For more information, call T: 2148 2482 or visit www.sthmalta.com

• GP Services • Weight Loss Clinic • Family Medicine • Gastroenterology • Pain Management • Respiratory • Endocrinology • Ophthalmology • Rheumatology • Cardiology • Nephrology • Advanced Radiology • 128 Slice CT Scanning • 3D Ultrasound • Breast Clinic with 3D Mammography • General Surgery • Cosmetic and Reconstructive Surgery • Orthopaedic Surgery • Minimally Invasive Surgery • Endoscopy • Urology • Paediatrics • Minor Procedures • Diabetes Clinic • Blood Tests • Acute Care Clinic • Ear, Nose and Throat • Psychiatry • Psychology • Hypnotherapy • Smoking Cessation

BUSINESSAgenda | Summer 2017

Case Study

Experiencing a Lasting Legacy Since its inception in 2002, Heritage Malta has sought to safeguard Malta’s national treasures and make them accessible to the public, ensuring ‘a future to our past’. To this end, it has also opened its sites for special events and functions. Rebecca Anastasi speaks to Noel Zammit, the Head of Corporate Services and ICT at the agency, to find out more about what makes these venues unique.

Photo: Steven Psalia

ised. The majestic front courtyard at Vilhena Palace, now the National Museum of Natural History, just a few steps away from the main gate of Mdina, for example, was recently transformed into a reception venue, where guests enjoyed dinner under the stars, surrounded by more than 250 years of history. Other notable events organised at these sites include the Malta Fashion Week, hosted in 2016 at Fort St Angelo, and in 2017 at Fort St Elmo, as well as various theatrical productions, screenings, and concerts as part of the Malta Arts Festival, the Valletta Film Festival, and the World Music Festival. Smaller closed spaces, such as the Inquisitor’s Palace, the Malta Maritime Museum and Fort St Angelo, able to accommodate small- to medium-sized groups for meetings or dinners, are also available, as well as the stunning Grand Salon in the National Museum of Archaeology, which may also be used for conferences.

alking into the Grand Salon at the Auberge de Provence, now the National Museum of Archaeology in Valletta, is to step back in time and breathe Malta’s rich cultural heritage. The gilded panelling and wooden beamed ceilings tell stories of knights and knaves, grandmasters and squires. A past which seems long gone. But, is it?

Heritage Malta, the national agency for museums, conservation practice and cultural heritage, is committed to keeping this past alive. Created by the Cultural Heritage Act, which was passed in 2002, the entity replaced the former Museums Department and has since been on the front lines in the battle for protecting our cultural sites from the enemy within: time. Palaces, old forts and Neolithic temples demand endless skilled and expensive

repairs, exacerbated by the necessity of keeping the sites open, to be appreciated by current and future generations. “Safeguarding Malta’s cultural assets and making them accessible for the enjoyment of the public may be interpreted as contradictory aims since, sometimes, to ‘safeguard or protect’ an asset might mean to actually decrease accessibility,” Noel Zammit, the Head of Corporate Services and ICT at Heritage Malta explains. Yet, the agency is fully aware that these sites will not become dead spaces, unused and unwanted by people alive today. Indeed, “this diversification in the use of our properties has introduced new and different audiences to our cultural assets,” he says. A variety of venues have become living, breathing spaces once again. These include outdoor venues such as Fort St Elmo, Bighi and Vilhena Palace, where open-air events, ranging from concerts to product launches, have been organ-

“Providing such experiences means reaching our objectives of making our cultural heritage more accessible by using different approaches.” “Organisers want to impress their clients. Our venues are not ordinary, and we already hold years of experience within the field. By making these spaces available, we are also promoting Malta’s cultural heritage presented as a unique backdrop; something very few other venues can offer,” Mr Zammit explains. The conservation of these sites is key, Mr Zammit insists. In fact, “the rental of any museum or site is done via a contract that is specific to that location, including detailed terms and conditions with the aim of safeguarding the location and its usage.” All the necessary precautions are taken. For instance, no fireworks and no naked flame equipment are allowed in any of these venues, and, in some (such as the Grand Salon), food and drinks are prohibited. In the latter case, an alternative

Photo: Daniel Cilia

BUSINESSAgenda | Summer 2017

Case Study “Our venues are not ordinary and we already hold years of experience within the field. By making these spaces available, we are also promoting Malta’s cultural heritage.”

Photo: Daniel Cilia

adjacent hall, where refreshments can be served, is offered. With regard to the more sensitive sites, such as the Neolithic temples of Hagar Qim and Mnajdra, as well as Ggantija and Ghar Dalam, “the cultural heritage fabric of these attractions is never exposed to any large event,” Mr Zammit insists. Indeed, though some of these locations can be, and have been,

“The annual operational expenditure of Heritage Malta is staggering, approximately €12 million.” used as backdrops for photo shoots or filming, as well as more intimate events such as civil ceremonies, “every restriction and necessary precaution is considered when an event is organised,” Mr Zammit explains. Moreover, during such occasions, curators and conservators themselves are involved and everything is managed in line with the entity's policies. Keeping Malta’s national treasures alive and in the hearts of the Maltese is an expensive enterprise. “Protecting our cultural heritage is a very costly business that cannot rely solely on admission fees,” Mr Zammit says. The agency operates a conservation division for the training of conservators and scientists, and yet, there is no ring-fenced pot of state money which suffices. Indeed, the revenue generated from these organised events mainly funds the upkeep and maintenance of the sites themselves. “The annual operational expenditure of Heritage Malta is staggering, approximately €12 million. The central Government injects circa €5 million per year and the agency itself generates more than €5 million from admission fees. The rest is revenue generated

from business development, including the rental of these venues,” Mr Zammit explains. Indeed, “this is just one of the reasons why the entity has opened some of its sites for special events and functions.” The price for the rental of these venues varies. Heritage Malta quotes according to the nature of the situation, and the tangible and intangible costs and benefits of organising a specific type of event. “Hence, for instance, hosting a wedding at Bighi will not cost as much as hosting a concert,” Mr Zammit says. Rental charges of large open-air spaces vary from €2,000 up to €7,000, while for closed areas and small locations prices start from €350. While the entity also offers basic catering, equipment, office supplies and other standard facilities in the case of meetings and conferences, other ancillary services for larger events are normally organised by the client, allowing for flexibility. “Every type of event has different requirements and the agency strives to offer the best possible service without intruding in terms of what the client wants and needs for the special occasion,” says Mr Zammit.

The entity has ambitious plans to ensure accessibility to these sites and museums is developed further. Indeed, while the agency already attracts over 45,000 students per year to thematic events in its museums, the wealth of Malta’s heritage can now also be discovered digitally. The agency has already partnered with Google to launch virtual exhibitions, and the intention is to also provide alternative learning tools and online products to school children, at various levels, to develop their interest in Malta’s cultural legacy. Moreover, the entity is also organising events to diversify the types of visitors it attracts to the sites. “We are currently working on thematic dinners, during which we will offer a culinary experience. During these occasions, ingredients are cooked according to recipes of periods in history, and linked to the location where the dinner is consumed,” Mr Zammit says. Sixteenth and 18th-century menus are currently being offered at the Malta Maritime

Museum, and the aim is to replicate these unique opportunities at Fort St Angelo and Fort St Elmo, serving food inspired from different eras. “Providing such experiences means reaching our objectives of making our cultural heritage more accessible by using different approaches,” Mr Zammit points out. The past is invigorated, making us feel as if no time has passed at all. BA For more information contact the Business Development Department at Heritage Malta. Heritage Malta, Head Office, Ex Royal Naval Hospital, Triq Marina, Kalkara. T: 2295 4300; E: info@heritagemalta.org; www.heritagemalta.org/venues

BUSINESSAgenda | Summer 2017

Business Update “Together we’re better…” On Friday 30 June 2017, Grimaldi Group invited its business partners to come together and discuss the current business year at the first Grimaldi Lines Summer Reception, held at the new Giuseppi’s at the Salini Resort.

Reading Investor Sentiment There was an immediate need for a proper sentiment index about investments on the market. This gap has recently been narrowed with the BOV Asset Management Investor Sentiment Index. Launched last month, this Index is the result of a survey conducted among 300 local investors by MISCO International Limited. The first reading showed that Maltese investors have a preference for local investment, with a predominantly conservative risk appetite. Also, almost half of the respondents claimed to capitalise on Government stocks. On a positive note, over the past five years, younger investors joined the market. Most investors in Malta use an intermediary, namely a financial institution or consultant, with only 10 per cent having the confidence to invest without seeking advice.

As Mark Agius, Executive Head BOV Asset Management explains, “this index is a very important tool, not only for the investors, but for all stakeholders, including stockbrokers and insurance companies.” BOV Asset Management Limited is committed to conduct this research on a semi-annual basis, thereby enabling all key players to keep abreast of investor sentiment, and take necessary action. The BOV Asset Management Limited Investor Sentiment Index will definitely prove to be an important tool for stakeholders, to better understand the market, whilst helping us to design investment solutions that cater for market demand.

Philip Sammut, Director of Sullivan Maritime Ltd, the agents in Malta for Grimaldi Group, welcomed the guests and thanked them for their loyalty and commitment to the Group. Dott. Eugenio Grimaldi addressed the crowd and covered a number of different topics pertinent to the current atmosphere, giving prominence to environmental issues, where energy efficiency and emission control are the promoted strategy. He stated that only ship owners with a well-studied industrial plan and serious investment in new, modern and bigger ships can be successful in facing and exceeding these challenges. Dott. Grimaldi reaffirmed the Institutional and Social commitment of his Group to Malta. He

redefined the great connection the Group has with Malta by pointing out how proud they are to have been of service to the Government of Malta for these last 12 years through their EU – Regular Liner Shipping services that are backed up by modern Ro-Ro vessels guaranteeing a ‘Just In Time’ service all year round. Dott. Grimaldi then presented a commemorative plaque to all the business partners and thanked them for their continued loyalty and support. “We demonstrate in the last six years of service to Malta that we supported the market and all trailer operators through a sustainable and efficient growth,” he stated. “The trend of volumes from 2010 up to 2016 has increased by almost 60 per cent. We can easily say that Malta has always been free and as a result of the level of service offered, we grow together, making something possible. What 15 years ago was only a dream is today a reality. We made it and we can go further because together we’re better!”

The writer and the Company have obtained the information contained in this document from sources they believe to be reliable but they have not independently verified the information contained herein and therefore its accuracy cannot be guaranteed. The writer and the Company make no guarantees, representations or warranties and accept no responsibility or liability as to the accuracy or completeness of the information contained in this document. They have no obligation to update, modify or amend this article or to otherwise notify a reader thereof in the event that any matter stated therein, or any opinion, projection, forecast or estimate set for the herein changes or subsequently becomes inaccurate. Furthermore, past performance is not necessarily indicative of future results. BOV Asset Management Limited is licensed to conduct investment services in Malta by the Malta Financial Services Authority. Issued by BOV Asset Management Limited, registered address 58, Triq San Żakkarija, Il-Belt Valletta, VLT 1130, Malta. Tel: 2122 7311, Fax: 2275 5661, E-mail: infoassetmanagement@bov.com, Website: www.bovassetmanagement.com. Source: BOV Asset Management Limited.

Acumatica captures the key data that affects your project profitability In today’s fast-moving digital ecosystem, having all the necessary information that pertains to your business can be the most powerful weapon in your arsenal. This can be even more pertinent in professional services organisations. With everyone communicating digitally, and expecting to receive both insight and instruction at a moment’s notice, it’s paramount for companies to ensure that all critical project information is flowing through the right channels – both when it comes to employees as well as clients. Acumatica’s Project Accounting module centrally manages budgeting, billing and profitability for individual business initiatives involving multiple employees, tasks and materials. This ensures your communication with staff and clients is instantly made clear from the word go. Once the relevant project data is accounted for, and your plan is itemised in a way that you can both see

Irresistible Chablis

and account for with no confusion or ambiguity, you can get to what’s really important for your project to succeed and your business to grow. Let’s face it – project profitability is widely dependent on the proper management of deployed resources, the status of projects currently running, and the ability to efficiently process client feedback. Acumatica’s Project Accounting module provides a powerful 360-degree view of your customers’ activities, requests and projects, enabling your company to stay ahead of the competition. Learn more about Acumatica Project Accounting on www.computimesoftware. com/acumatica-project-accounting, or get in touch on T: 2149 0700; E: info@computimesoftware.com

The steep, rocky slopes that extend to the right and left bank of the river Serein are the birthplace to a long history. This is where the unique Kimmeridgian terroir, alternating marl and marly limestone, imbues Chablis with minerality and great freshness. These are vinous characteristics, envied and often imitated around the world, but never matched. Over the centuries Chablis has grown in reputation and built on its natural assets to become one of Burgundy’s great vineyards. 1959, the year in which William Fèvre declared his first crop, marked the birth of the domain. Descended from a family which had lived in the Chablis region for over 250 years, it was only natural that he set up as a winemaker with seven hectares of vineyards. Over the years the domain has acquired new vineyards in Chablis, all located in the historic terroirs. William Fèvre has become one of the biggest land owners in Chablis with 78 hectares of prestigious vineyard (of which 15.9 are classified as Premiers Crus and 15.2 as Grand Crus). Domaine William Fèvre works passionately to express Chablis’ terroirs, respecting the region’s environment and traditional practices. The team works throughout the year with care and precision to achieve excellence and reveal the true characteristics of each climate. William Fèvre has

put sustainable practices in place for growing in its vineyards and has obtained the ‘High Environmental Value’ (HVE) status. Two-thirds of the domain’s vineyards have been grown organically since 2006, with biodynamic methods in use since 2010. This 2015 Chablis wine has a fresh and expressive nose. It exhibits notes of lemon, apple and melon with accents of oyster shell and seashore. There are refined and precise medium weight flavours, particularly on the moderately long finish. The mouthwatering finish lingers well, echoing citrus and stone elements. Distributed by Red October Co Ltd. www.redoctobermalta.com.

BUSINESSAgenda | Summer 2017

Business Update

Electrifying the city High-load high-tech at

The new smart fortwo and forfour electric drive

Betsson Group in Budapest The Gizella Malom building that hosts the new Betsson Group office in Budapest was once a busy mill. Built in 1880, it miraculously survived the bombings of World War II. The outside doesn’t reflect the inside, though. The purpose of the new Betsson Office in Budapest is in no way manufacturing. On the contrary, within these walls state-of-the-art high-tech development will take place. Joakim Eriksson, Development Centre Manager for Betsson in Hungary, says “we are in the process of renovating and hiring. In a few months’ time this office will be fully-equipped and bulging with people. The core of Betsson Group is that we have great people. You need to be both smart and driven if you’re to work with our distributed high-load systems.”

With the perfect drive for the city, the smart electric drive range is emission-free and with sufficient range for all your daily trips. The smart electric drive models offer up to 160km of range for the city, once fully charged. That’s more than enough to be out and about all day without having to think about the battery. Discover the whole new range for yourself – without doubt you’ll be convinced of how much fun electric mobility can be. With full torque on tap from the very first turn of the motor and seamless

acceleration, the new smart electric drive range is more agile than ever – and virtually silent as well. The new smart electric drive range means no compromises and more fun than ever: the unique driving enjoyment that only an electric motor can offer. For further information, contact us on T: 2331 1138/142/110, visit the Kind’s Facebook page or showroom in Mosta Road, Lija.

The Electronic Leap of Faith

The main focus of the Budapest office will be back-end development of the joint Betsson Group technological platform, Techsson. Betsson is constantly pushing the technology platform to the next level, and Budapest will play an important part in this mission. The Betsson Office is on Tinódi utca, close to the east bank of the beautiful river Danube that flows through Budapest, dividing the city into two parts – Buda and Pest. Why did Betsson decide to set up an office in Budapest? “Budapest is becoming a tech hub. People here have a great engineering background,” Joakim affirms, and adds that moreover Budapest is very well-positioned in central Europe, close to everywhere. He doesn’t

As utilities’ providers around the world adopt a more electronic approach, ARMS Ltd is also positioning itself in such a way as to offer more E-services to its consumers, through new products and tools. The emergence of advanced technologies and the rise of ‘prosumers’ who consume energy, are changing the relationship between utilities and their users. In this climate, Malta’s utility billing company, ARMS Ltd, is proactively developing ways to improve the customer’s experience and satisfaction. ARMS is striving to change the general mind-set when it comes to bill payments. The company offers various forms of payment options and in recent years payments through internet banking

The increase in electronic payments came about following ARMS’ invitation to its clients to take advantage of a free Direct Debit service to manage their bills’ payments and of a 2 per cent discount (or a minimum of €3) on each residential bill when using this payment method. The Direct Debit facility offers customers peace of mind that bills are paid in a timely manner, thereby avoiding time-consuming queues. Take a leap into the digital future and apply now for both E-Billing and Direct Debit facilities through the ARMS portal smartutilities.com.mt. Both services will render your business more effective and efficient.

Betsson has more than 50 years of experience in gaming. From a single slot machine in 1963 to being listed on Nasdaq Stockholm and holding gaming licenses in 11 jurisdictions, Betsson has come a long way. “We’re multi-national, employing some 2,000 people from 48 nationalities in 12 locations across Europe. We’re a stable, successful company and we’re growing,” Joakim states.

The Malta Jazz Festival 2017 THE PROGRAMME Thursday 20th July (free event supported by Valletta 2018) City Gate Entrance, Valletta at 8pm Romain Pilon feat. Walter Smith III Pjazzu Teatru Rjal, Valletta Nadine Axisa feat. Rino Cirinnà and Stjepko Gut In front of Law Courts, Valletta Munir Hossn ‘Made in Nordeste’

and other electronic services have increased dramatically. Nonetheless, uptake needs to improve further. In June, with the aim of enhancing online services and communication, ARMS launched Electronic Billing. E-billing offers customers the choice of receiving bill notifications through their preferred email address (and via SMS if desired). E-billing guarantees fast, simple and easy services. Customers receive bills in their inbox, with 24/7 access to their account on a private and secure portal. Opting for E-billing also encourages both the organisation and its consumers to reduce paper use, thereby adopting an environmentally-friendly approach.

have to say that another perk is that Budapest is a beautiful city.

Friday 21st July Ta’ Liesse, Valletta at 8pm Joe Debono Trio Mark Guiliana Jazz Quartet Nicholas Payton ‘Afro Caribbean Mixtape’

The three-day Malta Jazz Festival, supported by the Valletta 2018 Foundation, features international performers and virtuosos in a unique setting. On-stage collaborations, instrumental masterclasses and workshops are some of the attractions to expect. For three days, visitors will be treated to the sounds of exceptional world-renowned musicians, with free events for all in the city centre on the first day. Artistic Director Sandro Zerafa says “the Malta Jazz Festival is reaching out. It is spreading its wings beyond Ta’ Liesse. Besides boasting a star-studded line-up featuring the best in contemporary jazz, the Malta Jazz Festival is branching out to Valletta’s streets and injecting creative energy in Malta’s growing jazz scene, in preparation for Valletta 2018.” The festival, like previous years, will include some of the most renowned international jazz artists such as Al di Meola, Antonio Sanchez and Mark Guiliana, as well as a Maltese lineup including vocalist Nadine Axisa, Carlo Muscat and Joe Debono.

Saturday 22nd July Ta’ Liesse, Valletta at 8pm Carlo Muscat feat. Burak Bedikyan Antonio Sanchez and ‘Migration’ Al di Meola ‘World Sinfonia’ – ‘Music of Di Meola, Piazzolla & Lennon-McCartney’ Ticket Prices €30 for a single day ticket – seated (VIP) €50 for a 2-day block ticket – seated (VIP) €20 for single day ticket – standing (free seating will be available) €35 for a 2-day block ticket – standing (free seating will be available) Visit www.maltajazzfestival.org for more information.

BUSINESSAgenda | Summer 2017

Business Update

PTL refocuses to specialised services PTL, one of the leading IT companies in Malta, has long been known as an end-to-end service provider, offering comprehensive solutions to its customers. In today’s world, however, the pace of change and the scale of IT services has demanded IT companies to specialise in particular verticals. At PTL, we recognise this shift, and we are increasing our focus to strengthen our thought leadership in two key areas – technical solutions and software engineering.

Rapid technological advancement is changing the way people live and work. It disrupts business processes, creates new expectations from users and offers new opportunities. Adaptability and a business ability to quickly refocus have been critical – both for IT companies seeking to evolve their offering and their customers who are striving to advance their organisations and reap benefits of technological change.

As from 1 July, 2017, we spun off the business analytics and business applications units to form two new independent companies – Eunoia and Stride Technology. The new business areas have been incorporated as new companies within Harvest, the Hili Ventures Technology Division. I believe that refocusing our resources to specialised areas will allow us to drive added-value and business benefit to our customers, giving rise to further innovation and additional opportunities across numerous sectors.

Air Liquide certifies Multigas plant operation Earlier this year, the gas giant Air Liquide carried out an audit of the Multigas plant as part of its analysis of its global partners. Air Liquide, a French multinational supplier of industrial gases, operates across 80 countries, with 67,000 employees running 433 large gas production plants. Air Liquide audited the Multigas plant, applying its expertise in plant management and customer supply chain continuity to Multigas’ processes. “The audit determined that Multigas is managed in a way that is consistent with the Air Liquide standards for quality and that Multigas has excellent in-house technical knowledge,” stated Michael Mifsud, CEO of Multigas, upon successful completion of the audit. Air Liquide went on to draw from its extensive knowledge base to provide recommendations for optimisation, and these are already well underway. Multigas is one of the first companies in Malta to supply atmospheric and special gases. Starting with the provision of carbon dioxide for breweries in 1926 and gaining experience across more specialised gases, Multigas now provides the

most complete spectrum of gases to the industry, along with complementary equipment and services. Applications of gases supplied range from hospitals (medical oxygen) to pharmaceutical production process (GMP nitrogen for inerting) to demolition projects (such as the dismantling of industrial plants and tanks with oxy-fuel cutting) to helium for balloons and carbon dioxide for effects at events and movie sets. Multigas has built essential bridges with international business such as ST Microelectronics. The multinational of French and Italian origins is a world leader in semiconductors that include components essential to smartphone manufacture. Multigas supplies ST in Malta with the industrial gases that are essential to its operation. Multigas also supplies various brands of welding equipment, professional hand tools, oxy-fuel welding equipment, accessories, consumables, tools and safety equipment. Visit www.multigas.com for more information about the company.

A scientific approach to skincare Dermo-cosmetics (or ‘cosmeceuticals’) are skincare products with bioactive ingredients that combine a cosmetic action with a dermatological one. Dermo-cosmetics originated in France and spread initially throughout Europe, which explains their historical predominance in these mature markets. The worldwide dermo-cosmetics market is still very young and is developing fast. The sector has doubled in just 15 years, jumping from 2.2 per cent to 4.4 per cent of the global beauty market. Western European markets represent 60 per cent of the dermo-cosmetics market and 22 per cent of the total beauty market. In Malta, doctors and pharmacists have been recommending dermo-cosmetics with increasing frequency to patients and clients with various skin types and conditions, since their introduction over 20 years ago. Dermatological expertise, rigorous clinical studies, and continuous product testing combined with a commitment to discover and develop new active ingredients ensure that consumers are provided with superior products renowned for their simultaneous high efficacy and extreme tolerance. Research, cutting-edge technology, and a constant drive for innovation are key. This is what truly differentiates dermo-cosmetics from other cosmetics.

This scientific approach to skincare makes dermo-cosmetics the first choice for dermatologists, pharmacists and consumers alike to either manage a variety of skin conditions such as dry skin, eczema and acne, or to prevent sun damage, wrinkles and hyperpigmentation. As a consequence, most dermo-cosmetic brands in the market are only available in pharmacies, so that consumers are offered a pharmacist’s expert advice to ensure the best possible use of these products. Back in 2004, Prohealth introduced the ‘dermo-cosmetic’ concept to Malta with the launch of La Roche-Posay in pharmacies, and followed this with pharmacy-exclusivity for another international market leader VICHY in 2007. The company’s highly trained, professional La Roche-Posay and VICHY teams, share their expertise with doctors, pharmacists, and consumers alike, to ensure that people’s quality of life is significantly improved thanks to the best possible use of these remarkable dermo-cosmetic products. Prohealth Ltd, Mdina Road, Zebbug. T: 2338 5000; Fb: Facebook.com/prohealthmalta

BUSINESSAgenda | Summer 2017

EU Policy

The Business of

Brexit As Brexit negotiations continue, Jo Caruana looks into the challenges and opportunities faced by the EU’s business community.

first phase of the negotiations on the withdrawal Treaty. The future relationship between the EU and the UK will be left to a second phase.”

ollowing the UK’s snap election in June, Brexit is now marching on and negotiations are ongoing. Thus, all eyes are on the UK and the EU to see how talks will keep evolving and what the outcome may be. Currently, discussions are still in the early stages, with countless elements still to be determined.

“So far the EU has emphasised the need to settle two main questions before anything else,” explains Dr Peter Agius, a senior European official and former Head of the European Parliament Office in Malta. “Namely, citizen rights and the financial settlement of

Peter Agius pending UK obligations with the Union. These factors are set to dominate the

Dr Agius explains that, more recently, terminology used in the earlier stages has been softened and toned down. “Both sides are more cautious and open to discussion,” he believes. “Their positions on citizens’ rights are getting closer, even though more efforts will be required.” However, he stresses that what’s next is one of the most delicate issues of a consensual separation: money. “We need to come to a common-

“Theresa May faces a very delicate job of securing a fair deal with the Union while being able to present it as such to the British voters.” Peter Agius

BUSINESSAgenda | Summer 2017

EU Policy ly-agreed account of the pending financial obligations undertaken by the UK during its EU membership and find a way to liquidate these obligations,” he explains. “The EU has presented its negotiating position on this together, with a method to calculate the related financial settlement. The UK Government has not yet detailed its position on the matter and unofficial settlement figures vary from €20 billion to €100 billion. “It is needless to say that, apart from the financial brunt on the British exchequer, this question has a significant political dimension. With the leave vote resting largely on claims of the British taxpayer saving his pound to the Union to put on the NHS, UK Prime Minister Theresa May faces a very delicate job of securing a fair deal with the Union while being able to present it as such to the British voters. That might be a contradiction in itself.” Speaking about how the business community is reacting to all this, Daniel Debono, EU Affairs Manager and Head of Brussels Operations of the Malta Business Bureau, explains that the MBB is following proceedings very closely. “As a rule, the business world obviously prefers to operate in a stable environment and with no political or economic uncertainty, so the speculative environment over the past year was not an ideal one,” he says. “Matters could have been dealt with in a better way for the sake of businesses on both sides of the channel trading with each

“Brexit won’t be an easy ride, but despite the uncertainty and many challenges it will create, I have faith that businesses will be able to find solutions and adapt to the new reality.” Daniel Debono

other, as well as those that form part of an integrated value chain.” To start with, Mr Debono believes last year’s referendum result took the UK government by surprise, which is why it took nine months for Article 50 to be triggered. “During this time both parties went through a process to understand the real implications of Brexit on the different policy areas, and all based on the scenario the UK would opt for,” he says. The options range from retaining access to the European Single Market, to becoming part of a Customs Union, to negotiating a comprehensive trade agreement, to simply operating within the framework of World Trade Organisation rules. “The UK ultimately indicated it would opt for a comprehensive trade agreement, similar to the one that the EU just concluded with Canada (CETA), and at most going further to cover areas such as security cooperation,” Mr Debono explains. “It has taken a long time to reach this conclusion but, while not the best solution preferred by busi-

nesses accustomed to the current level of integration between the EU and UK economies, it now allows us to analyse what challenges lie ahead.” When it comes to the business-centric chapters of the Brexit agreement, these will largely be determined in the final stages of negotiations. As Dr Agius explains, this is giving rise to some medium-term uncertainty for businesses. “Falling short of free movement, we will need to explore a variety of possible arrangements,” he says. “I am convinced that there will be goodwill on both sides to guarantee the best possible access to markets, however, no arrangement can be better than the Single Market and full membership. The reason for this is that, whatever arrangement agreed upon with the UK, there will be new costs and hurdles to address as a result of the lack of automatic mutual recognition and the lack of regulatory convergence that was guaranteed within Union membership.” There will no longer be one law

applicable to businesses on both sides, but instead two laws with possible differences to take into account. Plus, businesses in the UK (in particular) will lose influence in amending EU laws prior to their adoption, as the UK will no longer be part of the Union machinery. Nevertheless, it’s important to look positively on what the outcome of Brexit could be for business, and how to face it. “Business is, in its very nature, geared to face crisis mode situations,” Mr Debono asserts. “This is part of a business lifecycle – even in times of prosperity, companies need to keep developing, innovating and remaining agile so they can respond to circumstances around them that could have negative implications. This does not mean it will be an easy ride but, despite the uncertainty and many challenges Brexit will create, I have faith that businesses will be able to find solutions and adapt to this new reality.” That said, businesses should prepare for any outcome. “Negotiating a comprehensive trade agreement is extremely complex and takes many years; more than the time left before the two-year period allowed by the Treaty for the UK withdrawal to take place expires,” Mr Debono says. “As the clock is ticking, a cliff-edge scenario is very real. There are solutions such as adopting a transitional agreement to prolong the EU’s acquis communautaire whereby the current rights and obligations would be prolonged. However, this would only

come about if EU member states unanimously approve such an arrangement, and under very specific terms and conditions. Considering these circumstances, an understanding by businesses of the implications of a non-agreement and a cost-analysis for that eventuality should be made in advance.” Mr Debono believes that “it is in the interest of both the EU and the UK to pursue mutually-beneficial relations and to create a level playing field. The UK withdrawal from the EU must be smooth, and negotiations should be led in a true spirit of partnership and mutual commitment.” BA

Daniel Debono

BUSINESSAgenda | Summer 2017