Mimlink 4

MIMLINK a journal of the MALTA INSTITUTE OF MANAGEMENT

Issue 4, December 2014

50th MIM Anniversary Celebration pages 4 & 5

The Malta Police Force 200 years from its establishment page 31

The Good, the Bad and the Ugly Business process Training Opportunity page 25 Reengineering A practical perspective p9

Sukuk, a viable alternate to bonds page 19

The Future of your business Intelligence p18

NEWSPAPER POST

MALTA

INSTITUTE OF MANAGEMENT

MIMLINK

a journal of the MALTA INSTITUTE OF MANAGEMENT

Issue 4, December 2014

MALTA

Editors Note

INSTITUTE OF MANAGEMENT

This issue of MIMLINK brings to an end 2014, a milestone year for the Malta Institute of Management.

The 50th Anniversary celebrations came to an end during the Gala Dinner held under the Distinguished Patronage of Hon Prime Minister Dr Joseph Muscat.

In this issue we bring to you an overview of the activities during this memorable year. Indeed it could be considered an update of the commemorative publication which was authored and edited by Mr Charles Buttigieg. You can find a full reportage with pictures in the coming pages.

CONTENTS

MIM 50TH ANNUAL GENERAL MEETING

THREE HONORARY LIFE LONG MEMBERSHIPS 7

Honorary secretary’s address

2

N S

50th MIM ANNIVERSARY CELEBRATION

4

FORMER MIM PRESIDENT PASSES AWAY

9

MARKETING BRINGS ORGANISATIONS, PRODUCTS AND SERVICES TO LIFE!

17

MIM REACTION TO BUDGET 2015 11

MICROFINANCE IN MALTA 15

SUKUK, A VIABLE ALTERNATE TO BONDS

7 WAYS BUSINESSES CAN EMBRACE

TECHNOLOGY TO IMPROVE EFFICIENCY

20

THE GOOD, THE BAD AND THE UGLY TRAINING OPPORTUNITY

25

Gozo’s Property Ambassador

29

A POSITIVE AND HEALTHY FUTURE FOR GLOBALCAPITAL

Dressed to Impress

The Malta Police Force 200 Years from its Establishment

Law EnfOrcement

© Malta Institute of Management 2014. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior permission of the Malta Institute of Management.

Opinions expressed in MIMLINK are not necessarily those of the Malta Institute of Management. All care has been taken to ensure truth and accuracy, but the Editorial Board cannot be held responsible for errors or omissions in the articles, pictographs or illustrations.

Design by:

19

23

27 31

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It is no coincidence that the 50th Anniversary of the MIM happens to be in the same year of the 50th anniversary of the Independence on Malta. Indeed the Independence was planned for in May and it was then that a group of leading managers spearheaded Mr. Christopher Calascione decided to set up the institute in order to support the economy with the necessary managerial skills and talent.

Today with such a dynamic environment, the challenge of the MIM is nothing less than it was 50 years ago and indeed its Council and staff are facing new opportunities. The volunteer aspect in the Institute remains of fundamental importance particularly from energetic managers that find time to invest in the development of the management profession in Malta. Fresh ideas are always important and welcome in an organisation like MIM. Indeed, this year MIM had an interesting amount of persons contesting the election for Council. This resulted in MIM welcoming three new Council Members who are being actively involved in the restructuring planned to implement the Strategic Plan “Consolidating Our Origins”. An overview of the Annual General Meeting and some background details on council may be found in this issue.

The work of council is critical but so is the work of the sub committees of MIM without which the MIM could not function. This Council has an open door policy for ideas, energy and contribution to the well being of the MIM. It is in this context that I appeal that should you wish to discuss ideas on how we can improve the MIM and the management profession come and talk to us. The Institute is here for your development too.

President: Mr Reuben Buttigieg Vice President: Mr Hector Spiteri Hon Secretary: Ms Roberta Giorgio Hon Treasurer: Mr Dunstan Magro Public Relations: Ms Nadia Pace Editor: Reuben Buttigieg Design: Dark Dragon Media Ltd. Printing: Best Print Ltd. Distribution: Maltapost Plc.

Malta Institute of Management

Suite 6, 22 Airways House, Triq it Torri, Msida Malta.

Tel: (+356) 21 456819 - Fax: (+356) 21 451167 education@maltamanagement.com

www.maltamanagement.com

MIM 50TH ANNUAL GENERAL MEETING Honorary secretary’s address

The Malta Institute of Management’s 50th Annual General Meeting, held on 21th May, 2014, at the Casino Maltese in Valletta, was provided with an account of the Institute’s activities during the year 2013-2014, prepared by Ms Nadia Pace, the Honorary Secretary of the Institute.

Ms Pace explained how during the year the MIM managed to retain its momentum in training and events organisation as well as other activities. She also spoke on how the Institute continued to raise its profile and its prestige on a national and international level.

The Hon. Secretary stated that the Institute successfully organised a number of activities which addressed topical issues, some of them of national concern. It also actively participated in discussions addressing issues of national and international importance and, where appropriate, publicly expressed itself on these issues.

Ms Pace said that, above all, the Institute took active steps to reach closer to its members, to understand their needs and requirements better, and to attempt to meet their expectations as much as possible.

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The following are extracts from Ms Pace’s address on the salient features that characterised the activities of the Institute during the year.

Council Composition: The composition of the MIM Council during the period under review was as follows: Mr Reuben Buttigieg - President; Mr Hector Spiteri - Vice-President; Ms Nadia Pace -Honorary Secretary; Ms Dunstan Magro Member; Ms Marika Huber - Member; Dr Edward Firman - Member; Mr Lawrence Mizzi - Member; Dr Robert M Cachia Member; Mr Joseph Cortis - Member; Dr Alfred Mifsud - Member.

Events: In line with the goals set forth in the Strategic Plan, the MIM has organised the following events between 2013 - 2014.

Conferences and Seminars 28th June 2013 Management

Accountancy Seminar 12th September 2013 Ever Changing Role of Company Secretaries Seminar 18th October 2013 The MIM VAT & EU Conference 14th November 2013 The MIM

Mediterranean

Economic Forum 15th November 2013 Islamic Finance Workshop 10th December 2013 The MIM

Entrepreneurship Seminar 31st January 2014 Corporate Governance

& International

Control MIMA Seminar 6th March 2014 The MIM International

Taxation Conference

in Malta 14th March Fraud and Risk

Management Seminar 25th April The MIM Networking

for Success Seminar

Roundtable Discussions and Networking Events 24th - 27th June 2014 Sukuk Islamic Finance

Workshop and

Roundtable Discussion 9th October 2014 The MIM EGM and

Networking Reception 4th December 2014 The MIM Annual

Networking Reception 6th February 2014 The MIM Wine Tasting Experience 21st March 2014 The MIM 50th

Anniversary Concert 10th April 2014 The MIM Whisky Experience 6th May 2014 From Good to Great

Roundtable Discussion Events/Initiatives held abroad August 2013 Vibo Valentia - Eu

Funded, Meetings with

Business Communities 20th February 2014 The MIM International

Taxation Conference

in Rome There were also various information sessions, meeting with Ministries, Institutions and Authorities.

Communications: The Institute has maintained contact with its members and the general public mainly through various initiatives which now include the MIM Link. This is a quarterly publication.

To date, there have been two issues of the MIM Link.

MIM Sponsors: The MIM embarked on a series of meetings with regular and new sponsors. Moreover the Institute also sought to attract sponsors beyond the financial circle. The major sponsors during the past months were as follows:- Credal; Dar Al Sharia; Deloitte; EMD; Erremme Business Advisors; Erremme Recruitment; EY; Francis J Vassallo; Grant Thornton; KPMG; RBG Fiduciary Services; Women In Management

The Institute three Sub Committees, namely the Malta Institute of Management Accountants, the Women In Management and the Manufacturing Committee continue to focus on the organisation of various activities. During the past year, these included the following: 28th June - Management Accountancy Seminar; 31st January Corporate Governess & International Control; 14th March - Fraud & Risk Management Seminar..

Training and Education Programmes: During the past months the MIM embarked on a series of initiatives and activities to increase our target audience by consolidating our core programmes and by introducing new programmes.

Consolidate Core Programmes: The MIM embarked on a series of road-shows aimed at promoting our core programmes.

EB Learn: The MIM is currently consolidating the EB Learn platform. Sales in this sector continued to increase. Entities are being targeted by e-mail, followed by calls and visits.

Customised Programmes: During the outreach visits, the MIM is offering entities the possibility of customised programmes. Targeted audience included both the Private and Public Sector. Eighteen companies have already benefitted or are profiting from the MIM’s customised programmes or are in progress, below:

Training opportunities on the international market: In the first quarter of 2014, MIM held a series of meetings with various Foreign Diplomatic Missions Accredited to Malta, as well as with foreign entities regarding training opportunities on the international plane.

Launch New Training & Education programmes: As set forth in the MIM Strategic Plan, MIM will invest in new training and education programmes. In line with this strategy, the following action was taken during the last quarter of 2013.

VAT Certificate: The MIM has developed a VAT Certificate to target individuals that would consider the Diploma as high level for their needs and would like to go for a lower qualification in Issue - December 2014 Issue 4 -4December 2014

this regard. To date, there have been two intakes of the Vat Certificate. The first one was spread over October - December 2013.

The second intake was spread over March - May 2014. The next intake is scheduled to start in October 2014

Association of International Accountants: The MIM introduced the AIA qualification, whereby, upon completion qualifies students as Accountants. Its key strengths lie in the price, which makes it accessible to a wider audience as well as its entry points. The first Intake was in October 2013 with the Foundation Level - Certificate in Accountancy which consists of two Modules with three topics in each Module.

Workshop on Islamic Finance - SUKUK Structures: A workshop on Islamic Finance was organised in collaboration with Dar Al Sharia.

It was held in Malta at the MFSA on the 24th 27th June, 2013.

EU Projects: The MIM has successfully submitted various EU funded projects. These include the Rovigo Visit (one week, March 2013); ERDF - Startup (one year - April 2013); Leonardo Da Vinci - Mobility, Vibo Valentia (one week July 2013); Leonardo Da Vinci - Mobility, Rome (one week, February 2014).

Membership: The MIM’s membership for 2013 can be analysed as follows: Members: 745; Student Affiliates: 56; Associates: 94; Affiliates:113; Fellows: 7; Honorary Members: 26; Corporate Members:109.

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50th MIM ANNIVERSARY CELEBRATION

The highlight of the Malta Institute of Management’s Golden Anniversary celebrations was a Gala Dinner held on Wednesday, 28th May, 2014, at the magnificent ballroom of the Palazzo Parisio, Naxxar.

Guests were received by MIM President Mr Reuben Buttigieg, accompanied by VicePresident Mr Hector Spiteri. Drinks preceded the Dinner, allowing guests to greet each other in the pleasant atmosphere of the classic baroque gardens of Palazzo Parisio.

The distinguished and other guests, numbering over 110, a good number of them foreign friends of the MIM who came to Malta for the occasion, were led by Prime Minister Dr Joseph Muscat.

The Institute’s President delivered an address of welcome.

The foresight of the founders Mr Buttigieg expressed his and the Institute’s appreciation for the presence of the Prime Minister and all the other guests, in particular the past Presidents of the MIM. He expressed his regret that the founder of the MIM, nowadays known as Dom Christopher Calascione and forms part of the Benedictine Monastic Community of Downside Abbey, England, was unable to attend the event.

The President of the MIM lauded the foresight of the then Mr Calascione and his friends in setting up the Institute of Management during the same year which saw Malta gaining its Independence from Britain and embark on an industrialisation project to enable people reaching working age to find jobs in their homeland.

At the time, local businesses were mainly family concerns where the elders had a very long experience of business activities, but not at all of industrial activities and management in the real sense of the word. Wanting to address the situation, Mr Calascione and his friends set up a Steering Committee to see how they could proceed.

They decided to put a small advertisement in a newspaper, calling a meeting at the Phoenicia Ball Room, in Floriana, for anyone interested in these ideas. To their amasement, around 110 people turned up.

They didn’t even know that so many people

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were involved in management in Malta in those days, that is the first part of the 1960s.

The Institute’s story

Mr Buttigieg said that his team at the helm of the Institute considered it a duty to take the opportunity of its 50th Anniversary to have the story of how it came into being and strived ahead over five decades published in a commemorative book.

Present day MIM leadership wanted this publication to be a tribute to the founders of the Institute and to all those who, rain or shine, very often with a lot of personal sacrifices, dedicated so much of their time, energy, skills and expertise to see the Malta Institute of Management move on according to its particular mission in the field of professional management.

Moreover, it was felt that the story of the MIM would be, in itself, a contribution towards the better understanding of the challenges professional management faced prior to and along the industrialisation and development of the Maltese economy.

Mr Buttigieg said that the distinguished guests at the Gala Dinner included two of the longest serving Presidents of the Malta Institute of Management, namely Mr Joe Abela Fitzpatrick and Mr Stephen D’Alessandro who not only gave their best to the Institute but were also very keen to

see new blood in it. He added that his own experience attests to this because it was through the encouragement of Mr Abela Fitzpatrick that he joined the Institute at the age of seventeen. From then onwards, he also found a lot of support from Mr Joe Zammit and Mr D’Alessandro and subsequent leaders of the MIM. The President of the MIM said that the publication of a commemorative book about the Institute was accompanied by a number of 50th Anniversary activities, starting from October 2013.

One major activity was the organisation of an International Taxation Conference in Rome. The event was part of the Institute’s continued efforts to internationalise its contacts and networking, something that was also evidenced in the presence of the special guests at the Gala Dinner who hailed from countries like Italy, the United Kingdom, Germany and Dubai.

The President of the MIM said the Institute is committed to enhancing the profession of management in Malta within a broad international framework focusing on competence and effectiveness of managers.

This mission includes placing greater emphasis on developing strategic links with international organisations which will allow the MIM to provide a greater support to the development of the competencies and effectiveness of the local management profession.

Continuing Professional Development Opening a window on the MIM’s activities in the field of education,the MIM President spoke about the Institute’s increasing focus on outreaching to children in line with its strong belief in Continuing Professional Development (CPD). He explained that the Institute wants to show children, from an early age, that thereare various opportunities awaiting them beyond formal classroom education.

Arguing in favour of opening new doors in the sector, Mr Buttigieg noted with regret that current local legislation is not education-friendly enough and still closes various doors to many people. As a case in point, he mentioned the difficulties that are encountered in the issue of warrants. He said exchanges the MIM has had with other Institutes indicate that various professions have the same considerations.

Mr Buttigieg emphasised that professionals cannot but continue to highlight the importance of CPD in the dynamic world of today and the need to ensure that legislation is continuously reviewed to reflect changing realities. “We cannot move ahead properly with a kind of legislation that reflects the circumstances of 30 years ago. Consolidating our origins is important. Yet we also need to adapt to the challenges of a fast changing world,” said Mr Buttigieg.

Issue 4 - December 2014

Whilst thanking the Prime Minister for honouring the MIM 50th Anniversary Celebration with his presence, Mr Buttigieg invited Dr Muscat to address the gathering.

Commitment to education The Prime Minister expressed his appreciation for all that has been done by the Malta Institute of Management in the field of professional management since its foundation.

Dr Muscat spoke briefly about his government’s commitment to continue investing in education with specific targets and not just infrastructural projects. His intervention reflected the Government’s determination to bring down as much as possible the figure of people who do not continue with post-secondary education, and to see more young people continue studying and specialising, as this is the key to investment.

Dr Muscat said that his government is working hard in this direction and is therefore very happy to encourage organisations like the Malta Institute of Management in their efforts to provide additional learning opportunities for present and future generations. He congratulated the Institute for its long history of commitment and augured the MIM further success for the future.

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www.kartellbylaufen.com

THREE HONORARY LIFE LONG MEMBERSHIPS The Council of the Malta Institute of Management on 28th May, 2014, bestowed an Honorary Life Long Membership on Mr Joe Zammit (in absence), Mr Lawrence Mizzi, former President of the Institute, and on Mr Charles Buttigieg author of the commemorative MIM book entitled “Born to lead” issued on the occasion of the Institute’s 50th Anniversary.

The two Honorary Memberships were announced and the relative certificate presented to Mr Mizzi and Mr Buttigieg during the MIM Gala Dinner of 28 May, 2014.

The certificates were presented by MIM Vice-President Mr. Hector J. Scerri.

Mr. Mizzi was MIM President from 2006 to 2008. He took over the Institute’s leadership at a time when the MIM was facing various challenges including the need to identify its relevance in an increasingly changing landscape.

Under Mr Mizzi’s leadership, the Institute embarked on a number of initiatives to make MIM more visible and also more relevant especially to its members. These measures included better collaboration with other bodies and institutions, and a more active role for the Institute in civil society.

Accepting the Life Long Membership, Mr Mizzi expressed his thanks for the honour.

Upon receiving the Life Long Membership certificate, Mr Buttigieg referred to his role in the preparation of the MIM 50th Anniversary history book.

Mr Buttigieg said that a beautiful experience in life is when an opportunity comes in one’s way to do something for a good cause, of one’s free will and without expecting anything in return.

Hence, when he was asked to compile and write the 50-year story of the MIM for a commemorative publication he saw in it an opportunity to have his humble contribution along with the vast hard work done by a long list of generous and dedicated persons, from the founders to present-day people, who founded the MIM and ensured that it moved on according to its mission and the signs of the times.

Mr Buttigieg said that his aim was to see the work coming to fruition to the satisfaction of the MIM and was not expecting anything else; surely not the Life Long Membership that was being bestowed on him on that special occasion. He concluded by expressing his appreciation and gratitude for the very nice gesture.

Issue 4 - December 2014

7

FORMER MIM PRESIDENT PASSES AWAY

The President and council of the Malta Institute of Management extend their condolences to all those whose lives were touched by Joe Zammit, who passed away on November 22nd 2014.

Mr Zammit has been President of the Malta Institute of Management and led the institute through various challenges. He remains known for supporting his principles with respect to Voluntary work and for the respect to his colleagues even in moment of differences. He remains an example that in spite of differences, persons can respect each other if there is the common good at heart.

The Council feels privileged to have worked with Mr Zammit.

MIM thanks Mr Zammit for the work he performed during his lifetime, particularly in his promotion of the Management Profession.

MIM current President , Reuben Buttigieg, said he is deeply touched by this loss.

Mr Zammit together with Mr Abela Fitzpatrick were the persons that pushed him to take the leadership of MIM as well as encouraging him to use his skills even more for the promotion of the common good and the management profession. Mr. Buttigieg said that it is with persons like Joe Zammit that a prestigious organisation like MIM can survive promoting management profession with a social aspect.

MIM will be closed on Monday as a sign of respect to its former President. MIM thanks Joe Zammit’s family and assures that it is close to them in this challenging moment of courage.

Issue 4 - December 2014

9

MIM REACTION TO BUDGET 2015

Every budget brings with it a number of changes that the country will be going through in the coming year or years. The 2015 budget hints to various changes that will require various management skills. The Malta Institute of Management would like to highlight a few of these and calls on Government to ensure even more implementation of best management practices.

The Budget 2015 suggests various new projects, some of which come in a public private partnership formula. One must ensure that appropriate Project Management is in place in order to ensure that there is no over spending and that budgets are adhered to. On too many occasions over the year budgets seem not to have been appropriately contemplated. Apart from the quality of the budgets and forecasts themselves, this variance on various occasions may be also attributable to non-efficient use of resources, bad time management and also bad project management. On certain occasions the country may have experienced also lack of appropriate change management which was very costly to the country.

Malta will once again go through significant changes particularly it seems in the area of transportation. The MIM calls on Government to ensure that there is an appropriate change management plan. The MIM had expressed this concern also in the introduction of the bus service Arriva. We trust that through

its own experiences, Transport Malta will implement a better change management strategy than the one at the time.

Change Management matters apply also in other areas such as those taking place in the area of taxation . From what is seen from the outside certainly there may be room for improvement in this area particularly in the changes that seem to be happening in the IT systems and the interaction of tax officers with the general public.

A significant change announced in the Budget speech was that of shifting the tax enforcement unit to the army and implementing systems similar to the Guardia di Finanza. MIM calls on Government to clarify at the earliest its intentions as certainly this is not giving the right message in the international investors fora. Mitigating abuse is certainly positive but heading towards a system that was a disaster for business environment is very discouraging.

MIM wishes to believe that this was a wrong way of communicating the Government intentions.

The Malta Institute of Management as declared in the past is not in agreement with the removal of Capital Gains Tax. It would have expected Government to remove the Final Withholding Tax rather than the other way round. There are various reasons for this as stated in the pre budget proposals.

Issue 4 - December 2014

The removal of the exemption of VAT exemption from registration is a step in the right direction given the amount of evasion that this created apart from the complications it gave rise to in transactions with registered persons.

The changes in education seem to have kicked in the right direction even with the encouragement of less fortunate persons to attend. The changes have been mainly focused on children education including the reintroduction of subjects that have been missing for a number of years which left an impact on the business world. The MIM feels that this is a positive way forward but encourages the Minister of Education to engage into new modes of education and in introducing various other skills in the curriculum that to date do not exist. This, apart from soft skills that are required in the business world, should include also skills that are required as a nation such as how to promote one’s country and why it is beneficial to do so. To date such skills and others do not seem to be included.

The MIM calls for further changes in adult education and to open up opportunities as much as possible for students. In spite of the improvements in the education sector Malta can do much more. However, there are anomalies in various legislation, that defeat what the education system in Malta has been trying to do. It is futile encouraging new qualifications that are not recognised by the

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respective legislation in the professions.

The warrants system needs to be reviewed and reflect todays necessities and qualifications. Professions cannot be hijacked by specific institutes or qualifications.

MIM is pleased of the launch of the second Training Aid Framework and hopes that the mechanisms will work more efficiently than the first one.

MIM notes the various incentives given in various sectors to create employment and encourages employees. This is particularly so with the reduction of Income tax and with respect to the activities being undertaken in the area of youth employment.

At the same time, the MIM would like to draw the attention of Government that in spite of the good intentions of the propositions made some may require further analysis on the effect of them on the industry and on how the implementation can be more effective than the intention. Particular reference is made to the enforcement of the employment of disabled persons. Perhaps if Malta wants to encourage this and assist employers in achieving this one should be considering supported employment through a system similar to LSAs in schools.

The Malta Institute of Management is positive on the introduction of the maternity leave fund which partially addresses the criticism MIM had on the previous system. This fund

should encourage even more the participation of women in the country’s economic growth.

MIM is pleased that on various measures the Government tried to mitigate the burden on employers amongst others the onetime bonus.

The Malta Institute of Management feels that the step taken in the budget to introduce Islamic Finance in Malta is laudable. The MIM has been working on the subject for more than 7 years and has gauged a significant expertise in the area. Unfortunately a lot of opportunities have been lost due to the delay in taking the necessary steps. It seems that this administration wants to benefit from the opportunities provided by this area. Whilst MIM feels that velocity is of the essence at the moment, it sends also a message of caution to Government when it comes to legislative changes. Experience shows that people than to reduce the difficulty and delicate matters in changes and rush to conclusions which at face value may show to be addressing the necessary changes. In reality Islamic Finance is a complex system of finance which means that one needs to study thoroughly the implications of changes. Changes will also depend on the strategic direction that one will want to take. MIM notes that certain studies published in the past were from an Islamic finance perspective superficial and in MIM view this was one of the reason Malta has not flourished in the sector. Malta should learn from its own mistakes as well.

MIM notes the positive steps taken by the Issue 4 - December 2014

University of Malta and MCAST to introduce Islamic Finance modules in certain qualifications.

MIM notes a step in the right direction in addressing the pensions issues. However, MIM feels that the Government needs to gear into a momentum that addresses further the pensions issue within the next two years.

Finally, the Malta Institute of Management augurs that the measures taken will lead to further economic and social development of Malta. It believes that overall this has been a positive budget although it has its reservations on certain measures.

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Microfinance in Malta

by Dr

Atef Elshabrawy 1 Ex. CEO-founder of Family, Bank, Bahrain Development Advisory for the Govenment of Bahrain

The story of microfinance is known to be started nearly 40 years ago when Prof.

Muhammad Yunus, lent $27 to a group of women in Bangladesh producing handmade items, while traditional banks had been loath to fund such tiny operations, fearing high risk. Yunus, who founded later Grameen Bank, found these groups were mostly good credit risks, paying back loans fast and often borrowing more to expand.

Today developmental organizations are employing worldwide the microfinance to reach their goals of empowering needy and marginalized groups. By 2011, the global loan portfolio amounted to $78 billion, for about 200 million clients, mostly women.

Microfinance industry progressed beyond developing countries, on February 2013 the EC announced that over €100 million have been made available to 21 different microcredit providers in 15 countries across the EU, amounting to around 50% of the funds available under the European Progress Microfinance Facility called ‘’Progress Microfinance’’. A number of new microfinance agreements were signed at the end of 2012 including deals with Adie in France, SocGen Expressbank in Bulgaria and Microfinance Ireland institution in Ireland. In total, €500 million of microloans to 46,000 microborrowers are expected to be made available until the end of Progress Microfinance by 20202.

Today we have between 450 to 500 million micro and SME’s worldwide, micro-entrepreneurs and self-employed are composing the large majority among them

In fact, the true revolution of microfinance is that its different programs give a chance to people who were denied the access to the financial market, opens new perspectives and empowers them so they can finally carry out their own ideas with their own resources, and escape assistance, subsidies and dependence, with the main focus on women. Microfinance experiences all around the world have

now definitely proved that the women, youth and needy, demand a wide range of financial services, are willing to bear the expenses related to them and are absolutely bankable. Today we have between 450 to 500 million micro and SME’s worldwide, micro-entrepreneurs and self-employed are composing the large majority among them.

In reality, microfinance is constituted by a range of financial services for people who are traditionally considered ‘’unbankable’’, but also is used, especially in advanced economies, for other functions. Microcredit is defined by the European Union as small loans reaching a maximum amount of €25,000 considered as instrument of:

a) self-employment (micro-entrepreneurs) encouragement; b) the creation and development of small businesses; and more recently also c) support to individual demand (education, housing, health, etc.).

Recent study on the self-employment in Europe pointed out that we have about 34 million self-employed in the continent. In Malta, about 21,137 self-employed were counted in the fourth quarter of 2009. Selfemployed persons represent about 13 % of the total working population, however the European average is 16%. The great majority of the self-employed are men (82 %)3. Indeed, the gender inequality in this sector of the labour market is considerably higher than that of the general working population.

Despite the relatively low unemployment rate in Malta, 6.4% in 2013, and the various initiatives established supporting SME’s

by Malta Enterprise and entrepreneurship training programme at the University of Malta and MCAST, there is an increasing need to ensure justice and fairness in the job creation tools and policies especially towards supporting micro-entrepreneurship. More efforts and care to be provided to empower women, young and needy persons in order to stimulate their role as partners in any national development plan and considering the social dimension within any economic growth.

Issue 4 - December 2014

Microfinance should constitute a new avenue, amongst various ways the government in Malta would use to ensure sustainable and faire development. It seems that there is still ample space for microfinance programs to create loan schemes to micro and small businesses. Such programs might have specific orientation and objectives: either by category of individuals, targeting women, youth and needy; or by economic sectors particularly to target developing some sectors like handcraft, traditional homebased production and green economy, or by geographical factors to target specific regions or villages. Malta can benefit from microfinance programs, as other EU countries, to enhance its eco-system for entrepreneurship providing a leading development model in the Mediterranean region.

Finally, as in most of microfinance programs worldwide, the capital of these programs are not exclusively coming from governmental funds, as they are often created within partnership between private sector and NGO’s (non-governmental organizations) and/or from international market of microfinance as well as donors which is the historical source of funds for such developmental programs. I presume that the establishment of such partnership is an easily task in Malta, where the culture of philanthropic and solidarity is extremely developed.

1 Senior expert in social development & Islamic finance, email: Atef.alshabrawy@gmail.com 2 Over EUR 100 million made available from EU Progress Microfinance so far’’, European Investment Fund 12 February 2013 (http://www.eif.org/what_we_do/microfinance/news/2013/progress. htm).

3 Manwel Debono “EEO Review: Self-employment, 2010 Malta”.

European Employment Observatory

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MARKETING BRINGS ORGANISATIONS, PRODUCTS AND SERVICES TO LIFE! Louis Olivieri, Marketing and Business Development Consultant

by

Marketing can be seen as a young and developing profession where there are different perceptions on how marketing tools can be applied when running and developing a business.

One point of view is that every successful business person has in some way or other done marketing whilst growing an organisation. A business can develop by finding ways of translating a vision into objectives which in turn could be achieved through the various projects and tasks which make up the business plan. Very often a business is termed as a ‘distinct legal personality’. A marketing interpretation of the term ‘personality’ of a business can be the source of inspiration to be creative on the aspect of how the subject of marketing and its tools can give ‘life’ to a business, its products and services whilst becoming known to the market, engaging to its customers and making healthy profits.

Like any person, a business has an identity, an image, vision, objectives and embarks on a continuous strife to accomplish them.

A business has clients, customers and stakeholders which relate to it economically.

In some cases an organisation’s stakeholders have a relationship based on a particular interest in it and in what it does. This brings us to the question of how can a business build its identity? How can it communicate and portray its image? The answer lies largely in how a business finds ways to apply marketing tools. Similar to the way a person can learn, grow and communicate by being brought up, receiving education and socialising among others, a business needs people to lead it and needs services of other organisations, as examples!

When referring to marketing, people including those in business, speak about advertising and today even more about social media, e-marketing, apps and the like. This is of course all relevant to business but there is more to defining marketing and its purpose within an organisation. In carrying out the day to day business, organisations very often focus energy on the products, services and how to sell them. In reality the revenue is derived from clients and customers and

hence, Marketing provides ways of how to put a vision into a successful venture from the planning stages through to attracting the right clients or customers who will eventually generate the business turnover and profitability.

In the same way as a person becomes part of society though building relationships, it can be seen that organisations, together with their products and services, will achieve their place in the market and earn success through building a relationship with the market segments which can be attracted to its products and services, which relationship, like any other, is built and maintained through communication. It is here that the marketing tools mentioned above together with many other possibilities take a role in marketing a product or service.

A good starting point is to have a marketing plan in place in which objectives could reflect the vision for a company. The ‘style’ in which the company operates can be depicted through its strategy. The market space in which the organisation will operate can be identified through the target audience it wishes to communicate with, to promote itself, its products and services. The day to day activity needed to be carried out in order to achieve the organisation’s aims are then mapped out on the plan and budgeted for.

Implementing a well drawn up marketing plan diligently can make a difference between running a business on a day to day basis through crisis management, trouble-shooting and possibly implementing a good idea which may have come up but which may not show the desired effects, to obtaining results strategically. This can be achieved because when an organisation has a plan in place, it could think and work long term whilst finding ways of how to make more effective use of its resources to execute the various tasks within the marketing plan.

Issue 4 - December 2014

An organisation can take the marketing route to seek to attract and build a relationship with the market segments and customers who will generate turnover. Ways in which this could be implemented are by building and maintaining a database. Some practical examples on the importance of having an organised database are to be in a position to carry out personalised e-marketing, to administer loyalty schemes and online shopping among many others. Client profiling, Customer Relationship Management (CRM) systems and customer care policies and practices in place are examples of how the organisation can build and maintain a relationship with its clients.

Marketing Communications tools, both classical such as advertising and contemporary such as social media provide instruments for organisations to build the desired image, to build and maintain relationships with customers, to promote products and services. This coupled by sponsorships, incentive schemes, the use of Apps. and Corporate Social Responsibility initiatives are all elements which can be incorporated into a marketing plan as a way to drive a business effectively.

A business, products and services become alive when they earn a place in society through market awareness and customer engagement. Creativity is a key word in the course of implementing plans which are important to have in place in order to give mind space for inspiration and to cultivate ideas along the way.

Louis Olivieri is a marketing and business development consultant having ventured into his marketing practice since the latter part of 2006. Since then he has worked for a number of organisations in different market sectors. Previously Louis climbed the career ladder though the different roles and posts he occupied from marketing executive to brand manager, marketing manager, operations manager.

He set up and is chairman of the Chartered Institute of Marketing Malta branch and chairs the marketing committee within the Malta Chamber of Commerce, Enterprise and Industry. louis@louisolivieri.com

17

SUKUK, A VIABLE ALTERNATE TO BONDS Sohail Zubairi, Chief Executive Officer, Dar Al Sharia Legal & Financial Consultancy LLC

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What are Sukuk and how these are different from conventional bonds?

Following explanation will help to understand it clearly: Conventional Bonds Bonds are an interest-bearing or a discounted corporate or sovereign or quasi-sovereign securities that obligates the issuer of the bonds to pay the bondholders a specified sum of money (interest), usually at specific intervals (monthly or quarterly), and to repay the principal amount (loan) at the agreed maturity. In other words, bonds are clean lending on interest by the bondholders to the issuer.

Bondholders have confirmation of indebtedness from the issuer in shape of bonds but do not enjoy corporate ownership privileges, as shareholders do.

Islamic Sukuk Investment Sukuk are certificates of equal value representing undivided shares in the ownership of an invested asset. A Sukuk takes place when a set of investors pool-in their wealth to invest in accordance with the Sharia principles with an aim to earn Halal (the term means permissible by Islamic principles) profit which is then distributed pro-rata amongst the investors.

Unlike bonds, the Sukuk holders have the pro-rata undivided ownership rights over the Sukuk asset(s).

Types of Sukuk Risk paradigm and tradability of each Sukuk is based on the nominate Sharia contract the transaction has been structured around. It is important to understand that the Sukuk in itself is not a Sharia contract or structure but merely a means to seek funds from the investors against issuing certificates to them.

The funds are then utilized in accordance with the objectives laid out in the offering circular (also called prospectus). Whilst the obligor is a single entity representing itself, Sukuk investors are large in number, and therefore are represented by a special purpose company created in an off-shore tax friendly jurisdiction.

Following are some of the most commonly used Sukuk structures: Sukuk Al Ijara (Leasing Sukuk) An agreement is reached between the investors and the obligor (party needing funds) whereby the investors purchase the obligor’s asset by paying cash and lease the same asset to the obligor for a defined lease term. The obligor (as lessee) pays the lease

rent to the Sukuk investors on a periodic basis during the lease term for using the asset, and purchases the asset on maturity of the lease term by making the bullet payment.

Sukuk investors receive periodic lease rent during the lease term and are redeemed at the end of it.

Sukuk Mudaraba (Fund Management Sukuk) The Sukuk investors enter into a Mudaraba agreement for an agreed period with the obligor and provide the entire Mudaraba capital to it. The Mudaraba capital is invested by the obligor as per the pre-agreed Sharia compliant business plan with projection of expected profit submitted by the obligor which is considered an integral part of the Mudaraba contract. The actual profit is distributed between the investors and obligor during the tenure of Mudaraba as per a preagreed distribution ratio. Upon completion of the Mudaraba tenure, the Mudaraba is liquidated and the capital is returned to Sukuk investors.

Sukuk Musharaka (Partnership/JV Sukuk) The obligor and Sukuk investors enter into a Musharaka agreement whereby both contribute capital. The capital contribution by the obligor could be in kind as well, such as a plot of land on which a residential tower needs to be built with cash contribution by the Sukuk investors. The Musharaka capital (e.g. land plus cash) is invested by the obligor as per the Musharaka feasibility study for and on behalf of the Musharaka partners and the profit is distributed as per the pre-agreed ratio between partners. The Musharaka is liquidated upon completion of the agreed term and the capital is returned by the obligor to the Sukuk investors normally by purchasing the Sukuk investors’ share of the Musharaka asset.

Sukuk Wakala (Investment Agency Sukuk) The obligor and Sukuk investors enter into a Wakala agreement. The Sukuk investors provide the entire Sukuk amount to the obligor as Wakala capital (now acting as the wakeel or the investment agent) with the instruction to invest it in a certain Sharia compliant manner for a defined period with the return up to a certain expected threshold.

The wakeel invests the Wakala Sukuk capital accordingly and manages the investment till maturity and provides the Sukuk investors with the return expected by the investors and redeem them up on maturity. The wakeel is not entitled to any right on the profit generated by the Wakala investment however, Sukuk investors may grant the wakeel certain incentive out of the Wakala profit.

Issue 4 - December 2014

Hybrid Sukuk (Musharaka and Ijara) In addition to single structure Sukuk, there have been a few hybrid-structure Sukuk as well, such as Musharaka and Ijara, primarily for project finance purpose. The Musharaka– Ijara hybrid structure entails joining hands by the Sukuk investors and obligor as partners under Musharaka whereby upon completion of the project, the Sukuk investors lease their part of the asset to the obligor on operational or financial lease basis. In case of operational lease, the obligor purchases the Sukuk investors’ share in the asset whereas under financial lease, the Sukuk investors are gradually redeemed.

Tradability of Sukuk Since the Sukuk represent the pro-rated ownership of their holders in the leased asset, and not the debt as in case of conventional bond, there is no Sharia reservation on their being fully trade-able. As such, the Ijara Sukuk can be bought and sold freely in the secondary market, like the shares of a joint stock company. In such situation, new purchaser replaces the seller in the pro-rated ownership of the leased asset and all the rights and obligations of the seller are passed on to the new buyer. The selling price of the Sukuk in the secondary market is based on its demand and supply.

The Sukuk transactions which result in debt such as Murabaha, Salam and Istisna are not tradable since Sharia does not permit sale and purchase of debt. The Mudaraba, Musharaka and Wakala Sukuk are tradable since they represent the investment in a project or asset which does not result in a debt.

Malta Sukuk Facing the North African countries on one side and Europe on the other besides being a stable European jurisdiction with low foreign debt, Malta is ideally placed to tap this accessible liquidity by issuing her landmark sovereign Sukuk.

The Sukuk proceeds can be diverted towards country’s various developmental needs which do not raise any Sharia issues, namely roads, bridges, renewable energy, hospitals, technology parks, residential real estate, etc.

Whilst the structure of the Ijara Sukuk may be utilized to generate immediate liquidity requirement, the hybrid structure may be ideal for the greenfield projects mentioned above.

Mr Sohail Zubairi • Tel. 050 6514235 CEO of Dar Al Sharia

19

WAYS BUSINESSES CAN EMBRACE TECHNOLOGY TO IMPROVE EFFICIENCY Simon Bonnano CEO Holistic

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Digital technology is transforming how we all work in ways that are completely disruptive and while it’s not likely that any of the following tactics will increase your productivity in ways that allows you to do the job of 100 people, it’s very likely that your company (and certainly your competitors) are taking very close look at them, and probably they’re already using them.

1. Embrace Technology for Inventory Management

What are the pain points?

Inventory management can be extremely labor-intensive. In many companies, it’s a manual process that requires someone to check products by hand against a paper document or, at best, an Excel spreadsheet.

Not only is the process time-intensive, it also carries a high potential for human error. Beyond individual products, it’s also extremely labor-intensive to gather aggregate data for strategic planning and reporting.

A costly and inefficient process.

How technology helps: A digital inventory management solution delivers reduced labor costs as the result of far greater efficiency in the overall inventory management process. Errors are minimized, which in turn means a reduction in over stocking or lost sales which means additional cost savings. Beyond these very tangible benefits, companies using inventory management systems enjoy faster and more accurate access to data and an overall increase in organizational transparency. All in all, a big win.

2. Embrace technology for social media management

What are the pain points?

Social media gets more complicated by the day as consumers embrace new platforms for sharing news, photos and recommendations.

Companies need to do more to understand how their customers and potential customers are interacting in their online networks they need to put into place systems for understanding how their products and services are being discussed, reaching out to those customers and being agile and responsive to interactions in real time.

How technology helps: Setting up a social media profile and broadcasting general information isn’t enough anymore. Social media sentiment analysis tools can help a brand identify useful pieces of information amidst the flood of available data. Social media dashboards that empower a digital communications manager to monitor and respond to posts and conversations on multiple platforms can maximize worker efficiency while minimizing response time to online questions and conversations.

3. Embrace technology for customer relationship management

What are the pain points? Customer relationship management is tough enough especially when you have a mix of customers.

On the one hand, there’s a B2C relationship strategy; on the other hand, there’s a B2B strategy. Managing all the communications use cases and relationship flows can be very complex.

How technology helps: Customer relationship management is not just sending emails.

The word “relationship” suggests a twoway type of communication, as opposed to broadcasting sales messages via email, which is a one-way type of communication.

A proper CRM system,working in conjunction with other internal systems, can empower a company to engage in meaningful conversations with its customers.

4. Embrace technology for obtaining competitive intelligence

What are the pain points?

There is a ridiculous amount of data being generated by media, consumers of media, customers, potential customers, on companies web pages, on media websites and throughout the digital universe. It is a daunting task for a company to be able to sift through it all and find the kind of actionable intelligence that can help provide a competitive advantage.

How technology helps: Imagine being able to examine the immeasurable amounts of content in competitors websites and develop a unique understanding of the dynamics of the marketplace. Retailers can automate the process of gathering competitor prices and so adjust their prices accordingly. These are just two of many ways in which technology allows companies to embrace and leverage big data as a strategic advantage. If big data isn’t part of your overall business strategy, it needs to be.

5. Embrace technology for maximum worker productivity

What are the pain points?

Think about a customer calling your company to request a price for a service, or a series of services and available delivery dates. Instead of providing a prompt reply, staff send e-mails and file attachments to other departments and then check the latest price lists and availability dates. Someone can spend their entire work day managing the customer request process.

How technology helps: A solution like the Holistic Business Advantage Suite can help by providing a workflow whereby the customer can check online about prices and availability dates without needing to contact any staff member.

To have the customer facing systems properly updated, proper internal collaboration and Management Information Systems tools

Issue 4 - December 2014

must be in place and easily maintainable.

What used to be a very complex process is now automated and simpler. Everyone winsincluding (and especially) your bottom line.

6. Embrace technology for Decision Making

What are the pain points?

Whenever we need information we go to search engines and find that data rather easily. However when we need to search information about our company , in most cases, we need to ask various departments to collate that data for us manually. The process could take days if not weeks and will also be prone to user errors and definitely not in real time.

How technology helps: A BI solution would help to collect and analyze data from various data sources and present real-time interactive dashboards.

Companies are sitting on a gold mine of data both in structured and unstructured formats.

Being able to mine that data will help the company make informed decisions rapidly and have a competitive edge over competitors.

7. Embrace technology for Training What are the pain points? IT systems are as good as people’s knowledge on how to use them. Untrained staff will not make the best use of the systems available.

How technology helps: Continuous training, through latest technological innovations, will ensure that staff understand the business processes that the system covers and also how to make the best use of such systems.

Automating our business processes is the only way we can remain ahead of our competitors, or rather remain into existence as a business.

The tools which were once designed for complex companies are now affordable and available to any size or nature of business.

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A POSITIVE AND HEALTHY FUTURE FOR GLOBALCAPITAL Interview with Reuben Zammit CEO, GlobalCapital

1. How are you settling in?

I was already employed with GlobalCapital for 6 years joining as the Group Financial Controller, later appointed as Chief Financial Officer so knowing the environment proved helpful to adapt to my new role as Chief Executive Officer. Thankfully, I hasten to add, because immediately upon my appointment as CEO last June, the Board of Directors tasked me with the implementation of a turnaround strategy within a short timeframe of 18 months.

I am very lucky to be surrounded by a hard working team of dedicated colleagues and employees. They are invaluable to the company and without their effort, my task would be impossible to achieve.

Ultimately, whatever we do as a team has to lead to generating increased shareholder value. I believe we are on the right track to achieve this objective in the short to medium term.

2. What challenges do you face and what tools do you take to the table as the newly appointed CEO?

A new strategy approved by the Board of Directors focuses exclusively on our core business and strengthening revenue streams from it. GlobalCapital is now exclusively focused on the provision of insurance services, specifically Life and Health Insurance services.

We are fortunate to represent one of the world’s leading health insurance provider, Bupa, which holds immense brand equity and is considered by many to be an industry standard. Some people colloquially refer to health insurance as Bupa just like they would refer to a food processor as Kenwood or Hoover for a vacuum cleaner. Revenues from Life insurance products have increased

3. How would 4. What challenges you describe does the industry your management face at the moment? style? What drives Probably, it is the same long-term challenge you and what do you that the country is facing at this moment: try to instill into your savings and pensions. employees?

It is statistically proven that people are We work to serve our clients. Their lives, their healthcare, as well as their families’ wellbeing, rely on our expertise to provide them with insurance solutions for their protection and peace of mind.

Every employee at GlobalCapital is 100% focused on his or her client portfolio or on those processes that enable our customers to live with peace of mind.

It sounds easy but in reality, it is a constant challenge to remind ourselves that we are the enablers for people to live happily with the peace of mind that if and when something goes wrong, their insurance provider will be their strongest shoulder at the toughest of times.

Building this confidence and winning the trust of our clients is exceptionally important to create an environment of tranquility and harmony between client and service provider.

devoting less attention to saving for their future. We need the government to embark on a structured communications drive to help people understand the importance of saving for their future. Pensions are unsustainable and the country is already late in tackling this issue appropriately.

Insurance providers will provide the right product to the individual client but ultimately, it is the policymaker’s role to ensure that everyone is aware of the income they will receive upon reaching pensionable age. It is also the government’s duty to be upfront with the people and to share with them all the information about their income as pensioners of the future. It is mathematically possible to work out every individual’s future pension and I’m sure some people will be shocked to learn that their income will be reduced substantially and possibly below their minimum required threshold. This “shock” is part of the solution to help people understand the need to start saving today for their future.

Issue 4 - December 2014

steadily over the past months and we are in the process of recruiting new intermediaries to strengthen our sales network even further.

As often is the case, cost rationalization is key to the successful implementation of any restructuring process. I believe that today our organization is as lean and dynamic as it needs to be to achieve the objectives mandated by the Board of Directors that is, to focus exclusively on life and health insurance services.

It’s a tall order but with everyone’s goodwill we are achieving our targets, possibly faster than we planned. Every morning, I ask myself two simple questions: “how can I bring the best out of my team?” and “how can we beat our clients’ expectations?”. My role is to act as a catalyst for incubating new ideas because ultimately, the correct answers to those two questions will lead to the evolution of our Group into one of Malta’s leading insurance providers.

5. What is your outlook for the future for GlobalCapital?

Positive and healthy.

We are transforming GlobalCapital into a focused insurance provider. We are working closely with our stakeholders to address legacy issues that in past financial years may have had a negative impact on the company’s revenue streams and reputation.

It’s a three-fold turn-around strategy: cost rationalization to streamline the organization in line with our core business objectives, growing revenues exclusively from our core business and addressing legacy issues to enable us to move forward stronger.

GlobalCapital is here to stay and the new strategy adopted in June is intended to lay the necessary foundations to achieve success in the near future. I’m lucky to have the full support of our Board of Directors and shareholders who continue to show their support for the company’s long-term benefit.

2014 was a transformational year for GlobalCapital. We look forward to 2015 with a big appetite for success.

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THE GOOD, THE BAD & THE UGLY TRAINING OPPORTUNITY Gianfranco Capozzi, Director at Erremme Recruitment

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In America, the Master of Business Administration has officially become the most popular graduate degree because it is able to give a complete 360˚ vision over business issues and particularly beneficial for business people and young entrepreneurs. Despite this some may still be hesitant about which training opportunities to offer our employees.

If we consider that the main core curriculum in all world’s Business Schools include courses in finance, marketing, accounting, human resources, operations and strategy, we can easily recognise that these, amongst others, represent the essential academic tools to understand, analyse and implement business ideas in every single enterprise.

Nonetheless, when it comes to employees in executive positions, it is indispensable to identify their role in conjunction with the necessary qualifications and the right skills to perform their job efficiently.

I must admit that it is practically impossible to be perfectly knowledgeable or proficient in all different subjects. An Economist might be lacking in PR, advertising and creative abilities, typically held by marketing managers, while even experienced marketers have gaps in accounting and financial methodologies.

Thus, it is essential for Directors and HR Managers to be well aware of two truths:

1. Delegation of tasks which involve a certain level of responsibility should be encouraged, since our employees can easily be specialised in the specific area where they operate, sometimes more than ourselves.

2. HR’s strategic choices are increasingly becoming crucial to the business development, since it is only through these strategic choices that the company is able to gain the best benefits from its staff: knowledge, skills, motivation, commitment and results.

In fact, in today’s businesses, we have seen an ever-growing prominence in the role of human resource management as a key and strategic role for the pursuit of competitive advantage and success. Our employees’ skills and expertise represent an important organisational asset that needs to be talent managed strategically, and therefore, training and development should continually be seen as an investment rather than a cost.

But at this point, the choice of taking a specific training opportunity should be carefully evaluated, since the wrong selection could turn out to be a waste of time and money. A decision taken purely from an economic aspect, i.e. choosing a cheap course, may not necessarily turn out to be the most cost-effective solution, and what seems like a good opportunity (just because of price), could in reality involve bad training services leading to ugly consequences.

At our Company, besides offering traditional recruitment services such as job openings, screening of CVs, interviewing and shortlisting of candidates, we also introduced tailored training solutions for employees.

These involve both practical and theoretical methods: whilst attending lectures once a week, trainees can also gain a first-hand feel on the job experience through practice.

We recognise that on-the-job training renders a strong impact on candidates willing to change their career, making them more confident in new job positions. Moreover, the result is the acclaimed cost-effective solution, less disruptive than simply sending employees to attend class-lectures, and it is particularly useful for those Companies who necessarily require specific skills that are difficult to attain in a lecture.

On the other hand, another aspect which needs to be analysed with particular attention is the employees’ attitude. Their attitudes and personal motivations can undoubtedly influence operations and their effectiveness.

In terms of productivity, they can definitely Issue 4 - December 2014

have a positive or a negative impact on the outcome of the business.

An efficient Mind-Set, which should not be imposed but cultivated in each and every individual, is an instilled value for continuous professional development; to become better and better through constant improvement, proactively responding to an evolving market with the willingness to enhance skills and performance.

That is exactly what an Entrepreneurial Mind-Set is, which in due course should not be taken only from business owners and entrepreneurs, but from everyone who wants to advance in his/her own career. Companies are always on the lookout for brilliant, innovative and proactive staff, capable of adding value to the business and yielding results.

The most valuable piece of advice that one can give to young new talents is indeed to act like business owners, to think and behave like his/her own boss, to strive to give their best performance, to look for new ways to reduce company costs, to search for new revenue opportunities and new deals.

The necessity to act with passion and enthusiasm is indisputably a determining factor for success. Employers and employees have to walk hand in hand; as the companies learn to invest in new talent, employees perceive to be valued collaborators, who have a real and tangible impact on business growth, and thus it becomes natural and almost instinctive for them to give an absolute 100% in performance. Then and only then can a true alliance be formed, one in which both parties involved can constantly move forward, on the same direction and reach their goals, may it be business growth or personal success.

Our Mind-Set is our only limit to success.

25

Dressed to Impress

by Caroline Paris Fashion Stylist and Journalist

First impressions count, it’s a fact, as human beings we are prone to making snap judgements and placing both people and objects into firm categories according to those judgements. If we get a wrong first impression of someone or something, it can take a lot of convincing to disassociate that impression from our minds.

As career people, we tend to meet new people very frequently whilst on the job, we want to be sure that every person we meet forms a good impression, even if we don’t get the chance to actually talk at length with them.

The image we present to them can greatly affect this, an image is built from many thingsour appearance, our body language, our behaviour, all these elements are equally important.

Be comfortable

The focus of this article is on Women and our professional appearance, how wearing the right clothes, following a few golden rules and ensuring our image is well maintained can help set the right tone.

Always dress for the job you’d like to have.

If you’re not currently the manager but would like to take on that role one day in the future, dress as though you already have that role, that way people will associate you with the look required for that role. Obviously what you actually wear depends on the job, a financial consultant will dress very differently to a shop manager.

Be comfortable - I’m generally all for withstanding some pain so as to look good but I only apply this reasoning to attending events/parties and the like.

Your everyday life needs to have a certain level of comfort, if your job involves lots of walking around and you don’t find high heels that comfortable, then don’t wear them. Invest in a good quality, stylish pair of flat shoes and avoid hobbling around. Same reasoning applies to clothes that are a bit too small or that you just don’t enjoy wearing. There are limits, you can’t go to work in your pyjamas but you should be comfortable, otherwise you might be distracted and project an image of unease.

Always keep on hand an emergency kit - stain remover wipes, a clothes brush, a spare pair of tights, blister plasters, dental floss and even deodorant spray.

Issue - December 2014 Issue 4 -4December 2014

Makeup is your friend not your enemy Don’t play up your sexuality. Unless you’re working within the glamour industry, the workplace is no place for sexual references, cleavage should be kept to a minimum, short skirts should not be worn and avoid wearing anything too clingy. Whilst there’s no reason why you should conceal the fact that you are a woman, at the same time, it’s not the only thing you want your colleagues to perceive.

On the same topic, underwear should never ever show - no visible bra straps, no visible panty lines, no visible anything...it’s underwear so keep it underneath.

Never ever have chipped nail polish. Nothing looks more untidy and more careless than chipped nail polish. No nail polish at all is always a much, much better option than chipped. Also, ensure your nails are clean and tidy and avoid broken nails.

Makeup is your friend not your enemy.

I know many people who state that they don’t wear makeup to work as though it’s a label of honour, I’ve never understood it. There are very, very few women who don’t look better and more put together with makeup. The Maltese complexion is often somewhat sallow and we also tend to suffer from dark circles, using makeup to hide dark circles and any lurking spots and blemishes can help you look more alert, more rested and more fresh faced.

On the other end of the spectrum, do not ever go to work wearing heavy makeup, keep this for a night out, remember at work you need to look professional.

Hair should be tidy. We all have bad hair days, I’m the first to admit to having many of my own but there’s always a tidy option - pulling your hair back into a bun, whilst maybe not always the most flattering look is at least tidy. Try to avoid having dirty hair especially if your hair tends to be a bit oily, in an emergency wearing a smart, stylish hair band and pulling your hair back, away from your face can help conceal it.

The truth is that most of the time if we really used our common sense, we do have the knowledge to make the right choices. Most women understand that a low cut top is inappropriate for the workplace and that hair should always be clean but we get lazy and complacent. Keeping your appearance polished takes time and effort, I understand that but in the end it is generally worth it.

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Gozo’s Property Ambassador

by Marie Grech Frank Salt Real Estate Branch Manager

Frank Salt Real Estate Branch Manager Marie Grech has spearheaded the Gozo office for 25 years. Here she steps back in time to recall the early years of the housing boom, and looks to the future to explain why Gozo still makes the ideal property investment.

These days Marie Grech is a stalwart of the Gozo property industry. Having worked her way up over the years, she has overseen countless sales and purchases, and even helped to encourage the sector’s general development.

“This job was definitely meant for me!” smiles Marie, a busy mum who joined the team in 1989. “I had just returned to Gozo from Australia and was looking forward to a relaxing summer; I had no intention of working.

“However, a friend knew that the new Gozo office was looking for a secretary and convinced me I should put myself forward. In the end, I went along for the interview and found myself absolutely hooked! A year or so later I was offered the management position there and I haven’t looked back since.”

The FSRE Gozo office was actually the first of its kind on the island. “We weren’t a

development company so we had to change perceptions along the way,” Marie explains.

“It required people to shift away from the ‘sensar’ mentality that prevailed at the time which took some encouragement, but they soon adapted to the idea.”

Back then it was mostly foreigners on the list of property clients in Gozo. “People regularly fell in love with Gozo while on holiday and they would be eager to see their options for purchasing a property. Prices then were low when compared to the UK so sales came easily. It was very exciting.”

“The market has gone through all sorts of highs and lows since then. In the early 90s there was a surge of Maltese wanting to purchase holiday homes on Gozo, which helped to tide over the dip in foreigners because of the Gulf War and the European recession. Meanwhile new markets emerged too, including from Hong Kong and South Africa.”

“Even though other agencies have opened up, we have always prided ourselves on giving a good, honest service and this has set us apart.

It’s always great to see customers coming back to us whenever they need a property service. As a result, Gozitan property owners are always eager to give us their properties to place on the market and they trust our advice on everything from valuations to marketing.

We’re always happy to help.”

And it’s that desire to go the extra mile that helps to set the Gozo branch apart. “We offer a whole range of supplementary services, including pool servicing, and property

Issue 4 - December 2014

finishing and furnishing,” says Marie. “The office is constantly buzzing with the array of jobs waiting to be done, and the whole team works together brilliantly.”

Naturally Marie has had the odd challenge along the way. “What I didn’t realise, was that I had landed straight into a predominantly man’s world,” she quips. “At first I was frowned upon by both workmen and professionals alike, but they soon got used to me. In fact, they started asking for my unique perspective and woman’s opinion!”

“Today we have clients from all over the world and Gozo continues to charm them.

We’re also attracting quite an upmarket clientele, which is fantastic – as long as we have the right properties for them!

“In relation to that, I think it is vital that MEPA and the other relevant authorities join forces to create a plan for the island’s property industry – it’s pointless having an endless supply of apartments available if the market wants houses with gardens. Gozo is only small and we must ensure that we only build what is needed and in demand.”

Marie is also adamant that now is the right time to invest in property on Gozo. “I have always believed in the property market here, even when it had reached its lowest point. Now prices have been stagnant for a while, so they are bound to shoot up soon, which makes this the ideal opportunity. Good properties are limited though, so buy well to ensure your investment is secure,” she adds.

29

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Triq Anton Buttigieg, Zejtun - T: 2180 7667

MARSA MEAT SHOP

Mgieret Road, Marsa - T: 2122 0231

MELLIEHA MEAT SHOP

Main Street, Mellieha - T: 2152 2477

PISCOPOS CASH AND CARRY

Triq l-Erbà Mwiezeb, St. Paul’s Bay - T: 2158 1112

SHOPWISE SUPERMARKET

Triq l-Imdina, Qormi - T: 2146 3093

TA’ DIRJANU

Mgarr Road, Ghajnsielem, Gozo - T: 2156 5927

TOWER SUPERMARKET COMPLEX High Street, Sliema - T: 2131 9633

TROLEES SUPERMARKET

Triq il-Merluz, Qawra - T: 2157 9178

The Malta Police Force

200 Years from its Establishment

A few weeks ago the Malta Police Force celebrated its 200th anniversary from its establishment, where afterwards coincidentally other Forces were also being established in those times. A documentation which is very well preserved in our Police Museum explains how the Force was established, by whom, and the aim of its foundation.

The word ‘Police’ which as a term was used by countries around the world, derived from the ancient Greek word, ‘Politea’, which means the service and duty to the public.

Another similar word used of the same ancient Greek, ‘Polis’ means the state of a city where civilization lives in a certain order, in a sense we understand today. From the same principle, ‘Polis’ connotates also from the words ‘Politics’ and ‘Politicians’, which means, the good for the subaltern, from whom have a certain power, morally and materialistically.

As we know, the Greeks and the Romans were the catalysts, who created laws for the

well-being and good order of the civilisation.

Their model served to other nations in order to form their basic legislation, including our country. In Malta we had also a form of authority to keep good order. In the Arab era (870 A.D), there was a form of an order to manage discipline amongst the people, which they called, ‘Is-Sahib El-Xurta’; in the Spanish times (1283 A.D), it was managed under the ‘Kapitano Della Verga’; afterwards, The ‘Dejma’ Korps and in 1530 A.D the Knights of St John of Jerusalem who were under the command of the Head of Justice ‘Gran Visconte’, they were known as ‘Cursores’.

When Majors were appointed to rule villages

Issue 4 - December 2014

and cities in 1735 A.D, one of their duties was to manage the order of his particular village or city.

When the British came over to rule in 1800 A.D these guardians or Police might have had a certain kind of uniform, which varied from one reign to another. This was noted from Maltese antique collections of drawings and incisions. In 1833 A.D there was a type of uniform officially used, similar to the one which was developed along the years.

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Law Enforcement SM J. Borg 29th September 2014

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During the early years of British rule in Malta, justice was administered in conformity with the laws and institutions left by the Order of St John. However, the lack of an organsed Police Force burdened law enforcement and the maintenance of good order.

On the 1st of July 1814, the Governor of Malta, Lt General Sir Thomas Maitland, issued Proclamation XXII, which abolished the powers exercised in the administration of law and order; instead, two distinct departments; the executive and the judicial Police were established to create a separation between the executive legislative and judicial authorities. The executive Police was given powers of arrest but persons could not be detained for more than 24 hours before appearing in front of a magistrate. Colonel Francesco Rivalora, a Corsican, was appointed Inspector General of Police.

In the first years from establishment there were 200 members in a population of 117,000 subsequently, the Police Force was increased and recorded that by 1842, the members comprised of 159 constables and 33 sergeants. The first members did not wear a uniform, they were recognised as a Police Officer or a legal authority from their sword, pistol and truncheon that they carried.

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To be eligible for enrollment, there was a height requirement which was of 5 foot 5.

There were 45 Police stations around the island. The Governor of Malta proposed a re-organisation of the Police Force and in 1850 the British authorities announced an increase in the Police complement.

Enlistment had to be made at the lowest rank and promotion was based on merit and the ability to read and write in Italian.

The first offices used by Police were located in Valletta and were named as The Office of the Inspector General; the first one, ‘Il-Kastellanijja’ with an entrance in Triq l-Arcisqof, then in Merchant Street a building still known as ‘Il-Klistanijja’, the same building was the Courts and prison during the Knights era. In 1872 The Central Police Office was located at Number 152 in Strait Street, Valletta. This building made part of Auberge D’Auvergne, which was demolished during the Second World War; today instead there is the Law Courts building. In the time of Commissioner Colonel Henry Bamford, in 1919, the Head Quarters was located at ‘Sacra Infermeria’ now known as The Mediterranean Conference Centre (MCC).

In 1941, during the Second World War the Headquarters had an emergency move, temporarily from the ‘Sacra Infermeria’, which was close to the Grand Harbour, to the Marceze Vincezo Bugeja Institute at Fleur De Lys, where from there on the 5th of March 1954, they were forced to move against judicial protest to The Central Hospital of Malta in Floriana, where until this day they are still operating from this building.

Lt. Col. Henry Balneavis 1822 - 1832