Business Agenda Issue 33 by Malta Business Bureau

Agenda Business

ISSUE 33 Winter 2017 NEWSPAPER POST

The official publication of the Malta Business Bureau

Maintaining Momentum: What will 2018 hold for Malta? In this issue: Leader of the Opposition Adrian Delia on Maltaâ&#x20AC;&#x2122;s priorities for sustainable growth | Following a European Commission initiative, how can apprenticeships contribute towards a better-skilled European workforce? | The classiest corporate gift ideas for this festive season | Business & EU News

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Cover Story

The factors shaping

Malta’s economy in 2018

Malta’s economy has been growing at breakneck speed for several years now, but failure to address broad key issues could mean a marked slowdown and a loss of momentum across all industries. Marie-Claire Grima asks the experts what the main factors at play will be in 2018.

he past few years have been full of reports about the strength and power of Malta’s economy, fuelled by record tourism figures and the powerful and nimble services industries, as well as lucrative but controversial elements such as the Individual Investor Programme (IIP), and most signs indicate that guided by a steady hand, it will continue apace in the years to come. However, despite generally positive reviews, the recent unfavourable events in Malta demand some reflection upon what the outlook for 2018 will be.

Economist Bernard Mallia, CEO of Equinox Advisory, says that the economic outlook for Malta for 2018 looks positive in terms of unrealised economic growth potential and scope for further expansion of business activities for the coming year, but warns about the dangers of becoming complacent. “It needs to be said that economic growth is not automatic, and that this positive outlook is not without downside risks, especially in the light of recent happenings, particularly the international damage to Malta’s reputation, how footloose the industries that we have come to depend on most are, and how badly these industries require to be domiciled in a reputable jurisdiction.”

“Malta needs to be more proactive than it is at the moment,” he continues. “Indeed, much more needs to be done to ensure that while things are going well, as a country, we manage to implement the necessary reforms and to gain the efficiencies necessary to strengthen Malta’s selling points other than its favourable taxation regime, as these are likely to become more important competitive advantage drivers as time goes by.” Mr Mallia argues that in Malta, a twospeed economy has developed over the past decade, with some sectors gaining unprecedented momentum and with others having lost steam to become somewhat stagnant after cyclical activity patterns are accounted for. “Business sentiment seems to differ quite significantly from industry to industry according to Eurobarometer industry surveys. The services industry clearly leads the way with an unabatedly buoyant outlook, followed by the retail industry, which with some minor exceptions, has also been consistently buoyant throughout the last three years. The manufacturing industry, on the other hand, seems to be character-

ised by duller long-term prospects, but its short-term outlook is positive as it is going through the upswing part of the cycle. Tourism is also in for a good year, as is the construction industry which has been in upswing since September 2014. While there is an expectation for the financial services and the remote gambling sectors to continue leading the pack in 2018, it is still too early to assess with accuracy the true extent of the damage that recent events have had on the services sector.” Mr Mallia adds that growth and sustainability are no easy bedfellows, where in order for growth to be sustainable, it needs to take place without actually jeopardising future growth or quality of life prospects. “When economic growth occurs at the speed at which it is occurring at the moment and the framework in which it occurs is not fully equipped to deal with it, bottleneck problems tend to develop, and if nothing is done about them, they usually end up stifling future economic growth, quality of life levels or both. If Malta is to continue writing its economic success story without becoming a victim of its own success, it requires a major

“When economic growth occurs at the speed at which it is occurring and the framework in which it occurs is not fully equipped to deal with it, bottleneck problems tend to develop.” Bernard Mallia

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Cover Story pean Council has had on Malta’s tourism affirmed the trend towards the strengthening of the hotel sector on the back of consistent growth in Malta’s tourism numbers,” he says. “Malta’s increase in flight connectivity is one of our recent successes. This year, the Ministry of Tourism has publicly communicated the establishment of various new routes from Malta. This is the foundation for successful tourism. The more connected you are to towns and cities, the better the chances of increasing the success of a country’s touristic attraction. The other aspect is spreading into new markets. This is a positive strategy Government has also embarked on this year. In fact, Air Malta is being used positively to further increase the sustainable level of our tourism growth.”

“The biggest challenge is that we are at a crossroads – further growth or the sustainable development of the sector? It is important to focus on further strengthening the current markets, but it is equally important to open Malta up to new markets such as India and China.” Andrew Agius Muscat

rethink of how it is dealing with the bottlenecks that economic growth has given rise to and it must do so fast, while ensuring that the international reputation it has always enjoyed is not tarnished any further and is eventually restored.” On the upside, there are several industries that Malta could try to develop, he asserts, and goes on to identify three potential winning horses for the next decade, namely “geoengineering research, which could make Malta a world leader in an area that is likely to increase in importance as time goes by; software and content development, an industry in which Malta has managed to make inroads in the past and recently with blockchain; and life sciences research, where the infrastructure is already in place but is not yet being fully capitalised on and politically championed,” says Mr Mallia. “It must be said that, as a matter of principle, a country the size of Malta needs to strike the right balance between diversification and specialisation. Too much diversification will dampen the economies of scope of an industry that a country the size of Malta might try to attract, whereas too much specialisation in a restricted area can be extremely risky if the area fails to materialise or anything changes within that area to make the industry obsolete.” On the tourism front, Andrew Agius Muscat, CEO of the Malta Hotels and Restaurants Association (MHRA), believes that the outlook is a positive one, with Valletta’s holding of the European Capital of Culture title expected to contribute to the further success of Malta’s formula. “The results of the BOV Deloitte study that we recently conducted to research the impact that this year’s Presidency of the Euro-

This said, Mr Agius Muscat adds, Air Malta remains a challenge – and the fact that it is so, proves just how important it is for our tourism sector as there is a clear and direct correlation between its contribution and the success of Malta’s tourism sector. “Air Malta should also give priority to the culture within the organisation – employees and managers alike should all be aware that this is not a political organisation and nor is it a club. Air Malta is an important operation for Malta which functions in a dynamic market and is sensitive to changes within the market. It is unacceptable for unions to be fighting against each other, creating unnecessary problems that could get in the way of its success. In this respect, everyone should be on the same page and pull his own weight.” Sustainable development also needs to form part of the conversation, says Mr Agius Muscat. “The biggest challenge is that we are at a crossroads – further growth or the sustainable development of the sector? It is important to focus on further strengthening the current markets, but it is equally important to open Malta up to new markets such as India and China. The MHRA has contributed to this by creating a Mediterranean Diwali festival in collaboration with the Birgu Local Council, that is targeting the Indian market and attracting the Indian community living in Europe – in particular the UK. From a macro perspective, we definitely need to have a vision. Where do we want our country to be in 50 years’ time? If we set this benchmark we can start to work backwards, and this can dictate the necessary infrastructure. We need to have a clear, long-term vision.” In the case of the proposed Paceville master plan, he adds, the MHRA’s suggestions have been taken on board and are being reviewed. However, a master plan is needed for all the different regions in Malta and Gozo. “We have to remember that Malta is our tourism zone, not just Sliema or Valletta. Nowadays, visitors are exploring other parts of Malta which were not as popular before. Making otherwise unconventional places around Malta attractive is a way to spread the impact and the economic benefit, b u t that

“Surveys indicate that sales, exports, employment and investment appear to be on an upward trajectory as businesses are optimistic about their future.” Kevin J. Borg needs to be managed sustainably. It can also become a headache for the Maltese people who are living in these relatively quieter areas to have such an influx of visitors, so it is important that we maintain the authenticity of what is now making these areas attractive and take care of the local residents. It is only this that can provide an equal, positive contribution to the citizens across our islands. If we risk getting lost in firefighting and get ahead of ourselves because more tourists are visiting, we risk seeing the bigger picture and will end up by getting lost in the woods.” Kevin J. Borg, Director General at The Malta Chamber of Commerce, Enterprise and Industry, cites surveys conducted by the Malta Chamber indicating that sales, exports, employment and investment appear to be on an upward trajectory as businesses are optimistic about their future; and another survey showing that businesses were ready to create around 3,000 jobs in the next three years. “Within this context, the country has in the past years struggled to generate the necessary labour force to keep up with this accelerated rate of growth. Skills gaps across virtually the whole economic spectrum and employment categories are becoming more and more evident as labour costs are on the rise. This is expected to remain the primary challenge for businesses in 2018. We also need to keep our eyes on the ball and safeguard all aspects of our country’s competitiveness. Systematic attacks on Malta’s reputation and its

fiscal regulatory framework need to be dealt with too. This framework is open and transparent as it is EU compliant and it is our duty to defend it.” 2018 will also be the year when the EU’s state aid regulations will be up for renewal, a process which the Malta Chamber has followed closely and is in the process of actively influencing to the benefit of the manufacturing industry, Mr Borg asserts. He adds that acute traffic problems in Malta are increasingly becoming of serious concern to the Malta Chamber and the business community, and will continue to be major challenges in 2018 and well beyond. “The general inadequacy of the island’s infrastructure to sustain such rapid growth in population and activity is in certain cases applying breaks to the country’s economic growth. Traffic in Malta is already costing the country €274 million a year, increasing to well over €300 million by 2020. A modern multimodal transportation infrastructure has long been recommended as the most viable option for the country to cater for the increasing number of people that need to transit across all parts of the island on a daily basis.” The Chamber believes, Mr Borg asserts, that the National Development and Social Fund established through the Individual Investor Programme (IIP) would be put to the best possible use if it were to finance the crucially important and well-overdue strategy to shift towards a sustainable and effective multimodal transportation system.

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Cover Story “We are in fact very interested to learn more on the Budget-announced Authority that will be entrusted to manage this mammoth project,” says Mr Borg. “Traffic congestion, and the many costs it leads to, may only be mitigated once people are given effective, reliable and efficient alternative modes of transportation to consider, thereby reducing the number of vehicles on the roads.” Mr Borg concludes that ultimately 2018 promises to be another exciting year. “Like the European Presidency this year, 2018 will see Valletta

“One area which will certainly be affected by this cut in the EU’s budget is the allocation of structural funds, and Malta can expect to receive a much smaller allocation in the 2021-2027 period.” Elena Grech hosting the title of European Capital of Culture for the first time – a title the Chamber has proudly supported as it housed the Valletta 2018 Foundation from the very start.” In 2018, Britain will most likely continue on its laboured journey out of the European Union. As a net contributor to the EU budget, the UK’s exit will mean an approximate shortfall of 15 per cent in the EU’s coffers for the period starting 2021. Dr Elena Grech, Head of the European Commission Representation Office in Malta, says that the remaining 27 member states will need to agree on the measures to take either to plug this gap or to do less, well before that end date. “One area which will certainly be affected by this cut in the EU’s budget is the allocation of structural funds, and Malta can expect to receive a much smaller allocation in the 20212027 period. Many projects have benefited from these structural funds so far, and the completion of the Kappara flyover in the coming weeks will add to the success list.” Dr Grech adds that Malta’s economy has stood to gain considerably from the opportunities offered by Union membership, and successive Governments have been very capable in this regard. “EU popularity is very strong and citizens largely feel positively about the effects of EU membership. As EU Capital of Culture in 2018, Valletta will certainly be in the limelight and, given that 2018 will also be the year of Cultural Heritage, this will be a perfect opportunity to showcase all that Malta has to offer. The successful six months at the helm of the EU Council have served as a very good advert for Malta, and the events of 2018 will allow for the possibility to continue building on this.” BA

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Interview Photos: Alan Carville

Adrian Delia:

“The key is planning ahead” Leader of the Opposition, Dr Adrian Delia, talks to Business Agenda about his vision for Malta and sustainable development.

n 9th October, the Minister of Finance rolled out Budget 2018, hailed as one designed for the best of times. The nation watched and listened as Minister Edward Scicluna introduced Government’s vision for a prosperous nation, despite the rising concern over the sustainability of the island’s infrastructure and development.

on growing in areas which Government has laid down. Governments do not create wealth; governments do not create business, or money themselves, but they create opportunities. They draft and craft legislation, they lay down a vision. Then it is up to our business people to be inspired, to follow that vision and create wealth for the country,” he asserts.

“We need to give comfort to our business people that Malta will remain a thriving business community in a structured manner; that we will continue developing, but in a planned manner.” So, we ask the new Leader of the Opposition, Dr Adrian Delia, what should Malta’s priorities actually be, in terms of ensuring continued responsible growth? “We need to create serenity in our country. Business people already in Malta need to know they can keep

Dr Delia points to the necessity of investing in clean energy with the aim of turning Malta into a zero-carbon or carbon neutral country. “That’s a massive challenge,” he states. “Why are we not talking about, not only trying to reach the Kyoto’s emission targets, as reduced by half, but actually trying to be ambitious and exceed them? We

should be trying to give our children a cleaner country, not merely a country which is now dependent on energy coming from elsewhere.” This is dependent on innovation, according to Dr Delia. “There were proposals and ideas being floated about for Malta to become a clean energy hub. Those are feasible ideas. There were proposals on how to harness a mixture between wind and wave energy.” He criticises Government for the lack of progress in this sector. “We’ve heard nothing in five years about clean energy from this Government. Nothing. Not interested.” A cleaner Malta requires a greener, more efficient transport system. But, Dr Delia points to the challenge which lies ahead to reach that target. “We need

to seriously recognise and acknowledge that we have a massive issue on our hands, which has been postponed for years. A thousand cars a month are being registered in our country and in a few years, if not months, we’re going to get stuck in a gridlock. We need to acknowledge it at least. Talk about it at least.” But what does he suggest? “Start planning, start consulting with planners, and not only with politicians, but start consulting with people who have experience in traffic planning in island states, rather than in city centres, because the whole perspective changes completely in those cases.” He emphasises the social psychological problems which arise from intense traffic congestion. “When you get stuck

in traffic for two hours a day to travel for 4km, you stop thinking straight. The key solution here is to get to a mass transportation system which works. We need to look at things, not in an ad hoc manner or propose singular initiatives, but in a wholesome comprehensive way to try to really come to terms with this massive problem.”

“The issue is not whether you build higher, but whether you grow greener.”

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Interview “The Nationalist Party is not against development; it is not against businesses, and it is not against businesses in construction, but it is against haphazard construction and development. It is against development which is not sustainable.” He proposes determining the stock required now, in terms of housing, and in the future, to make better decisions of where and what to build. “We need to look at the country as a geographic challenge and understand what and where we need to construct our dreams upon,” he says. Does that include green spaces? “Where are our children going to run about? Where are they going to enjoy themselves? Which are the parks, the green spaces, the green lungs? I have heard talk about construction and environment for years. I have no knowledge of any forested area in Malta which has grown by at least a metre. The issue is not whether you build higher, but whether you grow greener. There is a way to do this and there are intelligent methods we can identify,” he continues. His vision for Malta is one focusing on the various sectors and industries. Education is one of his priorities. “In education we are still focused on investment in stone. We should start thinking about investment in people. We have one of the worst situations. We don’t have enough educators. We need to rethink the way we think about education because if we don’t invest in our teachers, who is going to educate our children?”

“A thousand cars a month are being registered in our country and in a few years, if not months, we’re going to get stuck in a gridlock. We need to acknowledge it at least. Talk about it at least.” Under Simon Busuttil, before the previous election, the Nationalist Party had proposed a €2.3 billion multimodal Metro system, deliverable over 20 years, as well as a car reduction scheme. Does Dr Delia believe this to be the solution? “We need to talk about that kind of solution. From my point of view, I have not looked at any comparative options but we need to look at mass transportation 20 to 30 years ahead,” he states. Dr Delia emphasises that a vision for the future is imperative. Indeed, he had

previously stated that the lack of longterm planning was leading to haphazard development, as evidenced by the state of some industrial zones and tourist centres. “The key is planning ahead. What does our country need in 20 years’ time?” he asks. He stresses that “the Nationalist Party is not against development; it is not against businesses, and it is not against businesses in construction, but it is against haphazard construction and development. It is against development which is not sustainable.” Short-

term solutions are “ones of political convenience” and “we need to give comfort to our business people that Malta will remain a thriving business community in a structured manner; that we will continue developing, but in a planned manner.” He criticises the current Government’s approach to resolving the difficulties of finding affordable housing in the rental market. “I think it is ironic that a Socialist Government has succeeded in giving the least possible comfort to those who are the most vulnerable and the most in need. That is something which is completely unexplainable to me. There is an absolute failure there. Now Government is recognising that it’s not only the most vulnerable who are stuck homeless, but that this problem can be seen across the socio-economic spectrum because of the increasingly acute rental problem,” he stresses.

He once again reiterates his call to examine the needs of tomorrow. “We need to look at the sectors of the future, not of today. In tourism, we are blessed with climate – Government doesn’t need to do anything there – historical wealth, cultural wealth. But, what about sports and medical tourism for example? Conferencing? A fivestar Gozo? Attracting niche tourism will leave much more wealth, rather than simply increasing numbers, which will have a serious impact on our infrastructure.” He emphasises the need to distribute the country’s wealth. “The problem is we are creating too much for too few and not enough for the many. Business is not the economy of numbers alone, but we need to ascertain the new sectors to be created by Government, and then actually establish that we are able to disseminate the benefits we reap to the widest possible sector of our population.” BA

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

MBB CEO Joe Tanti

Internal Market for Services: Let’s keep the momentum going

2017 has seen huge developments for the single market. The European Commission has been extremely active in this regard by adopting several legislative proposals in the Services Package, which it believes would build upon the Services Directive and ease the provision of cross-border services. Additionally, the Commission has also adopted the Compliance Package, which the Commission believes should help it in ensuring that the internal market functions correctly. As part of the Services Package, the MBB welcomes the proposals on proportionality test and notification procedure. These are paramount to ensure that any new regulation affecting services at a national level is suitable, non-discriminatory, and does not go beyond what is necessary to achieve the public interest objective. While the Commission’s efforts to answer the prayers of the business community must be commended, on the other hand, there is such a notion as ‘too much of a good thing’. From our perspective, it is possible to describe the legislative proposals on the Services e-card as such. On paper, the e-card seeks to facilitate the cross-border provision of services by reducing the administrative complexity for service providers. Although the MBB is in favour of this objective, we do not believe that pro-

visions set out in the e-card would provide tangible benefits to businesses. This is because of its limited scope and complexity, which in fact risks creating new barriers to the single market instead of simplifying administrative requirements. Despite the fact that the e-card is intended to help businesses, feedback given to us shows that businesses are reluctant to use it as it does not help a business in, for example, registering for VAT and social security, and it does not cover recognition of professional qualifications and posting of workers. Real regulatory simplification should be explored instead. Moreover, while the notion of having the home member state assist the service provider in providing services to the host member state is – under the right conditions – desirable, we believe that this task should be better

accomplished by structures already in place, such as the Points of Single Contact and the upcoming Single Digital Gateway, whilst ensuring the proper implementation and enforcement of the Services Directive. Turning to the Compliance Package, another proposal which we believe is unnecessary is the Single Market Information Tool (SMIT). The proposal would give the Commission the power to request sensitive information from companies so that it may serve to help the Commission ensure that internal market legislation is applied correctly. The fact that the Commission would impose disproportionate obligations on companies to provide highly sensitive information, is particularly adverse for SMEs as they would likely need to hire outside counsel at huge expense to be able to collect and present the infor-

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.

mation in a manner which is satisfactory to the Commission.

Editor: Joe Tanti

To conclude, I hope that this editorial is not seen as a negative reaction to the Commission’s effort in ensuring that the internal market functions correctly. On the contrary, such proposals come in response to the pleas by the business community for action in this regard. Several of the proposals are commendable, notably the Proportionality Test, the Notifications Procedure, and the Single Digital Gateway. However, the Services e-card and the SMIT proposals can certainly be improved upon, and we are looking forward to working with legislators in ensuring a satisfactory outcome.

Design: Nicholas Cutajar

I augur our readers a prosperous 2018.

Deputy Editor: Martina Said Editorial Team: Ana Vella, Sarah Abdilla, Daniel Debono, Sarah Micallef, Jo Caruana, Marie-Claire Grima and Rebecca Anastasi Brand Sales Manager: Matthew Spiteri Advertising Sales Coordinator: Marvic Cutajar Business Agenda is the quarterly publication of the Malta Business Bureau. This issue covers the period November 2017-February 2018. 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 Maltapost plc. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

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Case Study

Financing Real Estate Projects Business Agenda meets Fimbank’s Head of Real Estate, Jason Zammit, to discuss the bank’s value proposition for property development loans. What called for FIMBank’s entry into this new line of business? This business line of lending into selected real estate was launched recently. Within a short period of time, we have built a strong team with the right experience and skills. The financing solutions have been well received by the local market and we have managed to build a solid pipeline of transactions with significant promise for growth. We are determined to capture market share through this comprehensive suite of products, which is designed to meet our clients’ needs. What real estate loan products does Fimbank offer? We provide bank loans to developers for the acquisition and development of property. Our range of real estate facilities includes funding on a pro rata basis, the purchase of land for development into residential units, commercial buildings, and mixed utility properties. We offer competitive pricing and terms

which vary depending on the nature of the project. The repayment is typically structured to coincide with the sale of the development, or from the proceeds of the rental or business activity. What are the benefits of choosing FIMBank’s real estate finance solutions? FIMBank clients benefit from our expertise, skills and in-depth knowledge of the local property market. We have built a strong team capable of tailoring solutions that satisfy the needs of our different clients. The cornerstone of our business model hinges on the personalised relationships we develop with our clientele. We offer a ‘quality banking’ experience with a dedicated team delivering a highly personalised level of customer service, beyond the standard office hours. Additionally, our efficient decision-making and transparent process makes us a reliable lender to work with.

“Our range of real estate facilities includes funding on a pro rata basis, the purchase of land for development into residential units, commercial buildings, and mixed utility properties.”

Jason Zammit What steps are involved in structuring a property development transaction? In the initial stage, we conduct a thorough due diligence exercise on the prospective borrower. This usually includes a review of their track record in property development. The subsequent stage would focus on understanding our client’s project, identifying the relative business objectives in order to tailor a package focused on these specific requirements. During this phase we perform a comprehensive analysis of the valuations, projections and budgeted costings. The objective is to maintain prudent lending standards, while serving credit-worthy borrowers.

There has been significant property appreciation year on year. How long can this last? The healthy growth of the real estate market is being characterised by increased commercial development, and house price rises were experienced by all property types. The growth is driven by retail and corporate investor demand which sees real estate as a store of value, in addition to the creation of further built-up capacity. As a result we are seeing a healthy demand and supply situation, improvement in sustainable design principles and now even a strong interest in regeneration of dilapidated areas. These dynamics will allow the sector to expand and then balance itself with a soft landing when it reaches the end of the growth phase. Where does real estate financing fit within FIMBank’s corporate strategy? This approach to building new vertical lines of business conforms with FIMBank’s overall strategy of developing innovative quality banking solutions that adapt to changing market conditions. Our positioning allows us to combine traditional banking with advanced technology, providing our clients with high value-added products and a quality service. We are fortunate in that we do not have any legacy issues, hence we can view real estate business with an open mind, being constantly receptive to innovation and new ideas. BA For further information regarding FIMBank’s range of property development loans, contact T: 2132 2100 or E: realestate@fimbank.com.

“FIMBank clients benefit from our expertise, skills and in-depth knowledge of the local property market. We have built a strong team capable of tailoring solutions that satisfy the needs of our different clients.”

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Property

The Shoreline’s Phase II Sea View Apartments on sale from 21 November

Ricasoli Properties Ltd is the development company behind The Shoreline, a mixeduse development which introduces a much-needed residential component into SmartCity Malta for the first time. Combined with a 30-outlet shopping mall, most of the 400 shoreline residences will be enjoying spectacular views from spacious terraces, landscaped open spaces, and an assortment of community amenities, all within walking distance. The Shoreline will transform SmartCity into a live-work-shop-play active community, offering sophisticated living to discerning clients.

Luxurious living at The Shoreline

The Shoreline apartments The Shoreline project centres on luxury one-, two-, and three-bedroom apartments, each with their own underground car parking facilities. The project’s Managing Director, Steve Carter says residents will enjoy a unique experience of contemporary living, as these luxury properties propose an essential residential component to the current offices and other exciting developments projected for SmartCity in the next five years. “Construction work is planned to start in the first months of 2018, as soon as we receive the full development permits from the authorities. The Shoreline’s

project application fully conforms to the parameters of the original approved Masterplan of 2008 for SmartCity,” adds Mr Carter, who estimates that the project will be completed within four years from when the permits are issued. Asked about the market’s response to the project, Ben Muscat, the Chairman of the privately-funded entity developing the €200 million project, says it’s been nothing but positive, and as per the sales plan. “We believe that The Shoreline is generating very positive ratings by leading Maltese and foreign real estate agencies because they are seeing a great upside potential for investment in these residences. They have understood our high-quality vision and professionalism for the

project. Moreover, The Shoreline has a great location that is already synonymous with a serene lifestyle in this emergent part of Malta.” Last month, Ricasoli Properties announced that Phase I is sold out, and the last remaining promise of sale agreements for this initial phase are being finalised. Although in recent weeks the company has been receiving enquiries regarding Phase II, Mr Muscat says that they will be accepting reservations for apartments for the second phase as from Tuesday 21 November 2017, launching a number of units within a particular block, all of which enjoy sea views.”

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Property Mr Muscat adds that SmartCity Malta enjoys a Specially Designated Area (SDA) status. “We have signed konvenji with a number of foreign clients from different countries, as an SDA provides significant potential for foreign investors who are interested in owning apartments at The Shoreline. Furthermore, as the only SDA with a good number of units currently available for sale on the Maltese islands, we expect this trend to continue growing as the new phase enters the property market.”

The Shoreline Shopping Mall By far the largest and most significant development of its type in the South,

The Shoreline also comprises a shopping mall covering 25,000 square metres on two floors, with ample space for underground parking. Earlier this year, following an international bid, Ricasoli Properties appointed Haskoll, one of Europe’s leading retail architectural firms responsible for creating successful shopping centre designs around the world, to ensure that the shopping mall project is completed on time and to the highest standards. The team will be employing its in-depth experience and vast knowledge of retail developments to deliver a commercially successful and innovative shopping centre proposition, while

Visual of The Shoreline Shopping Mall by Haskoll

creating value for the brands that will be present at The Shoreline Shopping Mall. Branding nowadays is not only reserved for the business world of products and services, as many cities, towns and even localities are seeking to develop a place brand for their local areas to help them define the destination and make it stand out from surrounding localities. “For this purpose, and working alongside Haskoll, Ricasoli Properties has appointed an international team, Development Solutions, headed by Philip Harcourt, and retail specialists SSRC, run by Stephen Spendlove, for advice on the evolving retail proposals

for the project. They have also introduced another member to the team, internationally-acclaimed and leading place branding specialist, Malcolm Allan of Placematters. “The response that we got from Maltese and international retailers, even prior to the project being public, has been overwhelming, with interest in the project being further strengthened following the above appointments. Over the next two years, we will be working with these international retail development professionals to give Malta one of the best shopping mall environments in the Mediterranean,” says Mr Carter. BA

Head Office: Ricasoli Properties Limited, Suite 407, Level 4, Block SCM01, SmartCity Malta, Ricasoli SCM1001. T: 2180 8895/2180 8970; E:sales@theshorelineresidence. com www.theshorelineresidence.com

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Lifestyle the festive season we recommend activities that bring people together and focus on the importance of helping each other to achieve one common goal. One particular activity is the Beat the Box, based on the popular concept of escape rooms, but suitable also for large groups and ending with a twist,” she says. Another popular game, and indeed their best-selling activity for the past four years, is the iChallenge, a technological treasure hunt which can be adapted to any location and any theme. “We enjoy coming up with programmes and activities that are fully tailor-made to client requirements. For us, no team is the same, and we strive to develop team-building packages to fit the exact requirements of the client,” Danica explains.

Abraham’s

‘Tis the Season for…

Corporate Gifts Christmas is the time to show appreciation to those in your life, and that stands especially true when it comes to the world of business. Thank your clients, business partners and employees by gifting them something special for the festive season. Confused what to get? Rebecca Anastasi has got you covered, whether it’s food, fashion or fun.

party. They can cater for groups from five to over 1,000 participants, and have over 100 different activities in their portfolio, ranging from just 30 minutes in duration to those requiring a full day to complete. “It’s all about turning our team-building activities into team experiences, to achieve maximum impact and make all participants feel special,” she continues.

UNIQUE GOURMET PRODUCTS

All the events organised foster a spirit of togetherness and adventure. “During

Home is where the heart is, especially during the festive season, and what could be more comforting than the tastes of the Mediterranean? Abraham’s Supplies offers festive gifts which include a wide choice of local and Mediterranean gourmet food products, as well as finely selected wines. “At Abraham’s, we do not simply supply any type of food, we meticulously choose our gourmet products, making sure that they are all unique and up to top quality standards,” owner Abraham Said states. Every year, new high-quality brands are added to the food and drink selection, all of which cater to any type of clientele, of any age group. “They are designed for all those who enjoy eat-

ing, are fascinated by the culinary world and have a fine taste for alcoholic beverages,” Abraham explains. “And, who doesn’t love food? Our selection is gathered and executed wisely to offer a choice for all tastes, and our team of experienced and dedicated employees will guide anyone to get the perfect gift,” he continues.

GET TOGETHER

Their wide range of products range from grappas, to whiskies, tea hampers and even local produce from the renowned Ogygia range. “We believe that our range of hampers is the best way to send wishes to your employees or loved ones as well as show a sense of gratitude and appreciation for whatever they do for you throughout the whole year. The quality at Abraham’s this Christmas can satisfy anyone’s taste buds,” Abraham asserts.

“Christmas is the perfect time to get everyone together, whether these are employees or clients. Finishing off the year with a memorable team experience ensures you finish the year with a great vibe that will lead to a more empowered team in the new year,” Danica Fava, Managing Director of Outdoor Living explains.

The festive season is also the time to invest in relationships and solidify friendships with those you do business with, and with those who work for you. Outdoor Living is a company which aims to help you do exactly that, by organising a range of team-building activities.

These team-building specialists have something planned for every type of

And, the options are limitless. “Whether you want a music-related team event, a high-adrenaline programme or an event that focuses on corporate social responsibility, we will devise an activity accordingly. For organisations with offices around the world, we also have activities that can be simultaneously run in different countries, thus allowing you to have a global event with all your partners,” she continues. Once a client confirms, Outdoor Living allocates them an event manager to coordinate the booking and activity, and who can even be contacted for any last-minute changes. And, “with such a vast range of activities available, we help our clients choose the right activity that will have lasting memories and the highest rate of investment for the organisation,” Danica emphasises.

BUSINESSAgenda | Winter 2017

Lifestyle the perks scheme offered by a CorporateVIP membership fits the bill. “Most companies will want a way to thank their teams for their hard work and CorporateVIP has a solution to suit all types of employees. From hundreds of local offers in restaurants and spas, to cashback rewards when they shop online, or exclusive discounts for hotel bookings and airline tickets, we have something that all employees will engage with,” Nicholas Ponniah, Managing Director, states.

A symbol of class and taste (in more ways than one), the iconic hampers by Cleland & Souchet have been a festive season staple in Malta for several years. “Our hampers are unrivalled in every detail of their composition,” Richard Cleland, the Director at Cleland & Souchet states. “Each and every item within the hamper is exclusively imported by us and available only to our clients. And, they are presented in a custom-made luxury gift box together with a personalised gift card.” Indeed, the exclusive brand sources its products from some of the most famous suppliers in Europe. “Nothing is more appropriate for the festive season than our hampers, which are filled with seasonal treats like luxury mince pies from the Grandma Wilds in the UK, delicious panettones from Fiasconaro in Italy, fine chocolates from Maxim’s in Paris. The list goes on and on,” he continues. The hampers cater for a wide variety of clients, with prices ranging from €28, for those on a budget, to up to more than €200, for the more luxury products. All the hampers, however, provide the opportunity for epicures to savour luxury food and wine amongst family and friends over the holiday season, and are “guaranteed to create a party mood in a few seconds,” Richard says. While their hamper collection changes each year, with new brands and updated product combinations, this year they are also expanding their jewellery selection and introducing new home products, such as music systems, and other gifts which cater for every taste and style. For those with health on their mind, a stylish Bugatti juicer which doubles up as a kitchen accessory, fits the bill, while Baccarat jewellery, such as the Medicis large pendant necklace, is perfect for the fashion-conscious. “When a company chooses a Cleland & Souchet gift, whether a hamper or one of our brands, the recipient immediately knows that the company wants to offer them something special, exclusive and out of the ordinary,” Richard affirms.

A GIFT THAT KEEPS ON GIVING If you want your employees, or clients, to feel valued the whole year round, and not just during the festive season,

members are entitled to,” Nicholas continues.

can and Japanese whiskies,” William explains.

This year, in an effort to increase convenience, CorporateVIP has launched iOS and Android apps which make it even easier to redeem the offers, on the go, in store and which can be branded according to a company’s corporate identity. “We are always adding new elements to the platform,” Nicholas emphasises. “We are really pushing to add a great retail in-store discount experience in Malta's best shops. Members will now receive exclusive offers via push notification and can use the live help desk to make the most out of the new features and offers,” he states.

What gift would be appropriate for the discerning client? “The Tasca D’Almerita Rosso del Conte never fails to impress, both in presentation and in its flavour profile,” he states. He encourages keeping the gift simple and elegant. “Hampers don’t need to be bursting with products. Most of the time a few well-selected items can go a long way. When it comes to wines and spirits, I always try to select something out of the norm,” he emphasises.

Indeed, new discounts and merchants are added to the platform every week, with care taken in the choice of discounts and perks. “We always encourage our members to tell us what they want to see in the platform, so we can go out and source what they actually want and not what we think they want,” Nicholas explains. And with their live help desk on call from 7am to 10pm, providing instant support on technical, practical issues, or simply to help a client choose the right perk for them, CorporateVIP provides a service your employees or clients will love.

AN ENDLESS SELECTION Whether you’re buying for clients or employees, a carefully selected bottle of wine, or a collectible in the form of a rare whisky, always goes down a treat.

And does he have a personal recommendation? “I really like the new food stuff that we have and will certainly be using them for gifting this year,” William says. Indeed, Farsonsdirect offers a range of foodstuffs which serve as the perfect accompaniment to the prestigious range of beverages featured on their catalogue. “This year we have gone the extra mile in sourcing most of the food stuff ourselves. We are introducing a selection of artisanal brands such as Terre Exotique for spices, Edmond Fallot for French mustards, Pisti for panetonne and torrone from Sicily. Furthermore, Biscottificio del Roero from Piedmont produce beautiful biscuits and we also offer Jean Larnaudie for decadent foie gras from France,” he concludes. BA

From top-end Bordeaux or Barolo wines to hampers containing hand-picked vintages, spirits and artisanal food, Farsonsdirect offers both ready-made gifting ideas, as well as the ability to create special bespoke hampers with your clients’ favourite products. “The selection is endless,” states William Rizzo, Wine and Spirits Development Executive at Farsons. “The gifting catalogue offers something for everyone. Always think about the personality of who will be receiving the gift. However, a nice hamper with well-selected items does the trick each time.” And this year, the renowned brewery and beverage supplier has added some classic products to its extensive range. “We have added a number of whiskies to the ever-growing selection. The main ones are the Ballantine’s single malts selection, Jameson Caskmates, as well as a large selection of both Ameri-

Farsonsdirect

A TASTE OF PURE LUXURY

This rewards and employee benefits platform offers companies a way to thank their employees for all their hard work and can operate as part of an efficient HR mechanism, focusing on ensuring employee motivation, reward and retention. The membership is valid for one year and can be used every day, multiple times a day, conveying continued appreciation. “The CorporateVIP membership has been designed with the employee in mind. We want our members to save money, feel valued and have perks and privileges only

BUSINESSAgenda | Winter 2017

Driving the transition towards clean energy Sarah Abdilla reports from the European Parliament on a recent ‘Clean Energy Financing’ conference. At EU level, there are already various financial instruments and programmes available to boost investment in clean energy solutions in Europe. The European Fund for Strategic Investment (EFSI), amounting to €60 billion; the European Regional Development Fund and Cohesion Fund, which invested over €21 billion in energy efficiency and renewables; and the Connecting Europe Facility, amongst others, all complement each other to support local efforts to stimulate investment in energy efficiency and renewable energy. Clean energy has been a European Commission priority for some time. The last few years have shown some concrete benefits to clean energy investment in the EU, with greenhouse gas emissions declining by 23 per cent from 1999 till 2016, while the economy grew by 53 per cent. This clearly shows that the EU has successfully managed to challenge a key economic paradigm that economic growth parallels climate action. Despite this radical change, the EU must continue embracing the climate-

related changes which are underway. With more ambitious 2030 energy and climate targets, investment too must be more ambitious.

An additional €177 billion of private investment in clean energy solutions is needed between 2021 and 2030 to reach the EU 2030 energy and climate targets. Investment in clean energy solutions represents an opportunity for economic growth and job creation – it is estimated that further €177 billion investments per year could create 900,000 new jobs and contribute to an increase of 1 per cent of European GDP over the next decade. The Commission is matching the increased ambition in targets with increased ambition in available investments. In fact, the Commission has proposed EFSI 2.0, which would double the fund in respect of duration

and financial capacity, as well as the ‘smart finance for smart buildings’ initiative proposed as part of the ‘Clean Energy Package’, which would further complement existing tools to leverage up to €10 billion new investments. This means that business opportunities in clean energy are going to increase, and businesses would do very well to start preparing themselves as early as possible. Businesses must do this in order to make sure that they are in a position to take advantage of these opportunities which are going to be of investment

and commercial value. It is for this reason that players and all societal gatekeepers need to come together and cooperate, especially considering how devastating the impact of climate change already is and has the potential to be in the future. One of the most shocking analysis is climate change’s contribution towards the Syrian civil war, whereby a historic drought led to internal population migration, leading to an increased social and infrastructural burden on an already very fragile governance, contributing to the breakdown in the state and the resulting civil war. The Syrian civil war, and its ties to climate change, is also believed to have contributed to refugee flows into Europe. In turn, Europe’s migration and refugee crisis is considered one of the root causes of Brexit. This analysis highlights how climate change could have a seemingly minor impact in one area, with drastic knock-on effects in

others – effects which are and which will be felt by every part of society, including the business community. Overall, the threat of inaction on climate change is severe and comprehensive. At the same time, the benefits of investing in clean energy are very clear. Addressing climate change is, therefore, a critical concern and in everybody’s best interest. We must work hard to achieve the EU’s 2030 energy and climate targets, and to reap the rewards climate action brings, and prevent the calamities that climate inaction would bring. MBB Policy Executive Sarah Abdilla, who is also a member of the Business Agenda’s editorial team, recently attended a high-level conference on ‘Clean Energy Financing’ on 7th November in Brussels. Ms Abdilla’s attendance was supported by the European Parliament.

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MBB News

Go&Learn Final Conference in Milan

Business Agenda News Updates 26-27th September Two high-level experts deliver training on transport energy management Transport makes up an important share of a company’s energy consumption. In fact, it is envisaged that transport-related auditing will become an obligatory benchmark during the verification of the next round of Non-SMEs energy audits required by 5th December 2019.

20th September Malta Chamber President addresses European Economic and Social Committee in Brussels MBB EU Affairs Manager Daniel Debono accompanied Malta Chamber President Frank V. Farrugia during a meeting held at the European Economic and Social Committee (EESC), to discuss the outcomes of the Maltese EU Presidency within the Employers Group. President of the EESC Employers’ Group Jacek Krawczyk invited the Maltese employer social partners to share their views on the successes and progress achieved by the Maltese Presidency. In his intervention, the Malta Chamber President outlined the most important legislations that will positively impact European business, and for which a compromise was secured by the Maltese Presidency. Among others, these include dossiers from the Services, e-Commerce, the Clean Energy and Circular Economy Packages. Overall, Mr Farrugia concluded that over time, “Malta will be able to look back and conclude that its contribution to the EU process has been positive, has had an impact, and can proudly assert to have made a small difference in the greater scheme of the EU project.” The meeting was also addressed by the Vice-President of the EESC Employers’ Group Stefano Mallia; President of the Malta Employers Association (MEA) Dolores Sammut Bonnici; and President of the General Retailers Traders Union (GRTU) Paul Abela.

In view of this and as part of the Investing in Energy project, MBB together with project partners The Energy and Water Agency and The Malta Chamber of Commerce, organised a two-day certification course followed by a half-day workshop on transport energy management. These were delivered by leading European Energy Transport auditors Conor Molloy of Authentic Energy Management Solutions (AEMS) in Ireland, and Erik van Agtmaal of Altimedes in Belgium. The certification course was targeted towards local energy auditors, providing them with the necessary practical and technical skills required to undertake a transport energy audit. It was held at the Malta Freeport, and enabled the trainers to demonstrate examples and participants to practice an audit on a designated heavy vehicle. The half-day workshop which followed was targeted towards local businesses. The event focused particularly on technical measures which can be adopted as standardised fleet efficiency practices, ranging from fuel management to driving efficiency.

The business workshop thus offered an excellent opportunity for technical people within businesses operating car fleets, as well as managers responsible for the fleets, to learn more about successful fleet efficiency measures.

The Energy and Water Agency and the Regulator for Energy and Water Services will be updating the Guidance Note on obligatory energy audits under Regulation 10 of the L.N. 196 of 2014 in view of the next round of energy audits required by 5th December 2019. The procedure undertaken during the certification course regarding transport-related auditing, is expected to become an obligatory benchmark during the verification of consequent energy audits by non-SMEs where transport is an important share of their energy consumption.

28th September GO&LEARN Final conference in Milan MBB CEO Joe Tanti and MBB Executive Marija Elena Borg participated in the Final Conference of the European Go&Learn+ Project, which was held in Milan. The event brought together not only team members of the partner organisations, but also key industry stakeholders and representatives of the education sector in Italy. Mr Tanti and Ms Borg were joined by Ing. Alexia Pace Kiomall and Ing. Mario Cachia from the Malta University Holding Company (MUHC). The conference primarily served as an opportunity for the project partners to promote their EU-wide efforts in bringing students closer to the business sector. Due importance was given to the ways in which the sustainability of the project outcomes can be ascertained.

BUSINESSAgenda | Winter 2017

MBB News

September-October ZAAR promoted in international fora At the end of September, Matthew Caruana, manager of ZAAR Crowdfunding platform – set up by MBB and the University of Malta – was invited, as a country expert to Athens in Greece to participate in the Crowd Dialog (www.crowddialog.eu) Conference. This conference focused on crowdfunding and crowd-innovation, and also included a high-level workshop dealing with EU Crowdfunding regulations presented by the European Commission. Following this, Matthew Caruana was also a speaker at the European Crowdfunding Network (www.eurocrowd.org) Convention in Vilnius, Lithuania, to discuss the potential of Public-Private collaboration in Crowdfunding and Civic Crowdfunding, that is, when public institutions and corporate organisations join the crowd to fund community-based projects. In October, MBB CEO Joe Tanti was invited to deliver a best practice presentation about ZAAR at a workshop organised by the Polytechnic Institute of Viana do Castelo, a state-run polytechnic institute of higher education in Portugal with five schools located in several cities of the Viana do Castelo district. The event was part of the Institute’s ‘Inclusive School’ project, targeted towards those who wish to use or start a crowdfunding platform. The event marked the beginning of ZAAR’s close collaboration with the Portuguese Institute, which has also expressed an interest to engage with ZAAR further on its services, particularly crowdfunding knowledge and advisory on ecosystem management. Later that month, Mr Tanti and Mr Caruana attended the first transnational meeting of the T3QM Erasmus+ Project aimed at developing social entrepreneurs. Mr Tanti and Mr Caruana – representing the Foundation for the Promotion of Entrepreneurial Initiatives (FPEI) which is a joint collaboration between MBB and the University of Malta – joined European project partners at the ‘Bridging to the Future’ meeting, held in Birmingham. The project is being implemented in partnership with the IED in Greece, Stitching Incubator (SI) in Leeuwarden, IESESE in Lithuania and JO Consulting in Sicily. The kick-off meeting was conducted to establish the tools to be used throughout the project, the respective partner roles and the way of working in the project.

the network’s service can offer a targeted approach to all key economic sectors ranging from healthcare to agro food industries and intelligent energy to fashion and textiles.

Enterprise Europe Network is a European Commission initiative. This service is co-financed under the European Union’s programme for the Competitiveness of SMEs (COSME). For more information on the Enterprise Europe Network Service, visit www.enterprise-europemalta.com or contact MBB Executive – Business Support and Advisory Ana Vella on E: avella@mbb.org.mt

12-13th October MBB Project Manager participates on Panel in Conference on Land Use Planning In October, the Planning Authority organised a national conference for high-level officials, stakeholders, NGOs and the general public. The two-day conference featured five sessions and focused on the topics of Fragmented Land Ownership, Revitalisation of Historic Centres, High Rise Buildings, Quality vs Quantity, and Planning for Sustainable Development. MBB Sustainable Development Project Manager Geoffrey Saliba was invited to deliver a presentation on Planning for Sustainable Development. This was followed by a round-table discussion chaired by Professor Victor Axiaq. Joining Mr Saliba were panellists Professor Simone Borg, Head of the Department of Environmental and Resources Law at the University of Malta and Professor Maria Attard, Director and Vice-Chair of the Institute for Climate Change and Sustainable Development at the University of Malta. The sessions analysed the importance of land use planning and their synergies with economic, social, cultural and environmental aspects, at national and international levels. The conference provided an open forum for the exchange of views on themes related to land use planning, and was conducive to discussions promoting new methodological and empirical approaches.

October

Wedding bells at MBB It’s been an eventful October!

MBB would like to extend warm wedding wishes to President David Zahra and Sarah (née) Casolani who recently tied the knot. We also wish to congratulate MBB Vice President Kyle Borg and his fiancée Sarah Tanti on their recent engagement. MBB wishes the newlyweds and recently engaged couple the best of luck at this special time of their lives.

27th October

October SME Support Network launched The Enterprise Europe Network (EEN) Malta has recently launched a redesigned website. The new site is simple to use, easy to navigate and has been designed to help local businesses discover how the EEN service can help. Through the platform, visitors can take the first step towards establishing international partnerships with the right international partners to grow their business, find expert advice for growth and expansion into international markets, and also find solution-driven services to turn innovative ideas into international commercial successes. MBB encourages local businesses to visit the EEN ‘one-stop-shop’ site to see how

BUSINESSAgenda | Winter 2017

MBB News Invest Project: Launch of Financial Training Model Funded by the Erasmus+ programme of the European Union, INVEST has the primary goal of improving the financial literacy of inexperienced micro entrepreneurs, aged 18-34 years. Following an initial analysis of the current level of financial literacy in the participating EU countries, an e-learning training model was developed by the INVEST consortium with the intention of improving this level across Europe. As part of their collaboration under this project, MBB and the Mediterranean Bank Network (MBN) officially launched this training model on Friday 1st December at the Malta Life Sciences Park, San Gwann. Participants were not only introduced to this model and the rationale behind it, but also encouraged to test it from the comfort of their homes, and provide the partner organisations with suitable feedback for its improvement.

This update is being brought to our readers at the time that Business Agenda was sent to print. For more information about this event, contact Marija Elena Borg on E: mborg@mbb.org.mt

MBB President elected on EUROCHAMBRES’ Board of Directors During the General Assembly held in Brussels last month, Dr David Zahra was elected on the Board of Directors of EUROCHAMBRES – the European Association of Chambers of Commerce and Industry – for 2017-2018. Dr Zahra is the current representative of the Malta Chamber of Commerce, Enterprise and Industry on this pan-European business organisation. MBB congratulates Dr Zahra on his appointment.

7th November MBB Policy Executive Reports on European Parliament event proceedings MBB Policy Executive Sarah Abdilla participated in a high-level conference on Clean Energy Financing in Brussels. Last year, the European Commission proposed the Clean Energy for All Europeans Package, presenting a number of measures to help the EU meet its Paris Agreement commitments. However, in order for the EU to reach its 2030 energy and climate targets and make the transition towards clean energy, each year billions must be invested in energy efficiency renewable energy and infrastructure.

13th November MBB Executive granted Best Dissertation Award MBB wishes to congratulate EU Funding Executive Marija Elena Borg on receiving a Best Dissertation Award from the University of Malta’s Institute for European Studies for her Master’s Dissertation. Ms Borg’s dissertation, entitled Promoting Entrepreneurship – The Impact of the European Union’s Structural and Cohesion Funds on Start-ups in Malta, assesses how the EU’s Structural and Cohesion funds have addressed the needs of local (start-up) entrepreneurs. It also affirms that co-funded incentives were, in some cases, not as successful due to the funds’ bureaucratic nature and the entrepreneurs’ inability to distinguish between the types of funding available.

The conference provided a platform for key leaders in the World of the Energy Union to communicate their priorities for the improvement of the investment climate for energy in Europe, the legislative measures of which are currently being discussed within the European Parliament and the Council.

As a member of the European Commission expert group on Vocational Education Training (VET), MBB CEO Joe Tanti was invited to attend the 2nd European Vocational Skills Week in Brussels. During this week, Mr Tanti participated in the high-level VET Conference targeted towards cooperation between education and business, mobility and sectoral cooperation. This was followed by his participation at the European Business-Education Summit, with the theme ‘The European Pact for Youth’. The aim of the European Vocational Skills Week is to improve the attractiveness and image of vocational education and training (VET), to showcase its excellence and quality, and to raise awareness on the wide range of opportunities it presents. BA

The trip was supported by the European Parliament.

This trip was supported by the European Commission.

10th November Digital Literacy Toolbox project launched

As digitisation penetrates more aspects of our daily life, the demand on EU adults to be skilled in digital literacy is fast increasing. The EU’s Digital Skills and Job Coalition (2016) reports how a staggering 45 per cent of EU citizens are still considered to be digitally illiterate. This implies that adults need to be further exposed to digital technology. To this end, VITA’s project activities will focus on enabling the training of EU adult trainers on the concepts and application of Virtual and Augmented Reality Technology. For more information on this project, contact Marija Elena Borg on E: mborg@mbb.org.mt

This trip was supported by the European Commission.

22-24th November European Vocational Skills Week

Keynote speakers included President of the European Parliament Antonio Tajani, European Commission Vice-President Jyrki Katainen, Commissioner for Climate Action and Energy Miguel Arias-Canete, and President of the European Investment Bank Werner Hoyer, among others. Jerry Brown, Governor of the State of California, also addressed the conference. California represents 15 per cent of all the clean energy produced in the US, thus acting as a role model for the EU.

The MBB, as a project partner in ‘VITA’ has competed successfully in the recent call for proposals under the Erasmus+ programme. Through this project, five organisations based in Malta, Greece, Romania and the Czech Republic are working closely with the aim of developing a novel toolbox by which adult trainers can attract, reach out and assist adult learners to improve their digital literacy.

nologies (flow rate regulation and greywater treatment). The implementation of these technologies can therefore only take place for hotels currently in design stage, or for hotels undergoing or preparing to undergo deep retrofits (where infrastructural amendments would be possible). The potential for the EU wide hotel industry is large, with massive potential to reduce water and energy consumption as well as an estimated €1.6 billion reduction in operating costs.

20th November MBB invited to speak at Investment Platform Workshop, Brussels MBB CEO Joe Tanti and Sustainable Development Manager Geoffrey Saliba were invited to actively participate at a Brussels workshop on EFSI investment platforms. MBB was offered the opportunity to present an EU grey water treatment project proposal for the hotel industry. This was presented during the Knowledge Café session in conjunction with the European Investment Advisory Hub (European Investment Bank). In their presentation, Mr Tanti and Mr Saliba highlighted that modern water and energy saving technology could significantly reduce hotels’ operating costs. However, most hotels are not built with the adequate infrastructure to implement these tech-

BUSINESSAgenda | Winter 2017

Case Study

BNF Bank:

Taking a New Approach Banif Bank recently unveiled its new brand identity as BNF Bank. CEO and Managing Director Michael Collis talks Jo Caruana through what these exciting changes mean for the Bank’s future.

anif Bank has become a stalwart of Malta’s banking scene. Known for its iconic purple branding and its distinct approach to the products offered, it opened locally in 2008 and has been positively received. In October 2016, the Bank was acquired by Al Faisal Holding, one of Qatar’s largest private diversified groups, thus marking an exciting new era in its history. Today, Al Faisal International for Investment Malta Ltd is BNF Bank’s majority shareholder with an 86.64 per cent stake in the Bank. The remaining 13.36 per cent of shares are held equally by four Maltese shareholders, namely PG Holdings Ltd, Virtu Investments Ltd, Sak Ltd and Mizzi Capital Projects.

“With this move, BNF Bank has achieved a brand that reflects our re-energised vision of increasing market share, taking the bank across new frontiers, and building a new future.” “Part of the changes that have followed the acquisition include the unveiling of our new brand identity as BNF Bank last month,” says CEO and Managing Director Michael Collis. “The name BNF

Bank evolved from the Bank’s proud history of bringing new features to the fore, and they clearly denote the Bank’s forward-thinking approach and aspirations. Although the name and image have changed, our clients will continue to be our first priority. We are embarking on a new journey, which we believe will deliver even greater benefits to our customers.” Going into further detail about what this means for the Bank’s clients, Mr Collis explains that the new brand identity as BNF Bank is a forward-looking move that reflects the Bank’s vision to grow its presence in Malta and abroad. “This was achieved by a team of inspired people who believe that

BUSINESSAgenda | Winter 2017

Case Study “Clients do not need to make any changes or updates to their internet banking access and can continue to make use of existing debit and credit cards and cheque books.”

opportunities start with a conversation, through which we strive to understand our client’s aspirations for tomorrow,” he continues. “With this move, BNF Bank has achieved a brand that reflects our re-energised vision of increasing market share, taking the Bank across new frontiers, and building a new future.” Since 2008, BNF Bank has been known for offering a full range of commercial banking services to personal and business customers, which it provides through a network of 12 branches and three corporate and business banking units. From a practical perspective, the Bank’s daily operations will not be impacted by the new brand identity and many services will remain unaffected. “For instance, clients do not need to make any changes or updates to their internet banking access and can continue to make use of existing debit and credit cards and cheque books – which will be refreshed with the new logo once they expire,” the CEO says. However, exciting developments are in the pipeline longer-term. In the coming months, for instance, BNF Bank will be rolling out new products to gain a greater market share. “As a Bank, we recognise there is a generational shift in the way clients bank and do business, and we want to be at the forefront of this,” Mr Collis says. Looking to the future, BNF Bank has ambitious plans to expand its business into asset management and investment banking services, and is in the

“Our aim is to accelerate our growth with a focus on understanding the needs of every individual client.” process of putting in place the necessary infrastructure for growth. “Our aim is to accelerate our growth with a focus on understanding the needs of every individual client, tapping the potential of private banking, and optimising Malta’s geographic location to attract more business and increase revenue streams,” he says. However, at its core, BNF Bank remains wholly committed to its clients. “Our clients bank with us because we are there for them on a life’s journey. Although the name and image have changed, our clients will continue to be our first priority. BNF Bank is embarking on a new experience, which we believe will deliver even greater benefits to our customers. As a Bank, our vision is to remain a valued member of the community, helping our customers to build a new future,” the CEO concludes. BA 203, Level 2, Rue D'Argens, Gzira. T: 2260 1000; www.bnf.bank

BUSINESSAgenda | Winter 2017

Lifestyle

In vino veritas Wine and whisky are two beverages that have held the public’s imagination for centuries, and devotees go to great lengths to add to their collection. Marie-Claire Grima looks at wine and whisky aficionados around the world and speaks to a local expert to find out what drives this passion.

he human race’s love affair with wine is one that spans across millennia. There is archaeological evidence showing that ancient people in places as diverse and distant as China, Georgia, Iran and Greece were making and drinking wine thousands of years before the written word was

developed. Wine played an important role in Greek culture, and the cult of Dionysus, the hedonistic god of wine, was the main focus for its unrestrained consumption. Thousands of years later, it shows no sign of slowing down; consumption remains as unrestrained as ever, and you certainly don’t need to be in a cult to enjoy it! 31 million

tonnes of wine are produced annually worldwide – Malta and Gozo’s seven wineries alone produce around 2,426 tonnes each year. There’s just something about wine that has a timeless appeal, spanning across ages, generations and even income brackets. But let’s forget the casual wine-drinker for a moment, and think about the true obsessives, the modern-day Dionysians, the seasoned oenophiles, the ones for whom wine is not just a beverage but a religion. Michel-Jack Chasseuil, one of the top wine collectors in the world, has a collection of some 40,000 wines featuring bottles from some of France’s top estates. Intruders broke into his home in 2013 and held him at gunpoint for two hours, but he wouldn’t give them access to his cellar, locked behind armoured doors. Leslie Rudd, the founder of epicurean US deli Dean & Deluca, is reported to have 10,000 bottles of wine stored at his Napa Valley restaurant Press, stored in a cellar with three separate climate-controlled spaces. Former Manchester United manager Sir Alex Ferguson, an avid wine-lover who said that collecting wine gave him balance in his life, auctioned off 5,000 bottles from his private collection in 2014, including a vast amount of Domaine de la Romanée-Conti, including six bottles of DRC 1999, a case of Pétrus 2000 and signed Imperials of Sassicaia 2005 and Ornellaia 2006. It’s no coincidence that most wine-collectors are significantly wealthy people – serious wine collecting is not a cheap passion.

According to common whisky lore, a committed whisky collector always buys three bottles – one to enjoy, a second one for the collection and a third one for later swapping, when the price has risen accordingly. Another ancient alcohol that draws serious devotees is whisky. Distilling technology dates back to the Greeks of antiquity in the first century AD, but the earliest records of distillation used specifically to make alcohol are in Italy in the 13th century, where alcohol was distilled from wine. The art of distillation spread to Ireland and Scotland no later than the 15th century. In fact, the word whisky is an anglicisation of the Classical Gaelic word uisce meaning ‘water’; in Latin it was known as aqua vitae – the water of life. Scotland is the country with the strongest ties to whisky; the first reference to whisky production can be found in a letter dating back to 1494. Scotland’s whisky industry contributes around £5 billion

(around €5.56 billion) to the UK economy, and its exportation makes up a quarter of all the UK’s food and beverage revenues. However, other countries including the United States, Canada, Ireland and Japan all have a storied whisky-making tradition, producing millions of cases with their own distinctive palates and flavours every year. Whisky is another beverage that draws obsessive collectors who are happy to spend huge sums on curating their collection. A key difference between wine and whisky collectors is that unlike wines, whiskies do not mature in the bottle, only in the cask, so the ‘age’ of a whisky is only the time between distillation and bottling. Whiskies that

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Lifestyle mates as being worth as much as $10 million (around €8.45 million). Malta has no shortage of connoisseurs who treasure their prized wine and whisky collections, but are happy to bring them out to share them with family and friends on special occasions. Others have made a career out of doing what they love. After all, it’s difficult to envisage anyone surviving in this highly exclusive and stratified world if they didn’t thoroughly enjoy what they do. “What started off as a mere hobby whilst being employed in the catering industry evolved into a passion,” says William Rizzo, who heads Farsons Group’s Wines and Spirits Development section. “It’s a passion that has given me the opportunity to meet some extraordinary people in this industry and access to some fantastic wines and spirits.” Mr Rizzo holds a WSET Diploma in Wines and Spirits, and was certified as a sommelier by the Court of Master Sommeliers. He is also currently preparing to sit for the first exam of Master of Wine. “The local market for wine is still traditional, with most connoisseurs sticking to French and Italian: Bordeaux, Burgundy and Rhône from the former, and Barolo, Brunello and Super Tuscans from the latter. Only a small group of hard-core wine connoisseurs and aficionados venture out of these catego-

“The local market for wine is still traditional, with most connoisseurs sticking to French and Italian: Bordeaux, Burgundy and Rhône from the former, and Barolo, Brunello and Super Tuscans from the latter.” have been bottled for many years may have a rarity value, but are not ‘older’ and not necessarily ‘better’ than a more recent whisky that matured in wood for a similar time. According to common whisky lore, a committed whisky collector always buys three bottles – one to enjoy, a second one for the collection and a third one for later swapping, when the price has risen accordingly. It's an excellent way to

expand a collection, and by selling the redundant bottles, additional money can be raised in order to fulfil the collector’s wishes. And whisky collections can get every bit as extensive and expensive as wine cellars. One of the most famous whisky collectors in the world, a building tycoon from Atlanta, Georgia, called Mahesh Patel, has a treasure trove of more than 5,000 rare and exquisite bottles, which he esti-

ries,” Mr Rizzo says. “On the other hand, the whisky connoisseur is more adventurous, and is likely to try anything.” “Luckily, working with a strong company, I come across many opportunities to buy and sell fine and rare wines and whiskies. Our cellars are full of interesting wines and spirits, and we get all sorts of requests. Most of the time we manage to obtain what the client wants through the strong network of contacts in the wines and spirits industry abroad. Recently, we sold a bottle of Screaming Eagle,” – a highly sought-after cult wine from Oakville, California, whose winery only produces around 700 cases each year. Mr Rizzo describes it as “the most expensive North American wine”. When it comes to amassing a respectable collection of fine wines or whiskies, Mr Rizzo believes that the sky is the limit in terms of how much you can spend. He mentions Tribute to Honour, a 45-year-old whisky created six decades after the creation of Royal Salute to honour Queen Elizabeth II's coronation. Only 21 jewel-encrusted porcelain decanters of the whisky blend were released worldwide, with each bottle having been decorated with more than 400 black and white diamonds by Royal jewellers Garrard in a diamond-encrusted bottle. Each bottle costs around €225,000. Spending astronomical sums isn’t everything, of course. “Unfortunately, I’ve come across a lot of collections, where substantial amounts of money have been invested, that haven’t been kept in appropriate conditions and are now past their best,” Mr Rizzo says wistfully. For novice collectors, he suggests picking a country, region or brand, starting small and working upwards, making sure the collection is kept in appropriate storage, and buying and collecting to enjoy – which is the ultimate satisfaction. “Wine and whisky collectors differ from each other. Wine collectors usually end up opening the bottle, but whisky collectors enjoy seeing their collection grow and adding the latest whisky expression from a particular brand. Always start small and enjoy the journey, but remember that wines and whiskies have been produced to be drunk and enjoyed!” BA

BUSINESSAgenda | Winter 2017

Business Update Attila Keszeg, CEO at GO and Christian Sammut, Chief Officer

Sparkle and GO upgrade Italy-Malta bilateral cable introducing 100GB transmission technology Upgrade meets fast growing demand for hosting and online gaming servers in Malta combined with top quality international connectivity solutions.

GO launches 1 Gigabit service for business GO has launched a 1 Gigabit internet speed connection which is immediately available to its business clients in all areas where fibre is available. The launch of a 1 Gigabit service continues to position GO as a key enabler in the Maltese economy at a time when the importance of data and connectivity is set for a new phase of exponential growth. Attila Keszeg, CEO at GO, said “GO is committed to its role as a partner in ensuring Malta remains an attractive and competitive place to do business. Our very significant investments in our fibre and mobile infrastructure, including our recently announced €100 million investment, have given Malta world class connectivity, not just within the country but also, thanks to the recently completed upgrades in our international submarine cables, with the rest of the world.” Christian Sammut, Chief Officer – Business at GO, said “GO’s ability to continue serving the Maltese business community is based on a sound strategy and the ability to take bold

investment decisions at the right time. Our investment in data and cloud services provider BMIT and IT provider Kinetix are just two examples of this. These investments mean that GO now offers end-to end services to the business community. At the same time, we have also been investing heavily in infrastructure and GO is now able to offer 1 Gig connections to those businesses whose data and connectivity needs require ultra fast internet.” The 1GB service forms part of GO’s Business Infinity offering, providing different internet speeds coupled with free telephony. For a limited time period, GO will be offering business customers special offers on 1Gb speed connections, also including free telephony to any number in Malta. More information about GO’s Business Infinity services, including the new 1Gb offering, is available at www.go.com.mt/business

Sparkle, the international services arm of TIM Group and among top 10 global wholesale operators, and GO plc, the market leading communications services provider in Malta, have upgraded the Italy-Malta bilateral cable and introduced 100GB transmission technology. The upgrade is in response to the fast-growing demand for hosting and online gaming servers in Malta, one of the main drivers of the strong increase in IP and Data business between GO and Sparkle. The introduction of the state-of-the-art 100GB technology will in fact enhance the performance of GO’s IP proposition through highly-sophisticated and reliable connectivity solutions. The upgrade of the Italy-Malta bilateral cable reinforces the strong partnership between Sparkle and GO as it provides a differentiated and highly reliable international route for Malta’s international traffic. The project is also part of GO’s recently announced €100 million investment in Malta’s communications infrastructure, designed to prepare the country for the future. The partnership between GO and Sparkle will continue to develop in order to meet the needs of customers operating across the Mediterranean. About Sparkle Sparkle is the wholly owned subsidiary of TIM Group (NYSE:TI) with the mission to develop and consolidate the Italian telco’s international services business. As a leading global carrier and through a global backbone of around 570,000 km of fibre, Sparkle offers a full range of IP, Data, Cloud, Data Centre, Mobile Data and Voice solutions to fixed and mobile operators, internet service providers, Media and Content providers, and to Multinational enterprises. Its sales force is active worldwide and distributed in over 37 countries. Find out more about Telecom Italia Sparkle at www.tisparkle.com ABOUT GO WHOLESALE By means of its wholesale arm, GO plc offers a wide variety of services to global carriers and is the obvious choice for most, in terms of data access to/ from the centre of the Mediterranean and the Maltese Islands towards all the main global PoPs. With resilient connections to mainland Europe, GO plc is the major telecom partner to international financial institutions, global online gaming companies, multi-national organisations based in the centre of the Mediterranean, as well as the Maltese Government. GO Wholesale also provides reliable voice termination services to all local operators in Malta and is the roaming partner of choice for the leading mobile networks worldwide. For more information visit www.go.com.mt/wholesale

BUSINESSAgenda | Winter 2017

Business Update Work smarter, not harder – Automate your iGaming bonus campaigns

Visit the Vascas Open Weekend in December Vascas will be opening its doors to the public from 1st to 3rd December for an open weekend. Expect a number of exhibitions featuring pearls, diamonds and a number of high-end brands, such as Maison Tatiana Fabergé, Paladino, Bremont, Siké, Cameo, Nambe and Louis Errard.

The open weekend will also be displaying the shop’s vast range of jewellery, watches and homeware. Vascas’ Naxxar outlet will be open all weekend from 9am till 7pm. Drop by and join the fun! For more information, get in touch on Facebook or call on T: 2258 9200.

BOV introduces contactless cards

Bank of Valletta is in the process of replacing its card base with contactless cards. The contactless card upgrade ushers in a new era of digital banking in Malta. These cards combine the same security afforded by traditional chip-and-pin cards, with the convenience afforded by wireless payments. Paying for low-value items is for the first time easier than paying cash. Now cardholders can simply tap the card on the EPOS machine at the retailer and the transaction is processed in seconds. There is no need to enter a PIN or sign on the slip as long as the transaction’s value is below €20. The new contactless cards, which have also been given a fresh look with a new artwork, allow the cardholder to effect regular contact transactions, whilst also enabling contactless transactions.

Contactless cards are equipped with the traditional chip-based security features which now also combine contactless specific technology to enable the card to interact securely with a contactless terminal. These security features work in tandem with other security measures that are specifically designed to ensure the cardholder’s peace of mind when taking advantage of the convenience of making secure contactless payments with their new card. Education remains a prerogative for the bank. We shall be undertaking several efforts to educate the public whilst ensuring that more people switch from conventional payment methods such as cash and cheques to more user-friendly digital alternatives.

Bank of Valletta p.l.c. is a public limited company licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta). Registered Office: 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130-Malta Registration Number: C 2833.

Attracting the right type of players and continuously keeping them happy is one of the greatest challenges for any iGaming business. Even though players are constantly on the lookout for a new and exciting brand or game, they all pay special attention to the types of bonuses and promotions on offer. Certain campaigns such as Welcome Bonuses can be very useful in obtaining new players to sign up to an iGaming site. However, it is very common for such offers to attract the wrong type of players – especially the ones that simply sign up, use the welcome promotion, and then never make a deposit again. Regular and exciting promos, such as Deposit Bonuses and Free Spins, are equally important ways to increase player retention rates and to drive up gaming revenue. But with so many different types of players, each having their own spending habits and game preferences, it’s often difficult to come up with unique bonuses which cater to all these individuals.

This is where the AXON Gaming solution can help you optimise your bonus campaigns through player segmentation, bonus automation, and monitoring of real-time results. With AXON Gaming, operators can maximise the accuracy of a bonus campaign by defining specific rules, applicable to a specific player persona. Each time the criteria are met, bonuses and promos are automatically triggered based on a player’s profile. Learn how to optimise and automate your bonus campaigns with AXON Gaming by visiting www.computimesoftware.com/ axon-gaming. Get in touch on E: info@computimesoftware.com or call on T: 2149 0700 for more information.

Content House Launches New Website

Content House Group, one of Malta's leading publishers in both print and digital sectors, producing premium content for discerning audiences, has launched its new corporate website, www.contenthouse.com.mt. The new corporate website features details of the Group’s prestigious brands, which include some of the island’s most renowned glossy magazines, business publications and digital portals. It allows visitors to browse the latest edition of each publication, as well as access details of each brand, such as target audience and distribution channel. Moreover, it also introduces the company’s new ventures and provides details for exciting job opportunities across its departments. “Following industry trends, the new corporate website includes many new features and makes use of the latest technologies,” Raisa Mazzola, Business Development and Digital Media Strategist at Content House, explains. “The site also

gives users access to all social media platforms and allows them to easily download official Rate Cards directly from the website. Users can even apply for a job directly through the site by literally dropping their C.V. within a simple application procedure.” The home page includes a show reel showcasing the diversity of content produced by the Group, while the brand pages contain an overview as well as strong imagery for each publication or portal. Content House owns and manages Malta’s largest portfolio of high-end magazines and business publications, such as Style, Gwida, Bliss, as well as The Business Observer, Business Agenda, The Commercial Courier, Economic Vision and the annual reports for the Malta Chamber of Commerce and the Malta Business Bureau. Moreover, its portals, including Ourwedding.com.mt and Maltachamber.org.mt, have experienced year-on-year growth.

BUSINESSAgenda | Winter 2017

EU Policy

Advancing

Apprenticeships With the news that the European Commission recently adopted an initiative to boost apprenticeships in Europe, Jo Caruana chats to three experts to get their opinion on how and why traineeships work.

pprenticeships make sense all around. From the budding employees gaining valuable skills that will set them apart, to the employers that can start training team members in much-needed skills early on in their careers, this win-win scenario can really prove important on both sides of the coin. And it’s with that in mind that the European Commission (EC) recently announced its proposal for a European Framework for Quality and Effective Apprenticeships, which aims at increasing the employability and personal development of apprentices and contributing towards a highly-skilled and qualified workforce responsive to labour market needs. “Over the last decade, Europe has witnessed a major financial economic crisis, dramatic increases in unemployment and now a steady return to a path of growth,” explains Ben Butters, the Policy Director of Eurochambres. “Throughout this turbulence, employers consistently list a lack of skilled workers among their top challenges.

“For Chambers, effective vocational education and training (VET), including a strong and effective work-based learning component, is one of the key tools to address this persistent and socio-economically damaging mismatch between the supply and demand of skills and competences.”

address many of the key components to ensure that apprenticeship schemes benefit both employers and learners,” Mr Butters says. “As such, the criteria should provide valuable guidance to many member states.”

He explains that this is why Eurochambres has, for several years, called for further measures at EU level to implement robust apprenticeship schemes across the member states. “However, does this framework respond to this call? Well, yes and no. “The framework rightly emphasises the important role of apprenticeships in easing the transition into work and how they help young people to acquire the knowledge, skills and experience needed by the labour market. It additionally points out that effective apprenticeships can facilitate adults’ subsequent career progression.” Importantly, the framework sets out 14 criteria to define quality and effective apprenticeships. “Although these criteria are not exactly in line with Eurochambres’ expectations, they

Dana-Carmen Bachmann Explaining the idea behind apprenticeships in more detail, Dana-Carmen Bachmann, Head of Unit for VET, Apprenticeships and Adult Learning, DG EMPL, European Commission, describes that the concept is built on a combination of learning in a school or training centre, and training in a company or workplace.

“When respecting the criteria identified in this new framework, this ensures that apprentices get a blend of basic, transversal and job-related skills that give them unique opportunities for success in life and at the workplace,” she says. “An apprenticeship should be a true learning and development experience through which the trainees grow in terms of knowledge, skills and maturity, and where they learn to tackle the real world.” Ms Bachmann explains that the framework has two sets of criteria. “The first seven criteria relate to the necessary learning and working conditions, including the right to a written contract and pay or compensation, clearly defined learning outcomes and pedagogical support, a strong workplace component, social protection and respect for work, safety and health conditions. The next seven criteria relate to the necessary framework conditions, such as having a clear regulatory framework, providing support for companies, and having quality assurance. The importance of a partnership approach, involving key stakeholders such as the Chambers, is built into the framework. Our proposal builds on previous work of the European social partners, governments and other stakeholders. It is now up to the member states to discuss our proposal and agree on a final text,” she says.

“An apprenticeship should be a true learning and development experience through which people grow in terms of knowledge, skills and maturity, and where they learn to tackle the real world.” Dana-Carmen Bachmann On his part, MBB CEO Joe Tanti remarks, “here in Malta, the Chamber of Commerce is a strong supporter of work-based learning activities such

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EU Policy

“Apprenticeships give young people a chance to develop practical competences within industry by obtaining firsthand experience and better understanding of the working environment.” Joe Tanti

as internships, apprenticeships and work placements. Our members consider apprenticeships an effective tool to improve the skill set of young people. In this regard, the Malta Chamber continues to build strong links with the Malta College of Arts, Science and Technology.

Joe Tanti “From MBB’s experience and close collaboration with the University of Malta, we are fully aware of the benefits derived when employing young people. To this end, we believe that training experiences should become more structured and formalised, and also that cooperation between businesses and academia should be further enhanced,” explains Mr Tanti. Apprenticeships have a particularly central role to play in helping young people acquire the skills that will boost their career opportunities and contribute to economic growth. Mr Tanti continues, “I believe that apprenticeships are effective not only in making young people employable but also to become increasingly intrapreneurial within the organisation. Apprenticeships give our youth a chance to develop practical competences within services and manufacturing, and a better understanding of the working environment.” Looking to the future of the EC’s work on apprenticeships, Mr Butters explains

that Eurochambres is satisfied that the crucial socio-economic role of smaller businesses (SMEs) is factored in, with one of the 14 criteria focusing specifically on the need for adequate support to SMEs. “So far, so good then, but there are two areas in particular where we think the framework could be strengthened,” he stresses. “Firstly, the proposal follows a disappointingly familiar Commission pattern of over-emphasising the role of social partners in the design, governance and implementation of apprenticeship schemes. While social partners are certainly important actors in the field of education and training – in some member states more than others – they are not the only ones and Eurochambres argues that the EC should encourage a broader partnership approach. “Secondly, the Commission should have taken this opportunity to push not only for an increase in the quality of apprenticeships, but also in the quantity. We need critical mass if apprenticeship schemes are really going to gain traction and if VET is to be considered an equal alternative to academic education. It’s astonishing that still only about one in four VET students across the EU spend a significant proportion of their training in a business. This is why Eurochambres has, since 2014, been pushing for the Commission to set an ambitious quantitative target for work-based learning within VET. We would have liked such a target to feature in the new framework.” Mr Butters goes on to say that Chambers across the EU manage nearly one million apprenticeships per year and are especially instrumental in ensuring the involvement of SMEs. “They are impressive figures, but the picture is more complex than that, reflecting the patchwork of approaches to apprenticeship schemes at national and sub-national level. While many

policy decisions in this area cannot be taken at EU level, it is important that the Commission uses every tool available – political and practical – to enhance apprenticeship schemes and thus tackle the skills mismatch. This is why Eurochambres will remain heavily involved, not just in policy discussions like the new framework, but also through hands-on measures, such as our ongoing ‘AC4SME’ project to involve more SMEs in apprenticeship schemes.” Meanwhile, Ms Bachmann underlines that the framework will help young people to kick-start successful careers – and the numbers do look good. “Typically, two in three apprentices get recruited directly following their training and this sometimes goes up to 90 per cent. We also see that countries with strong apprenticeship systems tend to have lower levels of youth unemployment. What we want to do with this framework is identify the success criteria in setting up apprenticeship schemes, so that more people can benefit from them.”

Ben Butters Of course, it’s also important that the businesses engaging in apprenticeships get a lot out of them – and there are several ways that this can be achieved. “First of all, I truly believe that businesses should cultivate a culture of mentoring in place,” Mr Tanti

“The framework rightly emphasises the important role of apprenticeships in easing the transition into work and how they help young people to acquire the knowledge, skills and experience needed by the labour market.” Ben Butters

says. “For a successful apprenticeship, trainers who are assigned to trainees need to be qualified, and have a passionate interest in coaching young people.

ble from their apprenticeship opportunity. Most of their colleagues at work have a vast amount of knowledge and experience that apprentices can take with them throughout their career.

“Through our experience, training needs to be well-managed and conducted in the most organised and efficient manner. It is of utmost importance that businesses set out clear objectives with real responsibilities and specific tasks for their apprentices. Businesses should challenge all students, so they may reach their fullest potential. This is not only important to ensure that apprenticeships yield a positive employment outcome, but also to help boost the business’ productivity level.

“Moreover,” he continues, “throughout the apprenticeship, trainees can meet and interact with various individuals, coming from diverse backgrounds and career pathways. They should use this as an opportunity to develop their own connections and build their own networks. This might prove useful in their future career. To this end, I advise young people to show willingness in working and learning, by pushing themselves and putting in all their best during their apprenticeship.”

“Additionally, it is also vital that businesses communicate effectively with their apprentices. Businesses should provide clear and constructive criticism during the training process. Once they finish the programme, trainees should have a good understanding of their strengths and weaknesses.” As for the apprentices, their success will also depend on their willingness and dedication. “Some apprentices can be reluctant to ask questions,” Mr Tanti suggests. “In any case, they shouldn’t be. Trainees should ask questions and absorb as much information as possi-

Finally, Mr Butters concludes by underlining how things should proceed: “the new Framework for Quality and Effective Apprenticeships is certainly a step in the right direction, but there is much more work to be done.” BA

BUSINESSAgenda | Winter 2017