BUSINESS AGENDA ISSUE 13 by Malta Business Bureau

THIS ISSUE

EU POLICY Efforts to strengthen Europe’s manufacturing industry through investment priorities and policy review.

page 11

Issue 13 | dec 2012 - Feb 2013

business agenda

NEWSPAPER POST TOURISM The reclassification of Malta’s hotels critical in defining the country’s tourism product.

page 31

THE Official Business publication of the Malta business Bureau

VALLETTA 2018 ‘resilience’ 12 per cent increase in visitors expected

case study A close look at FIMBANK’s strategy to maintain its positive performance and to support businesses’ internationalisation efforts.

– Main reason for malta’s low unemployment

The unemployment situation in Malta is best described as ‘resilient’, according to leading economist Dr Gordon Cordina. Despite the turbulent economic environment in Europe, Malta has succeeded in keeping the unemployment rate well below the 10.5 per cent EU average.

page 15

Dr Cordina points out that even at the height of the recession, unemployment in Malta reached 7.3 per cent, but has since remained

Interview Dr Peter Agius discusses the communicative role of the European Parliament Representation in Malta and the European Parliament’s priorities for 2013.

page 22

BUSINESS The importance of recharging one’s batteries during the Christmas season.

page 41

Photo by Clive Vella – www.viewingmalta.com Valletta is expected to see a significant increase of 12 per cent in visitors as a result of being crowned as Capital of Culture for the year 2018. Valletta Mayor Alexiei Dingli said the figure is based on the results obtained by other Capitals of Culture. Being the Capital of Culture in 2018 is more than a title but a massive a project which is expected to translate into farranging benefits to Malta’s different industries, including the hospitality and tourism industry as well as retail. The cultural injection will also generate more jobs across the board – creating what the Mayor of Valletta describes as “a cultural ecosystem that will transform Malta once and for all”.

Along with welcoming a 12 per cent rise in visitors, as David Felice, chairman for the V18 Foundation explains, research shows that if well-planned, the economic return on investment is worth the initial expenditure across a wide cross-section of sectors. The title will also help portray ‘a modern Malta’, and will give the country the chance to highlight its culture heritage. Business Agenda takes a look at the developments so far and what this will mean from a business and economic point of view. See full story on page 8.

consistently below the 7 per cent mark. He explains that in his opinion unemployment is mostly down to a skills mismatch, rather than a lack of job creation or an inefficient labour market. Business Agenda speaks to stakeholders in the sector about the current situation in Malta and discusses what is being done to improve it. See full story on page 5.

Charisma and a powerful campaign – central to Obama’s electoral victory Barack Obama’s first term in office has been criticised by several quarters as not having been effective in delivering electoral promises. Nonetheless he managed to overcome his Republican opponent Mitt Romney to secure a second term in office in a close call election earlier in November. In an exclusive interview with Business Agenda, US political expert Prof. David A. Schultz, expresses his opinion that in so many ways Obama should not have won given the economic situation and his lack of a plan for a second term, however his sleek campaign and

charismatic qualities helped him topple his challenger, Romney, who failed to connect with the American people. Dr Isabelle Calleja Ragonesi, Head of the International Relations Department at the University of Malta, who also contributes to this article, believes that in general European leaders are happy with the electoral outcome, however there are also fears that the US is too preoccupied with its domestic woes to pay attention to foreign affairs. See full story on page 18.

BUSINESS AGENDA | DEC 2012 - feb 2013

BUSINESS AGENDA | dec 2012 - feb 2013

editorial

Business perspectives

for the New Year Last October, the European Commission issued a Communication outlining its work programme for 2013, listing the strategic proposals that the College of EU Commissioners intends to adopt from now until the end of its mandate in April 2014.

ment as well as to speed up the adoption of new technologies while enhancing resource efficiency. The standardisation acquis will also be reviewed and this could have substantial implications for the manufacturing industry.

It is therefore not surprising that this work programme appears to be more strategic than the previous ones presented by President of the European Commission José Manuel Barroso. The MBB welcomes the Commission’s efforts to prioritise action towards achieving growth and creating more jobs. On a more strategic level, the Commission is committed to making progress towards a genuine Economic and Monetary Union (EMU). In this respect, it confirmed its intention to publish a blueprint for a comprehensive and genuine EMU before the end of 2012.

The MBB also welcomes the Commission’s plan to push for e-invoicing and e-signatures in the field of public procurement. The Commission will also put forward important proposals to reinforce publicprivate partnerships in the areas of research and innovation under the forthcoming Horizon 2020 Programme. Moreover, plans are in the making for a revision of the EU’s Schengen visa policy, which is set to facilitate the entry of legitimate travelers on vacation into the EU.

Aside from monitoring the implementation at national level, the MBB is keen to see the Commission roll out its initiatives in relation to the internal market, in particular the new priority actions unveiled in the Single Market Act II. This includes the reform of the single market for industrial products, by creating the conditions to stimulate new invest-

These initiatives certainly complement the MBB’s own work programme particularly in its efforts to promote and encourage competitiveness. In this respect, the organisation has worked extensively to communicate the challenges and opportunities Maltese businesses face when operating within the European Single Market. The Bureau is already monitoring the EU’s legislative process in relation to the Insurance Mediation Directive, and

is also following up on proceedings related to the revised Integrated Industrial Policy both of which were released in October. With regard to tourism policy, the MBB will be following the developments on the European Tourism Quality Label and the long-awaited revision of the Package Travel Directive. In view of employment and social affairs issues, the MBB will continue to work on the Leonardo Mobility SHIFT project, which promotes flexible work arrangements and familyfriendly measures in the private sector. In this respect, a study has recently been launched and more actions will be taken throughout 2013. Furthermore, the MBB is also closely following developments within the context of the European social partners’ negotiations on the revision of the Working Time Directive, which are now reaching a critical stage. The MBB’s focus on the environmental agenda is continuously backed with the unrelenting implementation of the EU LIFE+ Investing in Water project which has the objective of bringing about a 10 per cent decrease in service water consumption of businesses from all sectors. At the beginning of Novem-

By Joe Tanti, Chief Executive Officer, MBB ber, the MBB launched the second set of free water audits, offered to enterprises by the project. The response and successful uptake is certainly a strong incentive for the MBB to enhance its project and policy capacity on EU environmental issues for the benefit of Maltese business. In this regard, the MBB is already exploring the possibility of submitting another LIFE+ project proposal in 2013, possibly on waste issues.

2013 will be a truly challenging year for the MBB but I have no doubt that we are equipped with the capacity to rise up to the challenges and deliver the best for Maltese businesses. The Christmas holiday break will reinvigorate our determination to deliver on all fronts. In the meantime, I wish you, on behalf of the MBB, all the best for a happy, prosperous and successful 2013!

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Editorial Team: Chiara Bonello, Omar Cutajar, Daniel Debono, Mariella Scicluna

Business Agenda is the quarterly publication of the Malta Business Bureau. It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

BUSINESS AGENDA | DEC 2012 - feb 2013

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BUSINESS AGENDA | dec 2012 - feb 2013

in-depth

Malta’s unemployment:

‘Skills mismatch – rather than lack of jobs’ Malta was one of 13 EU member states to see its unemployment rate, which currently stands at 6.4 per cent, fall between 2010 and 2011, a figure which is well below the EU average. Chiara Bonello gets the experts’ take on the local unemployment situation. Despite the turbulent economic environment in Europe, Malta has succeeded in keeping its unemployment rate low (6.4 per cent), the fifth lowest in the EU in fact; well below the 10.5 per cent EU average. According to one of Malta’s leading economists, Dr Gordon Cordina, Malta’s unemployment situation tends to be an issue of skills mismatch, rather than a lack of job creation or an inefficient labour market. This is implied by the fact that annual long term unemployment in Malta stands at approximately 3 per cent, in comparison to 4.6 per cent and 5.2 per cent in the EU and euro area respectively. Dr Cordina believes that Malta’s unemployment rate is relatively low and that the situation in Malta is best described as resilient. “At the height of the recession the unemployment rate reached a rate of 7.3 per cent, and has remained consistently below the 7 per cent mark over the past two years.” He points out that Malta’s low unemployment rate is also due to the fact that a small percentage of the population is active in the labour market. The activity ratio in Malta stood at 61.6 per cent in 2011, compared to 71.2 per cent in the EU. This is mostly down to the low participation of female and older workers. Employment Training Centre (ETC) chairperson Sandra Sladden agrees that the registered unemployed level is not alarming and explains that according to the Eurostat publication for the euro zone area, Malta is succeeding to maintain a low unemployment rate despite the depressed economic growth rates experienced in the EU. Dr Sladden points out that focusing solely on unemployment rates, without considering employment, offers only a partial view of the labour market situation. The National Statistics Office (NSO)’s Labour Force Survey for the second quarter of 2012 indicates an employment rate of 58.5 per cent for those aged between 15 and 64, registering a trend of increasing employment levels.

Commenting on the Labour Force Survey, economist Gordon Cordina explains that employment growth post-recession stood at over 2 per cent per annum, adding that it was important to note that the major source of this growth was the female segment of the labour force and part-time employment. Over the past few years job creation in Malta has emanated mainly from service-based sectors, he explains, and more recently one

Through the Cohesion Policy 20072013, more than €25 million were made available to the Corporation from the European Social Fund (ESF) to offer schemes to address unemployment and skills mismatching.

In 2011 the ETC received 1,149 applications and signed 1,097 agreements with beneficiaries, for financial assistance to companies wishing to offer various forms of training to their employees (ESF Training Aid Framework).

These included short training courses accessible to the employed, unemployed and inactive population, addressing both the soft and hard skills required by industry, specialised trainee-

In a bid to explore and develop training, educational and employment pathways of young jobseekers, specialised career guidance and counselling services were offered to over 3,000 youths

“ Malta must, however, continually strive to identify niche sectors that will contribute towards dynamic economic growth.” – Gordon Cordina could pinpoint other sectors such as ICT, financial, professional, food and accommodation. “Malta must, however, continually strive to identify niche sectors that will contribute towards dynamic economic growth,” he adds. This registered growth has been positive for workers holding medium to high-skilled jobs, but rather negative for people with low skills. Based on the fact that employment growth was generated mainly from high value-added service-based activities, one can infer that unemployment is skewed towards low-skilled workers, Dr Cordina argues. “Smart, sustainable and inclusive growth through employment and job creation has remained on the top of the EU’s agenda in 2012. Indeed the conclusions of the last European Council called upon member states to develop ‘quality traineeships and apprenticeships’ in view of its belief that member states’ vocational training schemes play a particular role in addressing employment,” Dr Sladden states. She goes on to explain that in practical terms this means that the ETC, as Malta’s Public Employment Services, is playing a key role in enhancing the employability of jobseekers, particularly by facilitating access to training and in some cases by offering the opportunity to acquire job experience in various working environments.

ship schemes and training subsidies, including training subsidies of an academic nature for employees who wish to pursue further training (ESF Employability Programme). ETC course participants in 2011 reached a record high of 15,072, equivalent to a 10 per cent increase over the previous year. There was a slight increase of 2.5 per cent in male participation, but a satisfactory 27 per cent increase in female participation over 2010, Dr Sladden asserts.

Dr Gordon Cordina

between January and December 2011. Co-funded through the European Social Fund under the current programming period (2007-2013), the schemes are bound with a budget and a set timeline. As take-up exceeded expectations, in May 2012 the decision was taken to close the schemes temporarily. “Fully aware of the benefits of such schemes, the ETC intends to re-apply for similar projects in the

BUSINESS AGENDA | DEC 2012 - feb 2013

in-depth to a healthier work environment and higher levels of productivity. “This gives our economy a competitive advantage and the possibility of growth, while ensuring the sustainability of our welfare system, by creating the possibility of more people, and more females, engaging in the labour market,” she explains. As the Maltese population matures and increasingly discards the traditional roles of men and women; this necessitates certain infrastructures to support the modern ‘partnership’ family. In view of these developments the MBB is working on the SHIFT project, with the objective of supporting professionals in the human resources field.

Mariella Scicluna “ Improvement is needed in female employment rates, through the extension of affordable and adequate quality child care services and increased employer sensitisation towards the benefit of family-friendly measures.” next programming period (20142020),” she explains.

active ageing strategy for longer working lives.

Dr Cordina admits that the main challenge is increasing employment rates, particularly by boosting activity rates within the labour market. “There needs to be a focus on upgrading the productivity of the employed and retraining and multi-skilling workers whose jobs may be at risk in the future,” he explains.

Programmes should be tailormade to address the needs of low skilled workers, women re-entering the labour market and older workers, and specific initiatives to provide on-the-job training, retraining, multi- and up-skilling of workers in sectors with low productivity or low competitiveness levels, Dr Cordina argues.

Improvement is needed in female employment rates, through the extension of affordable and adequate quality child care services and increased employer sensitisation towards the benefit of familyfriendly measures and employment rates of older workers, through the implementation of an

MBB SHIFT (Supporting Human Resources in Family-friendly Training) Project Manager Mariella Scicluna says that flexibility and security within the labour market are being promoted by the EU, as part of the EU2020 strategy, since it has been found that flexible work arrangements contribute

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Ms Scicluna explains that this project aims to give human resource professionals the opportunity to learn more about flexible work and family-friendly measures. Not only does it disseminate best practices, but it also offers innovative means of providing such measures at the place of work. The project, which is divided into three stages, saw 17 HR professionals gain experience in Denmark and Germany, two countries where the implementation of flexible work and family-friendly measures are at an advanced stage, particularly in the private sector. The first phase, which was cofinanced by the European Commission Lifelong Learning Mobility Programme, gave participants the opportunity to get first-hand experience of how companies and policy makers work together for the implementation of such measures, and gathered clear insight on how to introduce such practices at their own place of work. The project is just embarking on the second phase, which will analyse the current take-up of flexible work and family-friendly measures in the Maltese private sector. It will help to identify obstacles compa-

Sandra Sladden “ Smart, sustainable and inclusive growth through employment and job creation has remained on the top of the EU’s agenda in 2012.” nies face in implementing such measures, and the changes needed to create an optimal environment for such measures to work well. Simultaneously the SHIFT project will set about disseminating the gathered knowledge and best practices with other HR professionals on a nationwide scale. This will last well into the third phase, which will see the project publish a toolkit to support businesses in the implementation of flexible work and family-friendly measures. It will also be offering reviews on an individual basis, to discuss and analyse the needs of the particular company and how they can surpass certain obstacles and start implementing these policies. Ms Scicluna states that “this brings us to our ultimate aim of having a higher percentage of companies

within the private sector offering flexible work along with a variety of family-friendly measures.” Looking to the year ahead, ETC chairperson Sandra Sladden admits that unemployment depends on a number of factors, most importantly economic growth. Malta is exposed to economic developments in its major trading partner countries, especially those in the EU. However, as was the case during the 2009 recession, the Maltese Government was wise enough to adopt policies to mitigate the negative impact. “ETC will continue to do its utmost to provide good counselling and advice, training, work experience and matching services to jobseekers, so as to contribute to decreasing unemployment and increasing employment levels,” Dr Sladden concludes.

BUSINESS AGENDA | dec 2012 - feb 2013

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BUSINESS AGENDA | DEC 2012 - feb 2013

cover story

Valletta 2018:

‘Number of visitors to Valletta will increase by 12 per cent’ There’s no business like… show business! And as Valletta looks forward to its transformation as European Capital of Culture in 2018, Jo Caruana examines what this could mean for the capital’s business community – and beyond. Culture is big business. And as Valletta journeys towards its position as European Capital of Culture (ECoC) in 2018, business owners will be eager to see how the city’s new role could translate into increased sales and opportunities for them. So, is this on the cards? “V18 really is going to be an opportunity to showcase Valletta, and other localities, like no other,” says the city’s mayor, Alexiei Dingli. “Based on the results obtained by other Capitals of Culture, we estimate that the number of people visiting the city that year will rise by 12 per cent. Thus businesses will definitely benefit from this increase. “On top of that, activities aren’t just planned for 2018 but will build up gradually year on year. With more activities on the go, we’re sure that more people will be encouraged to

entrepreneurs need to be involved in the process early on. This has to happen while the project is still being defined, rather than as a late attempt to source additional funds to support the realisation of a project that was evolved on the basis of an agenda developed by others.

visit the capital, whether to shop, enjoy a meal or to visit a cultural activity. And beyond 2018? We hope the legacy will live on too and I believe Valletta will feel the difference. Having said that, we can’t discount the substantial investment that is being made by the Government, as well as private entities, in the run up to this special event.” Investment will be directed towards a variety of projects, including the restoration of several historic and cultural buildings, as well as ones that are being built from scratch. There will also be embellishment works, cultural investment, education, marketing and more. “Yes, organising the European Capital of Culture requires quite some expenditure,” says David Felice, chairman of the V18 Foundation. “Yet it is well-documented that if

Photo by Clive Vella – www.viewingmalta.com well-planned, the economic return on investment is worth the initial expenditure.”

ried out to analyse the economic impact left by a ECoC in the host city.”

In fact, Mr Felice explains that a number of studies have been car-

“What has been found is that the private sector and the community of

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“Within the walls of Valletta, the business community is almost as residential in its presence as the residents themselves, and this has played a vital role in keeping the city alive over the decades. Today businesses can invest, promote themselves, promote the ECoC and thus, promote Valletta. We know that businesses, and especially small businesses, need to be guided and the support is out there.” Of course, all this investment is aimed at making Malta more attractive. “And it is already succeeding,” Dr Dingli continues. “The feedback we’re getting from estate agents is that, after the title was confirmed, interest in Malta quickly increased. We’re already seeing large numbers of distinguished individuals set up in the city, including international artists and entrepreneurs.” Dr Dingli believes that V18 will help to portray a ‘modern Malta’, and will also highlight our heritage and culture. “We’re making some important statements,” he says, “like through the Renzo Piano project, as well as with the creation of the island’s first Museum of Contemporary Art, which will be housed in the Powerhouse near the Valletta Waterfront.

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“At this stage, we are definitely strengthening our creative economy, which is arguably new to Malta. This cultural injection will help to create more jobs across all sectors – construction workers will create the infrastructure needed, artists will have more spaces to realise their creations, the general public will be entertained by more quality productions and foreigners will be encouraged to be part of this change. Essentially, we will be creating a cultural ecosystem that will transform Malta once and for all. Plus, the expected boost in our

BUSINESS AGENDA | dec 2012 - feb 2013

cover story Case Study– A Business in Culture: Phoenicia Hotel “I am very positive that V18 will put ‘product Malta’ right in the limelight,” says Charles Azzopardi, Phoenicia Hotel’s general manager. “It won’t just impact tourism, but it will also have a significant roll-on effect on other service industries across the islands.

ism Authority’s strategic direction to promote Malta in major tourism markets for city breaks. Success on this front also means an improvement in our tourism seasonality, as city breaks and short-break holidays are more predominant during the winter and shoulder months.

around Valletta, we have greater possibilities to promote The Phoenicia with culture packages targeted at specific market segments. Given the size of the island, Valletta’s planned promotion could potentially also impact tourist inflows for the whole island in a very positive way.

“In my opinion, being ECoC ties in beautifully with the Malta Tour-

“With more cultural events planned to take place in and

“At the hotel, we are proud to have already started making

cultural links with partners in Valletta. For instance, we are currently co-operating with the Manoel Theatre on the Baroque Festival, which is to be held in January. We believe it is very important for us to be associated with quality cultural events, and are promoting the festival through our PR agency in the UK. We hope that this will be the first of many.”

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Photo by Clive Vella – www.viewingmalta.com tourism industry will have a positive effect on the whole of the EuroMed region.”

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At this stage, the V18 Foundation is keen to partner with businesses across a wide range of sectors. “We are currently analysing who our partners could be,” Mr Felice continues. “Research has proven that there is a wide cross-section of sectors which bring so much to the table, including finance, airlines, beverage companies, automobile, accounting services, hotels, restaurants, travel agencies, tour operators, destination management companies, transportation, energy, construction, and food and media partners, with no particular dominant sector.” The chairman explains that the private sector can offer support and contributions in the form of cash but also in-kind, supplying services or goods required for staging the ECoC. “With this in mind, it is about establishing a two-way relationship that will benefit both parties. There is so much to be gained from the way Valletta and the rest of the territory can be portrayed in the future – and that starts now. “Additionally, the inclusion of the Malta Chamber of Commerce, Enterprise and Industry within the founding structure of the Foundation was a fundamental and strategic measure. We strongly believe it can prove effective in helping us devise our sponsorship strategy and act as a uniting force between the Foundation and potential partners. After all, businesses in past ECoC capitals saw benefits that included increased exposure, sales stimulation, image enhancement and employee incentives. We plan to create the same, and more, here in Malta.”

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BUSINESS AGENDA | dec 2012 - feb 2013

EU Policy

More emphasis on strengthening Europe’s manufacturing industry By Omar Cutajar, MBB’s Permanent Delegate in Brussels Recently, industrial policy has gained substantial attention as EU and national policymakers have turned their focus on the manufaturing due to the current decline of industry, and given its importance to the EU's GDP and single market activity. Addressing this issue is of extreme importance since this industry plays a pivotal role in driving economic growth in some of the most important EU economies. In 2010, the European Commission unveiled an industrial policy within the framework of the Europe 2020 Strategy. Just two years down the line, a re-orientation of the strategy needs to be undertaken to renew the implementation momentum. A mid-term review of the EU industrial policy has been carried out to reinstall the ‘real’ economy; not only to underpin economic recovery and job creation but also to reverse the declining role of industry in the European continent. The shrinking economic contribution of the manufacturing industry in the EU is no news. To counter this worrying trend, the mid-term review of the EU industrial policy – specifically sets a quantifiable objective of improving industry’s contribution to the EU's GDP from the current 16 per cent to 20 per cent by 2020.

Identifying the needs, taking the necessary action To this end, the European Commission highlights a series of investment priorities to reignite manufacturing production in the EU. These include technological upgrading of manufacturing plant capital, strengthening the skills of human resources employed in manufacturing as well as the enhancement of market openings for industrial products and related services both within the EU internal market as well as on third markets. The priority emphasis placed on such critical aspects like innovation, better access to markets, easing of credit lines and capital investments are issues that certainly tally with the immediate development needs of Maltese industry. The mid-term review of the EU’s industrial policy is very relevant to Malta, as it is also widely felt that the manufacturing sector is not given enough policy attention despite the clear added value that the industry brings to

the country’s socio-economic wellbeing. These concerns have been aptly picked up by the Manufacturing Economic Group within the Malta Chamber which, in a detailed position paper, communicated to government authorities its viewpoints on how to preserve and reinforce Malta’s immediate industrial competitiveness whilst also safeguarding the manufacturing industry’s long-term sustainability. Preserving industrial competitiveness is certainly critical for the sustainability of the entire Maltese economy. It is worth recalling some figures to better illustrate the significant economic contribution of the manufacturing industry on the Maltese islands. As of 2011, industry contributed around 13 per cent of Malta’s Gross Value Added – a relatively high contribution when compared to other sectors, with industry also providing invaluable employment posts, numbering in thousands, for a wide and varied cross-section of the Maltese labour force.

Different scale, same needs The mid-term review of the EU’s industrial policy offers an interesting comparative perspective and

“ As of 2011, industry contributed around 13 per cent of Malta’s Gross Value Added – a relatively high contribution when compared to other sectors.” draws a contrast between Malta’s investment-related challenges in the manufacturing sector and the EU’s more policy-oriented strategic objectives for the industry. The challenges confronting the manu-

facturing industry in Malta are in reality not so different from the issues articulated in the European Commission’s industrial policy. What differs is the sense of urgency to address certain short-term chal-

lenges within the immediate outlook and the disparate focus on what are considered to be promising ‘growth’ sectors. In part, this disparity stems from structural differences. Maltese industry operates within different structural dynamics when compared to the manufacturing sector in continental Europe. The disparities in the lack of economies of scale poses significant problems with regard to market exploitation, leaving no other option for local industry

BUSINESS AGENDA | DEC 2012 - feb 2013

eu policy “ Given the structural constraints, the retention and most importantly, the enhancement of competitiveness should therefore lie at the core of Maltese industrial policy. Conversely, EU industrial policy is more oriented towards strengthening the industrial base by opening up new possibilities through the deployment of new technologies. ”

sme

Given these structural constraints, the retention and most importantly, the enhancement of competitiveness should therefore lie at the core of Maltese industrial policy. Conversely, EU industrial policy is more oriented towards strengthening the industrial base by opening up new possibilities through the deployment of new technologies. In this regard, the review of EU industrial policy is highly dependent on the development of innovationbased markets within six distinct fields: advanced manufacturing technologies for clean production, key-enabling technologies, biobased product markets, sustainable construction and raw material extraction, clean vehicles and smart grids.

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than to depend almost entirely on foreign exports and therefore finding itself more exposed to international pricing fluctuations of raw materials. Transport accessibility and the frequency of commercial cargo routes linking Malta to the trading hubs of continental Europe are also perennial matters of concern for the sustainability of local manufacturing business.

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From a local perspective, the immediate outlook on the manufacturing industry is perhaps less rosy unless certain fundamental deficiencies are either addressed or rapidly implemented. According to the Malta Chamber’s Manufacturing Economic Group, there are eight fundamental imperatives that require immediate targeted action. These are the availability of a skilled labour force at competitive wages, the provision of adequate factory space at competitive occupancy rates, stable provision of energy at competitive rates, better terms and provision of finance, efficient internal and external transport links, incentives for investment, a business-friendly public administration and finally, internationalisation support to help businesses access the European Single Market and beyond. Whilst at first glance there might appear to be dissimilar and irreconcilable aspects between the EU’s industrial policy and local policy needs, it is certainly the case that in Malta, the urgency to deliver on industrial policy support is of paramount and absolute concern. Implementation of EU industrial policy is also key and the success or otherwise of such a policy can only be ascertained by testing the results on the ground and noting their effectiveness in practice.

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BUSINESS AGENDA | dec 2012 - feb 2013

case study

“ We are never satisfied with our results and are always striving to grow and improve” FIMBank President Margrith Lütschg-Emmenegger talks to Yolande Spiteri about the strategy which the bank adopted during the hardest recession to hit the world since the Great Depression, and the bank’s emphasis on helping businesses succeed in international markets.

“ Doing business abroad can be a complicated, frustrating and risky endeavour, and we therefore facilitate trade by providing a wide range of trade finance and banking services to our broad client base.” is growing and we are now present in 11 major financial centres worldwide,” states Ms LütschgEmmenegger.

Margrith Lütschg-Emmenegger After four years of facing an ongoing financial crisis, businesses and individuals around the world are still struggling with its consequences. However, to counteract the adverse impact of this crisis, FIMBank employed a ‘disciplined approach’, an approach which the bank’s President Margrith Lütschg-Emmenegger describes as the main ingredient which helped to maintain its positive performance through such turbulent times. “The strategy we put in place involved a constant focus on our core competence, in managing our risks, increasing productivity and implementing cost improvement measures,” she says, adding that she is satisfied that the bank’s business model has proven to be resilient and that its robust size has allowed it to generate new business effectively, as it was able to respond to the world’s conditions rapidly. FIMBank is a specialised Trade Finance bank, providing a range of trade financing facilities to help businesses finance their activities when trading internationally, supporting their growth in the process. “Doing business abroad can be a complicated, frustrating and risky endeavour, and we therefore facilitate trade by providing a wide range of trade finance and banking services to our broad client base, which includes producers, processors, traders, importers and exporters,” explains Ms Lütschg-Emmenegger. FIMBank may be instrumental for businesses seeking to penetrate

and succeed within foreign markets: “we can really add value to corporates that trade internationally, as the expense and risk of navigating complicated overseas markets, understanding and complying with myriad regulations as well as cultural peculiarities and insuring against inherent risks, can all be off-

set with the support of a specialist financial institution having a global footprint like that of FIMBank,” she adds. The bank specialises in providing tailor-made trade finance solutions, particularly within emerging markets. “The FIMBank Group network

In 2006, the Group was further enhanced through the creation of FIM Business Solutions, which was launched as a business systems provider and technology consulting firm which focuses on delivering innovative technology and business process solutions. Ms LütschgEmmenegger explains that its core business is to provide factoring software services, allowing companies to make use of adequate funds to

complete their project and repay them once the project is finalised. “Our customers also benefit from expertise and economies of scale that they would not otherwise be able to afford,” she explains, and this FIMBank subsidiary also provides additional and complementary services related to back office operations. A look into the company’s track record reveals that earlier this year FIMBank Group announced an after-tax profit of USD 4.55 million for the first quarter ending 30 June 2012, an increase of 12 per cent

BUSINESS AGENDA | DEC 2012 - feb 2013

case study Locally too, during the 17 years since the bank’s inception, Maltese investors have consistently demonstrated their trust in FIMBank, whether as shareholders, bondholders or depositors: “the encouraging response to our savings and term-deposit products has driven the bank to continue enhancing its product portfolio and seek higher grounds,” Ms Lütschg-Emmenegger proudly explains.

when compared with USD 4.08 million registered for the same period in 2011. “In general, we are never satisfied with our results and are always striving to grow and improve,” says Ms Lütschg-Emmenegger. The world, however, is experiencing a serious crisis not only in the banking sector, but across practically all industries. Faced with this scenario, the bank’s results can be considered satisfactory, and also compare very well with those of its banking peers. Over the past years, Malta has experienced an influx of banks which have set up shop here, serving to increase competition but also saturate the already limited market. This, however, does not seem to worry Ms Lütschg-Emmenegger: “FIMBank is an international bank and we already compete with global

players when serving our multinational customers; so the licensing of a few more banks in Malta does not really have a bearing on our competitive environment and therefore has a limited impact on us.” Beyond our shores, FIMBank has successfully left its mark on the international factoring sector by offering a portfolio of factoring services through its joint ventures. “Our network today includes MENAactors in Dubai, Egypt Factors in Egypt, Levant Factors in Lebanon, FactorRus in Russia, India Factoring in India and BrasilFactors in Brazil, as well as a strategic partnership with ROMFactor in Romania,” says Ms Lütschg-Emmenegger, adding that the FIMBank Group plans to continue developing its network of factoring joint ventures, with an important target for 2013 of expansion into the African continent.

sion to strengthen the regulation, supervision and risk management of the banking sector. As a preventive measure for possible future economic crises, this regulation looks to improve the banking sector’s ability to absorb shocks arising from financial and economic stress, as well as to serve as a support in risk management and to strengthen banks’ transparency and disclosure.

With regard to Malta’s banking scenario and how it dealt with the economic instability, she believes that it was the local banks’ traditional business model which ultimately served to shield them from the international financial turmoil of these last years.

Looking ahead, what can the banking sector possibly do to overcome such turbulent times? Ms Lütschg-Emmenegger suggests that those in a position to invest and take advantage of opportunities to strengthen their competitiveness will grow while those focusing on core strengths and identifying innovative ways to service their clients will also fare well, as she strongly believes that “in the midst of difficulty lies opportunity”.

PLANS FOR THE YEAR AHEAD The future does look bright for FIMBank. A recent announcement by the bank heralds the receipt of a joint offer by Burgan Bank S.A.K. and United Gulf Bank B.S.C.(UGB), both of which form part of the Kuwait Projects Company (KIPCO) Group, which has diverse and significant investments in the Middle East and North Africa regions. Ms LütschgEmmenegger explains that the offer provides for a comprehensive approach culminating in a rights issue to increase the bank’s capital and in Burgan and UGB potentially acquiring a controlling interest in the bank. “Initially, Burgan and UGB will acquire an aggregate of 37.56 per cent of the bank’s capital through a combination of debtto-asset swap as well as an outright acquisition, both with Massaleh Investments K.S.C.C. Concurrently, UGB will provide a loan of USD 60 million to the bank which may, at UGB’s option, be converted into newly issued listed shares of the bank,” she elaborates. At the end of this multi-step approach, the bank will launch a rights issue to raise a minimum of USD 100 million on terms that would eventually have to be determined and announced by the bank. In terms of the offer, both UGB and Burgan have undertaken to subscribe in full to all the new ordinary shares to which they will be entitled under the said rights issue. In this regard, an Extraordinary General Meeting of the shareholders of the bank has been convened for 31 January of the coming year to discuss this offer.

“I must say the situation remains extremely challenging, and conventional wisdom tells me that this state of affairs may prevail for a while longer, especially when you consider the fact that economies are still vulnerable and changes in regulation are squeezing profitability,” Ms Lütschg-Emmenegger admits. She cites the introduction of Basel III in 2013 by way of example, which she believes will make banking safer, but “will also raise the bar for more demanding risk and capital management, undoubtedly leading to increased costs.” Basel III, as defined by The Bank of International Settlements www.bis. org, was developed by the Basel Committee on Banking Supervi-

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BUSINESS AGENDA | dec 2012 - feb 2013

BUSINESS AGENDA | DEC 2012 - feb 2013

international politics

obama’s victory:

‘Charisma and a sleek campaign were critical’

In the four years as the first African-American US President, Barack Obama may not have delivered on all his electoral promises, nevertheless he maintains his place in the heart of many Americans, beating his Republican opponent Mitt Romney in the recent US Presidential election. YOLANDE SPITERI speaks to two experts to discuss what led to Obama’s victory and what this means to America as well as the rest of the world. lion less votes compared to 2008 and his margin of victory was less than his triumph over McCain, making him a weaker president this time round.” Adding insult to injury, Republican candidate Mitt Romney was a weak competitor and this gave Obama a further advantage. Obama managed to win over votes from various socio-economic backgrounds whilst Romney failed to connect with the people and to prove that he could be someone they could trust, explains Prof. Schultz. The results have a ripple effect that reaches all corners of the world, as they affect the US’s international relations in no small way.

“In so many ways Obama should not have won the US election given the economic conditions, the deepening of the country’s deficit problem and his lack of a plan for a second term, however he had a very good campaign and he is certainly a charismatic character. The quality of his campaign and his charisma gave him an edge over his Republican challenger Mitt Rom-

ney,” says political expert and editor of the Journal of Public Affairs Education in the US, Prof. David A. Schultz, in an exclusive interview with Business Agenda. “Americans want presidents who they personally like and whom they feel understands them. The public did not feel that way about Romney but did about Obama,”

asserts Prof. Schultz whilst adding that the Americans want someone who is likeable and down-to-earth but who could nonetheless help them dream of a better day, of hope... or the possibility of achieving the American Dream. The American people have however failed to equate the economic crisis with Obama. As a CNN.com

poll confirms, whilst only 39 per cent of people believed that the economy was improving, around 50 per cent of Americans blamed former President George W. Bush for the gloomy scenario, and not Obama – which speaks volumes about the voting outcome. Conversely, however, adds Prof. Schultz, “Obama received nine mil-

Speaking to Business Agenda about the result of the US presidential election, Dr Isabelle Calleja Ragonesi, Head of the International Relations Department at the University of Malta, remarks that in general European leaders seem to be enthusiastic about Obama’s re-election and there is hope that this will now facilitate more cooperation in the fields of the economy and international trade, security and foreign policy, specifically in the Middle East and North Africa. She is also of the opinion that “Malta, being a member of the EU and a border state adjacent to North Africa, should find its needs better served by a Democrat president.”

BUSINESS AGENDA | dec 2012 - feb 2013

international politics However, she adds, there are also fears that the US will be too preoccupied with domestic issues and might neglect foreign policy. Prof. Schultz cannot agree more and adds that Obama’s election has focused more on domestic politics rather than the US’s foreign relations. “I would not anticipate much of a change in the political scenario for Obama. I do not see his administration taking any bold new direction in a second term that will differ from the first, even with key changes in his cabinet, including the appointment of a new Secretary of State.” On America’s relations with the EU, Prof. Schultz believes that Obama might have taken Europe for granted already and may continue to do so as he focuses on Asia – America’s number one trading partner. Over recent years, it has been reported that the US Government has shifted its position, occupying a less vocal role in international politics. Dr Calleja Ragonesi claims that “under Bush the USA was extremely unpopular on the international circuit and when Obama came to power he chose to address this issue.” One way of addressing this, she explains, was by adopting a new method of foreign policy-making whereby decisions that were supported by the US were taken on in co-operation with international and regional organisations. This

was the case, for instance, in the Middle East during the Arab Spring, one example being the establishment of a no-fly zone over Libya. This was agreed to by the UN, the EU and the Arab League – as part of a joint decision, she asserts. “This increased the legitimacy of the final decision which was reached through instruments of international law and international cooperation, rather than through unilateral mechanisms adopted by the US... as was done in the past.” Dr Calleja Ragonesi believes that this method of foreign policymaking under Obama has helped to rehabilitate the reputation of the US globally. “Whilst others may refer to this form of politics as leading from behind, I would categorise it as leading through consensus,” she asserts. Prof. Schultz also believes that the US has clearly retreated from its previous role of ‘going it alone’ under Bush and the world is to continue to see more of this because of the current weakened economic position and a cautious Obama administration. Hence many have suggested that the strong urgency to address domestic issues has not left Obama much room for manoeuvre. No particular conclusion was reached on the Palestinian-Israeli conflict during Obama’s first term. As Dr Calleja Ragonesi explains, on 18 September 2010, Obama stood

before the UN’s General Assembly and declared his support for Palestine; however in 2011, the US administration spoke out against a Palestinian bid for UN membership and froze funds to the Palestinian Authority. Two years later, on 12 November 2012, Obama again declared that his administration was against a Palestinian bid for non-state membership of the UN and in the meantime, the

Obama administration has also not been able to get peace negotiations going between Israel and Palestine. Hence, here too, it is highly debatable whether Obama’s reelection will change anything in the context of Palestinian statehood. In spite of this, at the end of the day, one cannot fail to observe that Obama was the revitalising change that America needed, most especially after the great loss in con-

fidence that the country suffered following the gloomy years of the early 2000s, after the 9/11 attack. Obama may not be working towards a re-election but his performance will mean a lot to the democratic votes he managed to swipe off the Republican party. Whether the Democrats manage to maintain these votes will largely depend on his second term.

BUSINESS AGENDA | DEC 2012 - feb 2013

enterprise

Get Qualified: Extending its support to more industries Following the success of the first Get Qualified scheme, Malta Enterprise will be extending this scheme to support more students gain qualifications required by a wider range of industries. tions to get the best value for one’s money are increasing across the board.

examination fees, as well as fees paid to the university, institution or recognised educational entity.

Furthering knowledge and skills is a key element in helping individuals grasp new opportunities or advance in their careers. It also allows them to lead a better life through the application of their knowledge and skills in everyday life.

In this respect, investment in training and development is crucial so that workers in the labour market always have the skills and knowledge required not only for them to succeed on a personal level, but also to ensure that businesses and industries alike have the competent human resources necessary to innovate, develop and grow their operations.

The tax credit, which is granted upon successful completion of the course, is thus aimed at encouraging and assisting further development of human resources within those industries showing a higher potential for economic growth, thus making it easier for students, employees and entrepreneurs to constantly update their knowledge and skills in order to keep abreast of new developments.

Whether one is seeking a new job, alternative employment or perhaps looking at setting up a business, by furthering his or her studies one would be opening new doors and in doing so increasing the chances of being successful in his or her endeavours.

With this in mind and building on the success that the Get Qualified scheme has registered over the past years, Malta Enterprise has extended the scheme to support students and other individuals obtain qualifications required by a wider range of industries.

This is particularly the case in today’s highly competitive global economy where, notwithstanding the continuous challenges and changes that the operating environment has to overcome, the expecta-

By means of the Get Qualified scheme, students or other individuals who undertake further studies in specific industries may recover up to 80 per cent of their expenses in relation to registration fees,

Following the success of the first Get Qualified scheme, Malta Enterprise will be extending this scheme to support more students gain qualifications required by a wider range of industries.

Following the latest amendments to the scheme, studies leading to a certificate, diploma, degree or post-graduate degree within industries such as advanced manufacturing, maritime, energy, oil and gas, as well as life sciences (including health services and veterinary services), will now be supported. Support for engineering courses, which was previously limited to electromechanical engineering, is now being widened to include other

aspects such as structural engineering.

other qualifications according to the needs of the industry.

These additional industries will complement the existing support covering courses related to aviation, economics and statistics, financial services, crafts and creative industries, chemical and pharmaceutical industries, as well as information and communication technologies.

Local education service providers, including training institutions and local representatives of foreign universities, need to submit an expression of interest in order to provide a list of qualifications that may be included in the Get Qualified scheme. These will then be reviewed to ensure that they fit within the scheme’s criteria before being approved for eligibility. Students following approved qualifications will be able to apply for the tax credit through the service provider.

Another significant amendment to the scheme is being introduced in respect to studies at a doctoral or post-doctoral level, whereby the Get Qualified scheme will now support all students irrespective of their area of specialisation. The tax credit is capped depending on the level of qualification or certification being obtained – with a higher amount being granted in tax credits to those obtaining more advanced qualifications. The list of approved qualifications assisted through the scheme is updated periodically to include

In those cases where the courses are not offered locally, either directly or through the representation of a foreign training or education institution, students can submit an application themselves to undertake the specific course they are interested in. Students have to submit their applications by not later than 12 months following the commencement of their course in order to be eligible for the tax credit. Applications in respect of a course of studies that had already been terminated at the time of application will not be considered. The scheme has already registered a significant success among students or individuals who undertook further studies in the past years, with Malta Enterprise granting almost €14 million in tax credits to around 3,500 beneficiaries through Get Qualified and similar schemes. Having moved on to the labour market with improved skills and enhanced employability, most of these beneficiaries are nowadays contributing to the Maltese economy by lending the skills and knowledge acquired to various enterprises in Malta. Further information on the Get Qualified scheme may be accessed from www.maltaenterprise.com/ getqualified or by contacting Business First, the one-stop-shop for businesses operated by Malta Enterprise, on tel: 144 or email: info@businessfirst.com.mt

BUSINESS AGENDA | dec 2012 - feb 2013

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BUSINESS AGENDA | DEC 2012 - feb 2013

interview Interview with the Head of the European Parliament Office in Malta:

setting the agenda for 2013 Peter Agius is no stranger to the European Union’s institutions. He started his career at the age of 23 as the youngest official of the Council’s Legal Service. He was then appointed adviser to the rotating Presidency of the Council, handling negotiations on legislative dossiers in the internal market until July 2012, when he was appointed Head of the European Parliament Office in Malta. In an interview with YOLANDE SPITERI, Dr Agius discusses the office’s role in bridging the gap with Brussels, the European Parliament’s priorities for 2013 and another topic close to his heart – the reduction of administrative burdens. The European Parliament has long been at the forefront of efforts to reduce the EU’s administrative burdens. “By the end of 2012, the European Union will have succeeded in decreasing more than 25 per cent of its administrative burdens, helping businesses to save money whilst allowing them to focus on their priorities,” says Dr Agius. As recent studies confirm, the common sentiment among Maltese businesses is that the EU’s institutions bring with them an additional degree of bureaucracy. Dr Agius points out, however, that not only is the EU reducing administrative burdens emanating from its own legislation but it is also insisting with member states to reduce their own red tape.

Implementing EU laws, he argues, entails costs to businesses. Some of these costs are linked to obligations to provide information either to public authorities or private parties, some of which have become needlessly time-consuming, excessively complicated or useless. “Unnecessary and disproportionate administrative costs may hamper economic activity and irritate business and possibly also public authorities,” continues Dr Agius. However by reducing unnecessary reporting requirements, businesses can dedicate more time to their core activities, helping them to reduce their production costs and allowing more time for additional investment and innovation to take place. In turn this should improve

helping to bring about a saving of almost €40 billion. ''Moreover, concepts like 'think small first' and considering exemptions from EU legislation for microenterprises are increasingly finding themselves high on the political agenda,'' he adds. "These concepts are boosted by a continuous effort by the European Parliament to insist on these elements in its Resolutions and in the negotiation of specific legislative dossiers." Recent years have seen the plight of SMEs rise on the legislative and political agenda. “99 per cent of the EU’s businesses are SMEs and it is important that their concerns are voiced and their interests addressed for them to be able to

“ European Commission programme intended to ‘Reduce Administration Burdens’ set a target of reducing these burdens by 25 per cent by the end of 2012, however this target will be surpassed.” productivity and overall competitiveness. Dr Agius explains that initially a European Commission programme intended to ‘Reduce Administration Burdens’ set a target of reducing these burdens by 25 per cent by the end of 2012, however this target will be surpassed. “We have seen a joint effort by the Parliament, the Commission and the Council to bring about these positive developments in various areas, including VAT procedures, paper-work related to agricultural subsidies, annual accounts/company law, financial services, fisheries, food safety, pharmaceutical legislation, public procurement, employment relations, transport and e-invoicing,” he explains. As reported by the European Commission, the current overall burden resulting from EU legislation and national implementing measures is estimated at around €124 billion and if all the proposals tabled by the Commission are adopted, the total estimated burden could be reduced by 31 per cent by the end of 2012,

see the single market as an opportunity for growth beyond their home market,” adds Dr Agius. For this to happen, SMEs should take an active role in the policymaking process. “They are the small employers of today, however recognising their potential, the EU is now focusing on fostering their growth and transforming them into the large employers of tomorrow.” To facilitate this, the European Parliament Information Office in Valletta serves as a bridge between Maltese citizens, businesses and the European Parliament, informing them of the policies and politics building up in Brussels and hence enabling them also to influence the agenda, through their MEPs. “When I took on this role, I was pleasantly surprised by the interest of civil society and Maltese businesses in anything which is EU-related.” Europe is truly a living reality for the Maltese and Dr Agius believes that this is highly important, particularly as the EU is con-

BUSINESS AGENDA | dec 2012 - feb 2013

interview

Peter Agius lecturing Polish senior officials at the College of Europe in Bruges, Belgium.

stantly deciding on measures and issues which are eventually embedded within the local framework.

tation and that the interests of Maltese citizens are being reflected in the EP’s policy decisions,” he adds.

Prior to taking up office at Europe House in Valletta, his tasks in Brussels included negotiations with MEPs, briefing the President of the European Council Herman Van Rompuy on various issues, training national officials of the forthcoming Presidencies and seeking to transmit these experiences when addressing visitors to the institutions, as well as delivering lectures in Malta.

On the recent developments at EU level, Dr Agius explains that the European Parliament is set to decide its position on the ongoing negotiations relating to the recog-

The difficulties he encountered during his talks to visitors and students made him aware of the challenges of communicating the grand side of Brussels to the citizen. He explains that the European Parliament is elected by the people to offer services to European citizens and the Valletta office is testament to this value. “Our office is situated in a central, easily accessible location and exists to bring all that is going on in Brussels right to the doorstep of Maltese citizens.” “For example, in September we held an event with people from different walks of life to discuss the issue of asylum – a hot topic for our island," explains Dr Agius. In spite of the different views expressed, Dr Agius reports that the participants were grateful for the Maltese MEPs’ readiness to address concerns and listen to what the Maltese had to say. “It is this kind of outreach that we seek to achieve; we want the Maltese to feel that Europe House is their home and the EU is proactive in addressing their needs,” Dr Agius continues. “Our intention is also to reach out to people of all ages and from different societal backgrounds, and our activities must reflect this strategy,” asserts Dr Agius. Over the past few months, the office has also stepped up its online presence specifically to address students and younger citizens who may feel alienated from the European institutions. The office now has a reach of over 10,500 on its Facebook page (www.facebook. com/ParlamentEwropew), which is continuously updated. Looking ahead to 2013, the European Parliament Information Office will continue to strengthen relations with stakeholders and business organisations, so as to understand their challenges and what they seek to achieve in Europe. “Enhancing the information available to the organisations will ensure a more effective represen-

nition of qualifications throughout member states. This would mean that a qualification earned by a Maltese professional will be easily transferable anywhere in the EU, hence broadening employment possibilities for our youths. Other ongoing legislative developments relate to SMEs’ tendering oppor-

SMEs. Addressing this will directly enhance growth and job creation.”

tunities and their ability to tap into venture capital. In 2013, the European Parliament will also focus on businesses’ accounting obligations. The European Parliament will further discussions on digital rights, a timely issue as online activity is constantly on the increase. “The Maltese are very active online shoppers and users, and we therefore expect the Maltese public to take interest in the forthcoming items for discussion on the EU agenda which will seek to enhance a wider and safer use of the internet,” he explains.

Asked to comment about the current economic crisis, Dr Agius sees a light – albeit faint – at the end of the tunnel. “Europe is working extremely hard to get back on track. The challenge facing the Union is not only one of economic growth versus austerity and fiscal discipline; the European Parliament has been insisting that the EU runs an even bigger risk, that of deciding without the support of its citizens.

Next year, the EP, together with the Council, will also be deciding on the implementation of funding and will determine the priorities to be addressed. “The Parliament recently declared that finances should be directed towards fostering growth, by addressing innovation and seeing to the needs of

For this reason the European Parliament has been insisting that decisions taken at EU level need to involve the representatives of the people to ensure that the ageold adage ‘no taxation (or austerity) without representation’ is applied also in the European legislative process.

BUSINESS AGENDA | DEC 2012 - feb 2013

BUSINESS AGENDA | dec 2012 - feb 2013

Business News MBB Update

12th September –

17th –18th September–

MBB launches study on Access to Finance

MBB Executive participates in a training programme on EU lobbying in Brussels

Following the successful completion of an impact assessment on the European Commission’s proposals for a Common Consolidated Corporate Tax Base (CCCTB) earlier this year, the MBB and Bank of Valletta once again joined forces to collaborate on another critical study focusing specifically on businesses and their access to finance. On the launch of the study, MBB President George Vella highlighted

that in recent years MBB has been very active in issues related to the European Single Market and that any EU legislation in the field may impact Maltese business. Mr Vella stated that “this assessment will strengthen and consolidate the MBB’s work related to the European Single Market, by presenting solid recommendations to both Government and the local credit institutions on the real financial requirements of our businesses, in

order for them to continue contributing towards growth and employment in the Maltese economy.” The assessment study is entitled: ‘Market gaps in access to finance and the feasibility of new financing instruments in the EU, addressing the credit needs of Maltese business’.

27th September –

MBB CEO participates in a conference on Employers’ Practices for Active Ageing in Brussels MBB CEO Joe Tanti participated in a conference on ‘Employers’ practices for active ageing’ in Brussels. This conference concluded a joint project on ‘Age management policies in enterprises in Europe’, conducted by BUSINESSEUROPE, European Centre for Employers

28th September –

EUROCHAMBRES Global europe committee Claire Gillespie participated in the EUROCHAMBRES Global Europe Committee on behalf of the MBB. The purpose of this Committee meeting was to discuss how national strategy could be complemented by EU strategy, whilst giving special consideration to the promotion of the Chamber network within the framework of the EU. Chambers across Europe have already shown themselves to be effective in mobilising businesses and influencing international strategy, so these networks should be strengthened to provide Chambers and their members with greater influence at EU level. Ms Gillespie is a UK student who is currently undergoing a traineeship at the MBB Brussels office.

and Enterprises (CEEP) and the European Association for Craft, Small and Medium Sized Enterprises (EURAPME). During the conference, important topics such as policies and practices to extend working lives,

flexible working and maintaining work-ability, among others, were discussed. Mr Tanti’s visit was sponsored by BUSINESSEUROPE.

MBB Executive Daniel Debono participated in a training programme on EU lobbying in Brussels, organised by HOTREC (the umbrella association of Hotels, Restaurants and Cafes in Europe) and the European Hospitality Foundation (EHF). The training programme entitled, ’Understanding and lobbying the EU decision-making process’, served to provide members with ad hoc lectures and practical guid-

ance on the function of the EU’s institutions and on ways of engaging in good and effective lobbying at EU and national levels. The training included a guided tour of the European Parliament, during which participants had the opportunity to follow live sessions of a number of standing committees, including the Committee on Transport and Tourism (TRAN), and the Committee on Employment and Social Affairs (EMPL).

BUSINESS AGENDA | DEC 2012 - feb 2013

MBB UPDATE 5th october –

8th october –

MBB launches study on flexible work arrangements in the private sector

MBB Project Manager participates in an EU climate change conference in London

board. Flexible work-arrangements and family-friendly measures allow employees to strike a balance between work commitments and family responsibilities, allowing more people to work and be financially independent. In turn the human resource is protected, as it would be able to retain experienced employees who can continue contributing to the labour force.” The MBB launched a study on flexible work and family-friendly measures in the private sector during a Master Class organised for participants attending the annual national conference of the Foundation for Human Resources (FHRD). The study will be conducted with the support of MISCO International.

ing of the take-up of flexible work and family-friendly measures among Maltese businesses, what lacunas exist in our private sector, and what can be done to decrease this discrepancy. Through MISCO’s support, the MBB will determine an accurate representation of the measures implemented by local enterprises,” he continued.

When launching the study, MBB CEO Joe Tanti stressed the importance of this project. He stated that “this study will help businesses gain a better understand-

MBB SHIFT Project Manager, Mariella Scicluna stated that “establishing a system of family-friendly work environments strengthens society across the

The Master Class was addressed by Cæsar Szwebs – an expert from AMU Nordjylland (a vocational education and training centre in Denmark), who discussed Denmark’s successful adoption of flexible work arrangements and presented best practices of Danish companies. During his presentation, he also highlighted how the adoption of such measures by the local private sector could help boost its human capital, contribute to a better work environment and bring about an increased level of productivity.

MBB Project Manager Geoffrey Saliba participated in the launch of DG CLIMA’s latest campaign ‘A World You Like, with a Climate You Like’ – a project co-ordinated by the European Commission. The campaign draws different entities from all around Europe in a drive against climate change. It aims to create a showcase of creative initiatives to reduce greenhouse gas emissions and pressure on the environment.

One of the more serious impacts of climate change is the expected decrease in rainfall in the Mediterranean. Through the EU LIFE+ Investing in Water Project the MBB is supporting DG CLIMA’s campaign by showcasing initiatives taken by local enterprises to consume water more efficiently. The MBB remains committed to support local enterprises in their environmental sustainability efforts. Mr Saliba’s visit was sponsored by the European Commission.

8th october –

Female Business Café at the President's Kitchen Garden

As part of SME week 2012, a Female Business Café was organised at the President’s Kitchen Garden in Attard under the patronage of First Lady Margaret Abela. MBB along with the Foundation for Women Entrepreneurs, Reach Beyond Foundation, the National Council of Women, the Malta Association of Women in Business, along with all AMIE Ambassadors were present to discuss and offer guidance to women about entrepreneurship (The AMIE project seeks to encourage female entrepreneurship in Malta through the establishment of a network of women ambassadors). Advice on

company registration and on any licenses required was also given. Representatives of Business First, SOLVIT Department and the Employment and Training Corporation (ETC), were also present to offer individual advice to women visiting the café. Moreover, workshops were held for women who wished to acquire more entrepreneurial skills and who were still undecided on the business path they would like to take. The event was organised by the Ministry of Finance along with the Foundation of Women Entrepreneurs, as AMIE Project Coordinator.

BUSINESS AGENDA | dec 2012 - feb 2013

mbb update 16th-18th october –

AMIE Project Delegation participates in European SME Week 2012 summit conference MBB Executive and AMIE Project Manager Mariella Scicluna represented the MBB at a summit entitled ‘Women’s entrepreneurship makes business sense’. Participants included the various female entrepreneurs who took part in the AMIE project as ambassadors and mentors to promote female entrepreneurship in Europe. National consortia running network projects in the individual member states were also present.

The conference highlighted the fact that entrepreneurs are indispensable to Europe’s economic growth, employment and prosperity; especially within the current turbulent economic situation in Europe. The conference was also addressed by Androulla Vassiliou, European Commissioner for Education, Culture, Multilingualism and Youth.

for entrepreneurship in Europe and are a potential resource for economic growth; thus should be encouraged. Ms Scicluna’s visit was funded by the CIP Programme via the AMIE Project.

Women entrepreneurs represent the biggest untapped potential

18th-19th October –

MBB Trustee – John A. Huber elected to EUROCHAMBRES Board of Directors During the 112th General Assembly held in Brussels last October, MBB former President and current Board member, John A. Huber, was elected on the Board of Directors of EUROCHAMBRES – the European Association of Chambers of Commerce and Industry – for 2013.

7th-9th November –

MBB CEO invited to participate in a team europe training in brussels MBB CEO Joe Tanti, who forms part of ‘Team Europe Malta’, was invited by the European Commission Representation to participate in a training programme on ‘Mobilising citizens for Europe’ in Brussels. This was also a good networking opportunity to meet other stakeholders from all member states. Throughout the training programme, a number of important topics were addressed. These included subjects relating to the implications on national sovereignty of a closer economic and monetary union, the European Central Bank’s role during the financial crisis and the main concerns that EU citizens face today. Mr Tanti’s visit was sponsored by the European Commission.

MBB President George Vella, on behalf of the Board and Executive Team, congratulated Mr Huber on his election. Mr Vella noted that "it is very positive for Malta's business representatives to have a Maltese delegate present within such a prestigious European association. I encourage Mr Huber to continue contributing positively, in the best interest of Maltese businesses within European fora," he concluded.

8th November –

MBB participates in a conference dealing with long term unemployment in Europe MBB Project Administrator Mark Seychell participated in a conference under the auspices of the Commission’s Mutual Learning Programme. The conference discussed various strategies and tools in order to address longterm unemployment. EU trends in long-term unemployment were disseminated, whilst member states shared their country’s policies to counter such trends, including collective labour market reform. The conference then moved on

to discuss how this issue relates to Europe’s 2020 overall target of achieving a 75 per cent employment rate across Europe. Key speakers at this event included Herwig Immervoll, Senior Social Protection Specialist – World Bank and Rebekah Smith from BUSINESSEUROPE. Mr Seychell’s visit was sponsored by the European Commission.

new appointment at the Malta Business Bureau In recent weeks Mark Seychell was appointed Project Administrator at the MBB. Mark is a graduate in B.A. European Studies (Hons.) and has recently completed an M.A. in European Studies and Economics. In recent months, Mark has undergone a year-long traineeship at the Bureau, within both its Malta and Brussels Offices.

BUSINESS AGENDA | DEC 2012 - feb 2013

Three Kings came riding from far away, Melchior and Gaspar and Baltasar; Three Wise Men out of the East were they, And they traveled by night and they slept by day, For their guide was a beautiful, wonderful star.

This year let your star accompany you to the Grand Hotel Excelsior and celebrate the Christmas spirit with your family and friends. Call us now on 21 250 520 or email christmas@excelsior.com.mt for more information on how to Live the Grand Life this festive season!

www.excelsior.com.mt

A Member of

BUSINESS AGENDA | dec 2012 - feb 2013

mbb update MBB Single Market Activities As part of its activities to commemorate the 20th anniversary of the European Single Market, the MBB undertook the task of conducting a study in order to assess the Maltese business’ experience of operating in the European Single Market. To date, the single market has developed into the world’s largest market, catering for 500 million consumers. In August, a number of focus group sessions were organised with Maltese SMEs and micro-enterprises representing the services, import/distribution, manufacturing/exportation, hospitality and tourism services sectors, all of which contributed to the study. Upon completion of the study, in October, an MBB delegation led by President George Vella met the Prime Minister and the Opposition Leader, and presented them with the business study highlighting the challenges and opportunities that Maltese SMEs encounter when operating within the European Single Market. Recommendations were made for a number of local issues that could help the business environment of companies in Malta. It is also the MBB’s intention to communicate the findings and recommendations to a number of top officials at the European institutions in Brussels in the coming weeks. As part of the Single Market Week activities, the MBB organised a half-day conference whereby it launched a special publication in collaboration with the European Commission Representation in Malta commemorating the 20th anniversary of the European

EU SERVICES DIRECTIVE EXPECTED TO BE IMPLEMENTED IN 2013 The EU Services Directive is finally expected to be implemented next year across the EU27 states. The directive was adopted in 2006 to create a regulatory environment in order to help businesses and consumers across the EU make the most of the single market’s opportunities. The directive was due to be transposed by 2009 however this has been delayed as the implementation has not been satisfactory. The transposition will now take place next year, whereby the executive body within the European Union will impose proper implementation. Contrary to what was reported in the last edition of Business Agenda, Dr Peter Agius, the Head of the European Parliament in Valletta, had stated that a number of EU member states – and not the Maltese Government as erroneously quoted – have been falling behind in the implementation of the Services Directive. To ensure that this implementation takes place, the EU will continue stepping up its vigilance in order to ensure that member states conform to this legislation.

Single Market. Apart from showcasing the events which marked the progression of the European Economic Community’s initial customs union to the eventual EU internal market and the subsequent monetary union, the publication provides an in-depth analysis of the results achieved in this business study, whilst it conveys the MBB’s detailed policy recommendations on how to support Maltese businesses to better operate in the European Single Market. In a separate event held during Single Market Week, MBB President George Vella was invited to participate in a panel debate alongside MEP Louis Grech and Odette Vella, who represented the Malta Competition and Consumer Affairs Authority. The panel was moderated by Martin Bugelli, Head of the European Commission Representation in Malta. During this debate, Mr Vella had the opportunity to discuss the findings and recommendations emanating from the Single Market business study that was published by the MBB during the same week.

BUSINESS AGENDA | DEC 2012 - feb 2013

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BUSINESS AGENDA | dec 2012 - feb 2013

tourism

Malta’s entry to the hotelstars union boosts local tourism’s image and credibility In October, the Maltese Government announced a new classification system for hotels in Malta, allowing the local industry to conform to the standard regulations adopted by the Hotelstars Union (HSU) – made up of 12 European countries. DANIEL DEBONO discusses this development and its impact on the hospitality industry with local stakeholders. “ Needless to say, Hotelstars' ratings feature prominently in the principal international booking sites.” – Josef Formosa Gauci

Josef Formosa Gauci Associating oneself with a reputable group or club is a desirable aim for all and the recent announcement that Malta has become the latest addition to the HSU is a win-win situation for both parties. Malta is now part of a club that enjoys wide international respect for its definition of accommodation criteria. This will undoubtedly boost Malta’s tourism product and image, as tourists worldwide can trust that the island’s hospitality sector offers exceptional standards. On the other hand, by adding Malta, the HSU has also improved its credibility since the island was already known as an exemplary leader in terms of hospitality. The Union’s membership now extends from the northern country of Sweden to the southern-most island of Malta, with other members including Austria, Czech Republic, Germany, the Netherlands, Switzerland, Hungary, Estonia, Latvia, Lithuania and Luxembourg. Norway will also reportedly be joining shortly. Klaus Ennemoser, Chairman of HSU states that “on the one hand, we succeeded in building a harmonised system with common rules, and on the other hand, we incorporated necessary differentiations in the hotels according to the market. Especially nowadays, when one of our top priorities is to promote Europe as a tourism destination, we not only require a common profile, but also a strengthened common understanding of products and services,” he continues. On the other

hand, Kent Nyström, President of HOTREC – the European umbrella organisation for hotels, restaurants and cafes, describes the HSU as one of the best examples of successful market-driven initiatives in Europe.

The new HSU classification regime adopted in Malta now presents a two-tier classification system, providing for a ‘superior’ label across all the hotel gradings, among other things. It also facilitates the classification of Bed and Breakfast hotels across all categories, except for the five-star category. The new classification system will also see the re-introduction of the one-star hotel, which was eliminated in 2002 because of the Guesthouse license, which bears very similar criteria to those of the one-star hotel. However this was necessary as all participating countries need to have 99 per cent of their criteria conforming with that of the HSU in order to qualify. In the case of Malta, the

main additional mandatory criteria represent the provision of air-conditioning for the three-, four- and fivestar categories, due to the country’s warm climate. When asked what instigated Malta’s drive to be part of this European framework, Malta Tourism Authority (MTA) Chief Executive Josef Formosa Gauci explains that this partnership between the hospitality sectors of an ever-increasing number of European countries will undoubtedly enhance the reputation and quality of the hotel industry, especially within the states and territories directly involved. He notes that this is achieved by creating more transparency and security

for guests, and further stimulating hotel marketing opportunities. “Needless to say, Hotelstars' ratings feature prominently in the principal international booking sites,” he affirms. George Micallef, Senior VicePresident of the Malta Hotels and Restaurants Association (MHRA), states that Minister de Marco was very receptive to MHRA’s proposal of adopting the HSU classification system to replace the previous system that has been in place since 2002. Once the MTA took this to task, MHRA worked closely with the Authority to ensure that the new framework reflected the customers’ requirements. According to Mr Micallef, through Malta’s membership of the HSU, “we can gain from the expertise and experiences of the other member countries across Europe. We will also gain access to the extensive research undertaken by the HSU with the support of the EU Commis-

BUSINESS AGENDA | DEC 2012 - feb 2013

tourism sion. Another distinct benefit is the agreement that the HSU is entering into with the foremost booking sites and hotel-review sites, which are committing themselves to feature hotels in destinations that are members of the HSU strictly by the following HSU criteria, and that they will refrain from awarding their own hotel classification. This will help to strengthen the credibility, and indeed the reliability, of the Hotelstars rating with our customers, who are sometimes sceptical about the grading systems of hotels,” he continues.

“ The biggest opportunity is the transparency offered to the guests, who in turn will appreciate more the value offered by the respective hotels based in Malta.” – Norbert Grixti The new classification system was also welcomed by various stakeholders from the industry. Grand Hotel Excelsior General Manager Norbert Grixti states that “with the harmonised criteria catalogue

for hotel classification, the implementation of the HSU will offer all guests and hoteliers in Europe and now also in Malta a transparent and comparable system.” According to Mr Grixti, “the biggest opportunity is the transparency offered to the guests, who in turn will appreciate more the value offered by the respective hotels based in Malta.” When asked if hoteliers were foreseeing any support to achieve classifications, Mr Grixti says that

Norbert Grixti “any support directed towards the enhancement of the Maltese product is always welcome. However it is expected that the HSU implementation will stimulate local hote-

liers to consider the enhancement of their product, which in turn can help them to achieve higher room rates and occupancy levels,” he concludes.

A number of other criteria introduced by government in the new hotel classification system: - One-star to four-star categories can substitute bath tubs in rooms with a suitable shower.

George Micallef “ Through Malta’s membership of the HSU, the industry can gain from the expertise and experiences of the other member countries across Europe.” – George Micallef

- The introduction of special labels – Bed & Breakfast, Heritage, Resort, Rural and Spa in the hotel sector and the Agro Tourism label in the guest house, host family and ‘farmhouse’ properties. - Mandatory provision of internet access and a complaint management system for the three-, four- and five-hotels. - The awarding of the Superior label to those hotels that have more facilities and services than is required in their specific class – thus introducing an element of further motivation to reach higher levels of quality. - A new measuring tool has been introduced in the classification methodology of hotels. Hotels have to reach a minimum number of points to be classified in the star level requested – points which can be achieved through conformity to a set of mandatory criteria and a selection of voluntary criteria chosen by the hotelier.

BUSINESS AGENDA | dec 2012 - feb 2013

BUSINESS AGENDA | DEC 2012 - feb 2013

environment

Water Saving Solutions –

for your business The Malta Business Bureau’s EU Life+ Investing in Water project has been running for over a year and has helped numerous enterprises identify water saving opportunities and consequently, potential reductions in their utility costs. The Project’s Manager GEOFFREY SALIBA, discusses the latest developments which include the publication of a list of concrete water saving solutions.

some interesting facts and figures: Water Savings Audits offered - 140 Typical savings for medium-sized factory or hotel €5000 - €10,000 per annum Minimum repayment period for above-mentioned solutions - 6 months Water Scarcity - Malta is among the world’s top ten driest countries - Climate change could result in 15 per cent less rain in the Mediterranean by 2050 - 90 per cent of Malta’s groundwater bodies are not in a Good Status - 50 per cent more groundwater is consumed every year than is sustainably available

After running for just over a year, or half the project’s life, the EU LIFE+ Investing in Water project has now made contact with many businesses, hotels, authorities and other stakeholders. The aim of all this networking is very simple – through the project the Malta Business Bureau and its partners want to help enterprises save water and also safeguard Malta’s scarce water resource, to preserve it for future generations. Networking has clearly shown us that most enterprises are more than happy to reduce their water consumption – after all, the higher the consumption, the higher the utility bills. The question that was raised at almost every single meeting over the past year was not ‘should consumption be reduced’, but ‘how can it be done’?

The EU LIFE+ Investing in Water project has therefore focused considerable energy on addressing this question. A first set of 40 water audits offered in January last year were very quickly booked out. A second larger set of 100 water audits offered this November have also proven extremely popular, with a third already having been taken up. Through these audits experts advise enterprises on water systems and are able to identify water saving opportunities specific to the enterprise’s infrastructure. In line with the MBB’s core philosophy of empowering enterprises, we do not simply stop at providing this consultation. We would like to provide enterprises with all the necessary information needed for them to make the correct decisions when identifying and implementing appro-

BUSINESS AGENDA | dec 2012 - feb 2013

environment priate water saving solutions. Our aim is to empower enterprises to be sustainable. To support this, our latest efforts include the compilation of a set of water saving solutions which over the past year have shown to be most attractive to local enterprises. The list provides a guide on how to identify which of these water saving solutions are best suited to an enterprise’s particular circumstances. The list and guide have been published in a printed report, the Water Saving Solutions Pack, which is being mailed out to businesses and hotels throughout Malta and Gozo.

Second class water Much of the water consumed by a business or hotel does not need to be first class or potable, water. Examples include water for flushing toilets, washing floors, use in laundry washing machines, irrigation, chillers, scrubbers and other equipment. Water sources which could satisfy this demand include rainwater, recycled grey-water (water from showers and washhand basins) and recycled black water (all sewage). For a more detailed explanation visit www.investinginwater.org

To make this list and guide as widely available as possible they have also been uploaded to the EU LIFE+ Investing in Water project website. A dedicated section features a description, images and videos of each water saving solution. In addition, a self-assessment tool has been created and can be accessed through the website. The tool asks for some basic information on an enterprise’s water consumption, presents an analysis and identifies which of the solutions meet the enterprise’s needs. A report is automatically generated and can be saved on one’s computer or printed for future reference. The list of solutions and the selfassessment tool are powerful resources which businesses and hotels can easily use to reduce their consumption and costs, and strongly encourage enterprises to take advantage of them. Any enterprise requiring further information or wishing to examine its consumption, water saving opportunities and potential solutions in more detail is also welcome to book a water audit with the project. To use the tool or book an audit, visit www.investinginwater.org

List of solutions identified by the project: Showers – ensure that your water flow is seven litres per minute.

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Wash hand basins – ensure that your water flow is five litres per minute.

How? Fit taps with restrictors or aerators. For both showers and wash hand basins, if the features are fed from a pressure regulated pipe, adjust the pressure regulator until the appropriate flows are achieved. If no pressure regulator has been fitted look into the possibility of fitting one.

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Toilets – ensure that your flush volume is six litres.

How? For traditional cisterns use volume displacement devices, for other flushing systems, such as line flushing, adjust the flushing mechanism to the lowest possible flush volume setting.

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BUSINESS AGENDA | DEC 2012 - feb 2013

business update

Business Clusters – Joining Forces for Collective Innovation John Ambrogio Chairman, eSkills Alliance Malta www.mita.gov.mt/eskillsalliance

At a local level, the evaluation of the benefits of the clustering model is just beginning and the first indications from parts of the Maltese business community show eagerness to fast track its adoption. Pooling for Clusters workshop with different industry players

A number of companies from the ICT sector, as well as from the bio-technology, health, manufacturing, aviation and tourism sectors, were recently approached by eSkills Alliance Malta to gather their opinions on the formation of clusters. Discussions hovered around the ideal framework for business clusters and the perceived opportunities from the European Single Market.

Clustering enables businesses to work collectively to enhance their individual business efforts through a central structure that draws these different businesses together. Through collaboration between interconnected companies, clustering is a proven model for stimulating growth through the creation of new and innovative products. Every cluster has the potential to grow and develop

in different ways to tap bigger and more profitable opportunities. Lessons learnt from the European experience show that clustering requires group initiatives that are executed alongside policies aimed to assist business re-structuring. Such initiatives would be aided and supported through a dedicated set of funding instruments and a code of good governance.

A preliminary recommendation plan on clusters has been drawn up which assumes a high degree of industry participation and endorsement, to be able to put the clustering concept into practice.

Discussions were partly financed through the Pooling 4 Clusters project which is part of the Interreg IVC programme. The project was aimed at identifying clustering best practices and identifying ways on how these can become more efficient in boosting their contribution to the economy.

In this regard, we would like to invite the business community to access www.mita.gov.mt/p4c and give feedback on this document. Your feedback will help us craft a sound clusters framework for Maltese industry.

JOHIM wins Best Boutique Investment Manager at Charity Times Awards J. O. Hambro Investment Management Limited (’JOHIM’) has been awarded the ‘Best Boutique Investment Manager’ at October’s Charity Times Awards. JOHIM beat off strong competition from Jupiter, Quilter and Charities Property Fund, among others, to win the award which was presented in front of 600 representatives from some of the UK’s leading charities. Judges praised JOHIM’s long-term performance track record as the main reason behind the company’s win. Hugh Grootenhuis, CEO at JOHIM said: “charities are an important area for JOHIM and considerable effort has been put into developing our charity offering over the last few years. In the last 12 months we have seen significant growth in the demand for our specialist charities business and an increase in the number of enqui-

ries. It is encouraging to see how our success is being recognised in the sector.” Charity Times Awards recognise the best practice in the UK charities and not-for-profit sector. The awards honour outstanding professionals in the fields of charity management and support the continuing professional development of individuals, while contributing towards raising the standards of charity management. As such, the event itself is built around the individuals and teams for whom the awards are intended: trustees, chief executives, directors and other upper-level management from not-for-profit organisations across the UK. Reflecting this belief, the Awards provide the charity sector with an event dedicated to rewarding the work carried out in difficult and competitive conditions; and establishes a unique annual congress of the pre-

eminent figures in the sector at the premier charity event of the year. JOHIM is the Sub-Investment Manager of the Vilhena Global Themed Fund, which is managed by Valletta Fund Management Limited (VFM). The fund exceeded USD 8 million in its total net asset value as at 31 October 2012. JOHIM was founded in 1986 and since then assets under management have grown to USD 5.4 billion as at 30 September 2012. JOHIM’s six-strong charities team

currently manages portfolios for 95 charities, amounting to £300 million (USD 481 million) in assets under management, as at endSeptember.

Past performance is not a guarantee to future performance. The value of the investment may fall as well as rise and any initial charges may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Prospectus, which

may be obtained from VFM, BOV branches or licensed financial intermediaries. VFM is licensed to provide investment services in Malta by the MFSA. The Vilhena Funds SICAV plc is licensed as Collective Investment Schemes by the MFSA and qualifies as UCITS by the MFSA. Issued by VFM, TG Complex, Suite 2, Level 3, Brewery Street, Mriehel BKR 3000. Tel: 2122 7311; fax: 2275 5661; email: infovfm@bov.com; website: www.vfm.com.mt

BUSINESS AGENDA | dec 2012 - feb 2013

BUSINESS AGENDA | DEC 2012 - feb 2013

business update

Living a Royal Christmas at the Grand Hotel Excelsior At the Grand Hotel Excelsior we value cultural diversity highly. Our team is composed of 27 different nationalities and we strongly feel that this has contributed to the unique identity of this grand hotel. This Christmas we would like you to partake in our ‘Sharing Diversity’ philosophy, which is why we have chosen the Three Kings as our ambassadors for the festive season.

According to medieval legend, the three wise men, named Melchior, Balthazar and Gaspar, each came from a different culture: Melchior was Asian, Balthazar Persian and Gaspar Ethiopian, thus representing the three races known to the old world. Our ‘Sharing Diversity’ philosophy is also reflected in our cuisine, offering you the opportunity to explore

the world's finest cuisines and authentic ethnic dishes. For months our chefs have been busy behind the scenes making plans and preparations to share with you a unique and memorable Christmas. So for bon vivants, raise a toast to the good life and may you enjoy your Christmas and New Year celebrations at the Grand Hotel Excelsior in

the company of your treasured family and friends.

For more information contact our Events Team on 2125 0520 or email: christmas@excelsior. com.mt

Middlesea’s New SME Insurance Policy Embarking on or growing a business venture involves hard work, dedication and ongoing investment. Your hard-earned achievement should be accompanied by an insurance policy to help you safeguard yourself, your enterprise and your employees. Middlesea’s new insurance policy for small and medium enterprises is an adequate business solution to protect your entrepreneurial accomplishments. The Middlesea SME policy includes a number of benefits to ensure

your business is properly covered if something goes wrong. The policy gives you full flexibility to increase cover limits or add on cover to suit your business’ unique needs. Middlesea’s New SME insurance policy provides cover for property, stock and other trade contents, public and products liability, employers liability, loss of income, money and personal accident cover, fidelity guarantee, equipment breakdown as well as an annual travel cover for the insured or any other employees. This new SME policy also includes

as standard cover the Business Emergency Assistance, to cater for all your emergency needs 24 hours a day, seven days a week, through our call centre.

Middlesea Insurance p.l.c. (C-5553) is authorised by the MFSA to carry on both long-term and general business under the Insurance Business Act, 1998. COM No191012 700.

BUSINESS AGENDA | dec 2012 - feb 2013

BUSINESS AGENDA | DEC 2012 - feb 2013

Create and Exclusive Party Atmosphere and enjoy the Festive Season. For Further Information and Reservations Please contact us on: Tel: 2152 0923 E-Mail: events@maritim.com.mt URL: www.maritim.com.mt

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BUSINESS AGENDA | dec 2012 - feb 2013

business

BUSINESS HEALTH CHECK:

Take some time for yourself

No matter how much one enjoys his or her job, taking time out to relax is important. Statistics show that in today’s world, work-related stress is one of the biggest health and safety challenges that we face in Europe. It is the second most frequently reported work-related health problem, which affected 22 per cent of workers from the EU 27 in recent years. Chiara Bonello speaks to a number of experts about the importance of relaxing and the options that business executives can look into during their upcoming Christmas break. There is no denying that the world we live in is a fast-paced and stressful one. Various studies have repeatedly found that people today are far more stressed than their predecessors. According to occupational psychologist Gottfried Catania, with technological advances, economic conditions, flexible working hours and various other factors, the distinction between work and the rest of one’s life has become ever more blurred, with the result that the worker finds it harder to break away from work, leading to an increase in stress. Mr Catania explains that it has been proven that stress has a number of implications. The psychological effects include irritability, depression and an inability to concentrate, whereas social implications include strain in relationships, relationship breakdown and inability or reduced ability to enjoy socialising. The fact is that stress can also cause, or be implicated in, a number of physical conditions ranging from headaches and stomach ulcers to high blood pressure and heart disease, he says. Research has also shown that stress is a major contributor to days of sick leave taken from work, which is why it is in the employer’s interest to ensure that his/her employees work towards achieving a good work-life balance, Mr Catania asserts. He explains that physical exercise is definitely recommendable, as is a healthy and balanced diet. “Other activities which can be beneficial include taking regular breaks, during which you do not think about work – this might include switching off your mobile and not viewing your emails while on holiday, for example,” he advises. “Irrespective of your job description, unwinding is a priority. Anything from a relaxed walk to a full-on training session will help clear your mind after a stressful day,” according to Mark Gaglione,

Director at Medcomms, a company which offers a host of gadgets to assist users in keeping fit. “Having said that, physical unwinding is just one of many ways to relax, but my personal choice is running, or a simple bike ride with friends. This helps me to forget about my work day and prepare me mentally for the next.” Besides the obvious advantages of keeping you healthy, exercise keeps you focused and gives you that never-give-up determination and attitude towards life. “Personally it's given me more confidence and that feel-good factor in my social life as well,” he explains, adding that as the leader in fitness products worldwide, Garmin have a product to cover every detail imaginable. There are gadgets to monitor your heart rate, speed, pace, distance, time and calories burnt. The list is endless. Anyone wanting a device to monitor his or her workout, run or walk… Garmin has it. Furthermore all data is viewable on your

personal web account, so you can monitor your progress as you go along. There are a variety of other recreational options, depending on the individual’s particular situations. A good way of recharging one’s batteries is to spend a day at a health spa, ideally accompanied

by a relaxing massage or another beauty treatment. Outdoor activities are another extremely effective way of releasing stress and pent-up energy. Spend an afternoon horse-riding or gather a group of people for a session of clay-pigeon shooting or a round of golf.

If it’s a proper escape you’re after, why not consider an agri-tourism experience? Besides the benefits of switching off from the usual hectic routine, you are also enjoying a hands-on experience. It can also be a learning experience. Mr Catania admits that relationships can be a major source of

BUSINESS AGENDA | DEC 2012 - feb 2013

business “As they complete different challenges, individuals tend to talk more about past experiences and likes, thus building close working relationships which may improve their relations. Team-building activities and incentives are also a good way of improving work morale,” Ms Fava explains.

stress, therefore maintaining healthy relationships at work can be very important. Team-building activities, as well as other incentives aimed at having fun together with colleagues, can be instrumental in this. Concurring with Mr Catania, Director at Outdoor Living, Danica Fava points out that we all know the importance of having motivated employees if one wants to have a successful business. “Though we go to work to earn money, high wages do not necessarily lead to an engaged workforce. In today’s society, whereby the success of organisations is mostly dependant on the human capital and use of teams to keep up with the advancements and remain competitive, healthy employee relationships are necessary for effective teamwork in organisations.” When colleagues get along well and work in a pleasant environment, productivity is higher as they tend to support each other more, which results in getting the job done more efficiently and effectively. Good workplace relationships are beneficial for both the employee and employer, she points out. Employee turnover tends to increase when the relationships are negative, and considering the time and money invested in train-

“At Outdoor Living we offer various types of half-day and full-day team-building events, such as CSI, build-a-boat, teamwork challenges, treasure hunts, film making and our latest addition, the GPS City Explorer – a high-tech treasure hunt whereby teams are given tablets and, using our unique GPS App, have to solve clues and complete challenges to win points for their team. For the thrill-seekers, we also have a selection of adventurous activities such as abseiling, climbing and aerial ropeway.”

“ When colleagues get along well and work in a pleasant environment, productivity is higher as they tend to support each other more, which results in getting the job done more efficiently and effectively.” – Danica Fava ing an employee, employee turnover is one of the main things to avoid. Team-building activities are aimed at getting employees together in a fun and relaxed environment,

and they offer participants the opportunity to work together as a group, to communicate better, solve problems, effectively manage resources and provide honest feedback to successfully complete the challenges.

“Besides the fun oriented activities, we also offer facilitated teambuilding events which combine our fun activities with theory sessions on team dynamics. Team-building facilitation is intended to add value to any team event by examining specific issues that affect it. Since our events are informal and participants are taken out of the ‘classroom’, participants are more relaxed about interacting. Our professionally qualified facilitators will help your team discover what it is that they currently do well as a team and where they can look for improvements in teamwork.”

And with Christmas just around the corner, many offices begin to think about that all important office party. It presents a wonderful opportunity to socialise with colleagues in a more relaxed atmosphere. It is that time of year when colleagues can drop their professional front and let their true personality emerge, presenting the ideal opportunity to get to know one another and bond, according to Director of Sales and Marketing at Phoenicia Malta Rob Bruno. Mr Bruno explains that this is especially true for larger companies, in which some employees would not normally get to meet and talk to members of other teams during the regular working day. Whichever way you wish to celebrate, The Phoenicia offers a vast array of staff lunches, dinners or receptions. And according to Mr Bruno its unique ambience and surroundings, particularly the tranquil gardens, offer the ideal setting for such events. However busy you may be, you can undoubtedly find some time for yourself, even if you start with a few minutes each day or an hour or so over the weekend.

BUSINESS AGENDA | dec 2012 - feb 2013

BUSINESS AGENDA | DEC 2012 - feb 2013