Business Agenda - Issue 39

BUSINESSAgenda THE OFFICIAL PUBLICATION OF THE MALTA BUSINESS BUREAU ISSUE 39 | WINTER 2020/2021

SOLIDARITY ACROSS t h e EU Survive and thrive: the fate of Malta’s tourism sector in the months ahead.

NEWSPAPER POST

How will Malta benefit from the allocated €2.27 billion in EU funds over the next few years?

OFFICIAL SPONSORS OF BUSINESS AGENDA

Stefano Mallia, EESC Employers’ Group President, reveals his vision for fostering business growth.

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BUSINESSAgenda

CONTENTS ISSUE 39 | WINTER 2020/2021

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20 12 COVER STORY

INVESTING IN THE FUTURE

Malta has managed to secure an unprecedented €2.27 billion in EU funds as part of the MFF and COVID-recovery scheme.

Rebecca Anastasi speaks to stakeholders to discover the potential these funds bring.

20 TOURISM

SURVIVE AND THRIVE: THE FATE OF MALTA’S TOURISM SECTOR

The months ahead are amongst the toughest for the tourism sector and, this year, predictions for the shoulder period are the worst yet. But is there any hope for the short term? Martina Said finds out.

28 INTERVIEW

76 EU POLICY

Stefano Mallia, the President of the EESC (European Economic and Social Committee) Employers’ Group, speaks to Rebecca Anastasi about his vision for cementing the growth of enterprises in the bloc.

Ray Bugeja learns why food systems must be fairer, healthier and more environmentally friendly, as the EU adopts its Farm to Fork strategy, which is right at the heart of the bloc’s Green Deal.

AN EU WHERE BUSINESSES CAN FLOURISH

42 BUSINESS PROFILE REAPING THE FRUIT OF COLLABORATION

A company mission to Ireland paved the way for the establishment of a consortium which provides a complete suite of IT solutions for businesses. Martina Said catches up with the founders.

COVER ILLUSTRATION

By Magda Azab, created exclusively for Business Agenda

A SOUND STRATEGY FOR A GREEN CONTINENT

82 SOCIETY

THE ACCIDENTAL TRAILBLAZER

With an impressive career spanning half a century, Helga Ellul looks back on her journey with Sarah Micallef, recalling the trials and triumphs of her business and CSR endeavours.

92 CULTURE

A GILDED MIRROR INTO THE PAST: MALTA’S HISTORIC HOMES

Historic private homes represent the society and culture of bygone eras, but what do they tell us about ourselves? Sarah Micallef delves into the intricate history of three astounding private residences to find out.

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BUSINESSAgenda EDITORIAL

L O O K I N G F O R WA R D TO NEW OPPORTUNITIES!

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BUSINESSAgenda EDITORIAL

I think we can all agree that 2020 did not go quite as planned. But that’s life! Whether the pandemic ends within a few months or not, we must remain resilient by responding rapidly and effectively to the challenges that come up.

A good example of this can be seen in our Business Profile article on page 42, in which three Maltese IT companies explain how they have turned the challenges posed

by COVID-19 into opportunities. By collaborating and combining their vast knowledge and experience, they have created mutual business opportunities and strong relationships.

Business Agenda also covers the EU Budget which has been allocated to Malta for the upcoming financial period of 2021-2027, and the potential this brings. As we see on page 12, Malta has in fact managed to secure €2.27 billion in EU funds for the next seven years, as part of the Multiannual Financial Framework (MFF) and the newly set-up COVID-19 recovery fund.

On page 20, we catch up with leading industry stakeholders for insight into what lies ahead for the tourism sector, as well as for an honest look into Malta’s tourism offering, and the positive aspects emerging from these challenging times. In a sector that attracted 2.8 million tourists throughout 2019, an increase of 5.9 per cent over 2018, the scenario this year is very different indeed. But is there any hope for 2021?

As a newly-elected President of the European Economic and Social Committee (EESC) Employers’ Group, we interview

Stefano Mallia on page 28 about his new position and his vision for cementing the growth of enterprises in the EU. Later, on page 76, we delve deeper on the EU’s Farm to Fork Strategy.

This initiative, which is at the heart of the European Green Deal, seeks to accelerate the transition towards a sustainable food system. In this article, business stakeholders explain why food systems must be fairer, healthier, and more environmentally friendly.

On page 82, we shift our focus towards Helga Ellul who continues to be a prominent figure in the business world locally. With an impressive career spanning half a century, Helga Ellul looks back on her journey, recalling the trials and triumphs of moving to Malta from Germany, her passion for Corporate Social Responsibility, and her proudest achievement of all: raising a family while continuing to do what she loves.

Finally, I encourage our readers to have a look at our news section, on page 53, and read more about MBB’s work and initiatives.

I hope you enjoy reading the features in this issue and augur our readers a successful year ahead.

May 2021 bring new happiness, new achievements, and a lot of new inspiration in your life!

Next year is a special one for MBB as we will be celebrating 25 years since the organisation’s foundation… Stay tuned!

Joe Tanti MBB CEO

PUBLISHER

Mallia Building, 3, Level 2, Triq in-Negozju, Zone 3, Central Business District, Birkirkara CBD 3010 Tel: +356 2132 0713 info@contenthouse.com.mt www.contenthouse.com.mt

Malta Business Bureau, 64, The Exchange Buildings, Republic Street, Valletta VLT 1117 Tel: (+356) 2125 1719 info@mbb.org.mt infobrussels@mbb.org.mt www.mbb.org.mt The Malta Business Bureau is a non-profit making organisation acting as the European-Business Advisory and Support Office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The MBB has two offices, the Head Office in Malta and the Representation Office in Brussels.

EDITOR Joe Tanti EDITORIAL COORDINATORS Sarah Abdilla and Rebecca Anastasi EDITORIAL TEAM Rebecca Anastasi, Ray Bugeja, Sarah Micallef and Martina Said DESIGN James Debono CORPORATE SALES & BUSINESS DEVELOPMENT MANAGER Bernard Schranz CORPORATE SALES & BUSINESS DEVELOPMENT EXECUTIVE Matthew Mizzi ADVERTISING SALES COORDINATOR Sue Pisani Business Agenda is the bi-annual magazine of the Malta Business Bureau. Business Agenda is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

Articles appearing in this publication do not necessarily reflect the views of Content House Ltd or those of the Malta Business Bureau. All rights reserved.

Reproduction in whole or in part without written permission of the publishers is strictly prohibited.

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BUSINESSAgenda COVER STORY

INVESTING IN THE FUTURE

Illustration: Magda Azab

In recent months, Malta has managed to secure an unprecedented â‚Ź2.27 billion in EU funds for the next seven years, as part of the Multiannual Financial Framework (MFF) and COVID-recovery instrument. Here, Rebecca Anastasi speaks to the Parliamentary Secretary for European Funds, Stefan Zrinzo Azzopardi; the CEO of the Malta Business Bureau, Joe Tanti; and the Head of European Commission Representation in Malta, Elena Grech, to discover what lies ahead.

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In July of this year, as economies across the European continent experienced a respite in lower COVID-19 case numbers, an intense four-day summit was held in Brussels. Representatives and negotiators from all 27 countries in the bloc attended to discuss and agree on the budget for the EU’s next seven-year Multiannual Financial Framework (MFF), 20212027. As with previous similar discussions, provisions were hotly debated, but, this time, Europe had to come together and find a solution to a pressing problem: how to survive in an era marked by a global pandemic, climate change and political upheavals across the continent.

The key was a commitment to solidarity – one of the bloc’s founding values. And, indeed, as the summit drew to a close, it was clear each country would dig deep in an attempt to confront the existential challenges facing its people, and its businesses. To that end, a colossal €1.8 trillion budget was agreed upon – with €750 billion earmarked towards a dedicated Coronavirus fund, Next Generation EU, while the remaining €1 trillion fell under the MFF. Of these, Malta’s negotiators managed to secure €2.27 billion – €1.923 billion as part of the MFF, and €347 million as part of the newly set-up recovery fund – a staggering amount for such a small economy and a sign of the Union’s renewed dedication to ensure no one gets left behind.

These amounts also represent an acknowledgement of the island’s position as an integral member of the European family, with the funds secured increasing over the 2013-2020 period, during which €1.1 billion had been allocated to the country.

However, for Parliamentary Secretary for European Funds, Stefan Zrinzo Azzopardi, this investment in the country is more than just a symbol of collaboration across the EU, but it’s an integral element in Malta’s continued development. “The EU funds that Malta has acquired since its

accession to the EU have financed various important projects and initiatives. In these unprecedented times, EU funding shall serve as a means to continue our ongoing investment in our country’s main pillars,” he asserts.

This year, the funds allocated will, in his view, provide the necessary resources to meet the challenges of our times. Indeed, the Parliamentary Secretary notes that the cash injection will complement national funds already being earmarked by the Maltese Government to be used in a spate of initiatives with the aim of buffering the local economy from the ravages of the pandemic.

“The way forward is that the funds acquired by Malta are invested in the best manner possible in aid of economic recovery whilst achieving the short-term and long-term targets that have been set,” he asserts.

Elaborating, Dr Zrinzo Azzopardi refers back to the recovery fund – which is further split into two streams, REACT-EU and a Recovery and Resilience Facility – and underlines that “as a response to the negative effects of the pandemic, the EU has provided specific measures to give aid to those countries which were falling behind, especially economically. The REACT-EU and the Recovery and Resilience Facility are funds created to support countries financially and help them to develop a more sustainable economy respecting the environment whilst investing in digitalisation,” he explains.

The former, REACT-EU, comprising €112 million of the total monies allocated to Malta, will partly be financing the continued distribution of the Wage Supplement Scheme in Malta.

“This measure has saved jobs. The financing of the Wage Supplement is one of the important measures that has helped various economic sectors weather the negative effects of the pandemic,” the Parliamentary Secretary points out.

In the meantime, the Recovery and Resilience Facility, accounting

for €220 million given to Malta in grants, will help deal with the fallout created by COVID-19, as well as aid the remedy of some of the islands’ most pressing issues in the realms of the environment and the rule of law. Here, “a minimum of 20 per cent are ring fenced for digitalisation, and 37 per cent for the greening of the economy.

These funds must also finance projects that respond to the specific country recommendations which include reforms in the judicial sector, education and other social reforms,” he explains.

It is clear that sustainability remains at the forefront in the list of priorities for the Union and, as a result, the lion’s share of Malta’s allocation will need to go towards ensuring a healthy, vibrant future for the island, based upon five main pillars, as referenced by the Parliamentary Secretary: the environment, infrastructure, education and employment, as well as carbon neutrality. “These are in line with the European Union’s vision and will be our priority when planning the use of such funds,” he says, also referring to the Government’s aim to “achieve carbon neutrality by 2050 [which] shall require a lot of concerted action on the way our economy works and a number of the actions required shall be financed with the funds we have gained.”

In line with this, approximately €713 million of the MFF allocation has been earmarked as part of the Cohesion and Regional Development Funds, promoting digitalisation, business competitiveness as well as research and innovation, the Parliamentary Secretary continues to explain, saying that the “traditional and essential sectors will also be allocated funds to ensure we keep developing, creating a more sustainable environment and transport system, and better health services whilst investing also in the preservation of our environment.”

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acquisition and job retraining, and which will “provide further support to those who are not in education, or employment, giving them further training so they increase their chances of employability.” This will be done “in conjunction with further training given to professionals to improve services rendered in various sectors including the education, social and health sectors.”

“In these unprecedented times, EU funding shall serve as a means to continue our ongoing investment in our country’s main pillars.”

STEFAN ZRINZO AZZOPARDI, PARLIAMENTARY SECRETARY FOR EUROPEAN FUNDS

For the CEO of the Malta Business Bureau, Joe Tanti, the budget given to Malta will have a positive domino effect, in that it will encourage the availability of other forms of capital and reserves. “EU funds are a direct injection into the Maltese economy as they mobilise resources for specific projects and policy priorities that otherwise would not be possible to implement so soon as one would wish for,” he explains.

Echoing the Parliamentary Secretary, Mr Tanti refers to the priorities of environmental sustainability and digital transformation, saying that the funds will help member states make the necessary investments to become carbon neutral by 2050, as well as invest in digital “infrastructure, processes, and people skills.”

Honing in on the €1.923 billion from the seven-year MFF 2021-2027 – which aims to finance projects falling under the EU’s cohesion policy, as well as in the realms of agriculture, Erasmus+, migration, security and the environment – Mr Tanti underscores the importance of cohesion funding, saying that this possesses “a very important purpose to help member states in the continuous process of modernising and to provide a higher standard of living to the people”. He further explains that these moneys finance “different areas of the economy.” With this knowledge, the Government, he says, should do its utmost to ensure the funds are disbursed “efficiently and in a timely manner.”

By way of example – and to elaborate on how the funds can

ameliorate specific industries – he refers to the difficulties being faced by the agricultural community, particularly in the wake of the pandemic, and how the challenges being faced by farmers have a concomitant effect on the way Maltese consume food.

“The recent COVID-19 crisis, for instance, has shown the importance of food security. This is more pertinent in the case of islands, and, thus, special attention should be given in supporting and incentivising local farmers, food processors and catering establishments to produce and

prepare food more sustainably,” he says.

Safeguarding the environment is an integral part of not only ensuring food security and the longevity of Malta’s farmers, but also of nurturing a sense of wellbeing on the island, though this is not limited to ‘simply’ protecting nature, but it goes beyond towards a reconceptualisation of our infrastructure. Indeed, he continues, “further investment is required to create open spaces, but also in smart transportation systems and to make buildings more energy efficient,” he asserts.

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Focusing on the COVID-19 recovery instrument, Mr Tanti said that the Union’s Next Generation and Recovery Plan is “a landmark initiative where the EU will raise funding from international markets to then distribute to member states in the form of grants and loans to support their recovery.

This provides countries with the required cash injection to put into their economies, but also gives them the ability to access low interest debt thanks to the EU’s credit rating,” he explains.

To access the moneys, “every member state has been invited to draft a national recovery plan, which will be the basis to receive this EU funding.” He notes that Malta is facing particular challenges due to its reliance on tourism – occupying a large share of the island’s Gross Domestic Product - a sector which has been all but decimated as a result of the pandemic. Moreover, “as the international economy dips further into an economic depression, exports and retail are also expected to decline for a considerable time.

This means that several sectors of our economy will require continued public support to survive and to preserve jobs.”

Addressing these shortfalls is “an immediate economic priority”, the CEO stresses, and “Government would do well to make use of these funds at its disposal by the EU”. However, the onus also falls on businesses in Malta themselves, which “should also use this time to reflect on how to regenerate their business models in order to come out stronger and more competitive beyond the COVID-19 crisis.”

Concluding, Mr Tanti refers to other sources of EU funding which can help local companies, and he outlines the myriad ways in which the MBB can facilitate access. “For years, the MBB has been advocating for businesses to consider tapping into EU funding, particularly direct funding from Brussels [in order] to complement their own investments and to make their businesses more competitive,” he explains.

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“Further investment is required to create open spaces, but also in smart transportation systems and to make buildings more energy efficient.”

JOE TANTI, MALTA BUSINESS BUREAU, CEO

To this end, the MBB is also in the process of preparing a detailed report “on the experience of Maltese business with tapping EU funding and looking at identifying the perceptions or practical challenges they encounter.” This, he says, “will help us understand and to make recommendations on the awareness, structural and practical support that companies need to become more successful in tapping EU funding, which ultimately benefits them, and the economy in general.”

In the meantime, Elena Grech, the Head of European Commission Representation in Malta, attributes the colossal amounts Malta has been accorded by the EU to the skills of its negotiators in Brussels, saying that the amounts are a direct result of their abilities. “It’s all down to Government competence.

These are the largest amounts of funds Malta has ever received, because our negotiators knew how to do their homework well. At first, Malta was scheduled to receive much less, but with COVID, we

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reimbursement might be delayed in case of insufficient cash-flow on the EU side,” Dr Grech explains.

This means that Malta has to cashflow projects until the rest of the funds get paid out. “We actually start cashing in during the last few years of the MFF period, so Malta cashflows the project to an extent.

But the country does not have an issue here, since the money will come,” she asserts.

managed to negotiate for more,” she explains.

She underscores that these funds still need to be ratified by the EU Parliament as part of the EU budget package, and, therefore, the figures will only be confirmed once this happens.. “The German Presidency would like to get this done and dusted under its presidency, since the EU needs confirmation of the new budget in order to continue its day-to-day business as from January 2021, but it’s running very tight. After the EU Parliament gives its approval, then all 27 member states need to ratify it too. We expect that national parliaments of the 27 member states would approve the package as well. In case the current proposal is not adopted by the end of the year, the whole EU would have to work with a system of one-twelfths of the 2020 budget allocated per month. In any case, any delay in the adoption of the EU budget is not likely to have a significant impact on the allocation which has been earmarked for Malta, since EU funds are only actually disbursed once the projects for which they are allocated are actually implemented. Moreover, there is no risk to the reimbursement claims which Malta may submit in connection with any projects it has implemented over the past seven years, although such

She points to the positive ramifications of EU funding on the Maltese economy, underlining the boost it gives to employment levels, as well as the investment it provides in further modernising the country, in line with its European neighbours. “How the funds are used needs to adhere to EU principles. For example, you cannot build a coal fire station, since environmental protection is one of the bloc’s priorities. Likewise, there will be increased emphasis on ensuring buildings are insulated from now on, since this minimises our carbon footprint,” she explains.

Indeed, plans are currently being drawn up for how precisely the funds will be spent, she continues, saying that these are then approved by the DirectorateGeneral of the Commission. “These funds fall into different categories and priorities, and there are different programmes under each of these categories. Therefore, the details of how the money will be spent will be drawn up by the Maltese Government and then agreed upon with the European Commission in Brussels,” she explains.

“How the funds are used needs to adhere to EU principles.”

ELENA GRECH, HEAD OF EUROPEAN COMMISSION REPRESENTATION, MALTA

Reflecting Dr Zrinzo Azzopardi and Mr Tanti, Dr Grech also points to the substantial progress Malta needs to undertake to get the country in line with European environmental targets. “With regards to the EU’s Green Deal, Malta needs to pull its socks up. According to the State of the Union speech in September, the bloc’s climate targets have been increased and we will now have to achieve a 55 per cent reduction in carbon emissions by 2030 – that’s only 10 years from now. And Malta seems to be a particularly bad pupil in this sense, since it has lagged behind quite a bit. So, there will need to be investment towards a green transition of the economy,” she insists, adding that, in her view, the island’s waste management system is one of the biggest culprits to pollution, although this is being addressed through the Waste-to-Energy plant, currently in development.

Moving on to the economic repercussions of COVID, Dr Grech underlines that a substantial amount of the EU’s recovery fund will consist of loans – rather than grants – which will need to be paid back. “Essentially, the European Commission is borrowing from international markets, on behalf of the member states – due to its good fiscal reputation – and these loans are then distributed among the 27 countries. These are very long-term loans at favourable rates, but there will be some interest applicable,” she says, indicating the generational impact COVID is set to have.

Yet, for the Head of European Commission Representation in Malta, European solidarity has proven to be a boon in fraught times – “COVID came along and the countries dug deeper into their pockets,” she says – and, concluding, she expresses confidence Malta will thrive in the future. “Malta is usually quite resilient to economic shocks, due to a mix of factors, so I have no doubt we will come out of the situation well,” she asserts.

Since the interviews were carried out, agreement was reached with the European Parliament on the final amounts, but approval is still pending at Council level.

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BUSINESSAgenda TOURISM

SURVIVE AND THRIVE: T H E f a t e O F M A L TA ’ S TOURISM SECTOR The months ahead are amongst the toughest for the tourism sector. But this year predictions for the shoulder period are the worst yet. Martina Said catches up with leading industry stakeholders for insight into what lies ahead, as well as for an honest look into Malta’s tourism offering, and the silver linings emerging from these unprecedented times.

It is widely agreed that the tourism industry is facing its largest ever hurdle as a result of the COVID-19 pandemic – one that is laden with seemingly insurmountable challenges, as well as a glimmer of opportunity to rebuild a better and more sustainable industry for today’s world.

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that beggars belief – with a sector that attracted 2.8 million tourists throughout 2019, an increase of 5.9 per cent over 2018, the numbers this year look very different indeed.

Leslie Vella, Chief Officer Strategic Planning and Deputy CEO at the Malta Tourism Authority says the past few months were obviously and unequivocally very bad for tourism worldwide, since

COVID-19 has had a huge impact on people’s freedom to travel as lockdowns, restrictions and impositions to quarantine and selfisolate collectively contributed to enormous declines.

“This invariably led to vast cancellations in airline services and was further exacerbated by economic uncertainties and employer performance, which

BUSINESSAgenda TOURISM

been instrumental in extending a range of medium-term assistance measures aimed at sustaining the country’s tourism industry.

“This ranges from fiscal measures to wage supplements and even demand stimulus measures through the voucher schemes.

The importance of the small but relevant domestic tourism market has also come to the fore during these tough times. So, it is a question of not only keeping afloat by cutting costs but also of adapting to new potential realities by introducing innovative approaches or tapping previously ignored segments.”

Speaking of the future of the industry going forward, Mr Vella says that the pandemic has been a lesson to all the world’s economies that, in spite of our civilisation’s sophistication and technological and economic prowess, there are still forces or events that may jeopardise the foundations on which the entire global economic framework is built. “Climate change is one such future scenario whose existential nature is beyond doubt and deadlines are ticking in its regard too.”

Mr Vella continues that the onset of the second wave and the time gap between the present scenario and the availability of a vaccine, scheduled for the first quarter of 2021, render the next few months challenging for travel worldwide.

“Businesses are emerging from a very lean summer and potential tourists are facing various issues in their own home countries which will make travel a lower priority item in the next few months.”

“We may have to adjust to a new travel paradigm which may depart from the volume-driven global tourism growth of the past one and a half decades, and evaluate investments in light of the new realities which are emerging. Having said that, there will be a light at the end of the tunnel, and we continue to believe in tourism and its revival albeit under potentially different circumstances,” Mr Vella asserts.

“Locally, we are addressing this through the formulation of a new Tourism Strategy which will take us to 2030. This strategy will combine the principles of recovery with rethinking and revitalising our tourism, to ensure that our tourism offering will remain valid, competitive and sustainable in the years to come.”

To this end, the Deputy CEO asserts that Government has

Vice-President of the Malta Hotels and Restaurants Association,

further contributed to the drop in traveller numbers,” says Mr Vella.

“By the end of August 2020, NSO data for inbound tourism to Malta showed a decline of -71.2 per cent, when compared to the first eight months of 2019.”

George Micallef, sheds light on the developments earlier in the year, saying that once the airport reopened on 1st July with limited flight schedules from selected markets labelled as safe, the start of August was seeing an encouraging pick-up of hotel bookings. “However, this was shortlived when UK put Malta on the red list, among other countries, which subjected visitors returning from Malta to a 14-day quarantine.

In a matter of days, we were

“By the end of August 2020, NSO data for inbound tourism to Malta showed a decline of -71.2 per cent, when compared to the first eight months of 2019.”

LESLIE VELLA, CHIEF OFFICER STRATEGIC PLANNING AND DEPUTY CEO, MTA

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flooded with cancellations, while new bookings trickled in, and we returned to where we had started within a span of a couple of weeks.

We can safely say that this summer was a write off.”

Speaking of the shoulder period ahead, Mr Micallef asserts that the situation is bleak with extremely low occupancy levels, generally hovering around 10 per cent or, even, below. “The imposition of lockdowns and restrictions announced over recent weeks in most of our main source markets continues to exacerbate the problem,” he explains. “Most hotels struggle with the thought of whether to stay open or not. Either way, the challenges ahead of us are enormous, not only because we were all unprepared for it, but also because it is impossible to plan ahead.”

Reflecting on past shocks to the tourism industry, the VicePresident says that tourism has faced various crises over the years – the Gulf war, the global financial and economic downturn that affected tourism in 2009 and 2010, the political turmoil in the Mediterranean region, terrorism threats, and other calamities, “which all impacted tourism in a big way, but the extent of the COVID outbreak has brought the global economy to its knees.”

Despite the sector having proven its resilience over the years, Mr Micallef states that the pandemic will have lasting effects. And, although tourism will undoubtedly return, he believes that attitudes on travel will change, “and we must be prepared to adapt to travellers’ behavioural changes. Visitors will most certainly become more health conscious and sanitisation practices will have to become the norm for service practitioners.

Travel patterns are also bound to change and the effects these will have on the sector are largely unknown.”

Delving into the debate concerning hotel bed supply and Malta’s carrying capacity, and whether Malta should rethink plans for further hotel and accommodation developments, Mr Micallef states that the country’s size poses a unique set of challenges. “Beyond the issues related to the pressures on Malta’s resources, arising from the increased numbers of visitors, and the risks resulting from an oversupply of beds, we must acknowledge that Malta has its limitations,” he asserts, adding that the accommodation supply is not made up of hotels only, but also private rented accommodation which has grown exponentially in recent times.

“In my view, the biggest challenge Malta faces in tourism is the management of bed supply for the years to come. There is no easy way out of this, and it will certainly be difficult to find consensus on the way forward. However, it is in everyone’s interest to have a clear

“The challenges ahead of us are enormous, not only because we were all unprepared for it, but also because it is impossible to plan ahead.”

GEORGE MICALLEF, VICE-PRESIDENT, MHRA

vision for tourism of the future based on long-term sustainability, backed by a plan of action that lays out the foundation for long-term planning. But such a plan has to be owned by all stakeholders.”

A positive trend that emerged over the past months is a growth in the domestic tourism market, albeit mainly driven by the Government vouchers. While Mr Micallef says that the hotel sector can never survive on domestic tourism alone, “the domestic market needs to be nurtured and given due attention, as it is bound to develop further.

It’s also important that it continues to feature in national statistics as it will help us better understand the dynamics of this segment and its impact on the hospitality sector.”

Hotelier and President of the Malta Business Bureau, Simon De Cesare, describes the last few months as an “absolute rollercoaster”. First, “we had to close in March and April amidst fear and uncertainty of the future of our businesses, our massive investments and the livelihoods of all our colleagues who worked for us. Then, there was the excitement of the reopening of the airports and the glimmer of hope we saw in new bookings which were outpacing our expectations, and, finally, the reclosure of our tourism markets due to the spike in August. It has been a nightmare which could not have been foreseen or mitigated against.”

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Reflecting on the present situation and the winter months ahead, Mr De Cesare says that, today, industry operators are hunkering down to try and get through the next six months of low season while operating with almost no hotel revenue.

“The occupancies we are looking at in November and December, and likely into January and February, are dire and sit in single digits. We keep hoping for a medical solution coupled with improved rapid testing in all areas, particularly at

the airport, but the reality is that we just have to wait it out,” says the MBB President. “Fortunately we are starting to get some positive enquiries for Q2 next year and, should the pandemic be coming to an end, as is widely hoped, then we should start seeing the return of some tourists come Easter and into summer.”

Mr De Cesare says it is unclear how quickly the industry will bounce back, however. His feeling is that people cannot wait to travel and, once they feel safe again, will relish

“Quality needs to be enforced in our industry at planning stages and continued at operating stages. The reputation is all of Malta’s to lose.”

SIMON DE CESARE, PRESIDENT, MBB

PHOTO: ALAN CARVILLE

the opportunity to do so. “I think that there will certainly be some casualties in the industry by then, but that might just be what it needs to survive as a whole given the oversupply of beds in the market at the moment and the competition for depleted tourist numbers.”

Asked whether there are any measures that tourism operators can take to limit the effects of unpredictable future shocks, Mr De Cesare says the tourism sector has been more adversely affected than other industries in Malta and worldwide, and not for the first time. “The 9/11 terrorist attacks and the 2008 financial crisis also had disproportionate effects on the industry, as it is reliant on the health of other countries,” he asserts.

“I don’t think there is anything specific, as an entire industry, that could have mitigated against the effects of COVID, however, I think there are actions that individual operators will consider going forward. Healthy working capital and cash reserves will be essential; flexible employment contracts should be considered, although, in my experience, employees were extremely supportive of the measures that had to be taken; the ability to partition your hotel to contain utility and other costs; and ultimately, I think all operators should consider the diversification of their businesses to allow for a spread of risk.”

Weighing in on the debate of hotel development and an oversupply of beds given the current visitor numbers, Mr De Cesare does not believe it is a case of limiting new hotels, but rather focusing on quality. “I have seen recent 14-floor hotels which have 70 per cent of their rooms looking inwards onto a small shaft. This should not be allowed,” he asserts. “Hotels require proper management and applicants for new hotels should have to demonstrate experience in the market. These are not normal times and normal measures do not apply in such industries,” he continues.

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BUSINESSAgenda TOURISM

“Our calculations show that should all new permits be developed into hotels, then the number of beds in Malta would double in the next five to six years. Will our number of tourists double too? Can our islands take it? Do our residents want it? And are our resources sufficient to take four to five million tourists annually? I think not,” he states. “Quality needs to be enforced in our industry at planning stages and continued at operating stages. The reputation is all of Malta’s to lose, not just that of the rogue operators.”

The MBB President believes there is a silver lining to the tourism depression over the next 12 to 18 months, however. “This is the time to invest in the product. Tourist areas need work and upgrading on a more permanent basis rather

26 | WINTER ISSUE

than piecemeal every couple of years.” He adds that, at present, Malta is a mass market destination with a successful track record for attracting tourism and corporate travel all year round but needs to attract more lucrative niche markets to remain diverse in its offering.

“It is a time to inwardly reflect on what is missing in our offering.

Do we have enough beaches, cultural experiences, and leisure activities for tourists to enjoy? Are we considering the sustainability of our island and our resources? I hope we can look further than the current survival mode to consider these questions and come out stronger on the other side,” he concludes.

BUSINESSAgenda INTERVIEW

© EUROPEAN UNION, 2020

AN EU WHERE BUSINESSES can FLOURISH Stefano Mallia, the newly-elected President of the EESC (European Economic and Social Committee) Employers' Group, has had a long career championing the interests of the business community in Malta and across the European Union. Here, he speaks to Rebecca Anastasi about his vision for cementing the growth of enterprises in the bloc.

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“Together with my fellow members from the Employers’ Group, we will strive to enhance the visibility of our work, promote the employers’ point of view, and work to make Europe the home of thriving businesses and people.”

After 10 years as a member of the Maltese delegation to the European Economic and Social Committee (EESC), Stefano Mallia – a well-known name in the local business community – was appointed President of the Employers’ Group within the Committee this October, a role which will allow him to bring his decades of experience to bear.

For, while his expertise lies specifically in EU Structural Funds and SME Financing, Mr Mallia also possesses a wide range of practical know-how, garnered by his years as President of the Malta Chamber of Commerce, Enterprise and Industry, and his work as Partner at business consultancy firm, EMCS Ltd, here on the island.

However, for the past decade, Mr Mallia has applied this knowledge within a wider remit on a European Union-level, working in the Committee, which brings together over 100 business representatives from all member states to champion the interests of industries as diverse as manufacturing, financial services, and the digital sector across the entire bloc.

“Over these 10 years I could see first-hand how, through the EESC, we could influence some of the decisions being taken by the EU,” he explains. “Furthermore, I also became very conscious of the incredible knowledge and expertise that is contained within the Employers’ Group, which knowledge and expertise – if properly harnessed – could give a meaningful contribution towards

achieving a more business-friendly Europe.”

Indeed, for the next two and a half years, Mr Mallia, as President of the EESC’s Employers’ Group, plans to ensure that the entity’s mandate is strengthened, to solidify a healthy and vibrant business ecosystem within the EU. “My ambition is very simple – we must make use of every single opportunity to push the employers’ agenda to ensure that any piece of legislation put forward by the EU is one that takes into account the realities of entrepreneurs and enables solid businesses to thrive,” Mr Mallia says.

This will require action at various levels – “work [which] must be underpinned by quality” – he continues, whether this is carried out in tandem with EU organisations, such as BusinessEurope, CEEP, CopaCogeca, EUROCHAMBRES, EuroCommerce and SMEunited or with local employer organisations, including The Malta Chamber, the Malta Employers’ Association, the Malta Chamber of SMEs and the MHRA. For, collaboration is key to meet the steep challenges being faced by businesses in the bloc. “There is no doubt that we are living through unprecedented times. We speak about a COVID recovery, but first we must focus on surviving,” Mr Mallia explains, pointing to the struggles being faced by companies, that are having to make difficult decisions, such as laying off employees, or, even, closing down. “The EU must do all in its power to help businesses to

survive; then, we must together construct a sustainable recovery, which must take advantage of the harsh lessons being learnt during the COVID crisis.”

In this regard, the President points to the constructive contribution made by the Group within the EESC: “As soon as the COVID-19 pandemic hit Europe, the Employers’ Group immediately put together an action group that drafted what we viewed as the most urgent measures required to protect the economy and to protect the viability of businesses.

Furthermore, I wrote personally to all the heads of state forming the European Council, as well as the presidents of the major European institutions, and called for a fast and forward-looking decision on the recovery budget. The responses we received from the highest political levels confirmed the impact our work can have,” he says, insisting that “I want to keep this momentum of active involvement in current issues going.”

In the interim, while the pandemic is still raging on the continent, Mr Mallia asserts that this must not cause irrevocable damage to the Single Market – the cornerstone of European collaboration – maintaining that any emergency measures must remain temporary.

“The Single Market is the main competitive advantage of European businesses and, thus, especially in the recovery and reconstruction phase we need to prevent any distortion to it and guarantee the free flow of goods, services, capital, data and people across borders,” he says.

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Thus, he continues, “although the temporary change of state aid rules is necessary, it should only be an emergency measure, as, otherwise, a level playing field in the Single Market cannot be ensured. Furthermore, any temporary relaxation of state aid rules must be explicitly tied to structural reforms of the individual economies. It is only in this manner that we can emerge stronger from this crisis. If we fail to carry out some urgent reforms, we will remain vulnerable to the next crisis that may be round the corner.”

Moreover, many of the reforms required, he says, are those related to climate change, which will all have an effect on businesses across the bloc, as countries transition to a cleaner economy. Employers must embrace the necessary changes, he underscores, pointing to the crucial role being played by the Employers’ Group to ensure that “this transition is well balanced between the social, environmental and economic realities we are all facing.”

However, these shifts must be made with a view to the economic realities of companies struggling to meet the expenses involved in such a shift. “In my view, it would be a major error to ignore the economic realities our companies are facing whilst at the same time expect them to take on considerable burdens in transiting to a cleaner economy.”

Companies, and employers, however, are not simply passive observers to the imperative of solving climate change. Indeed, Mr Mallia points to their crucial role in the fight against pollution and global warming, saying that businesses are “the innovators developing and producing solutions for climate action.”

Moreover, enterprises can be instrumental in “exporting climate technologies and solutions or making world market products

© EUROPEAN UNION, 2020

that produce less emissions than those of competitors.”

To do so, however, the EU must nurture a competitive environment, allowing for private investment to flourish in a climateneutral economy, he insists, saying that “the EU must encourage innovation, electrification and digitalisation,” while also committing “other major global parties to a similar level of climate action.”

Moving on to the particular issues being faced by SMEs in Europe, Mr Mallia explains that the EESC adopted an Opinion on the European Commission’s SME strategy – formulated prepandemic – in an attempt to push for changes, reframing the EC’s original policies to step in line with the changing circumstances resulting from COVID-19, and calling for a Next Generation SME Strategy. “In this Opinion, we emphasised that we welcome the European Commission’s SME Strategy.

However, it was set up before the COVID crisis hit Europe. COVID-19 vastly changed our business environment and especially SMEs are vulnerable to this situation.

The new circumstances require a comprehensive policy review and

“Minimum wages must be seen in the light of the economic realities we are living in as well as in the light of the social packages being provided by the individual member states.” specific proposals for boosting digitalisation, innovation and sustainability in SMEs,” he says.

Similarly, the EESC’s July 2020 Opinion on A New Industrial Strategy for Europe also pushes for a strong, competitive industrial base, so that the continent can “maintain its leading role in the world.” This is, once again, particularly relevant in view of the upheavals wrought on the continent as a result of WINTER ISSUE | 31

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© EUROPEAN UNION, 2020

the pandemic, Mr Mallia says, explaining that “The Opinion explains that the COVID-19 crisis led to a supply as well as a demand shock. Europe needs to prevent the temporary loss of industrial production by the COVID crisis becoming permanent.”

Another issue which was recently on the EESC’s agenda is the proposal put forward by the Commission regarding decent minimum wages across the bloc. Indeed, the Committee has previously stated further efforts are needed regarding the convergence of wages and establishing minimum wages in the member states, though it has also stressed the need for wages to be set nationally. For Mr Mallia, this remains imperative, adding that “as employers, we have fundamental doubts about the need, feasibility, added value and legal basis for any EU action on minimum wages, especially if binding.”

Moreover, he says, “it is clear that the EU has no competence over pay, including minimum wage, and wage levels in particular, [so] we are concerned that a wrong kind of EU action on minimum wages would only end up weakening the role and autonomy of social partners and harming social dialogue and collective bargaining systems 32 | WINTER ISSUE

that are already working well in a number of member states.”

Thus, he continues, “minimum wages must be seen in the light of the economic realities we are living in as well as in the light of the social packages being provided by the individual member states. Accordingly, the debate on this topic cannot only be about fairness or adequacy of minimum wages. It should also be about safeguarding the sustainability and economic viability of the companies that provide jobs. If companies become unviable, then jobs will inevitably be lost.”

“Over these 10 years I could see first-hand how, through the EESC, we could influence some of the decisions being taken by the EU.”

Turning to Brexit – due to be affected over the next few months – Mr Mallia is confident that Britain and the EU will maintain a special relationship, though he names Britain’s exit as one of the issues businesses in the EU will have to contend with. “Up until very recently, I was Chair of the Brexit Follow-up Group at the EESC, and in order to elaborate on the possible forms of collaboration of civil society after Brexit, I led a number of so called Brexit missions to the United Kingdom where we had several meetings with over 150 civil society organisations in the UK,” he explains, saying that “the UK will never be just any other third country.”

Indeed, “it is with this in mind that we have pushed very hard for a special relationship agreement to be put in place before the end of the transition period. For European businesses, a fast and fair agreement on a deal is crucial: only then will we have the possibility to plan for the future and can the negative consequences of Brexit be reduced to a minimum,” he explains.

Looking ahead, the President sees the next few months as crucial for employers across the bloc, as they navigate any fallout as a result of Brexit and the American elections, while he points to the Conference on the Future of Europe, as being pivotal to understanding the terrain over the next few years.

“On these too we need to be alert and proactive to every opportunity we have to push forward the employers’ agenda,” he insists.

Despite the rocky road, however, Mr Mallia is determined to foster opportunities for businesses, and employers, across all member states. “Together with my fellow members from the Employers’ Group, we will strive to enhance the visibility of our work, promote the employers’ point of view, and work to make Europe the home of thriving businesses and people,” he concludes.

BUSINESSAgenda TRADE

A ROADMAP for DOING BUSINESS WITH AFRICA Following the launch of Malta’s first Strategy for Africa, the opportunities for exchange, growth and investment between the island and its neighbouring continent are endless. Martina Said catches up with Ronald Micallef, non-resident Ambassador to Ethiopia and the African Union; and Jean Claude Galea Mallia, resident High Commissioner to Ghana, to find out what’s been achieved, and what opportunities await.

At the start of 2020, Malta launched a vision for trade and investment with its neighbouring southern continent, titled Strategy for Africa – a first initiative of its kind that is set to strengthen ties while also opening doors for business opportunities on both sides. And all this at a time of widespread change within the African continent, as 54 countries have come together to drive economic growth, sustainable development and regional cooperation through the African Continental Free Trade Agreement (AfCFTA), which will set the stage for internal and international investment opportunities for years to come.

Ronald Micallef, Malta’s nonresident Ambassador to Ethiopia and the African Union, explains that, since the launch of the Strategy, diplomatic services have commenced successfully in Ghana, West Africa, with a clear focus on 34 | WINTER ISSUE

trade, and efforts are underway to follow suit in Ethiopia for East Africa.

“Addis Ababa, the capital city, has grown in importance in recent years and is now recognised as ‘Africa’s Capital’, home to the African Union. Thanks to Ethiopian Airlines, now the largest airline in Africa, Addis Ababa is connected to most capital cities in Africa.

Therefore, it is timely for Malta to appoint an Ambassador specifically focused on Ethiopia and the African Union,” says Mr Micallef.

While the post is presently nonresident, he explains that, in a short time, significant inroads have been made, establishing networks and developing sustainable longterm projects. “Despite COVID-19, we have managed to organise an exploratory trade mission to Addis, hosted senior officials from the Ethiopian Development Agency and pursued a number of

“All knowledgebased industries are highly welcome in a growing Ethiopian economy.”

RONALD MICALLEF, NON-RESIDENT AMBASSADOR TO ETHIOPIA AND THE AFRICAN UNION

important technical agreements as a foundation to enable Malta and Ethiopia to develop stronger trade and investment links.”

Arrangements are also underway to open a Consulate in neighbouring Djibouti, a small country with a population of one million. “Djibouti is an entry point for all Maltese exports destined for Ethiopia so our Consulate there is a vital element of our strategy for the Horn of Africa,” says Mr Micallef. “So this year has been an important one. We have prepared the ground for growth in Africa and we have supported the overdue process of internationalisation of Maltese business in Sub-Saharan Africa at a critical time when the COVID pandemic requires us all to change, adapt and seek new markets.”

Mr Micallef brings a wealth of experience to his role, having first visited the continent on a trip to Mozambique 25 years ago.

“So much has changed since then. Neighbouring South Africa was still an apartheid state and Mozambique’s civil war was still an operational reality. The prospects for development, investment and growth seemed like a pipe dream at a time when schools and clinics and the training of teachers and nurses were a key priority,” he explains.

At the time, Mr Micallef was a university researcher specialising in teacher training for educational systems in the developing world.

He pursued this career path in various countries across Africa including Namibia, Angola,

BUSINESSAgenda TRADE

Nigeria, South Africa, Zambia and Ethiopia, among others. “Over the years I have spent in Africa, I had the privilege of witnessing this beautiful continent’s dreams and aspirations coming to fruition, witnessing economic and developmental growth take root from a grass roots level.”

Today, his experience is being applied to facilitate connections between Malta and Ethiopia, which, with a population of around 120 million and an annual economic growth rate of over 10 per cent over the past 15 years, has vast potential. “All knowledgebased industries are highly welcome in a growing Ethiopian economy. In addition to its strategic positioning – only five hours’ flight time from Europe – Ethiopia is also increasingly becoming an important destination for manufacturing, especially in the ready-made garment (RMG) sector.

The liberalisation of key sectors including telecoms will no doubt enable more rapid growth in the near future.”

levels. A growing Africa will open new opportunities for trade and for the delivery of new products and better services, a demand for improved connectivity with related IT services, as well as software and training to handle new standards that can cater for increased international trade.

Conversely, AfCFTA will encourage African countries to trade internally, thus reducing Africa’s traditional reliance on imports,” says Mr Micallef.

“Companies are increasingly looking at locating their manufacturing plants within Africa to be part of what will be one of the world’s largest trade blocs. Maltese companies aiming to target opportunities in Africa will need to review their business operations in line with these new opportunities.”

Delving into TradeMalta’s assistance in helping businesses

to exploit such opportunities, the Ambassador explains that this is precisely its core remit – to support the internationalisation of businesses and create new opportunities for Malta-based companies.

Additionally, TradeMalta creates opportunities to penetrate new markets in countries as diverse as Ethiopia, Djibouti, Namibia and Rwanda, and establishes links with relevant ministries, trade promotion organisations and relevant entities to pave the way for Malta-based companies to expand and grow. “I am proud to say that we have secured a number of notable successes, helping Malta-based companies secure new markets at a time of economic stress, and I am convinced that Maltese companies can be successful in Africa. Our job is to encourage, guide and support them all the way.”

The Ambassador also highlights the challenges. “Ethiopia’s growth is taking place at breakneck speed, with regulatory, banking, energy and logistical gaps to contend with.

Successful business engagement with Ethiopia requires stamina and scale. It is imperative for companies to do their homework well before entering the Ethiopian market and this is precisely where TradeMalta provides an essential service.”

Opportunity for investing in Africa cannot be considered without bearing in mind the anticipated impact of the African Continental Free Trade Agreement (AfCFTA) which, by creating one trade bloc of $3.4 trillion and connecting 1.3 billion people from 54 countries, will encourage commerce within the continent itself but also push for stronger economic collaboration between neighbouring countries.

“The AfCFTA is certainly an agreement that holds both promise and challenges for Maltese business, and will impact Malta at various

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and its realisation stands to show the Maltese Government’s commitment and trust in Ghana as an example of stability and democracy in the region, says Mr Galea Mallia.

The High Commissioner adds that, following the successful State Visit of President Emeritus MarieLouise Coleiro Preca in 2017, the importance of having a mission in Accra was seriously acknowledged, and the state visit to Ghana was then reciprocated by the President of Ghana, H.E. Nana Dankwa AkufoAddo, in March 2019.

Having lived in Ghana for more than 11 years, Mr Galea Mallia is well-equipped to appreciate what the country stands for and to recognise parallels between Ghana and Malta – both economies rely heavily on foreign trade and commercial partnerships, and both share a record of having the fastest growing economies in their respective regions, he explains.

“With its rich natural resources, youthful and vibrant workforce, and sound economic policies, Ghana has the potential to grow further and attract meaningful investment that would boost the industrialisation and overall development of the country.”

JEAN CLAUDE GALEA MALLIA

Jean Claude Galea Mallia, Malta’s first resident High Commissioner to Ghana, explains that, with the Maltese Government’s launch of the African Strategy, the intention is to create a network of diplomatic missions across Africa that would work together to strengthen the relationship between Malta and the African continent on various matters of mutual interest, including commercial, political and cultural relations, youth and education, security and migration.

He asserts that Ghana was picked as the destination for the opening

of the first Maltese diplomatic mission in Sub-Saharan Africa for various reasons: “mainly, its track record as a flourishing democracy as well as its stable macro-economic environment and vibrant business community, which altogether make it an ideal destination for Maltese companies wanting to explore new markets in Africa.”

While the High Commission in Ghana has been operational for a little over a year and a half, the journey started well before,

Highlighting the fruits of the mission so far, the High Commissioner says facilitating people-to-people connections is at its heart, in line with the commitments made by European and African leaders at the Valletta Summit on Migration in 2015.

A focus on educational and academic exchanges between the two countries has resulted in yearly post-graduate scholarships awarded by the University of Malta in the field of diplomatic studies, maritime law and STEM subjects.

In addition to exchanges between students and academics, the High Commission is facilitating regular exchanges between Maltese and Ghanaian authorities, particularly in the area of standardisation.

“An example is the ongoing cooperation between the Ghana WINTER ISSUE | 37

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“The opportunities for cooperation [between Malta and Ghana] are endless.”

JEAN CLAUDE GALEA MALLIA, RESIDENT HIGH COMMISSIONER TO GHANA

Standards Authority and the Ghana Food and Drugs Authority, and the Malta Medicines Authority, with the ultimate objective of increasing the quality and reliability of food and medicinal products manufactured in Ghana, in line with European standards.”

The High Commission also facilitates exchanges between business incubators and start-ups, while providing them with sound advice and recommendations to help them understand the Ghanaian business context.

“We have noticed that, since the establishment of the High Commission of Malta in Ghana, more Maltese companies have been exploring commercial opportunities in Ghana. The opportunities for cooperation are endless and our aim is to continue building on the successes we have had so far.”

Zeroing in on the commercial perspective, the High Commissioner explains that Ghana is an important partner to Malta as well as to the European Union, and everyone stands to benefit from closer cooperation.

With the secretariat of the African Continental Free Trade Area (AfCFTA) being hosted by Ghana, the country will continue to play a key role in pushing the ideas of regionalism, free trade and free movement as a solution to various common challenges faced by African countries.

“Having said that, the AfCFTA will require the necessary regulatory 38 | WINTER ISSUE

and administrative framework to contribute to the success of the agreement. Moreover, micro enterprises and SMEs will also have to consider stepping up their capabilities to be able to compete in a free market environment. This also increases opportunities for companies to form joint ventures and partnerships if they really want to be well-equipped to take advantage of what the single market has to offer,” says Mr Galea Mallia. “This ultimately equates to the creation of broad opportunities in all sectors and industries, be it manufacturing, health services, agro-processing and R&D.” Trading within the Area will start on 1 January 2021, and while the AfCFTA is still in its initial stages, it will set the precedent of how trade in Africa will be done in the years to come. “Therefore, it is crucial that Malta-based companies explore the critical components of the AfCFTA, the European Union’s largest trading block, so that they can adequately utilise the respective benefits of both

CAPE TOWN IN SOUTH AFRICA, A SIGNATORY OF THE AFRICAN CONTINENTAL FREE TRADE AGREEMENT

free trade blocks and strategise a long-term plan that benefits their operations.”

To this end, TradeMalta is crucial for the support it offers to Maltese companies in their internationalisation efforts and establishing themselves in new foreign markets, including Ghana.

“To date, we had two successful business delegations to Ghana with a number of Agreements and Memoranda of Understanding signed to facilitate cooperation and exchanges. These include a Double Taxation Agreement and an MoU between the Malta Chamber of Commerce and the Ghana National Chamber of Commerce and Industry,” says the High Commissioner.

“TradeMalta will continue to work to ensure that the elements of cooperation agreed in the signature of the various MoUs open doors to more tangible exchanges that benefit Maltese and Ghanaian companies,” he concludes.

BUSINESSAgenda INDUSTRY

INVESTING IN MODERNISED INDUSTRIAL PROPERTY SOLUTIONS Ensuring prospective investors can find the quality of industrial properties they are after, when deciding to set up shop here on the island, will give Malta a competitive edge over other jurisdictions. Ray Bugeja speaks to Karl Azzopardi, the CEO of INDIS Malta Ltd, to find out how that will be achieved.

INDIS Malta Ltd is responsible for the administration of governmentowned industrial estates and related facilities around Malta and Gozo, supporting and promoting their further development.

Its current portfolio primarily comprises 16 main sites some of which target specific industries, such as the Safi Aviation Park, the Gozo Innovation Hub, and the artisan villages at Ta’ Qali and Ta’ Dbieġi.

Previously operating as Malta Industrial Parks Ltd (MIP), the company has implemented an extensive reorganisation process including a rebranding exercise aimed at better focusing on 40 | WINTER ISSUE

its core vision – that of further strengthening its support towards investment through the continuous development and management of qualitative, sustainable and innovative industrial property solutions.

“As a forward-looking organisation, INDIS Malta is committed to future-proofing industry in Malta and has, thus, embarked on several projects aimed at ensuring the necessary infrastructure is available,” its CEO, Karl Azzopardi, explains.

The availability of adequate space for their industrial operations is a crucial element and one

prospective investors take into consideration when looking at potential locations, he explains. Mr Azzopardi adds that the company’s work and, particularly, the planned infrastructural investment programme is aimed not only towards creating the necessary infrastructure that would help attract further investment but also towards improving the living and working environment for the communities that operate and make use of industrial estates, he says.

The demand for industrial space has evolved over the years, reflecting the changes in the economy and also in the manufacturing industry.

Traditionally, he continues, the portfolio comprised mainly factories but nowadays the company also provides other facilities such as laboratories for the life sciences industry, hangars for the aviation sector, as well as officetype space for the ICT and other knowledge-intensive industries.

INDIS Malta is also working to upgrade the space provided to the crafts sector, among others, through a total overhaul of the Ta’ Qali crafts village. In the case of individual properties, efforts are being made to maximise the potential of the limited land,

BUSINESSAgenda INDUSTRY

making more efficient use and investing in multi-storey facilities.

The €470 million industrial infrastructure investment announced in the Budget 2021 is the largest programme of its kind for the country, he points out. “The pace with which the economy has grown over the past years means that practically all our properties are taken up with productive operations and, unless we invest significantly in expanding our portfolio, we run the risk of severely curtailing further growth and holding back the generation of wealth and employment for our people,” the CEO asserts.

Acknowledging that the pandemic “somewhat” slowed down this growth, the lull provided an opportunity to implement a programme that has been developing over the past year, and this should be ready and futureproofed when investment picks up again, he remarks. Further growth and investment, he continues, can thereby be stimulated and facilitated, rather than allowing the prevailing state of affairs to be a stumbling block.

Mr Azzopardi outlines some of the major projects planned. Close to €100 million will be invested in the Malta Life Sciences Park in two phases of expansion that will include investment in social amenities, a canteen, parking and green areas. The Kordin Business Incubation Centre will be revamped, facilitating life for startups that use the facility.

Moreover, the former Luqa landfill, on the outskirts of the Marsa industrial estate, will be regenerated and allocated for industrial purposes, also reserving space for sports facilities and green areas. Since this project will generate construction and demolition waste, INDIS shall invest to transform such waste into aggregate that can be used by the construction industry or into other products, such as reconstituted construction elements.

Other projects providing more industrial space, such as an SME

cluster facility in Ħal Far, will be undertaken; infrastructure servicing specific industries will be improved, such as the upgrading of a taxiway at the airport; and industrial estates will be provided with more amenities and embellished.

The CEO underscores the need for a substantial stock of plugand-play industrial facilities, saying this might prove to be the marginal impetus needed to attract investment to Malta over competing jurisdictions.

“The new projects we shall be embarking on have one common factor at their core: sustainability.

We shall be investing in properties that would not only address the needs of our clients today, but they will also focus on future needs, as estimated by projections based on current market trends,” Mr Azzopardi explains.

Such properties, he adds, must also be welcoming to the people working there and to the clients that visit them. Hence, the effort to incorporate green initiatives.

All the developments in the pipeline will be undertaken within existing industrial estates, with the exception of the Marsa industrial estate project since a former dump will be recovered.

In areas like Ħal Far, INDIS Malta is planning to develop clusters of units to provide a branded industrial park within the wider industrial estate. It is also looking at the substantial interest shown by the private sector to develop industrial clusters jointly under a PPP agreement, he notes.

So, while the projects will give a significant boost to specific industries, none will require the creation of new industrial zones but, rather, a better and more efficient use of the land already allocated for industrial purposes, Mr Azzopardi points out.

In addition to the projects within the industrial investment programme, INDIS Malta is also working on other initiatives, like the launch of the Airport Zone Strategy Plan. The plan, spread over 30 years,

“The new projects we shall be embarking on have one common factor at their core: sustainability.” looks into the underutilised sites within the airport perimeter and proposes better use of existing facilities to generate further growth of the aviation servicing cluster, as well as logistics among others.

Turning to operational matters, Mr Azzopardi says that the company itself is changing. Over the past months, it implemented an extensive reorganisation and rebranding exercise aimed at enabling it to better service clients with industrial innovative property solutions, which inspired the company’s new name.

“This process,” its CEO observes, “has provided us with the opportunity to continue to embrace change and evolve. We are becoming a wellorganised, performance-oriented and proactive entity working within pre-planned and defined strategies to cater for the needs of our clients and, ultimately, our country and its people.”

He explains that the company, is guided by five main strategic objectives: generating vacant inventory; boosting financial sustainability; improving operating efficiency; enhancing the environmental aspect of the property it owns and manages; and improving customers’ satisfaction via its services.

The feedback from clients and other stakeholders has been very positive. This, the CEO enthuses, encourages the company to move forward with enthusiasm on the path it has embarked upon, thereby continuing to deliver initiatives that will benefit the entire country.

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REAPING THE FRUIT OF C O L L A B O R AT I O N A company mission to Ireland yielded a lot more than merely prospects of internationalisation for three Maltese IT companies – it paved the way for collaboration that created mutual business opportunities and strong relationships.

Martina Said catches up with Stefan Caruana,

CONSORTIUM PARTNERS WITH EEN BUSINESS MENTOR, JOE TANTI

Keith Abela Fitzpatrick and Francesco Mifsud to find out about their newly-formed consortium that provides a complete suite of IT solutions for businesses.

During a company mission to Cork, Ireland in 2019, organised by the Maltese Business Bureau (MBB) as part of the Enterprise Europe Network (EEN), three Maltese IT companies – 56bit, Corporate Business Solutions (CBS) and Cybergate International – returned home with more than international contacts and potential for overseas growth.

Stefan Caruana, Co-Founder and Director at 56Bit, Keith Abela Fitzpatrick, Director at CBS and Francesco Mifsud, Founder of Cybergate International, forged a friendship based on mutual business values and ambitions, and through this, they recognised the benefits of combining their vast knowledge, experience and multifaceted approach, which would enable them to provide a uniquely tailored and 42 | WINTER ISSUE

comprehensive IT service to clients.

“It all started pre-COVID-19 when a delegation of Maltese IT companies was onboarded and travelled to Cork in December 2019. The idea behind the mission was simple: to find ways of bringing value to Cork and explore potential collaborations and synergies between the two countries,” they explain. “We’re very appreciative of the MBB and the Cork Chamber of Commerce who assisted in making this delegation possible. It was well planned and organised, and the support received was impeccable. It is inspiring to see entities operate at such a high standard, and it would be great to see others follow suit.”

As business and casual meetings ensued, the delegation got to know each other better and it

was evident that synergies were forming between some of the companies and their respective representatives. “It wasn’t long before key common attributes surfaced between us, such as the importance of maintaining a professional attitude for delivering high-quality work, while keeping an element of fun at the heart of every project.”

Following the visit to Cork, and driven by the desire to grow and expand their reach, all three got together to officially form a consortium, and explore further networking opportunities in Cork, create synergies, pool knowledge and share new ideas. “Through the Enterprise Europe Network Mentorship programme, Joe Tanti, CEO of MBB, is helping us drive the consortium forward through his professional mentoring advice,” they add.

Delving into the individual companies, 56Bit provides a tailored service in consulting, building and supporting custom

BUSINESSAgenda BUSINESS PROFILE

and penetration testing company which provides a full range of cyber security services across several aspects of technology. Mr Mifsud explains “we have been in operation for just over five years and, during this time, we’ve had the opportunity to work with diverse sectors, including finance, legal and retail, and with companies ranging in size from small to large enterprises. Our goal is to help organisations meet their ever-evolving cyber security challenges and bolster their security posture.”

Although Cybergate International, Corporate Business Solutions and 56Bit operate within different sectors of the Information Technology industry, this is exactly the strength of the consortium.

“Each company’s expertise addresses the different areas within the technology sector. These areas complement each other when combined for larger projects,” they explain.

“An added advantage for the client, when facing the consortium, is the ingrained culture of collaboration and a common single point of contact. This alleviates the burden of liaising with multiple separate companies, efficiently streamlining the communication and delivery process.” cloud platforms, meticulously delivered by fully certified consultants, trainers and engineers. “Our aim is to help our clients achieve unprecedented growth by sharing our ample experience and expertise in the field,” says Mr Caruana.

For the past 15 years, CBS has been providing expert software development to the local and international market, focused on providing both out-of-the-box as well as tailor-made software solutions. “Most companies

naturally strive to grow yearly, but their software is not always given the same importance. A company which may have grown tremendously over a period of 10 years might still be using software from 10 years ago,” says Mr Abela Fitzpatrick. “Modern software uses modern technologies, which helps automate most current processes and hence helps save those same companies thousands of euro yearly in manual processes.”

Cyber security expert, Cybergate International, is a consultancy

Indeed, the consortium identified a gap in the market that addresses the inefficiencies usually experienced by customers who engage with multiple suppliers when building their custom platform. This process is timeconsuming and extensive, and given each company’s individual strengths, clients can deploy to the market faster and more efficiently.

In fact, the consortium’s aim is to offer several efficient approaches through different processes – by conducting an analysis to identify relevant requirements and providing a solution-orientated ‘one-stop shop’ for SME clients; for clients to benefit from a multidisciplinary team that solves problems and finds holistic solutions; to reduce the client’s costs and effort, as the resources utilised are shared; and, finally, to liberate SMEs and their IT teams from unnecessary headaches while allowing them to focus on their strengths and other business priorities. Solid collaboration between the three IT companies provides a single and simplified solution often required by SMEs and multinationals alike.

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Mr Caruana, Mr Abela Fitzpatrick and Mr Mifsud stress that the consortium is composed of IT specialists that do not compete with each other, but actually complement one other. “Working with other IT specialists gives the automatic advantage of splitting costs and resources, creating costefficient solutions – ‘do more with less’,” they explain.

“An added advantage for the client, when facing the consortium, is the ingrained culture of collaboration and a common single point of contact. This alleviates the burden of liaising with multiple separate companies, efficiently streamlining the communication and delivery process,” they add. “Furthermore, this streamlining process avoids duplication of effort while still being able to achieve bigger goals than what was possible individually.”

Over the past months, all three companies have dealt with challenges brought about by COVID-19 that arose within different aspects of their business, and here, too, they experienced similar difficulties.

On behalf of Cybergate International, Mr Mifsud asserts that the pandemic hit all economic sectors in a negative way and has made it harder for companies to maintain their security posture.

“Being a B2B business, Cybergate International depends on its clients’ cash flow and as such has been indirectly affected negatively as well. Clients are less willing to spend money in general, including on cyber security.”

However, as online threats and security breaches surged in recent months, there’s a heightened level of cyber security awareness

FRANCESCO MIFSUD

among businesses and, as a result, the company managed to secure numerous new clients during this period. “More organisations have become increasingly perceptive about this topic and more assertive regarding their cyber security needs. This has made it easier for us to increase our database of clients and expand our network, even during these tough times,” says Mr Mifsud.

Speaking about CBS, Mr Abela Fitzpatrick notes “while we observed many industries slow down and some even stop, the IT industry became even busier since companies were forced to turn to digital solutions for their operations. On a less positive note, due to COVID, we cannot meet our clients face-to-face as we did before, and so we cannot share the energies that we usually share when we are in the same room together.”

FRANCESCO MIFSUD KEITH ABELA FITZPATRICK

On behalf of 56Bit, Mr Caruana adds that the impact of COVID-19 cannot be classified as either positive or negative. “We strongly believe that when life gives you lemons, produce lemonade. At the beginning of the pandemic, we had several prospective WINTER ISSUE | 45

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“Making sure that all stakeholders within the consortium are in agreement is of paramount importance. Working as a unit drives the consortium forward, filtering out all the unnecessary noise; together you have a bigger voice.” commitments being cancelled, others postponed indefinitely (up till this day), while other clients filed for administration.”

He explains that, while this was undoubtedly disheartening at first, it pushed the team to quickly take stock of the situation, adjust their goals and start addressing other aspects of the business. “One of the major internal achievements was that 56Bit increased its visibility with Amazon Web Services (AWS), and we are proud to announce that 56Bit is now an AWS Select Partner. During the pandemic, we assisted new clients and partners to adjust and move to the cloud while making sure to address immediate challenges. We took the opportunity to update our internal posture, adjust for post-COVID, as well as plan for future growth.”

the consortium. It is important to ensure that all parties are on the same page and with similar goals in mind, as this is what ultimately drives it forward.”

Reflecting back on their experiences over the past months, and how they can apply them to their venture going forward, Mr Caruana, Mr Abela Fitzpatrick and Mr Mifsud agree that the challenges were turned into

opportunities, and new doors opened that would have never been considered before. “There’s also a greater appreciation for the value of time, as you have to be fully committed to the consortium in addition to the business as usual.

Lastly, an element of fun needs to be included in the recipe – to add a dose of sweetness to the daily grind.”

Offering their advice to companies interested in forming similar alliances within their sector, the co-founders say that the journey of setting up a consortium is no piece of cake – it takes energy and focus all while making sure that the individual companies operate without a hitch.

“Making sure that all stakeholders within the consortium are in agreement is of paramount importance. Working as a unit drives the consortium forward, filtering out all the unnecessary noise; together you have a bigger voice,” they say. “During the startup phase, and prior to forming the consortium, the identified collaborators and stakeholders are to be aligned and clear on the objective. Also, the chosen path on which the consortium operates is part of the strategy and needs to be made clear to everyone within 46 | WINTER ISSUE

STEFAN CARUANA

BUSINESSAgenda INTERVIEW

team when it comes to the implementation of new regulatory requirements and products.

But Ms Rosi is still relatively new to the industry. Holding a degree in Medicinal Chemistry, she began working in the pharmaceutical industry before realising it was time for a change.

PHOTOS: INIGO TAYLOR

FROM MEDICINAL CHEMISTRY TO RISK ANALYSIS: FINDING A new PAT H AT F X D D Alessia Rosi, Risk Analyst at FXDD, speaks to Sarah Micallef about making a major shift in her career, and how the foreign exchange trading provider gave her the tools she needed to carve out a new path.

As Risk Analyst at FXDD, Alessia Rosi’s daily routine consists of calculating capital and liquidity requirements, monitoring the company’s risk exposure and trading activity. She works on quarterly and ad hoc regulatory submissions, prepares the Board of Directors’ presentation and is tasked with drafting, reviewing and 48 | WINTER ISSUE

updating the company’s policies and procedures.

The young analyst’s role also includes working closely with other departments within FXDD, particularly the dealing desk and accounting team in relation to monitoring of liquidity requirements and the compliance

“I cultivated a love for science and subjects like maths, physics and chemistry since I was little,” she explains, looking back on her initial choice of study area. “At the same time, I’m a pragmatic person, and it didn’t feel right for me to pursue subjects like the stars’ lifetime or Black Holes, as I felt that they didn’t have day-to-day relevance.

So, I decided to opt for an applied science. Medicinal chemistry sounded like the best compromise, as it offers a rich curriculum and the possibility to access both research and the industry,” Ms Rosi explains.

It was during preparation for her Master’s thesis in Analytical Chemistry in Munich that she noticed that she was enjoying the bibliographical research and German language side of her course more than the handling of hazardous materials and toxic solvents; and after graduating, she undertook an internship at the biomedical research centre in Barcelona, but admits that she continued to be uncomfortable and unfulfilled by the nature of the work.

As a last-ditch attempt to put her studies to good use, Ms Rosi decided to work more directly within the industry, and took a position as Quality Control Analyst for a company here in Malta. “The fast-paced job, working in shifts, and the constant high level of attention required, where mistakes are never small, consumed all my energy. The idea of going to work began giving me anxiety,” she admits, quickly realising that it was time for a more radical change.

This was back in 2018, and upon looking for alternative job, Ms Rosi came across a position as Support

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Agent at FXDD. The fact that she speaks Spanish and Italian – the company’s main markets – was ideal, and she decided to give it a go.

“I felt excited to start a new challenge,” she recalls enthusiastically, adding that even though she needed to go back to studying in order to familiarise herself with a new industry, she felt that she had found her calling.

“I did it with so much enthusiasm that after two weeks of training, we had an internal questionnaire about the forex market in which I ranked first, winning a two-night stay in Gozo,” she says. Not long after, at the end of her probation period, she was offered the position of Risk Analyst.

And while her career path has certainly experienced a shift, that’s not to say that the analyst’s background in chemistry is not put to good use in her current position. “Skills acquired studying science subjects are transversal and they can be used in different industries,” Ms Rosi notes, highlighting analytical thinking, a logical mind-set, problem-solving ability, statistical analysis, and the use of data analysis software as factors that are transferrable. A cando attitude, leadership skills and being a team player are also factors she considers to have played an important role in the career transition.

In addition to these transversal skills, Ms Rosi draws further parallels between the two industries, highlighting the fact that the pharma industry is extensively regulated, with protocols governing any action and data protection considered of utmost importance. “Being exposed to that environment prepared me to understand regulatory requirements, which is one of the main aspects being dealt with by the Risk Department at FXDD,” she states.

“Being exposed to that environment prepared me to understand regulatory requirements, which is one of the main aspects being dealt with by the Risk Department at FXDD.” Crediting the fact that her seniors “believed in my capabilities, sometimes even more than I did” as a major factor, the analyst highlights the company’s strong support in the development of its employees. “We are offered the possibility of enrolling in any kind of course, training or event that may be useful to our progression. Study leave is also offered if the employee needs extra time to prepare for an exam,” she maintains.

Looking back on one of the most exciting opportunities throughout her time at FXDD, she recalls a training trip to the company’s New York office, where she was further exposed to the activities carried out there. “I understood how our department is at the core of our business, and it was inspiring getting to know my colleagues in New York.”

Despite the COVID-19 pandemic bringing several businesses to a halt earlier this year, Ms Rosi utilised her time in semi-lockdown to continue to further her studies.

“I applied for a portfolio risk

management course organised by the Malta Stock Exchange and I am currently studying at the Chartered Institute for Securities and Investment, which also gives me access to a number of webinars and live webcasts with experts in the field,” she says, revealing an unquenchable thirst for industry knowledge.

And now that she’s settled into her new path, Ms Rosi has some words of advice for anyone considering making the leap towards a change in career.

“Quitting is hard, but if you find yourself unhappy in the place you are, I believe it’s worth trying. There are so many opportunities that we cannot see as they are simply outside our perspective,” she maintains, adding some practical words of advice. “Do not put filters on your research, be flexible and try not to plan – sticking too much to a plan is in itself a form of self-restriction. At last you will probably encounter criticism. My advice is: don’t listen, focus on your objectives and they will eventually call you brave”.

The transition, Ms Rosi continues, was further aided by FXDD itself, which played a primary role in her professional development.

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BUSINESSAgenda INSURANCE

Insurers need to find ways and means of standing out, offering better coverage as well as unique and superior benefits. These are crucial and must accompany a professional service to clients as well as a strong and uniform brand image.

“The challenge is how to be different. This challenge is ongoing and can never be allowed to remain static,” says Lynne Joslin, a professional with 37 years’ experience, having worked in the insurance industry both as a broker and as an underwriter, while specialising in a number of areas including reinsurance and technical underwriting, strengthening the sales network and recently setting up a dedicated unit for business training. Her experience has taught her a great deal about the importance of understanding clients’ needs in order for them to feel important and secure.

BOOSTING BENEFITS IN the INSURANCE GAME Malta is a very small island with many insurance players all vying for the same business, and it’s a market which can quickly reach saturation point. Lynne Joslin, Chief Officer Sales Network and Business Training at MAPFRE Middlesea talks to Rebecca Anastasi about the importance of increasing value to their insurance products in order to stand out from the rest of the competition.

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“Clients are the foundation of the business and, along the years, it has become extremely difficult to capture new clients or retain existing ones based simply on long-term relationships with the company,” Ms Joslin insists.

MAPFRE Middlesea is the leading insurance company in Malta for general business. The company is listed on the Malta Stock Exchange. Furthermore, MAPFRE Malta holds leadership positions in both the life and non-life markets.

“This signifies strength and stability, and the client feels safe and assured in this knowledge,” explains Ms Joslin.

The diversity in the range of products and services offered locally is further enhanced through synergies with the international insurance conglomerate, MAPFRE, who itself is a major player in the global insurance market. MAPFRE has interests across five continents and is one of the fastest growing insurance groups in Spain and South America. It includes the

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4th largest assistance company MAPFRE Asistencia. Ms Joslin says “we want customers to choose us because they are convinced that we meet their needs effectively and, even more to the point, that they trust us in providing them with added value and with an excellent customer experience.”

MAPFRE Middlesea sells insurance policies through its own regional offices, which deal with direct clients as well as via a network of agents and intermediaries, spread across the Maltese islands. Ms Joslin explains that “the MAPFRE brand is easily recognisable in its corporate red and grey colour, and the network portrays the same brand image, both in terms of documentation but also in terms of product knowledge and service.

The client is, therefore, assured of consistency and accessibility.”

Elaborating on issues related to customer outreach, Ms Joslin notes the way that campaigns are run in order to entice new clients towards the company. Indeed, she says, “our current endeavour offers a weekend break each month to clients who make payments online and utilise our digital services.” However, she underlines that the current pandemic offers immense challenges to “servicing clients remotely when the Maltese culture strongly prefers face-toface meetings to be serviced.”

Focusing attention on the insurance firm’s specific product offerings, the Chief Officer describes MAPFRE Middlesea’s “excellent home policy,” saying that “in addition to the all risks cover, we also provide, as a standard benefit, through our subsidiary company Middlesea Assist, a 24/7 home assistance service, in case of emergencies.

This helps to solve electrical and plumbing emergencies at home, such as burst pipes, leaking drains, and the lack of electrical power.

This action limits the damage that might be caused by such emergencies and minimizes the client’s frustration. “

On the topic of the company’s motor insurance, Ms Joslin says that “likewise, the strongest benefit associated with our motor policy is the 24/7 road side assistance which we offer our clients, through Middlesea Assist.”

These services include on-the-spot repair, following a mechanical or electrical breakdown, battery boost and flat tyre assistance, as well as the towing of a motor vehicle following a breakdown or accident, a second delivery service, fuel delivery and a locksmith service. “These services are provided across Europe,” Ms Joslin says. In addition, an innovative Motor App has been launched which allows motor insurance customers easy access to 24/7 roadside assistance and breakdown anywhere in Malta, Gozo and the rest of Europe at the tap of a finger.

“Besides assistance,” continues Ms Joslin, “our motor policy is the most competitive in terms of benefits on the local market.” A unique benefit, among others, she explains, is that loss or damage by storm, tempest, flood and hail is covered – for expenses up to €500 – under the firm’s third party fire and theft cover. “This is very interesting especially due to the regular and heavy storms we encounter each year,” Ms Joslin says.

Moreover, the company’s “Wise Protect benefit – falling under the third party only cover – offers a payment of €500 in the event of total loss of the vehicle following an accident where the client is at fault, while our clients can also benefit from the waiver of excess on the first motor claim should they also have their home insured with us,” she says, adding that the newest benefit for their motor comprehensive clients is a 25 per cent discount for newly and locally registered vehicles.

Focusing on health insurance, Ms Joslin says the firm provides “a variety of covers and limits depending on budget. In addition,

there are benefits associated with this product such as Mediphone, a 24-hour telephone medical advice service which – through Middlesea Assist – allows clients to contact a doctor who can offer guidance in the event of any health-related circumstance. We also offer the exclusive Second Medical Opinion Service, so if one is diagnosed with a serious illness and would like to get further information, this benefit gives the patient access to a network of acknowledged international medical experts.”

Perhaps the most exciting benefit offered to all clients, irrespective of whether they are direct clients or through an intermediary, is access to discounts and exclusive offers from a number of outlets through the Insure and Save Loyalty Scheme, the Chief Officer says. Ms Joslin explains that the full list of participating outlets can be accessed from the firm’s website or from their APP. “The MAPFRE Middlesea Insurance Loyalty Program provides clients with the opportunity to save money during their day to day activities,” she explains. “Clients will have the opportunity to avail themselves of up to 35 per cent discount in a number of outlets including household goods, hotel accommodation, health and beauty products, electronic equipment and restaurants, among others.”

Ms Joslin concludes by underlining the company’s commitment to providing a sterling service. “We pride ourselves with high level expertise in our products and services which have accumulated over the many years of operation.

More importantly, our teamwork and the interrelations across our workforce allow us to continuously bridge the gap at each client touch point and be in the best position on the market.”

For more information on MAPFRE Middlesea’s insurance offering, visit www.middlesea.com. The Insurance & Save Loyalty Scheme app can be downloaded from Google Play or the App store.

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NEWS Looking back on MBB highlights SEPTEMBER-NOVEMBER 2020

9TH OCTOBER

MBB WINS NATIONAL ENTERPRISE SUPPORT AWARDS 2020 The Malta Business Bureau has won this year’s edition of the National Enterprise Support Awards with its Energy Ecosystem initiative. This annual award is hosted by the Ministry for the Economy, and seeks to reward entities which support entrepreneurship and enterprise growth.

As national winners, the MBB’s initiative has now been shortlisted to compete on a European stage against initiatives from Germany and Portugal, at the European Enterprise Promotion Awards (EEPA) to be held virtually this November, in Berlin.

The MBB Energy Ecosystem is the first comprehensive network of energy stakeholders and businesses of its type in Malta. It promotes direct energy efficiency action by businesses in Malta through promoting technical support for energy projects; the promotion of financial instruments for energy efficiency that address market gaps; the dissemination of local best practices; and policy learning.

MBB President De Cesare said, “we are extremely honoured to receive this prestigious award as recognition of the hard work put in by our team, and more importantly – the strong performance by businesses and all stakeholders involved to really make a change. Businesses increasingly understand that energy efficiency is not only an environmental responsibility, but that it also makes business sense. This is becoming even more critical now with the Commission’s EU Green Deal announcement earlier this year, which will place sustainability centre stage for the years to come.”

The Minister for the Economy, Investment and Small Businesses, Silvio Schembri, congratulated the Malta Business Bureau on achieving first place in the National Enterprise Support Award with their innovative project. “I commend Malta Business Bureau for their initiative and, even more, for making it as EEPA finalists amongst European peers, an achievement which sheds light on Malta’s entrepreneurial mindset.” In his address, Minister Schembri called for more young people who are willing to take the risk and launch entrepreneurial initiatives.

The MBB is privileged to have seen a strong desire to achieve CO2 emission reductions amongst all stakeholders involved in the business community, from policymakers and energy auditors, to technical and managerial staff within businesses.

Without this strong commitment, the benefits gained so far could not have materialised. The MBB expressed gratitude to all the parties and businesses which participated in its Energy Ecosystem.

So far, the Energy Efficiency Ecosystem has reached around 150 Maltese companies across various industries and will seek to continue expanding this network and offer continuous support where needed.

This news feature was done before the European Enterprise Promotion Awards ceremony on 16 November 2020.

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10TH SEPTEMBER

THE EU’S FARM TO FORK STRATEGY WEBINAR Organised in conjunction with the European Commission Representation Office in Malta, this webinar provided an opportunity for Maltese businesses to discuss the future of Europe’s food system. The European Commission’s Farm to Fork policy is at the heart of the EU Green Deal, hoping to make Europe the first climate-neutral continent by the year 2050. The strategy aims to make EU food systems fairer, healthier, and more environmentally friendly.

EU POLICY UPDATES 3RD SEPTEMBER

EU TRADE WEBINAR In collaboration with the European Commission Representation Office in Malta, MBB held a webinar on the current open consultation by the European Commission on a renewed trade policy for a stronger Europe. Daniel Debono, MBB EU Affairs Manager, who also moderated the event, outlined several issues that have increased the volatility in international trade in the last years. He also explained the relevance of EU trade policy for Malta and Maltese businesses in view of our small open economy, which makes Malta dependent almost entirely on trade for both imports and exports.

The main speaker, Peter Sandler, Director at the European Commission’s DG Trade, explained in further detail the ongoing EU Trade Policy Review.

The event was also addressed by David Sammut, Director of the International Economic Policy Department at the Ministry of Finance, and Trade Malta’s CEO, Anton Buttigieg. The discussion covered various current topics in international trade, including the impact of US-China trade tensions on European business; the growing importance of Africa for trading with the EU but also as a partsolution to migration pressures; the increasing role of e-commerce and digital trade; as well as the need to more effectively implement EU free trade agreements nationally.

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The opening address was delivered by MBB President, Simon De Cesare, who welcomed the objectives of the strategy, but stressed that it should not lead to excessive obligations on businesses. Stephanie Bodenbach, Head of Sector at DG Sante within the European Commission, also addressed the webinar. Ms Bodenbach introduced the main objectives of the strategy and discussed what it would mean for businesses operating in the EU food system. The European business perspective was considered through interventions by HOTREC Public Affairs Manager, Marta Machado, and FoodDrinkEurope Deputy Director General, Dirk Jacobs.

17TH SEPTEMBER

THE EUROPEAN PARLIAMENT’S RIGHT TO DISCONNECT LEGISLATIVE REPORT MBB EU Affairs Manager, Daniel Debono, discussed the legislative own-initiative report on the Right to Disconnect, with MEP Alex Agius Saliba, author of the report. MBB acknowledges that the use of

BUSINESSAgenda NEWS

digital tools and devices at the workplace brings benefits to both employers and workers, involving more possibilities to organise work in a flexible and autonomous way, which can help to better balance work and private life.

However, Mr Debono explained that employers maintain that legislation already exists at EU level setting out rules on working and rest time, as well as aiming to protect the health and safety of workers at the workplace. These rules are adequate and, thus, specific legislation regulating the right to disconnect is unnecessary. Furthermore, setting prescriptive requirements in law would be detrimental to much more effective approaches found between employers and workers and/or their representatives, based on mutual trust, collaboration, and dialogue.

Finally, legislation at EU level on the right to disconnect would not respect European social partners’ autonomy considering an autonomous framework agreement on digitalisation that was recently adopted, which also included modalities of connecting and disconnecting.

28TH SEPTEMBER

AN UPCOMING EU PROPOSAL FOR A CARBON BORDER ADJUSTMENT MECHANISM MBB EU Affairs Manager, Daniel Debono, together with The Malta Chamber’s Head of Policy, Andre Fenech, held a meeting with MEUSAC on the European Commission’s consultation on a future proposal for a CBAM. Mr Debono explained that, while there is no outright position in favour or against the proposed tax before it is designed and could be studied, there were certain principles for which the business community was advocating.

6TH OCTOBER

EUROPEAN COMMISSION EVENT ON TOURISM ECOLABELS MBB EU Affairs Manager, Daniel Debono, participated in an event organised by the European Commission on tourism ecolabels. MBB welcomes ecolabels as positive initiatives for sustainability but notes that a balance needs to be struck between environment protection and the delicate state of expenses required to implement mandatory standards established in the criteria.

During the event, Mr Debono explained how operators voluntarily enroll in certification programmes on the assumption that consumers will choose the businesses that have received an ecolabel over others that have not. The degree to which ecolabels influence consumer purchasing decisions is, however, not precisely known. But to encourage businesses to take part in such schemes, there needs to be effective and widespread publicity of both the eco-certification schemes and of those businesses and products that have qualified for ecolabels. It appears that, to date, these schemes have not been very effectively publicised with consumers. Moving forward, and considering the strong market position of online distribution channels, these should be considered as key partners to promote and provide more visibility to eco-certified establishments.

12TH OCTOBER

The CBAM would be an EU initiative to limit carbon leakage by international competitors who do not share the same level of ambition to meet Europe’s climate-neutrality objective by 2050. At this stage, the MBB advocates that a future CBAM is first WTO compliant, in order to avoid any legal disputes and the possibility of retaliation in bilateral trade. Also, it would need to avoid a situation where a tax is, for instance, imposed on primary products and is then bypassed by pushing trade up the supply chain to semi-finished goods. The CBAM should also have pre-determined conditions for it to be adjusted or removed once breakthrough technologies reach global marketability or global climate ambitions have converged. Finally, it is imperative that revenues are used to achieve EU climate goals, both through internal or external investment. This could be done through EU RDI funds for climate solutions or used to fund low-carbon investments in third countries.

EUROCHAMBRES’ REBOOTING EUROPE ONLINE EVENTS SERIES ON SMES In an event organised by EUROCHAMBRES, MBB EU Affairs Manager, Mr Debono, was invited to participate in a discussion on ‘Providing an SMEFriendly Ecosystem for the Recovery’. During the event, which included panel speakers Maltese MEP, Josianne Cutajar, Commission SME Policy Director, Kristin Schreiber, and CCI France Grand Est President, Gilbert Stimpflin, Daniel discussed the contrasting reality of SMEs in different member states and that certain flexibility in EU competition policy should be considered. He explained how operators in EU islandstates and regions incurred additional costs simply WINTER ISSUE | 57

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because of permanent geographical handicaps, and that this should be compensated to provide such SMEs the ability to compete on a level-playing field with other European SMEs. To this end, as part of the ongoing fitness check on EU state-aid rules that cover the de minimis regulation, one ought to evaluate whether the current threshold is increased for SMEs based on strict criteria linked to mitigating the immediate and structural negative impact of remoteness.

IFSP President, Wayne Pisani stated that, “the IFSP was happy with the opportunity to collaborate closely with the MBB, an organisation that has a permanent presence in Brussels, and that could thus keep the sector informed about policy developments while they are being formed, as well as when they progress throughout the legislative process. The IFSP looks forward to continue to provide the MBB with technical input in order to best represent the interests of the Maltese financial services industry in European circles, and will also benefit from the latest developments and information provided by the MBB that will help the sector prepare for new reforms.”

MBB PROJECTS UPDATES FOOD WASTE WEBINAR

27TH OCTOBER

MBB AND IFSP AGREE TO COOPERATE ON EU ISSUES The Malta Business Bureau and the Malta Institute of Financial Services Practitioners (IFSP) have agreed to cooperate together to be of better support for the Maltese private sector both in Malta and at EU-level. Both organisations acknowledge the challenges of business support representatives from smaller and peripheral EU member states aiming to be active at EU level and that Maltese stakeholders should exchange more information on topics of common interest and pool resources for more coordinated actions that could have a stronger impact.

MBB President, Simon De Cesare explained, “the EU agenda is very wide, and through its Brussels representation office, the MBB does its utmost to keep abreast of all business related EU policy and legislative developments from an early stage, as these would ultimately have an impact on our enterprises. Considering our broad focus, we have been seeking partners from the Maltese private sector who can share expertise which the MBB can then project at a European level with EU officials and within our extensive network.”

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On 28th July, MBB hosted a webinar together with the Institute of Tourism Studies (ITS), targeting professional chefs and restaurant managers, as part of the EU LIFE FOSTER project. During this webinar, participants were introduced to the LIFE FOSTER training model which was developed by the University of Gastronomic Sciences of Pollenzo (UNISG), the project’s scientific partner. The webinar was addressed by Nadia Tecco, a Professor from the leading University of Gastronomic Sciences of Pollenzo, who designed the LIFE FOSTER project training model based on state-of-the-art food waste reduction methods. ITS lecturer, Ronald Briffa, who was one of the ITS lecturers who received LIFE FOSTER training in Conegliano last year, went on to discuss how the LIFE FOSTER principles may be applied in practice and the benefits that they bring.

The industry’s perspective on food waste was considered through a panel discussion between Chef Stefan Hogan, Chef Joseph Vella, and restaurant director, Jesmond Vella, moderated by MBB CEO Joe Tanti. Some of the salient issues which emerged are the importance of communication between waiting staff and guests; raising awareness among kitchen

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staff; the potential of nose-to-tail cooking; utilising forgotten ingredients in modern recipes; and the need to rethink legislation in this area.

For more information about the LIFE FOSTER project, visit: www.lifefoster.eu

Lead project partner, the Malta Business Bureau, together with its local partner the Edward de Bono Institute University of Malta, and all DIFME partners, are now receiving applications for event participation and access to the tool. Interested participants should register through the project website at www.difme.eu or send an email to info@difme.eu

UPCOMING WEB-SERIES ON FINANCIAL LITERACY

SOFT SKILLS FOR THE FUTURE OF WORK

MBB has announced that, in January 2021, it will be launching a four-episode web-series aimed at breaking down core financial concepts. These brief, targeted episodes will be especially relevant to those people who are willing to enhance their financial knowledge in order to start up a new business or to contribute further to the running of one that is already established. Follow MBB’s website and social media platforms to be the first to know about the episodes’ release.

Following extensive research, including interviews with VET students and companies, the LEADER project partners have identified the most important soft skills for the future of work. These will help feed into the real-world, decision-making scenarios which will be featured in the upcoming digital game, demonstrating how specific skills work in different work situations. The game is being designed as part of the LEADER project, to complement more traditional forms of teaching and training.

This web-series will be delivered as part of the INVEST+ project, led by the Malta Business Bureau in collaboration with the HSBC Malta Foundation.

INVEST+ seeks to improve the level of financial literacy in Malta through mentoring participants on various topics, including finance, business planning, accounting, savings and investment.

Indeed, aside from this initiative, the LEADER project partners are also currently working on an ‘Implementation Guide for Teachers and Trainers’.

Essentially, this will be a practical, easy-to-use and easy-to-adapt information and resource package for VET trainers, helping them teach their students/ trainees soft skills and young leadership skills. The guide will shortly be made available on the project’s e-learning platform, available at: www.leadertheproject.com

WORKSHOPS FOR MICRO ENTREPRENEURS

ENTERPRISE EUROPE NETWORK 7TH OCTOBER

DIFME is a transnational Erasmus+ funded, resultdriven partnership, made up of five universities and six business organisations from Malta, The Netherlands, Greece, Germany, Ireland, Bulgaria, and Italy, which was launched in 2019. DIFME project has now finalised an online, on-demand training that meets entrepreneur needs, in a realistic manner, and offers an easier understanding of financial literacy as well as digital internationalisation skills. The training is available in English, Italian, Greek, Bulgarian and Dutch.

A series of online piloting sessions and European online thematic workshops are already scheduled to be held between November 2020 and June 2021.

Participation is open to all micro entrepreneurs and places are limited. Participants will be given access to the on-demand e-learning platform, workshops, and valuable information sources.

EU OPEN FOR BUSINESS DIGITAL INFO DAY

As part of the Enterprise Europe Network (EEN), MBB co-organised the EU Open for Business Info Day. Connecting over 150 local SME experts, business owners and entrepreneurs, the digital event provided a prime opportunity to address how Maltese SMEs can access finance, find new business partners and adapt for the future. The Info Day was organised as part of a wider ongoing campaign entitled ‘EU Open for Business’, initiated by the European Commission.

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Maltese businesses are encouraged to access this Hub to learn more about EU business support.

19-20TH OCTOBER

EEN ANNUAL CONFERENCE In light of the circumstances brought about by the pandemic, this year’s EEN Annual Conference was held online, live from Brussels. MBB EEN Executive, Michele Agius, participated alongside the rest of EEN Malta consortium. Due to the accessibility of this year’s digital event, the EEN 2020 E-Days brought together over 950 participants, ranging from business advisers, Network partners from across the world, in addition to representatives from European institutions and key external stakeholders.

The event started off with the annual Network Award ceremonies, characterised by effective and revolutionary inventions to combat the spread of COVID-19. Similarly, many of this year’s plenary sessions were focused on how the Network can help business recover and even flourish from this pandemic, through enhanced risk-assessment strategies, re-branding, and, most importantly, innovating and digitising the businesses. The second day also covered topics such as promoting sustainability, building SME resilience, while also providing a platform for intra-network meetings and workshops for the distribution of best practices and expertise among Network partners.

The digital event opened with a welcome address from Brigitte Tanti, Head EU Programmes at Malta Enterprise and EEN National Coordinator, followed by a series of expert panels, breakout Q&As (thematic tables) and thematic sessions. During the Info Day, over 30 national and EU experts, as well as SME owners presented information and shared business success stories about the many services and funding opportunities the EU offers to Maltese entrepreneurs.

In addition to information on the Enterprise Europe Network in Malta, several EU-funded programmes were showcased throughout the day, including SOLVIT, Erasmus for Young Entrepreneurs and the European IP Helpdesk.

Throughout the digital event, participants had the chance to ask experts questions and mingle in the virtual marketplace, schedule virtual 1:1 meetings, make new contacts and exchange experiences.

The video livestream and session recordings from the Info Day can be found on the EU Open for Business Campaign Hub: www.euopen4business.eu 62 | WINTER ISSUE

For more information about EEN, visit www.enterprise-europemalta.com

MBB CONDUCTS A RESEARCH STUDY ON BEHALF OF THE ENERGY AND WATER AGENCY Towards the end of 2019, MBB conducted an industry analysis into the energy behaviour of manufacturing businesses, on behalf of the Energy and Water Agency (EWA). The purpose of this analysis was to explore energy trends and intentions among the manufacturing sector in Malta.

The report, entitled ‘Energy Trends within Malta’s Manufacturing Sector’ was launched during a business breakfast organised in September by EWA. During this event, a panel discussion with the participation of The Malta Chamber, Malta Enterprise and the Malta Chamber of SMEs reviewed the report and

BUSINESSAgenda NEWS

MBB EXECUTIVE GRANTED BEST DISSERTATION AWARD

the conclusions whilst thinking about the way forward.

Based on in-depth interviews with manufacturing companies, the report examines in detail various elements relating to energy performance in companies, ranging from the perception of energy audits and the awareness of policy points and schemes; practical implementation of energy efficiency technology and practices; RDI on energy consumption in operation; and market conditions affecting energy performance.

Report findings show that energy audits are almost exclusively well perceived by non-SMEs. Moreover, there are non-SMEs which carry out energy auditing on a more regular basis than required by law and have integrated the audits into their standard operating procedures. This positive perception augurs well for the ongoing drive to promote energy auditing among SMEs. Several businesses highlighted a desire for new financing mechanisms, notably financial instruments tailored specifically to addressing Return on Investment (RoI) for energy efficiency business projects. Such an instrument could reasonably be expected to create increased numbers of energy efficiency projects and result in national emissions reductions.

Businesses, notably SMEs, have also requested the conversion of tax credits to energy efficiency grants.

The full report can be viewed from: www.energywateragency.gov.mt/news/ energytrends

MBB Sustainable Development Executive, Gabriel Cassar, has been awarded the Best Dissertation Award by the University of Malta’s Institute for European Studies, as part of his Master’s Degree. The dissertation is titled The Europeanisation of Maltese Interest Groups: A Comparison Between Business and Environmental Groups.

European Union membership offers significant new opportunities for domestic actors, including interest groups. As policymaking competences are transferred from the domestic level to EU institutions, interest groups which, traditionally focused their attention on their national government, now have to contend with a new reality, and expand their attention to EU entities, and, thus, have the possibility to make a real impact on EU policy outcomes. In this dissertation, Gabriel compared the Europeanisation experiences of Maltese business and environmental interest groups, in terms of their lobbying efforts.

His methodology included desk research, as well as original research in the form of semistructured interviews with key personnel within interest groups.

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BUSINESSAgenda CORPORATE

K S I M A L TA HEADS TO WA R D S n e w C O R P O R AT E ENVIRONMENT As the second generation of the Gauci family slowly but surely prepares to take over the tax, legal advisory and corporate services firm KSi Malta, the practice itself moves towards a new corporate environment. Ray Bugeja speaks to the founder’s sons – Dennis Mark Gauci and Bernard Charles Gauci – to discuss their vision.

KSi Malta is a family business founded by Joseph Gauci, the firm’s Managing Partner, who has been a practising accountant since 1984. He previously worked at Deloitte and Grant Thornton but eventually decided it was time to create a legacy his children would inherit and so branched out on his own in the 1990s.

“It proved to be a very good choice in the long term because we now have a business that is owned entirely by our family. We employ almost 50 people and offer a vast array of services,” one of Joseph’s sons, Dennis Mark Gauci, Partner, International Clients, proudly notes.

The core services offered by most firms across the board, before the new millennium, consisted of audit, taxation and accountancy, his brother, Bernard Charles Gauci, also a Partner, points out. Along the years, the Maltese economy shifted towards foreign direct investments and borders were opened when the country joined 66 | WINTER ISSUE

the EU. As a result, financial services firms, rather than just audit firms, began to appear, offering several corporate services to clients.

The services offered by KSi Malta, which is in transition to the second generation, include audit – which remains a core function – accountancy, taxation, legal, compliance, advisory and business development. The firm also has its own marketing and IT divisions.

In time, the client base changed too and, today, it consists of a “healthy mix of very satisfied local and international clients”.

Thus, the brothers point out, the firm’s portfolio is not tied to one particular sector or industry but is spread over a number of areas.

The busiest departments are those handling retail, hospitality and catering, as well as manufacturing, pharmaceuticals, construction and elderly homecare, Bernard explains. This mix has proven to be beneficial in the current crisis

situation as it has helped to ensure that not all eggs are in the same basket, he continues.

“Our plans have not changed: 2019 was a very good year, 2020 is a buffer year and let us hope 2021 will be a good recovery year,” his brother is quick to add.

Many of the firm’s clients were affected by COVID-19, both Partners remark. However, they say, since KSi Malta operates as a business partner with clients, it can understand exactly what they are going through, so it can provide support also in terms of applying for state assistance, including for wage supplements and other incentives which would help ease the burden.

They point out that the firm only lost one client during these difficult times.

The accountant, the firm’s Partners note, has always been a person of trust for businesses and remains so even at times of crisis. The accountant is the first professional to be asked to examine a company’s financial situation and to help the client deal with the difficulties it may be facing. Such experiences, they insist, can, in fact, contribute to strengthen the relationship with the client.

“We redirected a lot of our resources to be able to better help clients restructure financially, apply for Government assistance and reschedule loans with financial institutions. Our aim is to help clients go through these difficult times,” Dennis explains, adding that all necessary measures were put in place to safeguard both the firm’s team and its customers.

And it was not just the clients who appreciated what KSi Malta was doing in these difficult times. The number of working hours remained unchanged, wages were not cut – even though the firm did not benefit from the Government’s Wage Supplement Scheme – and five new people were recruited, equivalent to about 10 per cent of its present workforce, which all staff members appreciated, Bernard says.

BUSINESSAgenda CORPORATE

DENNIS MARK GAUCI, JOSEPH GAUCI, AND BERNARD CHARLES GAUCI

Onboarding new clients, he goes on, does not happen overnight, as it usually takes some time to close a deal. But the hard work carried out by the firm in the past, has now started to bear fruit, allowing the firm to keep on growing even in these difficult times.

KSi Malta, his brother points out, works tirelessly to retain its client base but also dedicates time, money and resources to attract new foreign direct investment, which keeps the business going.

Bernard admits that, judging by the experience of the firm’s clients, the catering and hospitality sectors were the worst hit since they depend on tourism, which has suffered badly over the past months. Also, clients that had invested in 2019, and planned to launch new projects this year, had a timing issue and were, therefore, also affected negatively. Others were not particularly affected, while some experienced a spike in demand.

The Partner notes that the shock suffered by the economy in March led people to fear the worst, thinking the results of March 2020 would be reflected in the results for the whole of 2020, when, in reality, the economy did perform well in subsequent months, especially after June, though, of course, not at 2019 levels. “During the first few weeks, it was important to keep a cool head and that is what we tried to do with our clients, advising them not to rush into decisions and, of course, to move strategically to continue operating in as much a fluid manner as possible,” he continues.

The firm, Dennis explains, is geared up to assist all industries, so it does not have a business plan and a marketing strategy that is focused on one sector in particular.

Moreover, it directs substantial resources to attract foreign investment, normally by reselling what the Government is offering in innovative sectors such as blockchain and medical cannabis,

although COVID-19 has slowed everything down.

Malta, he continues, is facing its own challenges at the moment in the financial services sector but, in the long run, firms like KSi Malta, that take issues like compliance and GDPR seriously, will manage to emerge successfully and continue to offer a good service.

Bernard interjects to note that the importance of regulation became more pronounced after the 2008 financial crisis and, initially, companies were having problems comprehending the amount of work required to keep abreast of the new legal requirements.

However, in the long run, those that took the matter seriously upped their game, while those that did not, lagged behind.

His brother expresses the view that, from a jurisdiction point of view, the “clean up” exercise in progress will help the country to retain only quality investors, especially if WINTER ISSUE | 67

BUSINESSAgenda CORPORATE

In a nutshell, his brother interjects, what is happening is that while the private sector is under pressure to be as efficient as possible to keep returning a profit and perform well financially, that same kind of pressure is not present within the authorities and the Government service.

“We need to start comparing ourselves with the top financial centres in the world, like Luxembourg, Switzerland, Ireland and Singapore, that offer a much better and easier way to do business,” Bernard exclaims.

Malta, he goes on, just needs to be more efficient to make life easier for potential quality investors, while, of course, always remaining compliant with the law.

Dennis acknowledges that the Government is doing its utmost to assist the financial centre as much as possible but there is a manpower problem that goes beyond regulators and affects other institutions like banks.

He insists there needs to be better interaction between all the stakeholders to ensure there is an ecosystem that is coherent across the board. “If we manage to get everybody on board, we will have the sort of efficiency that other jurisdictions do not have,” Dennis asserts.

Malta is trying to emulate financial centres like Luxembourg and Switzerland. However, Dennis expects the Government to offer a better service. He is certain tax harmonisation will happen in the next decade or so and, therefore, if the country wants to remain a sound financial centre it has to compete on service to be able to attract quality, high net worth individuals willing to invest in Malta.

When he speaks of offering a better service, the firm’s Partner, who is responsible for international clients, explains that, at the moment, when trying to attract a client to Malta one realises that the time needed to go through the whole procedure to set up a company is too long. “Yes, of course, the COVID-19 containment measures

“2019 was a very good year, 2020 is a buffer year and let us hope 2021 will be a good recovery year.”

DENNIS MARK GAUCI

do not help but the old typical civil service mentality remains in certain Government departments and it takes a minimum of six months to open a bank account,” he complains.

“We can learn from the mistakes of others and take the best of everything,” his brother adds.

Although KSi Malta continues to attract international clients, the two Partners note that local clients are still their backbone. The clientele ranges from businesses that have sought the services of KSi Malta for a long time to start-ups and listed companies.

“We strive to provide a serious, high-quality and down-toearth service. We know the local companies appreciate this and that is why we keep attracting new clients,” Bernard says.

The firm is also investing heavily in new premises in Valley Road, WINTER ISSUE | 69

BUSINESSAgenda CORPORATE

service companies in the world, with offices across the globe.

“The way forward is through cooperation.”

BERNARD CHARLES GAUCI

Msida, opposite the building of Identity Malta. Apart from offering a better environment for employees, the interior is more “gaming style”, with open spaces, an entire floor for leisure and many booths for meetings. The plan is to move in during the last part of 2021.

Although the family values will undoubtedly be retained, as the firm continues to practise familyfriendly measures and strike a work-life balance, the new premises will herald a new corporate environment, which will consolidate KSi Malta’s standing and help it attract more local clients.

COVID-19 was an eye-opener on various counts, with many companies drawing up contingency plans to face such situations and KSi Malta’s back-up plan is to expand as much as possible its local client base, including companies operating in Malta, the brothers explain.

As a result of COVID-19, remote working is now part of the firm’s HR policy, although an element of working from the office remains, including for mental health and human contact purposes, they continue.

As it looks ahead, Bernard says, the firm is determined to continue providing support to clients and ensure they have all the services they might require, in other words, offering them a one-stop-shop.

“Of course, we have to always keep changing with the times, 70 | WINTER ISSUE

also in terms of new regulations,” he notes. And the firm operates in a highly regulated space, his brother observes. For example, the firm will soon have to deal with a new licence that is being launched for corporate services providers.

The changing scenarios, new regulations and fresh challenges lead to the issue of whether the firm finds problems tapping the talent it requires.

The Partners share that although it has become more difficult to find good people, KSi Malta has never had any serious problems attracting staff, adding that staff turnover is practically negligible.

However, to further increase its human resource capabilities, the firm’s HR team is drafting a students’ programme, Dennis says. That could give KSi Malta a competitive edge by enrolling students at an early stage, enabling them to learn theory but also familiarise themselves with the practice, get to know about its values, how it treats clients, and how business is being done. It will also help them learn how business English is written and how to deal with stress – a very important part of a career – as well as how to be an effective team player, he adds. The programme could be launched in 2022 though no decisions have been made yet.

The Gauci brothers add that KSi Malta partners and directors have several international connections that were built along the years.

The firm also forms part of Morrison KSi, the 11th largest association of leading professional

Increasingly, Bernard says, the world is becoming one country and clients that do not accept this reality usually fall behind, which means everybody needs to look beyond the borders. “The way forward is through cooperation,” he insists.

This year, KSi Malta received enquiries from Africa and, for the first time, also Latin America, mainly with regard to the possibility of operating within the EU. In this regard, he notes, institutions have to be careful to ensure that certain regulations, which are in place for a reason, do not go to extremes, rendering doing business with a company, especially if it is based in Africa, practically impossible, as some banks tend to do.

“Of course, there is no easy solution but the problem needs to be addressed,” Dennis admits.

As a country, he continues, Malta must reunite, strive to improve its credibility abroad and keep working on improving the financial centre. “It will have to come up with something new every two to three years if it is to remain on top of the league,” he says.

Looking ahead, and on its part, KSi Malta will keep investing in people and enhancing its connections both on the island and overseas, striving to have the sort of sustainable growth it has enjoyed over the past 10 years, and increase its present client base, the Partner in charge of international clients concludes.

BUSINESSAgenda LEGAL

Laundering (AML) legislation. In essence, this should be a good thing. A reputable jurisdiction very much depends on the capability of weeding out the bad apples and making sure that everyone is observing the same rules. AML rules are complex and labour intensive. However, this year, the impression is that many subject persons are being inspected, investigated, or fined, more so than in previous years.

CAN THE FIAU BE CHALLENGED? While the financial services sector in Malta continues to deal with the economic fallout caused by COVID-19, ever-changing regulations and the effects of reputational damage, Dr Malcolm Mifsud, Founding Partner at Mifsud & Mifsud Advocates, sheds light on the role of the Financial Intelligence Analysis Unit (FIAU), and how the national regulator is also subject to checks and balances.

In 2020, the financial services industry in Malta, which accounts for 12 per cent of our GDP, is experiencing stress, the kind of which it has certainly never faced before. Like the rest of the world, and other sectors, the sector has experienced new challenges.

COVID-19 is resulting in less disposable income, new working practices at the office and from home, and employment shrinkage.

have found difficult to downplay.

Inquisitive and prospective clients do question whether they can boast to their competitors that they have invested in and set up vehicles in a reputable jurisdiction such as Malta. These two issues on their own have tested the financial services industry’s endurance.

The stability that the industry has enjoyed cannot be taken for granted anymore.

In addition, Malta has been hit by reputational issues, which practitioners in the industry

There is another issue concerning the industry currently, and this is the enforcement of Anti-Money

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This is indicated as such on the FIAU’s website. In 2015, the FIAU published that two subject persons were awarded administrative penalties. In 2016, this increased to four, then, in 2017, there was only one. In 2018, the number went up to two, while in 2019, it is claimed that the FIAU awarded an administrative penalty to one financial institution. However, in 2020 and as at the time of writing, the Unit’s website claims that 26 entities have, so far, received an administrative penalty.

There are certainly many more that do not require publication.

The media reported that some received substantial penalties that may be crippling. The legislation on penalties makes it easy for penalties to add up for a single organisation, therefore, a certain amount of alarm may not be unjustified.

The aim of this article is not to delve into why the FIAU and other regulators have taken these steps now. Nor am I going to judge whether the FIAU enjoys the moral authority to impose these fines.

The aim of this article is to dispel the common belief that these administrative penalties cannot be challenged.

It is important to point out that the FIAU is an important component in the battle against Money Laundering and the Funding of Terrorism (ML/FT). It is the FIAU’s main task to pinpoint weaknesses in the systems that it inspects and make sure that loopholes are closed. The FIAU is important to identify any illegal activity and assist in the prosecution of any

BUSINESSAgenda LEGAL

person who is responsible for ML/ FT. However, in any democratic society, any regulator should be subject to checks and balances, and one of these is that decisions taken should be challenged.

Therefore, the answer to the title of this article, of whether the FIAU can be challenged, is yes. Now the question is how.

The Prevention of Money Laundering Act, 1994, provides for criminal prosecutions and administrative sanctions. I will be dealing with the latter. According to Article 13 of the Prevention of Money Laundering Act (the Act), the Minister may legislate for administrative penalties and impose a maximum penalty of €5 million; or, alternatively, twice the amount of the benefit derived from the contravention, breach or failure to comply, where this can be determined; or else 10 per cent of the total annual turnover according to the latest approved available financial statements.

The Minister, in fact, has legislated on penalties to be imposed and this is found in Article 21 of the Prevention of Money Laundering and Funding of Terrorism Regulations, Subsidiary Legislation 373.01. To list a few, the FIAU may impose an administrative penalty of between €1,000 and €46,500 for every separate failure to comply with a lawful requirement, order or directive, and for every separate contravention.

Many have questioned sub article 3 in the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR), because it states that the FIAU can impose these fines “without recourse to a court hearing”.

This is normal practice in administrative law, thus allowing an administrative body to impose a penalty without first going to Court. This does not mean that after administrative penalties are imposed, the Courts may not review the decisions taken.

The same regulations allow the FIAU to impose a penalty of not less than €250 for minor

contraventions. However, when these are serious, repeated or systematic, then the administrative penalties may add up to €1 million or not more than twice the amount of the benefit, in those cases where the subject person is carrying out relevant activities.

When the subject person carries out relevant financial business, the administrative penalties take an even more serious turn and the administrative penalty may be of a maximum of €5 million or 10 per cent of the total annual turnover according to the latest available approved annual financial statements.

To my mind, and in my opinion, administrative bodies should adopt the least of the maximums provided by law. For example, if the 10 per cent of the total annual turnover is less than €5 million, then the lesser maximum amount should be adopted.

Administrative penalties may be applied to individuals who are directors of the company in contravention, or officers or persons responsible for the overseeing of the AML operations. The administrative penalties range from €1,000 to €250,000.

These penalties may be challenged before the Court of Appeal. This is now regulated by the Prevention of Money Laundering Act. Appeals may be lodged if the administrative penalties are beyond €5,000.

Does this mean that penalties under this amount cannot be appealed? I believe that they may. Although one cannot make use of the provisions found in the Act, the ordinary Civil Courts may be competent to review the administrative penalty. The court and legal costs may be an issue, if one wants to pursue such an avenue.

legal issues in dispute are complex and generally the evidence may be voluminous. A speedy process may result in a rushed process, which is more in the FIAU’s favour than the party appealing. This time limit may be extended with the consent of both parties, meaning that if there is no consent of one of the parties, then there is no extension.

One would be justified in asking whether this is the only remedy.

To my mind, the provisions of judicial review under the Code of Organisation and Civil Procedure still apply. There may be circumstances where any administrative authority, including the FIAU, may step out of line and act beyond their powers; what we lawyers call ultra vires. Then, if these circumstances exist, one may have to choose between the appeal mentioned above or a judicial review action in the Civil Courts.

The new amendments to legislation and the importance being given to the enforcement of AML rules and procedures has now made this part of the law fascinating and intriguing to any litigation lawyer. www.mifsudadvocates.com.mt

PHOTO: ALAN CARVILLE

Recent amendments to the Act impose a time limit on the Court of Appeal to six months. On the face of it, this may be a good thing, because both the appellant and the FIAU will have a decision within a short time. But in reality, it is not.

As a litigation lawyer, I see that the WINTER ISSUE | 73

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BUSINESSAgenda EDUCATION

D E TA I L S O N E D U C AT I O N A L Q U A L I F I C AT I O N S through THE NCFHE’S N E W D ATA B A S E The National Commission for Further and Higher Education (NCFHE) is launching a database – linked to the Qualifications Database Register – where students, parents, and education stakeholders can find detailed information on qualifications and awards in Malta.

Expected to go live on the 25th November 2020, the database will be a valuable source of information for those seeking details on various study programmes offered on the island. It will be regularly updated by the NCFHE’s Accreditation and Licensing Unit to ensure accurate and up-to-date information.

This project, which has been developed through a project co-financed by the European Union, is in accordance with the rules of Erasmus+ programme, and in accordance with the EU 2020 strategy, has highlighted the importance of education to contribute to the social and economic development of our societies. Through the development of the Malta Qualifications Database, the NCFHE ensures a functional database compatible with the EU regulations.

To this end, the database will provide information on accredited programmes on the island, ensuring that those wishing to pursue education initiatives have the knowledge to be able to make informed choices, while also being assured that their selected course of study has been officially accredited at a certain level.

Moreover, much effort has gone into ensuring the database is comparable and compatible with that provided by other countries, thus facilitating the mobility of learners and workers within Europe by improving recognition of qualifications across borders.

The system will provide details on the EQF (European Qualifications Framework) standards of Maltese qualifications. The database is further supported by the link of the NQD to the QDR and the EUROPASS portal ensuring a more comprehensive database of qualifications in Europe.

Furthermore, the NCFHE will publish their Register of Accredited Further and Higher Education Institutions in Malta on the database. This means that institutions on that list have gone through the accreditation process and can be considered as “licensed institutions”.

system which provides detailed information about all Further and Higher Education qualifications and awards that are accredited and can be obtained in Malta.

The Malta Qualifications Database also includes the National Occupational Standards (NOS) which are pegged to the Malta Qualifications Framework. The NOS are a set of job-related standards which highlight the performance expected when carrying out a specific occupation at a specific level. These standards define the main jobs that people carry out and link qualifications to the requirements of the labour market.

For more information visit www.ncfhe.gov.mt

Students will find the log of different courses, awards and entry requirements invaluable, while employees working in industry may also use it to seek out courses to help them further advance their careers. The database is also of interest to employers as it will help them understand the learning outcomes from the courses selected for their staff, when providing training, or to understand and evaluate the qualifications held by prospective employees.

The Malta Qualifications Database is a publicly accessible information WINTER ISSUE | 75

BUSINESSAgenda EU POLICY

A SOUND S T R AT E G Y for A GREEN CONTINENT

PHOTO: DATI BENDO

The Farm to Fork strategy is at the heart of the EU’s Green Deal, seeking to make Europe the first climate-neutral continent by the year 2050. Here, stakeholders tell Ray Bugeja why food systems must be fairer, healthier and more environmentally friendly.

Sustainable food systems face challenges that need to be urgently addressed, and, indeed, the European Union’s Farm to Fork strategy aims to do just that, by underscoring the interconnectivity between healthy people, healthy societies and a healthy planet.

For, all contribute to cut carbon emissions, and a strategy which resolves man’s skewed relationship to the planet is now imperative.

In fact, a ‘climate-neutral’ Europe means that net carbon dioxide emissions on the continent will eventually be zero, Gabriel Cassar, Sustainable Development Executive at the Malta Business Bureau, says. This can be done in different ways such as by planting more trees and capturing carbon 76 | WINTER ISSUE

dioxide, storing it underneath the earth’s surface. Other solutions involve actions including improving energy efficiency and reducing resource waste, he explains.

and chemicals they use, to focus on more organic products and to improve living conditions for livestock.

Noting the significant impact food has on the environment, he asserts it is only natural that if Europe is serious about reducing greenhouse gas emissions, it must look at food as a major challenge. To this end, the Farm to Fork strategy focuses on elements that show the complexity of Europe’s food system and promises to bring change all along the food supply chain, Mr Cassar explains.

Moreover, manufacturers will be required to provide more information on the nutrient content and environmental impact of their products. Similar requirements are being discussed for businesses in the food service sector. Emphasis is also being placed on the importance of reducing food waste and food loss.

In Europe, about a fifth of all food produced is estimated to be lost or wasted, he remarks.

For example, primary producers like farmers are being asked to reduce the amount of pesticides

“Climate change mitigation has developed into a classic collective action problem where many

BUSINESSAgenda EU POLICY

different actors are involved but fail to cooperate towards a solution that would benefit everyone. Unfortunately, the solutions presented ultimately mean that sacrifices must be made by everyone. What we must understand is that such sacrifices are minute in comparison to the long-term effects that our current way of life will have on our environment and health,” Mr Cassar insists.

Businesses, he continues, should try to introduce sustainable practices to ensure their food products have as low an environmental impact as possible while maintaining quality and nutritional value. Consumers should make a conscious decision to opt for more sustainable – preferably local – and healthy food options.

Ultimately, it is up to governments and the EU to provide the necessary financial support and policy framework for such changes to become reality, the MBB Executive points out. If the situation keeps deteriorating, there could be casualties, Mr Cassar warns. Drought, for example, will limit farmers’ ability to meet food demand, also impacting consumers and food manufacturers, he remarks.

Tourism, he adds, could also suffer, particularly in countries with very hot climates, such as Malta, because if heatwaves become regular, they would become less attractive destinations.

association of hotels, restaurants, cafés and similar establishments in Europe – recalls that, on 17th September this year, the European Commission proposed an EUwide greenhouse gas emissions reduction target of at least 55 per cent by 2030, with the aim that the EU reaches climate neutrality by 2050.

This goal, she explains, is in response to the past five-year global average temperature

increase of 1.1°C above preindustrial levels in 2019. At the same time, droughts, storms, weather extremes and natural disasters are increasing.

Giving a broader view, Ms Machado remarks that a shift to a sustainable food system can bring environmental, health and social benefits, offer economic gains and ensure that the recovery from the COVID-19 crisis places the EU on a sustainable path.

“Consumers should make a conscious decision to opt for more sustainable – preferably local – and healthy food options.”

GABRIEL CASSAR, SUSTAINABLE DEVELOPMENT EXECUTIVE, MBB

GABRIEL CASSAR

One must also keep an eye on the price of food and ensure the rates remain sustainable.

Elaborating, the MBB’s Sustainable Development Executive says that, at present, it seems the processes involved in growing sustainable food are costly compared to other options where chemicals and pesticides are used. Financial support for farmers and food businesses focusing on organic systems could be a good option to incentivise this and keep consumer prices lower, he asserts.

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“At this stage, national recovery plans should include the Farm to Fork strategy high on their agendas.”

MARTA MACHADO, PUBLIC AFFAIRS MANAGER, HOTREC

Citizens, she continues, want healthy diets with information that allows them to make informed choices and, to encourage the food industry to offer healthy and sustainable food products, the Commission will propose mandatory front-of-pack nutrition labelling and launch initiatives to stimulate product reformulation.

It will also consider proposing the extension of mandatory signage indicating origin or provenance on certain products.

To be resilient, food systems need to be redesigned, HOTREC’s Public Affairs Manager goes on. According to the Commission, these systems account for nearly one-third of global greenhouse gases emissions; consume large amounts of natural

resources; result in biodiversity loss and negative health impacts, due to both under- and over-nutrition; and do not allow fair economic returns for all actors, she points out.

“The Farm to Fork strategy aims to accelerate the transition to a sustainable food system that should: have a neutral or positive environmental impact; help to mitigate climate change and adapt to the repercussions of global warming; reverse the loss of biodiversity; ensure food security, nutrition and public health, thus making sure everyone has access to sufficient, safe, nutritious and sustainable food. It should also preserve the affordability of food while generating fairer economic returns, fostering competitiveness of the EU supply sector and promoting fair trade,” she outlines.

Finally, “the strategy also aims to reduce food loss and waste, combat food fraud and enhance employees’ skills,” she says. Ms Machado thinks the Farm to Fork strategy should aim to further promote the sourcing of highquality artisanal food products to hospitality businesses and ensure that the use of such products is not impeded by unfit regulatory tools.

Moving on, the European hospitality industry is also strongly committed to reducing food waste, Ms Machado says. Indeed, one of the main objectives of the Farm to Fork strategy is to

preserve the affordability of food while generating fairer economic returns in the supply chain so that, ultimately, the most sustainable food also becomes the cheapest, she explains. This, Ms Machado adds, would foster the competitiveness of the EU supply sector, promote fair trade and create new business opportunities while ensuring the integrity of the Single Market and safeguarding occupational health and safety.

Looking at the context in which this is being developed, HOTREC’s Public Affairs Manager says that, as it happens, the strategy is being framed within the context of COVID-19 and the need to ensure food security. Ms Machado notes that turnover in accommodation and food services within the EU27 dropped by over 63 per cent in Q2 2020 over the same period in 2019.

“We can only hope, at this stage, that national recovery plans will include the Farm to Fork strategy high on their agendas. This will allow for a fair, healthy and more sustainable food system,” Ms Machado argues.

Reflecting many of these thoughts, Dirk Jacobs, Deputy Director General, FoodDrinkEurope – a confederation representing the European food and drink industry – says that society and all economic sectors have a role to play in cutting carbon emissions, boosting the removal of greenhouse gases from the atmosphere and adapting to climate change.

The European food and drink industry is absolutely committed to help achieve such targets, he adds.

Mr Jacobs explains that the Farm to Fork strategy provides a set of legislative and non-legislative actions that, together, should support the move towards more sustainable food systems from an environmental, social and economic viewpoint. It recognises that no single actor can achieve food sustainability on their own.

MARTA MACHADO

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coordinated actions from all sides. The Farm to Fork strategy is an opportunity towards a more holistic common EU food policy based on improved collaboration at all levels,” the Deputy Director General asserts.

Every actor in the food system, both in and outside the food chain, has a role to play in reducing the footprint of operations, products and the way we consume food and dispose of waste, ensuring that more sustainable practices are maintained, he explains.

He points out that, from the production side, the move towards an economic model of circularity will be critical for the entire supply chain, though it must go in tandem with a shift in consumer attitudes towards more sustainable behaviour.

The objective, he stresses, should be to create the right market ‘pull and push’ for affordable, tasty, sustainably produced foods that fit in a healthy diet.

quality meal every other day. He acknowledges that poverty is a real issue and affordability is a critical purchasing factor for the vast majority of consumers.

Yet, he goes on, the obsession of getting the lowest possible price cannot be maintained, adding that the notion of sustainability will, somehow, have to be incorporated in the price. “The obsession of competition authorities to always prioritise the lowest possible food price is a barrier to faster investment in sustainability,” the Deputy Director General insists.

The COVID-19 outbreak and the difficulties it brought along also mean, he notes, that economic operators, particularly food SMEs and the hospitality sector, continue to face increasing uncertainty and a pessimistic economic forecast.

“FoodDrinkEurope insists strongly on adequate support for

“The obsession of getting the lowest possible price is not sustainable.”

DIRK JACOBS, DEPUTY DIRECTOR GENERAL, FOODDRINKEUROPE

companies that are hit hardest, which should equally help them to engage in a green recovery once the crisis is over. Imminent financial relief will be critical for many actors in the short term if we want them to be able to continue investing in sustainability in the long term,” Mr Jacobs concludes.

The food sector, he observes, is one of the first victims of climate change. In his view, farmers, primary producers and food SMEs are particularly likely to feel the consequences as they may not have the capacity, know-how or scale to absorb future shocks, and this has a spill-over effect on other parts of the food value chain.

The Farm to Fork strategy, he continues, aims to improve the resilience of European food systems, which should also ensure nobody is left behind in the transition. Companies should future-proof their operations, including through climate change contingency planning, he recommends.

“I believe that if we are collectively able to mainstream food sustainability in the long run, sustainable food will eventually become more affordable,” Mr Jacobs says.

However, at present, 40 million people in the EU cannot afford a 80 | WINTER ISSUE

DIRK JACOBS

BUSINESSAgenda SOCIETY

PHOTOS: INIGO TAYLOR

T H E A C C I D E N TA L TRAILBLAZER With an impressive career spanning half a century, Helga Ellul continues to be a prominent figure in the business world locally.

She looks back on her journey with Sarah Micallef, recalling the trials and triumphs of moving to Malta from her native Germany,

taking the helm of manufacturing giant Playmobil, her passion for Corporate Social Responsibility, and her proudest achievement of all: raising a family while continuing to do what she loves.

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“Originally, I did not intend to stay in Malta for long,” admits Helga Ellul, whose relationship with the island began in 1974.

She was sent here as Plant Manager of Brandstätter Group’s manufacturing facilities, after spending the first seven years of her career at the Group’s head office in Zirndorf, Germany – the town where she grew up.

Needless to say, things didn’t quite go according to plan, with her journey within the company in Malta going on to span 44 years, culminating in her retirement as Playmobil Malta CEO in 2012.

Looking back on her early days on the island, Helga recalls “a very exciting time” for the Group, revealing that for her, coming from a different country, one of the most important things was to understand the local culture; to know how to work with businesses in the local scene.

“I was always very enthusiastic about meeting other players in the field, so I joined the manufacturing arm of what was then called the Federation of Industry,” she explains, adding that at the time, it was a very local set-up, and the industry was very much in its infancy. “Things changed in the ‘70s and ‘80s, as a lot of foreign companies began setting up in Malta, and the Federation changed as a result, incorporating a mix of local and foreign companies, and becoming quite powerful as a setup,” Helga recalls.

“At that time, I was, perhaps unsurprisingly, the only woman involved – but I never had a problem with that,” she continues, revealing herself as somewhat of an accidental trailblazer. Rather than focusing on gender, Helga affirms, “I always thought it depends very much on whether you have something to say which makes sense; if you present it properly, if you listen and learn. I learnt a lot from the local people, and I needed to do that in order to be successful here in Malta.”

With a background in sales and administration in Germany, Helga’s

initial task when she came to Malta was the setting up of a local administration section. And, as Playmobil was a family owned company at the time, she feels privileged to have worked very closely with the owner.

“We were only some 100 employees at the time, and the founder, Horst Brandstätter, became my mentor.

He took me under his wing and showed me how everything works on the shop floor and explained the machinery,” she recalls, adding that she’s never been a technical person, but as a leader, you don’t necessarily have to be.

“If you’re running a company, you don’t have to be – or rather you cannot be – an expert in everything.

What you need to be is a good leader, bringing together the best experts in each field; listening to them and then directing the way forward,” Helga maintains. “One of the most important things to succeed is to involve people who know more than you in their specific field, because you need their expert advice.”

Describing her long career at Brandstätter Group as her “life’s work”, Helga admits that for her, the most important factor is enjoying the task at hand. “I always told my people that you need to love what you’re doing. There has to be a certain passion, because you only have one life. If you feel good, you will do a good job.”

Acknowledging the fact that some jobs, such as working on the production line, may be more strenuous than others, she affirms that, as a leader, you can make an impact on everyone’s work experience by involving them in company decisions and giving them flexibility, so they can feel a sense of belonging. “I am very much a people person – I enjoy listening and learning from people, and I like being able to help or give advice whenever I can,” she says, revealing that as Playmobil CEO, she always had an open-door policy and made herself available for people to talk to.

“There were ups and downs, but we had a great company, and we were the frontrunners in many areas, including HR (which wasn’t even a thing back then!). We also embraced a development and training culture, which I had experienced with my own mentor when I was starting out,” she continues. So much so, that she was also on the board of MCAST for 12 years, and was involved with vocational training, which she says is very close to her heart.

“I learnt a lot from the local people, and I needed to do that in order to be successful here in Malta.”

Through this approach, Playmobil gained a reputation as a company that is great to work for and offered good opportunities, which, Helga maintains, worked in the company’s favour in turn: “we had the best talent wanting to join us.”

Looking back at the island when she first arrived in 1974, Helga describes it as unrecognisable from the Malta of today. “When I came to Malta, it was very laid-back, and was still very much driven by a colonial mentality. I was a bit taken aback because I was expecting something similar to Spain or Greece, being a Mediterranean island, but when I arrived, it felt so English!”

Recalling the lack of connectivity and the insularity of the island at the time, Helga remembers having to fly to Germany on a Saturday because there was only one flight a week. “We were very cut-off, and it reflected in the culture, which was very insular – and yet the young Maltese were so interested in what it was like in Germany, and other countries. I’ll always remember when I first arrived, I wanted a WINTER ISSUE | 83

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telephone at home. They told me that there was a waiting list of two years! You can’t even imagine that today,” she laughs.

important. It is of course important to make money, but in what way?

It needs to be sustainable in the long-term.”

Despite the challenges, there was a lot she loved about it too, including the sea, and the charming island life in Gozo. In fact, taking stock of the islands today, Helga laments that things have moved quickly, and Malta has grown very fast. “I think it did very well for quite a long time, but over the last 10 or 15 years, I feel it has gone overboard, without thinking long-term,” she quips, adding that with mobiles and the internet linking us to the rest of the world, Malta now enjoys a very modern environment.

“It has also changed the way business is done – sometimes you don’t have enough time to reflect before making a decision, because competition is very tough,” she says.

Indeed, never one to mince her words, Helga has established herself as one of Malta's foremost business leaders throughout her time on the island. She even served as the first female President of The Malta Chamber of Commerce upon its merger with the Malta Federation of Industry in 2008.

Describing the experience as an interesting challenge, she reveals, “I think it was a bit of a shock to the Chamber – being a foreigner first of all, and also being a female.

I wanted to show that ultimately, gender has nothing to do with it – you need to have the right person for the job. I feel that when big decisions are taken, women should be present, just as much as men. I think that sent a good message.”

Referencing the slowdown of many businesses as a result of the COVID-19 pandemic, she posits, “perhaps it has stopped us all to think – hopefully some lessons will be learned about what is

The organisation would go on to face an incredibly difficult time in that period – the 2008 financial crisis – but they hit the ground running and emerged successful. “We got through the crisis extremely well, and the cooperation with Government at the time was brilliant,” Helga says, affirming that she gained a lot from the experience on a personal level, too. “I learned to look at the economy from a much wider spectrum,” she reveals, admitting that prior to the experience, she was very manufacturing driven. “It was a brilliant learning curve, and I had a great team with me.”

Over the years, the businesswoman has also received several commendations, having been awarded the Midalja għall-Qadi tar-Repubblika in 1994, and the Officer’s Cross of the Order of Merit on behalf of the German President

by German Ambassador Bernd Braun in 2011. Careful to point out that winning an award is not the reason one should work hard, she notes that they are certainly achievements which she is proud of, and, better yet, “it made my children and husband very proud.”

They also reflect Helga’s belief in the importance of recognition for

“If you’re running a company, you don’t have to be – or rather you cannot be – an expert in everything. What you need to be is a good leader, bringing together the best experts in each field; listening to them and then directing the way forward.” good work. “I have always believed that if people do good, you should tell them. Being recognised and receiving a pat on the back means a lot,” she says.

And, while she’s since retired from Playmobil, Helga is adamant that it’s not time to step back just yet.

Having set up her own consulting company Advise Ltd, it gives her a platform through which she can continue to be of service to family businesses – her area of expertise. “I couldn’t just stop and do nothing – that’s not me. This way I get to continue to do what I enjoy,” she smiles.

But that’s not all the former CEO has on her plate. Helga is also the President of CORE Platform, which was set up by President Emeritus Marie-Louise Coleiro Preca in 2015, to encourage businesses to embrace Corporate Social Responsibility (CSR). “CORE Platform is supported by several business institutions including The Malta Chamber, Malta Chamber of SMEs (former GRTU), Malta Employers’ Association, Malta Hotels and Restaurants Association, and Malta Business Bureau, among others. We are also members of WINTER ISSUE | 85

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“I wanted to show that, ultimately, gender has nothing to do with it – you need to have the right person for the job. I feel that when big decisions are taken, women should be present, just as much as men.”

CSR Europe, which is a very strong lobby group in Brussels,” Helga explains, hitting on a subject that she is visibly passionate about.

“CSR is something that I have always strongly believed in. I practiced it at Playmobil, and I know how important it is, so I can talk about it with passion,” she reveals, illustrating its importance in today’s business world.

Referencing the situation with climate change and an increased awareness of sustainability, Helga highlights, “there is a big movement of young people who are increasingly cautious of what your product is made of, where it is being produced, and so on. As a business, you need to listen. If you don’t listen and adapt, you will no longer have a business.”

Describing CSR as a management concept and overarching company philosophy, she maintains that the focus should first be internal, before it can be directed outward.

“You have to develop and involve your people, so they are aware of it and can help you – it needs to be from the top down, but you have to have everyone’s involvement.

Once you have that, you can direct your attention to helping the community,” she says, explaining that each business needs to assess who their community is, and how they can be of service.

“At Playmobil, for example, children were ultimately our end customers, so we helped support children, especially those in need. If you’re in pharmaceuticals, for example, you should look at the health sector and see how you can support, 86 | WINTER ISSUE

help or train – it doesn’t have to be money you give, but also time and expertise. That, in turn, will be seen, and your community – your customers – will choose the company as one that has the right ethical behaviour in everything it’s doing,” she maintains.

Through CORE Platform, the team is working to bring stakeholders together, Helga says, pointing out the importance of the involvement of businesses, Government and NGOs alike. “We are currently in the final stages of a National Action Plan which calls for the creation of an authority that goes beyond CORE to set priorities, make a plan and move forward as a country in relation to CSR.” Finally, looking back on her illustrious career and the achievements which have come with it, Helga lists one she’s particularly proud of: having a family while running a business.

“I cannot tell you how much that means to me,” she says, her eyes lighting up as she describes her two children and four grandchildren as “the blessing of my life.”

Admitting that it wasn’t easy, particularly at a time when it was considered unusual for a woman to keep working rather than dedicating herself fully to her family, she credits the support of her husband with making it possible. “I was very fortunate that my husband understood and supported me – I couldn’t have done it alone. The advice I would give young people today would be to make sure your partner is on

the same wavelength. My most important achievement is definitely my family,” she smiles.

And with a career that spans an impressive 52 years and no signs of slowing down, what does the future hold for Helga Ellul? “I will continue doing what I do for as long as I can – I’m thankful to be in a position where, if I think I can no longer do a good job, I can give it up,” Helga says. And if she does, she hints at a potential return to painting – a hobby which she’s enjoyed in the past but has since been neglected: “I was actually very artistic way back!”

Still, while she’s keen to spend more time with her family at their old farmhouse in Gozo, which she loves, the former CEO admits that it’s not likely she’ll ever completely leave the business world behind.

“Wherever I can help, I’m not really the type of person to say no! If I can even make a tiny difference, I would love to do it.”

BUSINESSAgenda BUSINESS UPDATE

HOW BOV ACCELERATED SUPPORT TO BUSINESSES Undoubtedly the COVID-19 pandemic was a cause of major disruption for most businesses, requiring rapid intervention by banks and Government alike.

Through their strong partnership, Bank of Valletta and the Malta Development Bank (MDB) developed sustainable measures to direct essential liquidity towards local enterprises. The BOVMDB COVID Assist was first in the market to bolster businesses with sizable working capital loans at highly subsidised interest rates, reduced collateral requirements and moratoria on capital and interest repayments. By the end of August, BOV had approved over €192 million, a lifeline to more than 265 business entities.

Recognising the specific needs of micro and small SMEs, BOV and MDB subsequently launched a sub-scheme targeted at small firms finding it challenging to provide the levels of collateral requested by banks. The BOV-MDB small loans guarantee scheme significantly lowered collateral requirements to ensure higher accessibility and outreach to vulnerable

enterprises. These schemes benefit from the Government’s interest rate subsidy scheme.

The pandemic also triggered a paradigm shift in consumer and spending behaviour towards the digital environment. In response to this, Bank of Valletta strengthened its suite of payment solutions for businesses seeking to lower their cost structure by moving from costlier cash or cheque-based payments into more efficient and faster digital payments.

The suite includes options for both B2B payments and payments to and from other parties such as employees and customers. In addition, the bank reduced its fee structure for business digital payments to assist businesses improve their customers’ journey and shift their business model towards a more digital one.

While the outlook is uncertain, what remains clear is that local businesses are going through a transformation to manage this unprecedented situation.

Leadership is a key requisite to surpass this challenging phase, along with the provision of short-term liquidity, sound

financing and the right strategies to recover and thrive. Bank of Valletta, as Malta’s leading bank, will continue its drive and commitment to deliver tangible and key aid to the business community.

Businesses that require financing are to contact their BOV Relationship Manager or send an email on smefinance@bov.com, while those interested in a digital payment strategy can contact BOV’s payments specialists on paymentsbusiness@bov.com.

Further information available on www.bov.com/Business All loans are subject to normal bank lending criteria and final approval from the Bank. Terms and conditions are available from www.bov.com. Issued

by Bank of Valletta p.l.c., 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta).

MAKE A STATEMENT The new Range Rover Evoque Plugin Hybrid (PHEV) is minimalist and redefined. This model combines a 3-cylinder, 1.5 litre petrol engine with an electric motor to deliver a total power output of 309PS. The Evoque PHEV delivers optimal efficiency and performance by combining an internal combustion engine with an electric motor. The Range Rover Evoque projects a distinctive and outstanding appearance through its exterior characteristics. Its dynamic and modernist design are expressed through its interior features. Whilst these attributes are consistent with the latest Range Rover Evoque, there is an additional feature that enables drivers to select amongst two driving modes – parallel-hybrid or EV Mode.

There are various options that accommodate plug-in charging, allowing vehicle owners to charge their plug-in hybrid wherever they are. In order to retain the charge – ranging from 0 per cent to 100 per cent ­– the vehicle can be charged through the use of a three-pin

plug in six hours. Alternatively, a direct current DC charger takes only 30 minutes to achieve full charge. Drivers can also monitor and keep track of the charging state by downloading and using the Land Rover Remote APP on their smartphone.

When upgrading to a plug-in hybrid one can benefit from a Government

grant of €6,000 and an additional €1,000 scrappage scheme, together with free road licence for the first five years.

Time to make a statement. Contact our Land Rover Sales Team at Muscats Motors on 2326 4589/8/7 or send an email on info@mml.mizzi.com.mt for further information.

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BUSINESSAgenda BUSINESS UPDATE

THE COMPLETE ERP SOLUTION FOR A MULTI-BRAND DISTRIBUTION BUSINESS Direct Store Delivery (DSD) refers to an essential distribution method that includes route and truck load planning, route sales and delivery, mobile intelligence, inventory control, and route accounting. DSD is essential for companies that distribute Fast Moving Consumer Goods (FMCG) to other businesses.

The key to growth and sustainability for distributors is to provide better customer satisfaction through rapid and effective route management, without increasing costs. They need to optimise resources, improve their invoice-to-cash cycle, and at the same time reduce operating costs per route.

Expected benefits include increased revenue, larger orders, faster and more accurate delivery, accelerated cash flow, smarter inventory management, improved customer loyalty, better performing sales and delivery reps, and reduced administrative costs.

Managing the quote-to-cash cycle Distributors of any size face many of the same challenges, including

rapidly changing customer demands, complex product inventories, and fluctuations in the supply chain. To overcome these issues, companies are implementing ERP solutions that integrate and automate the entire quote-to-cash cycle.

A modern ERP system for distributors provides tools to help manage sales ordering, pricing, shipping, sourcing and billing – letting you streamline your business processes, so all your information is in one secure location.

With accurate, real-time information available, situations requiring attention can be identified early and addressed quickly.

Drive competitive advantage with a flexible field sales platform Integrate your field sales, distribution logistics, inventory management, invoicing, and payment collection.

Enable your sales reps with access to relevant information quickly and efficiently – eliminate the errors that come with legacy software.

Provide your field staff with mobile access to critical information while

on the road.

Allow your field reps to use any mobile device with offline functionality, so that they can access data and information from any location.

Drive sales by providing your sales reps with account-specific pricing for customers, based on what you know about customer preferences and order history. Provide discounts for customers and cross-sell and up-sell promotions for different customers.

For more information on how Computime Software can help you optimise your distribution operation visit www.computimesoftware.com/ acumatica-erp or email info@computimesoftware.com

LEADERSHIP FOR A NEW ERA BY DEBORAH SCHEMBRI COVID-19 has created a massive humanitarian challenge: millions ill and hundreds of thousands of lives lost; soaring unemployment rates in the world’s most robust economies; food banks stretched beyond capacity; governments straining to deliver critical services. The pandemic is also a challenge for businesses – and their CEOs – and it is a challenge unlike any they have ever faced, forcing an abrupt dislocation of how employees work, how customers behave, how supply chains function, and even what ultimately constitutes business performance.

Confronting this unique moment, CEOs have shifted how they lead in expedient and ingenious ways. The changes may have been birthed out of necessity, but they have great potential beyond this crisis. If they become permanent, these shifts hold the potential to thoroughly recalibrate organisations and how they operate, the companies’ performance potential, and their relationships to critical constituents.

Only CEOs can decide whether to continue leading in these new ways, 90 | WINTER ISSUE

and, in so doing, seize a once-in-ageneration opportunity to consciously evolve the very nature and impact of their role. Part of the role of the CEO is to serve as a chief calibrator – deciding the extent and degree of change needed. As part of this, CEOs must have a thesis of transformation that works in their company context. A good CEO is always scanning for signals and helping the organisation deliver fine-tuned responses. A great CEO will see that this moment is a unique opportunity for self-calibration, with profound implications for the organisation.

CEOs sense an opportunity to lead in a new, more positive and impactful way. COVID-19 has brought with it a pressurised operating environment the likes of which few of today’s CEOs have ever experienced. It has necessitated a reappraisal of how much is possible and in what timeframes. It has forced personal disclosure at levels previously considered uncomfortable and, in doing so, has increased awareness of the importance of how leaders show up personally. It has shone a light on the interconnectivity of stakeholder concerns. It has prompted a level of substance-based, peer-to-peer

CEO interaction that has elevated all involved. Ultimately, it has “unfrozen” many aspects of the CEO role, making possible a re-fusing of new and existing elements that could define the CEO role of the future.

Deborah Schembri is the CEO and Managing Director of STM Malta Pension Services Ltd.

BUSINESSAgenda BUSINESS UPDATE

L I F E S TA R S E T T O B E DISRUPTIVE FORCE IN INSURANCE MARKET

Innovation, agility and the ability to sift through its strong and not so strong points have driven GlobalCapital to rebrand as LifeStar and focus its energy on life and health insurance.

With €150 million in assets, 34,000 policyholders and €8.6 million paid in claims at the end of 2019, LifeStar is planning to be a disruptive force in the insurance market.

LifeStar Chairman Paolo Catalfamo has never been one to shy away from change or a challenge, and since he took over GlobalCapital in 2015, he has amassed the right team to surmount the obstacles brought about by the COVID-19 pandemic and restructure to face the future.

GlobalCapital went through a restructuring process in the runup to rebranding by streamlining processes, introducing efficient work practices and reorganising the management structure to bring about better performance and improved corporate governance.

LifeStar reflects the positive changes made and the company’s status as a trusted and respected player in this segment.

Prof. Catalfamo says: “We also took a strategic decision to concentrate on what we do best: insurance.

We have been a proud country representative of one of the world’s leading health insurance principals, Bupa, for many years and have established a solid reputation as a leading provider of insurance products in Malta.”

“We are very excited about our future.”

The transformation means that GlobalCapital Life Insurance Limited is now LifeStar Insurance Limited; while GlobalCapital Health Insurance Agency Limited is now LifeStar Health Limited; and

GlobalCapital plc is now LifeStar Holding plc.

With the pandemic reaping fear and greater awareness of financial risks associated with mortality, life and health insurance are looking to enjoy somewhat of a renaissance.

Technology has also been key due to social distancing measures and LifeStar has embraced digitisation to offer its customers a portfolio of services whenever and wherever they need them.

“We are very excited about the future and our new name embodies our desire for our clients to live their brightest life,” Prof.

Catalfamo says.

LifeStar Insurance Limited (C29086) is authorised by the MFSA to carry on long term business of insurance under the Insurance Business Act, Cap 403 of the Laws of Malta.

LifeStar Health Limited (C6393) acts as an insurance agent for Bupa Global Designated Activity Company, which has passported its services through the European Passport Rights for Insurance and Reinsurance Undertakings Regulations and is enrolled under the Insurance Distribution Act, Cap 487 of the Laws of Malta to act as an Insurance Agent and is regulated by the Malta Financial Services Authority.

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BUSINESSAgenda CULTURE

A GILDED MIRROR INTO T H E PA S T : M A L TA ’ S HISTORIC HOMES With a history as rich and diverse as Malta’s, it is often what is left behind by the peoples of the past that gives insight into times gone by. Historic private homes represent the society and culture of bygone eras, but what do they tell us about ourselves? Sarah Micallef delves into the intricate history of three astounding private residences that date back to different periods in the islands’ story.

PHOTOS: PALAZZO FALSON HISTORIC HOUSE MUSEUM

PALAZZO FALSON

Palazzo Falson historic house museum in Mdina, previously a distinctive residence known as Norman House, is a surviving example of a late medieval Maltese palazzo.

“The patrician house is a showcase of an aristocratic refinement of a local residency, originally only consisting of a one storey courtyard house with a set of rooms at the back that still form part of the building’s nucleus, attributed to the 13th century,” explains Palazzo Falson’s curator Caroline Tonna, adding that the location in which the palazzo is situated was once known as La Rocca and it had also been associated with a synagogue.

“Tradition holds that the refectory and kitchen area of the house were part of the synagogue structure where the Mdina Jewish community worshipped,” she says.

Over the years, the palazzo underwent various structural modifications, and its footprint was reduced and redesigned, the curator details. In the 15th century, another storey was added, with a series of rooms overlooking the internal courtyard. Later, during the 16th century, the palazzo became home to the wealthy and influential de Falsone family, who made further structural changes and embellishments.

After their downfall, the property was confiscated and used by Grand Master L’Isle Adam and the Inquisitor. In the 17th century, records show that, through succession, the palazzo became part of Ugolino Cumbo-Navarra’s property wealth.

In the years that followed, it sadly fell into neglect, and was split into different tenements. However, in 1927, Elisa Gollcher, widow of Gustav Gollcher – a well-established Swedish maritime businessman in Malta – managed to purchase the property together with her only son, Captain Olof Frederick Gollcher.

In 1939, Olof acquired another part of the property that was originally part of the footprint of the palazzo,

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and by that time, he had also inherited his mother’s share. He renamed his home The Norman House after the stylistic features it displayed, which at the time were believed to be Siculo-Norman. “Olof was a cultured man with refined artistic sensibilities, and he carried out restoration interventions fashioning a revivalism of past eras,” Caroline explains, making reference to a Siculo-Renaissance staircase and a Byzantine-Romanesque folly in the courtyard.

Olof dedicated his life and fortune to preserving the palazzo, returning the building to its former glory and adorning it with various collections he had amassed throughout his life. His wife Nella also contributed in transforming their home into an elegant dwelling, hosting and entertaining many guests, and, together, they decided that their home should be preserved with its contents as a museum.

“In 2001, almost 40 years after Olof’s death, the Gollcher Foundation reached a management agreement with Fondazzjoni Patrimonju Malti (FPM) to restore the palazzo and its collections, and transform it into a historic house museum for the enjoyment of the public,” Caroline explains, adding that the restoration programme took more than five years to complete. The palazzo was renamed Palazzo Falson based on documentation that the de Falsone family were residents for over 100 years, and it opened its doors to the public on 4th May 2007.

objets d’art, as well as a valuable collection of books, manuscripts, documents and personal papers.

“Palazzo Falson Archives embody the social and cultural life of the 19th and 20th centuries, and they are accessible to researchers and students upon request,” she maintains.

Asked to highlight specific artefacts of note, the curator points to an interesting chastity belt in the armoury collection. “The myth shrouding the chastity belt purports that it was worn by the wives of medieval crusaders while the men were out at war. However, it is known that this is a Victorian fabrication and no chastity belts of this sort are known to have actually been used in the medieval period,” Caroline explains.

Meanwhile, one of the most significant artefacts in the palazzo is a unique watch that stands out among another 27 watches. Made in Paris by renowned watchmaker Robert Robin, distinctive for its ten-hour dial, it reflects French Revolutionary time, which was based on the decimal principle.

“This time measurement was officially adopted in 1793 and stipulated that the Gregorian calendar was to be abandoned in favour of the Republican calendar, which divided the day into ten hours with 100 minutes, each having 100 seconds. However, this system did not prove to be popular, and by 1795 it was no longer enforced,” the curator maintains,

adding that the short-lived period of Revolutionary time led to the existence of only a handful of these watches, with even fewer made by Robin, making this the pièce de résistance of the museum.

Speaking of future plans for Palazzo Falson, the curator notes that 2020 has been challenging, yet, despite the museum having been closed between mid-March and end of May, the team behind it has kept going. Children’s workshops continued online during lockdown and have since resumed onsite, while extensive maintenance work was carried out throughout the museum.

In tandem, the rooftop café, named Gustav in honour of Olof’s father, was tastefully designed to complement the standards and services of the museum; and a small unused roof area was turned into a green patch to create a ‘pollinator haven’ and promote biodiversity – a joint effort with Friends of the Earth Malta.

The museum has since re-opened and offers daily guided tours from Wednesday to Sunday between 10:30am and 4pm for small groups, strictly observing safety measures.

“The support of our patrons, supporters and members of The Friends of Palazzo Falson is vital for us to enable us to keep the museum alive and continue with our projects,” Caroline says. For further information, visit www.palazzofalson.com

“Olof was an avid collector and his presence is felt everywhere,” says Caroline, turning her attention to the palazzo’s varied collection of over 3,600 artefacts, which includes paintings, silverware, glassware, furniture, armoury, watches, jewellery, shop models, oriental rugs, coins, medals and other WINTER ISSUE | 93

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CASA ROCCA PICCOLA

Often described as a ‘living museum’, Casa Rocca Piccola is the only privately-owned property open to the public in Valletta.

Originally built in the 16th century for Don Pietro La Rocca, a Knight of Malta, it is now the home of the ninth Marquis de Piro and his family.

Built by Don Pietro La Rocca in 1580, Casa Rocca Piccola is a beautiful palace and much-loved visitor attraction in Valletta. Tours of the property comprise a visit to 12 palatial rooms including the two dining rooms (one for the summer and one for the winter), as well as a four-poster bedroom, a private family chapel and an archive room housing de Piro family documents going back to the 17th century.

Among the many interesting artefacts on display, Clement de Piro, son of Marquis Nicholas de Piro, points out “an 18th century golden sedan chair which was once carried around Valletta by Turkish slaves and glass tumblers used to hold ice which had to be sailed all the way from Mount Etna in Sicily.” These sit alongside hundreds of magnificent objects, including modern paintings interspersed with the ancestral 94 | WINTER ISSUE

portraits of the Marquises de Piro and the Barons of Budach.

Another interesting element, Clement points out about the palace, is a network of underground passages and tunnels cut out of the rock over its 400-year history. “One particular tunnel leads into a huge cavern that was used during WWII to shelter over 100 people from the heavy bombing, and another tunnel leads to a small room used as a private family shelter. The rock tunnels that were all cut out by hand saved hundreds of lives, and many of Valletta’s older residents remember running to them when the air raid sirens sounded,” he explains.

And while Casa Rocca Piccola continues to be a private family home, it’s not just the human residents who call it home. In a walled garden replete with orange trees, a red-eared terrapin called Vulcan, and Kiku, the blue and gold macaw, enjoy rule of the roost.

“To add to the visitor experience, the old kitchens of the palace have been converted into a charming Sicilian restaurant called La Giara, run by Antonio and Anna Mammino from Catania,” Clement

“Our chapel, which belonged to Marquis Pandolfo Testaferrata de Noto, is pretty exceptional for its rarity and chinoiserie decoration.”

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continues, and last year, Casa Rocca Piccola also opened a small Bed and Breakfast within the walls of the palace, comprised of four rooms and one suite, with breakfast served to guests in the garden.

Opened to the public in 1991, Casa Rocca Piccola showcases an important part of Maltese history and highlights the customs and traditions of the Maltese nobility.

“Our family archives, which go back to the 17th century, contain thousands of rare documents that have been digitised by the Malta Study Centre of the Hill Museum and Manuscript Library. This has proved to be invaluable to students of Maltese history and will continue to be made available to scholars,” explains Clement.

“Casa Rocca Piccola can show us how Maltese people lived in the past and can help us to understand a little bit more about who we are and what it means to be Maltese,” he continues, pointing to other noteworthy features that tell an interesting story of the people of the time. “Our chapel, which belonged to Marquis Pandolfo Testaferrata de Noto, is pretty exceptional for its rarity and chinoiserie decoration. We also have paintings by great French artist Antoine Favray which include his self-portrait, as well as a portrait of a Maltese lady by Francesco Zahra which is extremely elegant,” he maintains.

Looking ahead at the future for Casa Rocca Piccola, Clement says that the house is always evolving, and the family have several ideas for it. “Maybe a restaurant in our garden if we found the right person to manage it,” he teases.

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its greatest renovation, which fortunately, still survives largely in its original form today.

The Marquis Scicluna wanted to create an idyllic winter palace as an alternative residence to his summer house on Dragonara Point in St Julian’s, explains his great granddaughter, Christiane Ramsay Scicluna, Baroness of Tabria. “The Marquis wanted to create a showcase for Maltese art, highlighting the eclectic style of the 19th century propagated

by Italian artists on the island,” she explains, adding that he also chose to retain some elements which date back to the time of Grand Master de Vilhena, such as the Greenhouse and other

“The Marquis wanted to create a showcase for Maltese art, highlighting the eclectic style of the 19th century propagated by Italian artists on the island.”

PALAZZO PARISIO

Palazzo Parisio, formerly known as Palazzo Scicluna, is a palace in Naxxar. Originally built for Grand Master de Vilhena, the palazzo was bought by Marquis Giuseppe Scicluna in 1898, and is now the stately home of his great granddaughter and her daughter.

Palazzo Parisio dates back to the time of the Order of the Knights of St John, when Grand Master Don Antonio Manoel de Vilhena, who ruled the Order between 1722 and 1736, used it as a hunting lodge.

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a whimsical vision which is most unusual and avant-garde for the time period – for quite a traditional room where men used to gather,” they say. The Baroness goes on to recall a particular anecdote about it: “when Francis Ford Coppola came to lunch at Palazzo Parisio, he had a tour of the palace and asked if he could buy the lighting structure.” The Baroness politely declined his offer but wonders whether there isn’t a similar one hanging in his home in Napa Valley!

architectural elements in the gardens.

Nearly a century later, the palazzo’s current owners are the Baroness and her daughter, Justine Pergola.

After living in Italy, the Baroness moved back to Malta in 1996, at a time when Palazzo Parisio was closed to the public and was solely a venue which caterers would hire out for events. What started as a passion project for the Baroness (affectionately known as Muffy) turned into a full restoration of the palazzo and its gardens. “The beautiful gardens that we see today are a product of Muffy’s dedication and care, and she has been tending to them for over 25 years,” says Justine.

Describing the humble beginnings of the Baroness’ involvement, they explain that she started by enlisting help from a close friend who would take visitors on tours around the palace. The Baroness bought a coffee machine and would serve tourists sandwiches, soups and cakes that she had prepared herself for after their tours, and Justine would help with service after she returned from school.

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“As the tours became more and more popular, Muffy decided to renovate the kitchens and employ staff,” Justine continues, affirming that what started as a passion project has now grown into the dazzling Palazzo Parisio and Luna Restaurant of today.

Delving into what Palazzo Parisio can tell us about the society of the time, the mother-daughter team explain that when the Marquis was restoring the palace, he put together a team of architects, sculptors and artists in order to implement his vision for Palazzo Parisio. “The team was headed by renowned Italian architect Carlo Sada, and consisted largely of Italian painters and sculptors who had ties with Malta,” they say, highlighting a very good rendition of the culture and society in those times as described in the famous novel by Guiseppe Tommasi di Lampedusa Il Gattopardo ‘The Leopard’.

Drawing their attention to noteworthy features within the property, they point to the lighting structure over the billiard table, which is held up by angels. “It is

Another interesting story is associated with the marble balustrade slab going up the stairs in the foyer. Made out of one solid piece of marble which is about six metres long – quite unheard of for those times – the story goes that the Marquis Giuseppe Scicluna commissioned it from the Tuscan city of Carrara. “On its way over to Malta, during transport it arrived twice, broken. The Marquis, being the perfectionist that he was, ordered a third one and announced, ‘third time lucky’. What is amusing is that, in order to hoist it from the harbour, the Marquis had to ask the Royal Malta Artillery for help,” they smile, adding that “the help was in the form of 22 mules to haul it to the palace!”

As for what’s on the horizon for the palazzo, the motherdaughter team plan to continue its restoration, with a view to maintaining as much of its beauty as possible. “We also have a vision of opening a boutique hotel – the thought of opening the doors to our home is so exciting,” they share, affirming that they value the local support, and strive to continue to play an important role within the community.

“Whilst keeping up the traditions and heritage of Palazzo Parisio, we also want to move with the times, as we have done for so many years. Our aim is to build on the successes already achieved – we would like to appeal to the new generations, whilst still caring for our loyal clientele.” For further information about the palace, visit www.palazzoparisio.com