Business agenda 23

businessagenda

A report conducted by the MBB in 2013 on the market gaps in access to finance in Malta showed that a section of the business lifecycle, particularly at start-up and seed stage, was not being catered for sufficiently by the existing instruments avail-able on the local credit market. This encouraged the MBB, which teamed up with the University of Malta, to explore crowdfunding as a viable financing option for businesses.

“In recent years, crowdfunding has become increasingly rel-evant in the world of finance, particularly due to its digital dimension and in view of the financial crisis that limited the access to finance for start-ups and SMEs,” says MBB President Mario Spiteri. “We realised that this had the potential to become a national project rather than a commercial activity, which is why we partnered up with the Univer-sity of Malta, as a public institu-tion that is equally committed to

encouraging entrepreneurship in Malta.”

Mario Spiteri, together with Uni-versity Rector Juanito Camilleri and Permanent Secretary at the Ministry for the Economy, Invest-ment and Small Business Nancy Caruana speak about the initia-tive and its role as a financing instrument for small businesses and entrepreneurs in Malta.

THe Official business publicaTiOn Of THe MalTa business bureau

THIS ISSUE neWspaper pOsT

DESIGNInterior designer Vera Sant Fournier

offers her expertise on what it takes to achieve a stimulating and

attractive office space.page 34

INTERVIEWMinister for Education and Employment Evarist Bartolo discusses the importance of a partnership between education and industry to tackle pressing issues relating to the job market.

page 10

POLICY MBB’s Policy Executive Mark Seychell reviews the European Commission’s efforts to eliminate borders for digital goods and services.

page 37

CASE STUDYGO’s Chief Commercial Officer Kurt Camilleri discusses the company’s recent investments, including the €50 million roll-out of fibre internet over the next five years.

page 14

ISSUE 23 | SUMMER 2015

MalTa’s firsT crOWdfunding plaTfOrM TO be launcHed befOre year’s end

With the ongoing financial crisis in Greece, other countries – like Italy and Spain – also struggling to cope and the Sterling surging to its highest rate since 2007, the Euro is facing a very challenging time, and the Eurozone more uncertainty than ever before.

There’s no denying the repercus-sions of a weak Euro against other global currencies. But, as with most things, there are some pros and some cons, depending on where you’re standing. Bank

of Valletta’s Chief Officer of investment services, Romeo Cutajar says a weak Euro can be viewed as a positive within the export sector of the economy, as entities which are exporting their goods and services (including the tourism sector) will benefit as their product becomes more competitive when servicing cus-tomers outside the Eurozone.

“On the other hand, for the importer, a weaker Euro will increase his cost base and can

negatively impact his profitability if he is not in a position to trans-fer that increase to the customer for competitive or other reasons. The weaker Euro can also leave a negative impact on the price of fuel imports which are normally invoiced in US dollars, although these have currently been offset by lower oil prices.”

dOes a Weak eurO presenT an OppOrTuniTy fOr TOurisM?

See full story on page 5.

anniversaryTH

2009-

2014

INTERVIEW European People's Party MEP Andreas Schwab discusses the need for European Digital Governance, to establish a framework of responsibilities for e-commerce systems.

page 28

See full story on page 8.

2 BUSINESS AGENDA | SUMMER 2015

3BUSINESS AGENDA | SUMMER 2015

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Editor: Joe Tanti Deputy Editor: Martina Said Design: Nicholas Cutajar

Editorial Team: Ana Vella, Daniel Debono, Mark Seychell, Sarah Micallef and Jo Caruana

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

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.

ediTOrial

The Transatlantic Trade and Investment Partnership (TTIP) is arguably one of the most ambitious projects the EU has embarked on. In essence, it is a Free Trade Agreement which the European Union and the United States have been nego-tiating since 2013 when the first TTIP talks began. Soon reaching the 10th round of negotiations, TTIP seeks to remove tariffs, trade restrictions and non-trade barriers between the EU mem-ber states and the US and thus improve and enhance market access across the Atlantic. This would mean that companies that form part of either one of these economic powers will be able to invest in each other’s mar-kets without being hindered by the obstacles often presented by trade regulations and such bar-riers.

The TTIP’s main objectives may be divided into three: the first being that of market access which addresses the removal of customs duties on goods as well as on services. Better access to public markets would mean that

it would become much easier to invest. The second objective aims to dismantle bureaucratic regulatory barriers. This will result in greater efficiency at managerial and administrative levels. Third, the TTIP agreement seeks to improve cooperation at an international level especially when establishing international standards.

If an agreement is reached, the EU economy is projected to grow by €120 billion per year. The TTIP is expected to be especially ben-eficial to European companies as they will gain better access to consultancy or management-based services provided by US markets.

The Centre of Economic Pol-icy and Research (CEPR) pro-jections reveal real economic growth potential, particularly in the services sector as well as the chemicals, processed foods, metal products, manufactured goods and transport goods sec-tors. Consumers too are sure to benefit from a wider range of better quality goods, cheaper

prices and more efficient ser-vices, especially with regards to pharmaceuticals and healthcare products.

The TTIP agreement is likely to strike gains for SMEs. The EU and the US have already agreed to include measures that will enable these firms to reap ben-efits equal to larger companies. The proposed trade expansion heralds an increase in demand for raw materials and other sup-plies, which is bound to boost the level of exports of the countries that produce them. This said, the ambitious TTIP project is sure to face some challenges, primar-ily from businesses themselves. Some European industries which depend on energy fear that the energy price gap between the EU and US will compromise their standing in the transatlantic market.

Manufacturers, especially of agricultural products, also voice their concerns on the exposure to wider competition. In addition, certain consumer associations have expressed apprehension on

the outcome of the trade agree-ment fearing the undermining of European safety standards and that business growth might only be possible at the expense of the consumers themselves.

In the long run, TTIP could pro-vide a clear-cut regulatory framework to trade which may set an example to the wider international community such as the BRIC countries. Through closer cooperation, transparency and a more effective strategy to trade, the TTIP will enable both sides of the Atlantic, which com-mand two of the most developed markets in the world, to address both internal and external chal-lenges more forcefully. Natu-rally, this should result in a num-ber of benefits for businesses and consumers.

Before one can dream of lib-eralising the markets in ques-tion, Malta and the other 27 EU member states must first place the project under critical exami-nation to ensure that future EU gains are mutually beneficial. Locally, these details together with the potential impact of an EU-US trade agreement on key industries in Malta were dis-cussed throughout a series of sectorial roundtables organised by the Malta Business Bureau in collaboration with the European Parliament Office in Malta. The feedback gathered will feed into a report published by MBB and Ernst & Young on the TTIP and its implications for Maltese busi-nesses which will be presented later this year.

By Joe Tanti, Chief Executive Officer, MBB

WHaT dOes THe eu-us Trade deal Mean fOr business?



cOVer sTOry

The idea behind crowdfunding has been around for many years, and is comparable to, for exam-ple, people coming together to contribute to charitable causes of interest to them. The medium used to carry out a campaign through this practice, how-ever – the internet – is new and a reflection of the digital age we live in. According to forbes.com, the crowdfunding economy grew to over ¤4.58 billion worldwide in 2013, and doubled to approxi-mately ¤14 billion in 2014.

Crowdfunding platforms, such as IndieGoGo, Kickstarter and GoFundMe, are the go-to sources for many start-up companies, entrepreneurs, individuals and innovators worldwide, and the Malta Business Bureau (MBB) and University of Malta are together jumping on the prover-bial bandwagon to offer the same opportunities to the Maltese population with a local platform, which is expected to be launched by the end of this year.

Crowdfunding could be described as the collection of small mon-etary contributions by the gen-eral public to support or finance a particular initiative, project or

venture. “This is not a new phe-nomenon,” says MBB Presi-dent Mario Spiteri. “In recent years, however, crowdfunding has become increasingly relevant in the world of finance, particularly due to its digital dimension and in view of the financial crisis that limited the access to finance for start-ups and SMEs.”

A report conducted by the MBB in 2013 on the market gaps in access to finance in Malta showed that a section of the business life-cycle, particularly at start-up and seed stage, was not being catered for sufficiently by the existing instruments available on the local credit market. “One of the recom-mendations emanating from this report indicated that Malta should diversify its financing options to businesses, and one way of doing so was to explore crowdfunding,” explains Mr Spiteri.

“We realised that this had the potential to become a national project rather than a commercial activity, which is why we part-nered up with the University of Malta, as a public institution that is equally committed to encour-aging entrepreneurship in Malta.”

Mr Spiteri proceeds to explain how exactly crowdfunding works, a process he describes as being very simple. “The crowdfund-ing platform, which will be man-aged by the entity recently set up

between the MBB and University, shall bring together people with creative ideas that require financ-ing and the general public that may be intrigued by the same idea and agree to contribute in order for the project to take off.”

The entrepreneur will make the project idea available online on the dedicated platform in order to gauge the interest of the public. Mr Spiteri says the crowdfunding platform in itself is a strong tool for conducting market research on whether one’s idea to develop a project or product will be per-ceived well. There will also be an opportunity through the platform to obtain feedback in order to improve the original idea.

“If the said initiative manages to gather the required funding in a stipulated time, the propo-nent receives the funds to mate-rialise the project. In return, the proponents are encouraged to offer rewards to those who con-tribute towards the project. If the required funding is not raised by the deadline, then the funds collected by that time will be returned to the original sponsor.”

University of Malta Rector and Chairperson of the Foundation for the promotion of Entrepreneur-ial Activities Juanito Camilleri says that while the idea of a local crowdfunding platform intrigued him, he was unsure of the scope of setting up a locally-based plat-form when there are many estab-lished ones already that target international audiences. “How-ever, when MBB approached us stating that they too were con-sidering such an initiative, we decided to join forces on this ven-ture. The local platform can com-plement other sources of finance that are available locally for artis-tic, innovative, entrepreunerial or creative initiatives.”

Prof Camilleri asserts that a local platform can also address a particular niche for causes that strike a chord within our local and regional community and which perhaps would not necessarily ‘pitch’ well internationally. “There is also scope of ‘hooking’ other financing or outreach services onto our crowdfunding platform so the development of the plat-form will be innovative in its own right.”

Since its inception, two methods of crowdfunding have emerged as viable paths to raise capital: rewards and equity. Equity crowd-funding is a tool used by busi-nesses, whereby entrepreneurs looking for investors and which are willing to give away equity in their company opt for this route through a platform to increase the scale of their company. Then there’s rewards crowdfunding,

which resembles a legal form of fundraising similar to that used by charities or new companies looking to pre-sell their prod-uct. To start off with, the MBB and University are introducing a rewards-based crowdfunding platform, whereby those proj-ects that convince the public to support them will receive grants and offer something back to their donators.

“Some projects may require full funding whilst others require part funding. For instance, thanks to an agreement that we are enter-ing with Arts Council Malta, initia-tives emanating from the creative and cultural sectors may first raise funds through the crowd-funding platform, but will then also be eligible for co-financing through the Arts Fund. In essence this would be a hybrid financ-ing between crowdfunding and a public grant,” explains MBB President Mario Spiteri.

He acknowledges that other models are available, such as equity crowdfunding, but the intention is to introduce and con-solidate the concept of crowd-funding to Malta, and to encour-age more young entrepreneurs to come forward with ideas for projects and business proposals. “When it is viewed to be an oppor-tune moment to operate a lending or equity platform, the MBB and

Mario spiteri

MalTa geTs iTs firsT crOWdfunding plaTfOrMThe Malta business bureau and university of Malta have joined forces to establish Malta’s first crowdfunding platform, with the support of the Ministry for the economy, investment and small business. MarTina said speaks to Mbb president MariO spiTeri, university rector JuaniTO caMilleri and permanent secretary at the Ministry nancy caruana to find out what this initiative has to offer.

“We realised that this had the potential to become a national project rather than a commercial activity, which is why we partnered up with the university of Malta, as a public institution that is equally committed to encouraging entrepreneurship in Malta.” – Mario Spiteri

“The individual donations tend to be small but the aggregate can make the vital difference for a start-up company or an initiative in its formative stages.” – Juanito Camilleri

Juanito camilleri


cOVer sTOryUniversity will work closely with the national regulator to ensure that there is the right framework in which to operate, given the technical implications and regu-latory requirements needed.”

The initiative will also enjoy the support of the Ministry for the Economy, Investment and Small Business, which is part-spon-soring the project. Permanent Secretary of the same ministry, Nancy Caruana, says one of the ministry’s responsibilities is to support and assist initiatives that seek to create alternative sources of funding. “Access to finance is always an issue for SMEs – be it established ones, start-ups or micro-enterprises – which account for 99.8 per cent of busi-nesses in Malta, hence the initia-tive to support a crowdfunding platform fits our mission state-ment.”

Ms Caruana says this method of financing is complementary to the traditional sources of finance and will not substitute bank financ-ing. “I believe crowdfunding can unlock the potential to invest in enterprises and start-ups which otherwise would not get the nec-essary finances to develop their product or service. If the formula is successful, new start-ups can enter the market and operate as any other business would, gen-erating economic growth and

employment. The most critical part of an enterprise’s lifecycle is the initial stage, and that is when financing is essential for its sur-vival.”

She goes on to add that entre-preneurs with innovative ideas are most likely to benefit from this method of financing – since innovative ideas are often not understood, they are classified as risky. “This characteristic is what scares off potential credit institu-tions the most,” asserts Ms Caru-ana, “due to the risk models and

stringent regulations imposed upon them following the financial crisis. With crowdfunding, poten-tial investors are willing to risk that little bit more in order to test the potential of an idea.”

On behalf of the University of Malta, Prof Camilleri asserts

that, while crowdfunding is not aimed at students as such, it aims to help individuals at large with laudable initiatives to pitch for financial assistance to achieve a milestone or goal. “The indi-vidual donations tend to be small but the aggregate can make the vital difference for a start up com-

pany or an initiative in its forma-tive stages. Of course, students who have good ideas and plenty of enthusiasm can find crowd-funding to be an ideal platform to get started on an entreprenuerial streak.”

In fact, the University is actively working to engage with students that show promise and interest in entrepreneurship. Just over a year ago, the University set up its business incubator called TAKEOFF and, working in tandem with this, the University’s Centre for Entrepreunership and Busi-ness Incubation (CEBI) is offering a Masters in Knowledge-Based Entrepreunership with an eye to providing prospective entre-preneurs seeking to set up their own venture with the necessary hands-on instruction.

“The University does not see itself merely training students for today’s job market, but, it has also been striving to help create jobs for its future graduates,” states Prof Camilleri. “At present there are 16 ventures being supported at TAKEOFF and some 40 gradu-ates in Entrepreunership are in the pipeline.”

MBB President Mario Spiteri concludes that any initiative or start-up idea is able to source financing through crowdfunding. “Projects can range from con-ducting research, finding a cure for a particular medical condition or developing prototypes lead-ing to innovative mechanical or domestic tools to creating digi-tal games, producing movies or musical albums, or even refur-bishing a hotel.”

nancy caruana

“access to finance is always an issue for sMes, which account for 99.8 per cent of businesses in Malta, hence the initiative to support a crowdfunding platform fits our mission statement.” – Nancy Caruana



THe Weak eurO: a TOurisM OppOrTuniTy?With the sterling surging to its highest rate since 2007 and the ongoing greek crisis weakening the euro, some business owners are concerned about the future of our economy. However, industry experts believe there may be positive implications for the tourism sector. JO caruana finds out more.

This is a challenging time for the Euro. With the ongoing financial crisis in Greece and other coun-tries – like Italy and Spain – also struggling to cope, the Eurozone is facing more uncertainty than ever before.

Naturally this is reflecting in the conversion rates between the Euro and the Sterling and US Dollar – and no one is quite sure about what could happen next. In fact, financial experts have stated that current volatility has made it difficult to forecast what will hap-pen in the six-to-12 months to come.

“It is possible that the Euro will strengthen or weaken against

either the Sterling or the US Dol-lar,” explains HSBC’s spokesper-son.

“Current ‘Consensus Forecasts’ for the Euro/US Dollar (from June 2015) are for the Euro/US Dollar to be 1.065 in three months and 1.048 in 12 months, which sug-gests weakening. The current rate is 1.1065 and this changes constantly. In our July currency outlook we considered the Euro to be resilient to what is currently happening, and our economists believe that if the Euro/US Dol-lar rate goes above 1.1469, then it will potentially limit further downside.

“Our own forecast for the Euro/US Dollar rate at the end of 2015 is 0.72 (versus a current rate of 0.71). There are many factors which could move this rate, but the relative path of interest rate expectations is likely to be the biggest.”

There’s no denying the reper-cussions of a weak Euro against other global currencies. But, as with most things, there are some pros and some cons, depending on where you’re standing. In fact, Bank of Valletta’s Chief Officer

of Investment Services, Romeo Cutajar, stresses that there are two sides to the argument.

“A weak Euro can be viewed as a positive within the export sector of the economy; entities which are exporting their goods and services (including the tourism sector) will benefit as their prod-uct becomes more competitive when servicing customers out-side the Eurozone,” he says. “For example, British tourists will find it much cheaper to spend their holiday in Malta this summer compared to last year.

“On the other hand, for the importer, a weaker Euro will increase the cost base and can negatively impact profitability if one is not in a position to trans-fer that increase to the customer for competitive or other reasons. The weaker Euro can also leave a negative impact on the price of fuel imports which are normally

invoiced in US dollars, although these have currently been offset by lower oil prices.”

Agreeing with that sentiment, the Managing Director of Sparkasse Bank Malta Paul Mifsud, is of the opinion that a weak Euro provides grounds for Euro-dominated ser-vices and products (including those sold in and from Malta) to become more attractive and thus be of possible benefit to the Mal-tese economy.

“However, it does also bring about corresponding negative implications for a Euro-based economy on aspects relating to the purchase of commodities (such as oil) or for market opera-tors acquiring supplies or mate-rials in currencies other than the Euro,” he says. “Accordingly, from a tourism point of view in respect to non-Euro dominated markets, a weak Euro is likely

to spur increased interest and demand.”

Looking at the tourism sector in particular, Malta seems to be doing its best to exploit the weak-ness of the Euro. “Cumulatively, the majority of tourist arrivals in Malta originate from Euro-zone countries where the effect is neutral,” explains Tony Zahra, the President of the Malta Hotels and Restaurants Association. “The Sterling area is an impor-tant source market for us and we are seeing growth with regards to that.

“As for the US Dollar, we are also experiencing an increase in the number of Americans visit-

TOurisM

“Malta has now had five consecutive years of record arrivals, and this year looks like it will be another record year with arrivals possibly exceeding 1.7 million.” – Tony Zahra

paul Mifsud

Photo: Clive Vella, www.viewingmalta.com

romeo cutajar


TOurisMing Europe, so Malta is benefit-ting in this respect too. The real-ity of the situation is that Malta has now had five consecutive years of record arrivals, and this year looks like it will be another record year with arrivals possibly exceeding 1.7 million. Malta must be doing it right if the numbers are increasing.”

Mr Zahra believes that the weak-ness of the Euro, especially in relation to the Dollar, can pro-vide opportunities for Malta to exploit the US market – but that we shouldn’t overlook other mar-kets either.

“We should definitely look at ways to attract more Americans to Malta, and this year’s numbers are already higher,” he says. “That said, we must acknowledge that our European source mar-kets will always provide the high-est arrivals. So, while we should look towards a steady increase in the American market, this should not happen at the expense of our core markets.”

Of course there are many factors at play with regards to how cur-rency markets will react in the future, including the volatility of the Greek situation, the forth-coming US presidential elections and the looming UK referendum on EU membership. “Macro/political issues such as these can certainly have an impact, both negatively and positively,” contin-ues HSBC’s spokesperson. “It is impossible to determine exactly what will happen, but we have certainly seen considerable vio-lability due to the Greek situa-tion.”

Meanwhile, with regards to the US Dollar, Mr Cutajar does not think the forthcoming elections will have a major bearing on its value. “An outright winner in both the House of Representatives and the Senate will make life eas-ier for the elected President to implement policies, but both the Democrats and the Republicans will ensure that economic growth momentum is maintained.”

As for the future of the Eurozone, Mr Mifsud explains that further weaknesses are expected. “This does not only derive from sys-temic weakness, but from con-tinued monetary policy diver-gence in the Eurozone relative to the UK and the US. The European Central Bank is likely to continue being very dovish in an anaemic economy that is only sustained by ECB-induced stimulus, while other central banks are a little less dovish as growth persists and fundamentals get better.

“Should the Greek situation not be adequately resolved, thus risking furthering Syriza-styled governments forcing a Greek-styled crisis in Spain, Portugal and Italy, then it is possible that the very existence of the Euro will be called into question. That said, I think that is still an unlikely sce-nario.”

Focusing on the tourism sec-tor, Mr Zahra is spurned on by recent successes and is positive about the future of the indus-try in Malta. “To-date we have been able to steer the country

to unprecedentedly high rates of employment, with record arriv-als in tourism and substantial gains in employment in tourism and other sectors. This has come about because all the relevant stakeholders have pulled the same rope.

“Moving forward we cannot afford to slacken and must keep reinventing ourselves if we want to stay ahead in the economic race. There are a number of challenges heading our way and we have to tackle them early on and avoid any negative effects on

our economy. We must remain focused and take the necessary action; this will ensure that we remain winners,” he concludes.

“from a tourism point of view in respect to non-euro dominated markets, a weak euro is likely to spur increased interest and demand.” – Paul Mifsud

“british tourists will find it much cheaper to spend their holiday in Malta this summer compared to last year.” – Romeo Cutajar

Tony Zahra


inTerVieW

“Malta is in a unique position,” says Minister for Education and Employment Evarist Bartolo, referring to the fact that the same ministry deals with both education and employment – a decision by the previous adminis-tration which he deems wise. Yet while this may bring about link-ages, it is far from automatic.

Speaking of the skills gap that exists on various levels in rela-tion to local workers and the job market today, and agreeing that a section of our workforce lacks competence in some areas, Mr Bartolo asserts that “there is still distance between the world of education and the world of employment. They may be in the same universe but they are dif-ferent planets.”

Minister Bartolo acknowledges that “there are jobs which are being created in the economy, within digital gaming, financial services, and advanced manufac-turing for example, and we don’t have local people to fill them,” maintaining that the best way in which to address this is for the education system to work hand in hand with industry.

Another potential factor lies in the tendency to equate educa-tional success with status rather than with the acquisition of skills and attitudes. “To be someone, you do not need to become a doc-tor, lawyer or a notary. While we need these traditional profes-sions, there is a wide range of careers that can be followed by young people, and they are not even aware of them.”

The key, according to the Min-ister, lies in a partnership with those outside the system. While it is important to have people within school which act as points of ref-erence for students, Mr Bartolo maintains that it is impossible for the education system to keep up with the constant changes hap-pening in the job market. “It is a

paradox, but the education sys-tem, because of its nature, can-not change as fast as society or as the economy. Although we say that education ought to prepare us for tomorrow, most of the fac-tors working within the system are anchored in today and yester-day,” he says.

Stressing the importance of rec-ognising the system’s limitations,

Mr Bartolo continues, “I’ve found that in some cases, students, through their exposure to social media, can be better informed than their parents or teachers.”

As for what the system can achieve, he admits that locally, the career guidance and coun-selling setup is still weak, though steps are being taken to address this. “We recently organised a fair called ‘I Choose’ for fifth formers. There was a good turnout and it was found useful, with students being guided on what to do in their post-secondary educa-tion,” he maintains, albeit add-ing that guidance should start at an earlier stage. Apart from this, “we are working with the Malta Chamber of Commerce, Enterprise and Industry to bring together HR Managers within the private sector and guidance teachers at schools so that there is better awareness of what is going on.”

Having said that, he comments that such advice will always be tentative due to the changing nature of the labour market, add-ing “it’s really about flexibility and the ability to change and adapt, which is an important value to cultivate.” Beyond that, the issue goes far deeper than a lack of technical skills that can be taught in the classroom. “When we talk of employability, this means hav-ing a wider set of skills and atti-

tudes than being trained for a specific job,” says Mr Bartolo, affirming that employability asks for a wider, transversive flexibil-ity.

Certainly, the sole objective of education cannot simply be to prepare people for employment. “It is also about preparing people for active citizenship. You can’t just train people for jobs – that’s not education. What you can do is train and educate them for employability. There are skills, attitudes and values which you would expect them to have – and I think we are falling short of that, though we are taking steps,” he says.

Indeed, employers are running into a hybrid issue in relation to local job applicants, finding, in some instances, a horizontal lack of both educational and social skills. Mr Bartolo acknowledges the presence of this issue, mak-ing reference to a recent visit to a local pharmaceutical company which, in order to recruit about 120 machine operators, had to interview some 1,250 applicants. “The problem was how they pres-ent themselves, their commu-nication skills, preparing a good CV, work ethic and attitude… this tells us that there is an issue that we need to address,” he main-tains.

“We want people to be creative, to have an entrepreneurial spirit, to be able to solve problems, and to think critically – these are areas which we need to address in our education system,” Mr Bartolo continues. Admitting that it is a culture change that will not happen overnight, he asserts that this shouldn’t be taken as an excuse for not pressing ahead. “It has to be addressed at every level. Kindergarten kids are so bubbly and irreverent, telling you what they think and asking ques-tions. But the more you move up the system, the quieter and less communicative the students get, because we have drilled them into being silent and obedient.”

Having said this, Minister Bartolo says that he believes there can sometimes be unrealistic expec-tations of what an education sys-tem can do. “Schools and educa-tional institutions can only do so much. However right we get it at school, there are other life skills which you cannot get in a class-room situation – you have to go beyond. This is why we created Education Plus, through which we expose students to society and the workplace reality before they start their adult life.”

Another way of bringing the worlds of education and employ-ment together is vocational edu-cation at secondary level. Mr Bartolo highlights the five areas

saraH Micallef speaks to Minister for education and employment eVarisT barTOlO about the importance of a partnership between education and industry to tackle pressing issues relating to the job market and language proficiency for the benefit of society.

“THe biggesT cHallenge is HOW TO Make THe WOrld Of educaTiOn sTep inTO THe WOrld Of eMplOyMenT, and Vice Versa.”

“When we talk of employability, this means having a wider set of skills and attitudes than being trained for a specific job.”

Photo: Lionel Galea


inTerVieWwhich are currently in effect: agribusiness, basic engineer-ing, IT, hospitality and social and community care. “The fact that these subjects are being taught and experienced in sec-ondary school will help bring the two worlds together,” he states, revealing that the plan is to have up to 12 vocational subjects introduced gradually, in order to ensure that schools, teachers and programmes are prepared accordingly.

“The biggest challenge every-where, not just in Malta, is how to make the world of education step into the world of employment and vice versa – on an equal basis. It requires hard dialogue address-ing the issues and seeing how to make things work while accept-ing the limits of both worlds,” he continues.

In fact, Minister Bartolo believes that the approach should be tri-angular: economic operators, social organisations and edu-cation. “We need to get them to work together. We have set up programmes like Work Experi-ence Week which are aimed at exposing our young people to the world of work, and this is some-thing which we need to do more of. It also has to be ongoing, starting from primary level.” Cer-tainly, as the Minister continues, employers should further sup-port what is going on in schools. “There is a growing number of employers who are doing this, through workplace experiences and supporting literacy initiatives as part of companies’ corporate social responsibility, but we can do more,” he states.

Moving on to an emerging prob-lem in relation to language use by graduates, I ask the Minister what he thinks about the fact that our education system is produc-ing people who can either speak English or Maltese exclusively, with very little grasp of the sec-ondary language. It is his belief that, “as a bi-lingual society, Mal-tese and English have their own important roles in our lives, and we should do all we can to culti-vate these in schools.” He states that despite perceptions, stu-dents are currently doing better in English than in Maltese. “What is happening is that more people who were not exposed to English before are now being exposed to

it at their workplace, both spoken and written.”

He goes on to highlight two important policies aimed at sup-porting proficiency in English in Malta and Gozo: an agreement with the University of Cambridge to improve proficiency and raise standards; and a study of the Maltese reality for languages teaching carried out in conjunc-tion with the Council of Europe language committee.

The Minister has also recently suggested that it may be time to

review the role of the National Council for the Maltese Lan-guage. Speaking of the reasoning behind this, Mr Bartolo explains that, a decade after being set up, “it’s good to take stock of what has happened in the last 10 years – where the council has worked well and where it can work bet-ter.”

As he waits for the consulta-tion process to come to an end, he affirms that the debate is not about the council, but about the use and proficiency of the Mal-tese language. “Undoubtedly, there

is a big debate going on about how we are writing certain words and allowing loan words from the English language to be adapted and written in a certain way. I think it is about time we discuss this. I worry about how young children are struggling with Mal-tese.” Indeed, while the council was set up to help in safeguard-ing and promoting the Maltese language, the issue, according to Mr Bartolo, is where we are in relation to proficiency in Maltese, and how to resolve the issues we have.

“kindergarten kids are so bubbly and irreverent, telling you what they think and asking questions. but the more you move up the system, the quieter and less communicative the students get, because we have drilled them into being silent and obedient.”

“undoubtedly, there is a big debate going on about how we are writing certain words and allowing loan words from the english language to be adapted and written in a certain way. i think it is about time we discuss this.”


case sTudy

experience aZure ulTrasaraH Micallef meets Managing director perry neWTOn to find out how azure ultra is putting the high life within easy reach of aspiring yacht owners, making it possible for you to enjoy splendid hassle-free time aboard your own yacht in the Med.

Photos: Alan Carville


case sTudy

Picture yourself relaxing on board a luxury yacht, with the gentle Mediterranean breeze blowing through your hair and nothing but beautiful blue water and the picturesque Maltese coastline for miles around. It’s perfectly quiet, and in front of you is an ice-cold glass of champagne. The yacht is your own, and you’ll be going for a swim later, just after a deli-cious lunch is served by your personal chef. This is usually the part when you wake up and realise it was all just a dream, but wouldn’t it be wonderful if it were real? Well, thanks to the innovative concept that is Azure Ultra, living the high life aboard a world-class yacht is more achievable than you may think.

Azure Ultra is the newest addi-tion to an award-winning port-folio of luxury lifestyle products created by Azure, a European market leader in the vacation ownership industry. The pro-gramme offers members the chance to experience the sophis-ticated boating lifestyle with-out the cost and hassle that is associated with boat ownership, through an innovative fractional ownership business model, also known as yacht sharing.

Managing Director Perry New-ton explains the thought process behind the programme offering

shared ownership of this luxury asset. “A boat is an aspirational purchase, and Malta is a great place for boating. A lot of peo-ple think, ‘oh I’d love to have a boat’, but are put off by the cost and maintenance hassle. So we thought, wouldn’t it be fantas-tic if we did a fraction owner-ship, so people didn’t have to buy the boat and deal with the ongoing costs of owning it?”

The Azure Ultra co-ownership plan is an affordable alterna-tive that enables you to own a luxury yacht at a fraction of the price, so aspiring yacht owners can now have the opportunity to get their own taste of the high life at a price they can afford.

The way it works is that mem-bers pay for a 10-year member-ship, along with a small mainte-nance fee per year which covers a top class professional captain and stewardess team, as well as general maintenance, insur-ance, marina fees and berthing. “Lovely husband-and-wife team Roger and Peggy will keep your boat in excellent condition, take care of all your holiday require-ments, and provide full VIP ser-vice on-board, which provides peace of mind and leaves you with nothing to do but book your time and turn up,” Perry enthuses.

The luxury yachts you can choose from are currently a Sunseeker Manhattan 56 and Portofino 46. Those who are familiar with the boating world will recognise Sunseeker as a benchmark brand in luxury yachting – one that is interna-tionally renowned for top quality and performance, and designed for ultimate comfort and enjoy-ment on board. Revealing that the programme has proved very popular since the boats were purchased in November, Perry states that the plan is to build their fleet to six to eight boats.

Members can purchase one week factions out of 30 weeks in the year, leaving the remain-ing 22 as ‘wild cards’. Perry explains the concept, maintain-ing, “if you’re an owner who owns a week for example, but you want to request an extra day or weekend for a special occa-sion, you can access it in this way.” Adding another unique element to the programme, boat owners can also choose to trans-fer yacht usage time to a luxury penthouse stay at the five-star Azure Golden Sands Resort in Malta, or exchange it to stay in hand-picked luxury properties through Azure's international exclusive hotel resort exchange network, offering thousands of destinations across the world.

Still, there’s even more that co-owners stand to gain. Through their exclusive boutique yacht charter service, Azure Ultra enables members to make their investment even more worth their while, giving them the opportunity to charter their on-board time, thus generat-ing income from their owner-ship plan. “We have a full charter programme which is about to be opened up to the local market. We worked it out in such a way so that even if you chartered out about 20 per cent of your whole time, you would cover a large portion of your membership cost – and that’s not a bad deal is it?”

Also once your membership comes to an end, Azure will sell the boat on and distribute the funds between the owners. “Members don’t have to worry

about selling it themselves because Azure takes care of it all,” Perry explains, maintain-ing that the exit is as stress-free as the rest of the programme.

So if you’ve ever looked out at sea to the people enjoying their time on their boats while you struggle for space on a crowded beach and felt a little pang of jealousy, this is certainly an opportunity worth consider-ing. Becoming an Azure Ultra member could be your ticket to enjoying the luxury yachting holiday you’ve always aspired to, without the financial com-mitment necessary for full yacht ownership and maintenance – an alluring investment indeed.

Visit www.azureultra.com for more information.


case sTudy

The internet has transformed the way we do business. Ten years ago it was already an important part of our lives. Floppy disks were almost defunct, replaced by email. Other forms of online communication were already growing fast with video confer-encing making it possible for us to speak face-to-face with cli-ents and suppliers anywhere in the world. Facebook had also just been launched, part of the social media phenom-enon which has transformed the way most of us commu-nicate both in our personal lives and with our customers. What’s next? Today, the inter-net has infiltrated almost every aspect of our lives. At work,

and at home, we are con-stantly demanding more from our internet connections, but do we have the infrastruc-ture to sustain this demand?

“We are relentlessly execut-ing our strategy to bring about the next generation of internet; a huge leap forward in terms of what has been available up to now by local providers. This is what our customers deserve; a high quality, superfast inter-net connection which is avail-able anytime, anywhere,” says Kurt Camilleri, GO’s Chief Com-mercial Officer. “There is huge consumer appetite for more capacity which is clearly derived from the increasing demand

for high-quality communica-tion and entertainment. Increas-ingly, personal devices such as PCs, MACs, tablets and smart-phones are being connected

in the home and office. It is not uncommon to find 20 devices, in a small office or family home, using one Wi-Fi hotspot at the same time. The best way to achieve a superfast internet con-nection is through a true fibre

connection delivered right into customers’ homes and offices.” Demand for higher internet capacity is not expected to dwin-dle – in fact, it will only grow.

There will be another inflection point in bandwidth demand when wireless connectivity is embed-ded in appliances, meters and other electronic equipment, and the amount of devices connected to the internet is expected to sky rocket in the coming years as ‘the

internet of things’ turns main-stream. In five years’ time, using an app on your phone to start defrosting food back home while you’re still at the office will be as common as making a call today.

To accommodate the demand for higher capacity, the company launched GO Fibre in April this year. “Fibre will be accessible to 33,000 homes and offices by the end of this year, with tens of thousands more in the years to come. We have committed to an investment of €50 million over five years. It is not only the financial investment which is huge but also the logistics and resources we have mobilised on

With more than 500,000 customer connections, more than any other operator in Malta, gO remains at the forefront of the telecommunications industry. gO has been growing its market share consistently across mobile, TV and internet, while at the same time maintaining its overall majority share in fixed line telephony. The company has now embarked on a series of significant investments, including the €50 million roll-out of fibre internet over the next five years which, as a first for Malta, will deliver fibre connections directly into customers’ homes, and the launch of 4g later this year. JO caruana talks to gO’s chief commercial Officer kurT caMilleri to find out more.

True fibre: gO’s inTerneT reVOluTiOn

“gO's 4g infrastructure will be interlinked with fibre. This means that our mobile customers will benefit from unparalleled mobile internet speeds.”

Photo: Alan Carville


case sTudy

this project. This is one of our most exciting projects to date.”

Mr Camilleri adds that with a current maximum speed of 500 megabits per second, GO Fibre is the fastest internet speed avail-able on the market today, but it is just the beginning. “A true fibre network delivers the con-nection right into the customer’s premises and not to the near-est point in the providers’ net-work as is the case with fibre powered networks which can be up to one mile away. It is also completely scalable. Just imag-ine what can be achieved when we leap into Gigabit speeds.”

“Our internet customers in GO Fibre areas have been upgraded to superfast internet for the next three months. We want our customers to experi-ence the benefits of true fibre and are also taking steps to ensure that it is affordable. In fact, upgrading will cost you less than your daily espresso.”

Mr Camilleri goes on to explain that by investing in fibre in the home, GO is strengthening its position to empower its custom-

ers to choose the best possible service, mobile or fixed, anytime, from any location. “Our home and office products will be based on true fibre. As our roll out con-tinues, more customers will be able to benefit from the new GO Fibre service. Our Mobile prod-ucts will be based on 4G, which will be launched later this year.”

“This is vital,” he continues “because our customers are accustomed to a fast, reliable internet experience in their homes and offices. They expect nothing less whilst on the move, and mobile internet is where consumer behaviour is evolving fastest with people using their smartphones to surf the web, stream music and videos, and use video chat. The demand is definitely there and we are meet-ing it. In the years to come aver-age data usage per customer is only expected to grow and, with 4G, we will be able to ensure

that we are well positioned to serve our customers’ needs.”

In fact, GO has engaged telco equipment supplier Nokia Net-works to deliver GO’s 4G network and to overhaul its national Radio Access Network (RAN). “We will leverage our extensive fibre net-work to deliver the best 4G expe-rience. GO’s 4G infrastructure will, uniquely for Malta, be inter-linked with fibre. This means that our mobile customers will benefit from unparalleled mobile internet speeds. This will fur-ther enhance our ability to offer a near seamless experience across fixed and mobile inter-net,” Mr Camilleri adds. “We didn’t stop there. We also intro-duced 4G-friendly data rates within our new Limitless Mobile Plans ahead of the 4G launch. We realise that the faster 4G speeds cause customers to use much more data – the lower data rates offered on these plans aim to give customers on these plans the necessary peace of mind.”

gO in THe cOMMuniTy

GO takes Corporate Social Responsibility seriously and is involved in a wide range of charitable activities. Among them, GO is one of the top three contributors to the Presi-dent’s charities. The company annually provides the commu-nications infrastructure and support for l-Istrina, valued at €70,000. This is also topped up with a significant cash donation.

“We’re eager to provide ongoing support within the commu-nity,” says Mr Camilleri. “Apart from various company initiatives, employees, through our GO Cares committee, also do their part with their own initiatives. Whether it’s working with a children’s home or helping an animal charity, we appreciate their efforts and will continue to do everything we can to support them.”

GO also supports the arts and is one of the main sponsors of the upcoming Joseph Calleja concert. “Joseph Calleja and GO have much in common. We both strive to be the best we can and to do the best we can for Malta. Through his foundation, Joseph Calleja is also doing a lot to help young people with disadvantaged back-grounds, which further ties in with GO’s commitment to the community through our support of the President’s charities.”

The GO Cares Employee Fund team together with Miriam Casha (right, kneeling), Home Manager at SPCA Malta

“fibre will be accessible to 33,000 homes and offices by the end of this year.”

GO is a leading sponsor of the President’s charities and provides the communications infrastructure for the annual l-Istrina fund-raising campaign.



prOperTy

With demand growing at a steady rate, JO caruana looks at why many investors have shifted their focus towards buy-to-let projects in the hope of securing a valuable piece of the property pie.

The property market in Malta has shifted significantly. Whereas, in the past, most people chose to buy their home, today some are opting to rent instead. This has caused a ripple effect, with many property investors shifting their attention from properties that they can buy to sell at a profit, to properties they can rent out as a long-term venture.

Of course, a number of aspects have triggered this, namely the now more than 24,000 foreign

nationals from all over the world living in Malta. Of that number, 80 per cent choose to rent instead of buy. If you couple that with the 20 per cent of Maltese now also choosing to live in a rental prop-erty, then it is no wonder that demand has soared – so much so that the rent on some apart-ments has risen by no less than 50 per cent in just six months.

The impact of this can seem staggering. In fact, in many areas, rental demand actually

outweighs supply, with homes being snapped up the minute they come on the market. Rental agents in St Julian’s and Sliema, for instance, have taken to call-

ing property owners in an effort to encourage them to move out of their homes and put them up for rent. This has proven to be lucra-tive for some people, enabling them to cover their own living costs while boosting their income and savings potential simultane-ously.

A vast range of properties have become popular for rent, pri-marily seafront apartments in Sliema, St Julian’s and Ta’ Xbiex which appear to be most in

demand. Good properties here – typified by sea views, outdoor entertainment space and nearby amenities – have come to fetch upwards of €3,000 per month, which may previously have seemed unheard of. They have become the playgrounds of for-eigners in iGaming and financial circles, who demand the best for their cosmopolitan lifestyles and aren’t averse to paying a high price for it.

“Whichever way you look at it, the rental market has provided investors with plenty of scope, whether they are keen to invest a little or a lot.”

renTal pOTenTial: gOing up and up


prOperTyLarge villas in areas such as Madliena, San Pawl tat-Targa and Santa Maria Estate are also on the wish-list. These proper-ties are most popular with for-eign families keen to make the most of the sunshine lifestyle they have come to covet, and large gardens, swimming pools and entertainment space push the monthly price for these prop-erties upwards of €4,000.

Meanwhile, there has also been a huge jump in the need for lower-end rental homes, which has also fuelled the market. Whether for lower-income local families or

foreigners who have moved here to join the workforce, properties that sit between the €500 and €900 margin are very sought-after, and often hard to find. This has also widened the area the people are willing to consider for rental, and up-and-coming spots include Swatar, Birkirkara, San Gwann and Msida.

Thus, whichever way you look at it, this market has provided investors with plenty of scope, whether they are keen to invest a little or a lot. Those with high bud-gets target the high-end renter, and place their focus on luxury facilities, designer finishes and the latest technology. Meanwhile, those on a lower budget do the same for their lower-end cus-tomers, by providing an economi-cal option with less of an initial outlay but, still, excellent poten-tial for return. There’s even the possibility of running short-lets, which can garner high rents for shorter periods; this may involve more time and responsibility than longer lets, but the rewards can be quite impressive.

Looking to the future, industry experts believe that this trend will continue, and that it still makes a lot of sense to consider a buy-to-let property to add to your portfolio. As it stands, inves-tors are pretty much guaranteed to make a five-to-six per cent return per annum, so buying a property of this sort is certainly more attractive than some of the other investment opportunities currently on the market.

As for the best property to invest in, that is completely determined by the amount of time, energy, effort and funds that you are will-ing to put into this new project. For those looking to get hands-on, an unconverted property defi-nitely has the potential to do very well once it has been converted, especially as foreign renters are drawn to traditional features and authentic island charm. Mean-while, seafront places are also very sought-after and cheaper properties in previously uncon-sidered areas, such as Marsas-cala or Birzebbugia, are now hav-ing their day. A property with any kind of unique element, whether that’s a beautiful view, historical significance or just lots of light, is bound to attract instant rental attention and be snapped up.

“20 per cent of Maltese are now choosing to live in a rental property and the rent on some apartments has risen by no less than 50 per cent in just six months.”




business newsMbb updaTe17th MAY –

MBB IN MEETING WITH COMMISSION VICE PRESIDENT VLADIS DOMBROVSKISDuring a visit to Malta by the European Commission Vice President responsible for the Euro and Social Dialogue Valdis Dombrovskis, MBB Senior Exec-utive Daniel Debono participated in a meeting that included repre-sentatives of business organisa-tions.

Vice President Dombrovskis was keen to learn more about the challenges and opportuni-ties encountered by Maltese businesses on the ground. Mr Debono took the opportunity to highlight the issue of access to finance for SMEs in Malta and the need for the diversification of credit instruments on the island. He made reference to an MBB report on Market Gaps in Access to Finance that clearly indicates how enterprises in the early

stages of the business lifecycle struggle to raise finance. More worryingly, when they do source finance through bank loans and overdrafts for instance, this does not necessarily mean that this type of instrument meets their business need at that particular

stage of business development. Mr Debono explained that Mal-tese businesses need to tap fur-ther into the capital markets and make use of financing instru-ments such as venture capital, business angels and crowdfund-ing.

18th MAY –

MBB ANNUAL BOARD MEETING

This year’s Annual Board meet-ing was held in the presence of the respective Presidents of the Malta Business Bureau’s par-ent organisations – the Malta Chamber of Commerce, Enter-prise and Industry, and the Malta Hotels and Restaurants Associa-tion. During the meeting, MBB Vice President Tony Zahra for-mally stepped down from his role following his re-election as President of the MHRA.

To replace Mr Zahra, the MHRA nominated Kyle Borg as Director, who will also serve as MBB’s new Vice President. Mr Borg holds a Bachelors Degree in Commerce and a Masters degree in Busi-ness Administration (MBA). In addition to his academic back-

ground, Mr Borg has worked in several hotels and resorts around Europe and the Far East, and currently serves as an Oper-ations Director at the Luna Holi-day Complex.

At the Annual Board Meeting, MBB President Mario Spiteri and CEO Joe Tanti presented an update of the ongoing lobbying efforts and policy work, together with project initiatives that will be implemented in the coming months. The Enterprise Europe Network, Crowdfunding, Innova-tion Leaders, Design for Growth, and Water and Energy were among the themes discussed and approved by the board.

28th MAY –

MBB POLICY EXECUTIVE ATTENDS INTERNATIONAL TRADE COMMITTEEThe MBB’s Policy Executive, Mark Seychell, attended the International Trade Committee on behalf of Business Agenda in order to report upon the much-awaited vote on the own-initia-tive report on the Trans-Atlantic Trade and Investment Partner-ship (TTIP), tabled by S&D MEP Bernd Lange. The report was approved by 28 votes to 13, and sent to Plenary for approval. However, due to a huge num-ber of requests for amendments and split-votes, as well as a split among the Socialists and Demo-crats Group on the controver-sial ISDS mechanism, President Schulz postponed the vote, citing Parliamentary Rule of Proce-dure 175 (too many requests for amendments and split-votes). The vote was sent back to the INTA Committee for approval, and a deal has been struck in principle on the text mention-ing ISDS. The new compromise text is backed by the Socialists and Democrats, and should, in principle, be supported by the European People’s Party, the European Conservatives and Reformists, and the European Liberals. The draft text has thus been sent back to Plenary for approval.

Mr Seychell’s visit was spon-sored by the European Parlia-ment.


Mbb updaTe3rd-5th June –

MBB WINS BEST LIFE PROJECTS AWARD

MBB CEO Joe Tanti and Sustain-able Projects Manager Geoffrey Saliba participated in several Green Week sessions at the ‘EGG Conference Centre’ in Brussels. It was here that the MBB’s suc-cessful EU LIFE+ Investing in Water Project was awarded the ‘Life Best Projects Award 2014’.

Commenting on the award, Min-ister for Sustainable Develop-ment, the Environment and Cli-mate Change Leo Brincat, under whose ministry the LIFE pro-gramme falls, said “it is a privi-lege for a Maltese project to be recognised by the Commission as an international best prac-tice case study. That this award goes to the EU LIFE+ Investing in Water Project is testimony to the quality and value of this project.”

In a proud moment for the MBB’s achievement, Mr Tanti stated

“this award affirms the MBB’s work ethic in striving to bring about tangible positive develop-ments within and for industry.” Project Manager Geoffrey Sal-iba added “the enthusiasm with which businesses, hotels and industry stakeholders welcomed the project, and the action that they took with the project part-ners, allowed such significant savings. This award is affirma-tion to the effectiveness of these parties’ joint action to tackle Malta’s water scarcity problem, through the project.”

Mr Tanti thanked Mr Saliba, Proj-ect Manager to the EU LIFE+ Investing in Water Project; Ing. Marco Cremona, water expert to the project; and the project team members for their success in driving the project forward.

8th-9th June –

EEN ANNUAL CONFERENCE IN BRUSSELSMBB CEO Joe Tanti, Malta Cham-ber Head of Sectors Lino Mintoff and EEN Malta Project Coordina-tor Brigitte Tanti participated in the Enterprise Europe Network (EEN) Annual Conference which took place in Brussels.

This brought together over 800 network partners and repre-sentatives from the European Commission. The objective of the conference was to give par-ticipants a field of vision of the EEN’s future milestones. The only way to reach such mile-

stones is to develop the Network to its maximum potential by lay-ing the groundwork for a solid coordinated network action and translating quality services into tangible and visible results.

Together with Malta Enterprise, the Malta Chamber of Com-

merce and the Malta Council for Science and Technology, the MBB is delivering the reinvigo-rated EEN services to the local business community launched in 2015 and will continue to 2020.

8th June –

MBB AND THE UNIVERSITY OF MALTA ANNOUNCE COLLABORATION TO LAUNCH MALTA’S FIRST CROWDFUNDING PLATFORM

MBB President Mario Spiteri and University of Malta Rector Juanito Camilleri signed a col-laboration agreement to work on making crowdfunding a reality for hundreds of individuals and entrepreneurs that have brilliant ideas for innovative projects and businesses, but lack the finances to make them happen.

Expressing the MBB’s interest in this area, Mr Spiteri commented that “the Malta Business Bureau has been keen to introduce crowdfunding to Malta ever since it was recommended in a report it published on market gaps in access to finance in Malta. The outcome of that report showed that the Maltese credit market needs a diversification of finan-cial instruments- especially for start-ups.”

Prof Camilleri added that he was excited to see the project come to fruition as “it will comple-ment the University’s efforts to encourage entrepreneur-ship among students, following the successes of the Masters in Knowledge-Based Entre-preneurship and the TAKEOFF Business Incubator, launched recently. Crowdfunding will surely boost innovation and entrepreneurship, particularly if the local as well as international community are encouraged to participate actively."

The Ministry for the Economy, Investment, and Small Business together with the Malta Council for Culture and the Arts saw the potential in introducing crowd-funding to Malta, and will be par-tially sponsoring the setting-up and running of the platform in its early stages.




10th June –

PROJECT ADMINISTRATOR JOINS MBB

Mbb updaTe

Marija Elena Borg has joined the MBB as Project Administrator for the ESF 4.245 Innovation Lead-ers: Improving Knowledge on EU Direct Funds. Ms Borg, who has recently completed her Bache-lor’s Degree in European Studies at the University of Malta, is par-ticularly interested in EU funding schemes and has experience as a member of the Malta UNESCO Youth Association, which gives her additional insight to the application and implementation processes of projects.

In the meantime, the MBB bids farewell to ESF Project Coordi-nator Karla Chetcuti Bonavita, who has led and overseen the implementation of the proj-ect since it began. MBB CEO Joe Tanti thanked Ms Chetcuti Bonavita for her professionalism and excellent contribution to the project and the MBB, while wish-ing her the best of luck in her future endeavours.

12th June –

BUSINESS SEMINAR ON CORPORATE SOCIAL RESPONSIBILITY FOR RESPONSIBLE BUSINESS

Dr John Vassallo, MBB Director and Senior Strategic Advisor to Microsoft Corporation, was a key note speaker at the European Year for Development 2015 event organised by MEUSAC in collab-oration with the MBB and Malta Chamber. His speech focused on the role of the Private Industry in Development Cooperation, out-lining today’s challenges in CSR which is to achieve faster inno-vation, and to bring connectiv-ity and create new catalysts for growth and jobs.

Dr Vassallo also participated in a panel debate along with Serguei Outtara, President of the EU-Africa Chamber of Commerce; Stephen Pandolfino, Head of Wholesale Credit and Market Risk at HSBC Bank Malta plc; Sonia Toro, Communications Director, EU-Africa Chamber of Commerce; and William Grech, Chairman of the NGDO umbrella organisation SKOP.

Introducing the seminar, Head of MEUSAC, Dr Vanni Xuereb com-mented that “Corporate Social

Responsibility is an important tool for the competitiveness of enterprises that can bring ben-efits in terms of risk manage-ment, cost savings, access to capital, customer relations, human resource management, and innovation capacity.”

On behalf of SKOP, William Grech proposed to the business com-munity the creation of a common fund contributing to projects that help reach development-related goals.

12th June –

MBB PRESENTS REPORT TO EUROPEAN COMMISSIONER KARMENU VELLA ON POTENTIAL €1.4 BILLION IN ENERGY AND WATER SAVINGSIn a press event at Europe House, an MBB delegation led by CEO Joe Tanti presented a report to European Commissioner Kar-menu Vella, showing that energy and water savings of €1.4 billion are possible for the EU hospi-tality industry. The meeting was also attended by MBB Sustain-able Development Manager Geoffrey Saliba; Water Expert Ing. Marco Cremona; Malta Chamber Council Member and Energy and Environmental Com-mittee Chairman David Xuereb; and MHRA Council Member and Environmental Committee Chairman Ing. Joseph Restall. Attending the event was also Dr Gabriella Pace, Deputy Chef de Cabinet, European Commission and Brian Synnott, Communica-tions Advisor at European Com-mission.

The report, entitled ‘Economic Stimulus through greener EU hotel industry,’ collected data from the hospitality operators in Malta, Belgium, the Czech Republic, Hungary, Ireland and Slovenia. This follows on previ-ous assessments by the MBB's award winning EU LIFE+ Invest-ing in Water Project.

As part of that project, a key measure which could facilitate wider adoption of these mea-sures was identified to be the better uptake of the EU Ecolabel for water-consuming appliances such as taps, showers and uri-nals, and the creation of a stan-dard for second class water.

The MBB, together with its inter-national partners, will seek a common position from industry on these two policy measures, as well as common initiatives which would help drive a wider adop-tion of flow rate regulation and greywater treatment.

Commenting on the MBB's commitment to facilitating this transition, MBB CEO Joe Tanti said “such a drive could merge green job creation, the finan-cial strengthening of one of Europe’s largest industries, and the creation of a new industry with strong potential for export. This would stimulate increased

growth within the European economy while saving water, reducing CO2 emissions and energy dependence. It would be an excellent case study in envi-ronmental measures making excellent business sense.”


Mbb updaTe1St JuLY –NEW EXECUTIVE JOINS MBB

The MBB is pleased to announce that Ana Vella has joined the MBB and has now taken on an Executive role in Business Advisory and Support.

Ms Vella will primarily be coordi-nating the MBB’s initiatives within the consortium implementing the work programme of the Enterprise Europe Network (EEN) in Malta. The EEN Malta consortium is com-prised of Malta Enterprise, the Malta Chamber of Commerce, Enterprise and Industry, the Malta Business Bureau, and the Malta Council for Science and Technology.

Ana Vella graduated from the Uni-versity of Malta with a B.A. (Hons) in European Studies in 2012 and has recently completed her M.A. in Con-temporary Diplomatic Studies with the University of Malta and Diplo-Foundation. Ms Vella has previous experience in small business own-ership, teaching and project coordi-nation, together with an interest in foreign affairs.

3rd JuLY –

FINAL INNOVATION LEADERS MASTERCLASS

The third and final cycle of masterclasses for the ‘Inno-vation Leaders: Improving Knowledge on EU Direct Funds’ Project was held throughout June and early July. The programmes were attended by 102 partici-pants. The aim of these training programmes was to unlock the potential for Maltese businesses in order to capitalise on tapping EU direct funding opportunities.

The Innovation Leaders project provided training spe-cifically on three programmes of huge benefit to Mal-tese businesses – Horizon 2020, Creative Europe and Erasmus+. As a result of this training, various project ideas were developed and are being considered for submission in the coming months.

The project will also identify the 15 project ideas with the most potential to be supported further through a joint study visit in Brussels that is being organised with the MBB’s transnational partner, the European Proj-ects Association.

3rd JuLY –

TTIP STAKEHOLDER CONSULTATION SESSIONS

The potential effects and impacts of an EU-US trade agreement known as the Transatlantic Trade and Invest-ment Partnership (TTIP) on key industries in Malta were discussed in a series of sectorial roundtables organised by the Malta Business Bureau in collaboration with the European Parliament Office in Malta.

The sessions brought together MEPs Dr Roberta Metsola, Dr Alfred Sant and Dr Miriam Dalli who participated in the presentations, as well as rep-resentatives of major enterprises and bodies from the various sec-tors including manufacturing, finan-cial services, pharmaceuticals, and transport and logistics. Among oth-ers, sectorial representatives from the Chamber of Commerce, Enter-

prise and Industry, and relevant min-istries and agencies were also pres-ent.

The Transatlantic Trade and Invest-ment Partnership currently being negotiated between the EU and the USA, is a wide-ranging agreement which covers several sectors. A Euro-pean Commission report states that the removal of trade barriers with the US could potentially increase Malta's real capital income by some 4.84 per cent. Therefore, it is in Malta’s inter-est to focus on assessing the impact of Malta’s competitive advantages in relation to European counterparts. The importance of maintaining exist-ing European standards is vital if the TTIP negotiations are to go through. During the consultation session, it was stated that the stakeholders at national level must be urged and encouraged to contribute a timely input about the issues and concerns that should be raised at EU level.

The feedback gathered from the ses-sions will feed into a report on the impact of TTIP on Maltese business which will be drawn up with the col-laboration of Ernst & Young. The report will then be presented in a conference later this year.



With over 391 million users throughout the European Union alone, the internet is an infinitely large space which is used by a large community of stakehold-ers – many of which determine the decisions on the develop-ment and use of the internet. Therefore, digital governance is an important process which must be given due attention in such a day and age. Digital governance is the process that establishes a framework which determines the responsibilities, roles and pro-

cesses of e-Commerce systems that are necessary to achieve business objectives.

The establishment of digital governance cannot be askew to good governance practices. This means that decision-makers must first ensure that the doors of online possibilities are indis-criminately open to all before introducing the Digital Gover-nance Framework – sometimes known as e-Governance.

Digital governance enables both private and public entities to actively use the internet to give them the competitive edge that is necessary in their business, as well as to digitalise information and make it available and acces-sible to all. Information and Com-munication Technology (ICT) enti-ties stand to play an invaluable technical, supportive and innova-tive role in facilitating the process of European digital governance.

The word ‘governance’, which is sometimes regarded with scepti-cism, need not be seen as such. Digital governance pertains mainly to the transparency and responsibility of the authorities who have the capacity to create a framework for digital devel-opment. Additionally, it also identifies ways in which organ-isations may conduct their busi-ness in innovative and efficient ways by means of using appli-cations, smart phones, websites

and other popular outreaching streams.

As he envisions the creation of European Digital Governance, Andreas Schwab, MEP within the European People’s Party, addresses the key challenges and opportunities for the stake-holders involved when putting such governing principles into place. “Ever since smart phones and tablets have found their way into our daily lives, the digital revolution affects us in almost all

in view of an ever-growing community of internet users, business agenda discusses with european people’s party Mep andreas scHWab his view on the need for european digital governance.

dOes THe eu need a digiTal gOVernance fraMeWOrk?

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spheres: work, leisure, education and health. The digital market has undeniably great opportuni-ties for all citizens.”

When asked why there is such a need for European digital gover-nance, Mr Schwab reiterates, “it is clear that the principles of the social market economy, which aim to attain fair opportunities for businesses and consumers alike, also apply in the digital era. For the contemporary design of this social market economy though, we need European digital governance that creates a frame-work setting high standards for competition, safety, consumer and data protection – standards that also take into account that data is the ‘new’ currency. There-fore, we need to effectively trans-late the rules of the traditional internal market into rules for the digital age. It is indisputable that the public service requirements, namely for transportation or fire safety in mediated accommo-dation, should not be bypassed solely because of the use of digi-tal channels.”

Mr Schwab believes that Europe could invariably benefit from an enabling European environment which would allow digital offers to be developed here and not merely spill over from the likes of the United States. However, he emphasises that this cannot be achieved through national responses to international offers – suggesting the need for Euro-pean rules.

Undoubtedly, the establishment of a European Digital Governance Framework would beg the ques-tion: where and how will Europe begin to enforce such rules. Mr Schwab comments that the best basis for the emergence of new digital services and secured standards within the EU would be “uniform European rules, applied and monitored throughout all member states.” He goes on to say that, “European digital gov-ernance must take into account the fact that the stakes within the digital environment are higher than in physical markets, there-fore European competition law and its application must be accel-erated and made more effective for a digital environment. Partic-ularly in rapidly-developing mar-kets, prompt action and quick decision-making are essential. If decisions in this area take longer to be made than in the traditional internal market, not only will the enforcement of the rules of fair competition policy suffer, but eventually the overall credibility of these rules will suffer too.”

In the digital age, we often face virtual 'bottlenecks' which emphasise the need for more harmonised regulation. Mr Schwab says that in order to ensure fairness and equal oppor-tunities for all competitors par-ticipating in the digital environ-ment, the right balance needs to be struck between common European rules and the tasks that lie ahead at member state level.

When speaking about the ben-efits of European digital gover-nance, Mr Schwab concludes that it is necessary to transfer the traditional economic and com-petition policy framework of the internal market into the digital age as this is likely to encourage the development of more digital services within the EU itself in the future. Otherwise, the Euro-pean single market risks being overtaken by the United States and other markets.

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business

History is dotted with defining moments of both famous and ordinary individuals who deliv-ered powerful and compelling speeches, ones that were capable of evoking strong emotions that stayed with their audiences long after they were over.

While some people are born with a natural ability to lead and speak confidently, others need to learn and hone the skills required to do so. More often than not, an abil-ity to speak confidently in public requires practice and training, and is not automatically learned through traditional education. In fact, numerous graduates leave the comfort of their student-life behind them with little knowledge on how to present themselves to future employers or how to make it in the business world.

Simon Azzopardi, Managing Director of Tain and Able, is a market strategist with an affin-ity for speaking to audiences and delivering motivational mes-sages, while imparting concrete actionable lessons. He says pub-lic speaking is an important skill for anyone who wants to be seen as a leader in their field: “it is a skill set that gives you the oppor-tunity to deliver values to a group of people through both content and engagement, and if done well, can be very effective,” he explains.“That said, we are liv-ing in a world where the introvert has a level playing field through effective use of social media and blogging. Bloggers can get a lot more listeners or viewers than in-person public speaking ever will, but still, public speaking skill sets essentially foster confidence, leadership, charisma and clarity, which are highly important and cross functional attributes.”

Having experienced university life both locally and overseas, Simon believes that most edu-cational institutions fall short of teaching the basic skills needed to feel comfortable to speak in public, or even to simply engage in conversation. “Universities put a lot of focus on content, which is important, yet the delivery of such content is, at least, as important. Public speaking, in its truest form, is about having the

confidence to deliver a message to a group of people, inspiring the audience with either action or further thought,” he asserts. Simon adds that another short-coming, so to speak, of the edu-cational system in this regard is that content is delivered via a lec-ture format, which is designed to focus on delivering information, or content, rather than inspiring action.

Aside from an ability to speak confidently in public, many would attest to the importance of

appropriate behaviour and man-ners in day-to-day dealings with actual and prospective clients. This is where etiquette comes in, something which Jo Caruana, Etiquette and Protocol Consul-tant at Finesse Consulta knows a thing or two about. Jo trained at the European School for Eti-quette and Protocol in Brussels, and is equipped to offer a range of services to companies to help fine-tune them, including train-ing staff in the areas of customer care and dining etiquette.

“Etiquette is vital because, in business, it’s all about making a great first impression,” she asserts. “Good etiquette covers everything from introducing your-self and handing over your busi-ness card correctly, to impressing clients over dinner so that you, and not your competitor, seal the deal. Business etiquette provides a standard framework within which members of the business community can effectively com-municate and collaborate in a professional manner.”

When business people from dif-ferent cultures come in contact, however, a smooth transaction is not always guaranteed, as what is prudent in one culture may be offensive in another. “We are increasingly reaching out to cli-ents and partners in Asia, Russia, the US and the Arab states, where business culture is quite different from our own. In fact, we offer a range of workshops to help bridge the gap and enable com-panies to always make a great first impression when doing busi-ness, regardless of the different cultures they are working with.”

Jo continues that one of the main aspects people complain about locally is the lacklustre service they get across many different sectors, which is exactly where most companies stand to be improved. “Owners of small com-

panies know what they want to communicate and how, and this is often reflected in the way they deal with their clients. However, when companies grow, this ideal often gets lost,” she explains. “For instance, are you pleased with the way your team members communicate over the phone and email? Do you feel confident in the way they represent your com-pany to top clients? Often, a little bit of etiquette training reminds staff members of the important elements to bear in mind when dealing with customers.”

Tain and Able’s Managing Director Simon Azzopardi is in agreement, and adds that learning to speak in public is a skill that anyone can develop, although it requires practice and honest, yet con-structive, feedback. He considers that taking opportunities to speak

Jo caruana

MasTering THe arT Of public speakingThe confidence and assertiveness required to deliver a public speech or presentation are not acquired automatically upon entering the world of work. in fact, a good and effective delivery requires a skill set that needs to be learned and perfected. MarTina said speaks to two professionals with backgrounds in public speaking and etiquette, to find out what it takes to master the art of public speaking and effective communication with clients.

“etiquette is vital because, in business, it’s all about making a great first impression… so that you, and not your competitor, seal the deal.” – Jo Caruana


business

as often as possible – when the content is relevant – and making

talks as engaging and interest-ing as they could be are the best ways to get comfortable with the process, and to start enjoying it.

“The process I use to prepare for a talk is first to understand what the audience wants to hear or learn, and then prepare what content I want the audience to leave with, summarising it in key topics such as a top ten list. I then draft my slides, challenging each one’s necessity and importance, and lastly, practice over and over again. It also never hurts to deliver your talk to a friend or col-

league beforehand, and repeat-edly ask for direct feedback.” Gaining confidence also requires getting involved in events that promote public speaking, such as pitch events whereby you pitch an idea to a group of strangers; by creating a debate club at the office to talk about new tactics or strategies for your department; and by watching great speeches by accomplished people, be it Steve Jobs at Apple’s product launches or Tedx shows. Under any circumstance, Simon sug-gests to always ask for feedback, “both when things go wrong as

well as right, to find out why they did so.” THe

experTs’ Tips The experts offer advice to aspiring entrepreneurs and those entering the world of work on how to present themselves con-fidently to future employ-ers and potential busi-ness partners or clients.

Jo Caruana, Etiquette and Protocol Consul-tant at Finesse Consulta“Consider how you can make a good first impres-sion – as you only get one opportunity to do that. If you’re meeting a client for the first time, try to learn a little about them and what they will expect, as this information can help you to be prepared and present yourself in the best possible light. Think about your ver-bal and non-verbal com-munication, both of which play a very important role in making a great first impres-sion: assess whether or not you’re speaking clearly and at a pace that is easy to fol-low, and use positive non-verbal communication too, like a strong and assertive handshake, and good eye- contact. Lastly, examine your attitude and tweak it. Sometimes, in today’s busy world, we forget the little things like smiling when you meet someone. If you don’t, then they may think you’re busy or unfriendly. Similarly, consider whether you wholly focus your atten-tion on people or if you look at your phone as soon as an email comes in. Take the time to scrutinise the way you come across and the way this can be improved.”

Simon Azzopardi, Manag-ing Director of Tain and Able“There are many shared skill sets between pitch-ing and public speaking. Therefore, I strongly rec-ommend pitching as often as possible and practicing before you start talking. It’s important to get feedback – if you deliver a 20-minute talk on a topic, ask people what they think and look for criticism to understand what is not going through or what could be improved. Lastly, action the feed-back you are given: if you are monotone, work on it and if you tend to be stiff on stage, look for a way to relax before the talk.”

“To prepare for a talk i first understand what the audience wants to hear or learn, and then prepare what content i want the audience to leave with, summarising it in key topics such as a top ten list.” – Simon Azzopardi

simon azzopardi



creaTing THe ideal Office spaceHaving a stimulating and attractive environment in which to work can work wonders on employee morale and productivity, which is why more and more companies are paying attention to office design for their business. saraH Micallef chats to interior designer Vera sanT fOurnier and finds out what it takes to achieve a perfectly designed office space.

Office design, according to inte-rior designer Vera Sant Fournier, represents considerable value as a fixed asset for any organ-isation. The primary purpose of most offices is generally to facili-tate the provision of a workplace and working environment for information and knowledge pro-cessing activities such as filing, planning, designing, supervising, analysing, deciding and commu-nicating. In so far as these activi-ties are concerned, ergonomics is a significant design criterion that needs to be taken into con-sideration, in order to achieve maximum resource efficiency and higher productivity rates at the workplace.

“Consider your most important factors to be ease of workflow traffic and communication, well planned layouts of any partitions and furniture plan layouts, and ease of access of any machinery such as printers, computers and servers,” says Vera, also mak-ing reference to the importance of considering corporate colour schemes and natural light. Another factor she draws atten-tion to is security and privacy, as well as the health and safety of staff and visitors using the office space. “Considerations in this category are derived from the existing conditions of the facility as well as the mandates of the legislation for achieving a com-

fortable, safe and healthy work-place environment,” she advises.

But apart from ease and safety of use, why is it important to fin-ish off an office with a good dose of furnishings and accessories?

“Your office is the first impres-sion clients and suppliers get of your organisation as they enter, so you want to evoke a sense of professionalism, organisation and etiquette,” Ms Sant Fournier says. A professionally designed office will deliver this. “Having your office space designed pro-fessionally will increase the value of your image and the work your staff will deliver. Ultimately, you are creating a workspace which not only would be enjoyable to work in, but will also promote the status of your company.”

Speaking of the process that goes into designing an office space, she explains that it all starts with

a thorough interview with the cli-ent, during which the designer assesses their needs, target market, budget, and whether a professional branding company has been commissioned, which is an important consideration seeing as the décor will need to reflect the brand and corporate colours. “We also take things a step further and interview the staff, looking into what items they need close at hand, what their positions are and what can be done to ease their work flow from a design point of view,” she asserts.

Apart from this, in order to develop an appropriate design

“your office is the first impression clients and suppliers get of your organisation as they enter, so you want to evoke a sense of professionalism, organisation and etiquette.”

design


design

Photos on this page: Valletta Office Innovation by Vera Sant Fournier - Design Studio

solution, the interior designer needs to be acquainted with the preferred space adjacency, the demands among each divisional unit as well as the different divi-sions within the organisation, which will come in handy when determining how spaces should be positioned relative to one another in a floor or site plan. Following this, as with all other projects, Ms Sant Fournier main-tains, “after gathering enough information, we go to the drawing board and begin sketching lay-outs to give the client a presen-tation of the space that has been planned around their needs.

Eventually, we take the project into 3D CGI imagery, and give the client a visual representation of the office as intended, complete with colours, materials and an overall general feel of what the final result will be.”

Speaking of the latest trends in relation to office design, she identifies a change in attitude and approach in recent years, maintaining that companies now understand the importance of having professionals design their workspace, with offices getting a noticeable creativity boost as a result. “The big IT and iGam-

ing companies are setting an example, and more and more firms are jumping on the band-wagon. Whether at Google in Zurich or Microsoft in Vienna, all the senses are set to work with the notion that innovative energy needs social friction and gather-ings in a creative environment,” she explains.

Meanwhile, colours and mate-rials are becoming varied and distinctive, with no clear trends – although Ms Sant Fournier points out that designed accents are booming. “Stimulating the mood depends on the purpose of each space, without turning the office into a type of Wonderland. Open spaces close to the workstations are increasingly being changed into shared spaces such as cen-tral zones,” she continues.

Lastly, when asked for the top things she would recommend to really make an office stand out, Vera maintains that a mix of logic and good taste along with accents that truly turn the office into a stimulating workplace are the ingredients for a perfect recipe. “Splashes of colour, less clutter, well organised stationery that looks good, and an added boost of freshness with plants and original art pieces. If you get stuck, hire a professional interior designer to guide you.”


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Mark seycHell, the Mbb’s policy executive, reviews the european commission’s efforts of eliminating borders for digital goods and services.

Only recently, the European Commission published its strat-egy for a Digital Single Market, one of President Jean-Claude Juncker’s main political priori-ties upon his election as leader of the Commission. The release of this strategy will aim to kick-off the Commission’s clear man-date to create a connected digital single market through a series of political and legislative proposals which should be put on the table for inter-institutional negotia-tions in 2015 and 2016.

The EU currently has a compar-ative advantage in knowledge-based industries in the global digital economy. However, this is currently not being allowed to flourish, because the digital economy is hindered by a num-ber of barriers and fragmenta-tion, mostly at national level, that do not exist in the physical single market.

The Commission believes that the creation of a connected digi-tal single market to bring down such barriers can generate up to €415 billion of additional annual growth in the Union. The bene-fits are of course the creation of thousands of jobs which would in turn benefit the EU by enhancing its competitive edge in knowl-edge-based industries.

The Digital Single Market Strat-egy will focus on six aspects:

building trust and confidence, removing territorial restrictions, ensuring access and connectiv-ity, building the digital economy, promoting e-society, and invest-ing in ICT research. The strategy is being coordinated by Com-mission Vice-President Andrus Ansip, and will be implemented by DG CONNECT – the Com-mission’s directorate-general in charge of communications net-works, content and technology.

One of the burning issues that the Commission hopes to tackle first is e-commerce. Small com-panies tend to avoid engaging in cross-border e-commerce due to differing national laws in each member state, particularly those dealing with consumer protec-

tion and contracts. In fact, this is reflected in the shockingly low number of SMEs in the EU that sell across borders in the digital age – 7 per cent. Studies have shown that at least 57 per cent of companies would consider start-ing or increasing their online sales to other EU member states if the same rules for e-commerce were applied across the EU.

In order to exploit this eagerness of engaging in e-commerce, the Commission is looking to sub-mit proposals which will cover harmonised rules for online pur-chases of digital content, while also proposing a set of mandatory EU contractual rights for domes-tic and cross-border online sales of tangible goods. Furthermore,

the Commission is looking to establish an EU-wide online dis-pute resolution platform in 2016.

Another issue that hinders the true potential of cross-border e-commerce is parcel delivery.

Companies maintain that exu-berant delivery costs remain an unresolved problem. In fact, listed tariffs for cross-border par-cel delivery charged by national postal operators are estimated to be two to five times higher than domestic prices.

Businesses and consumers alike would be much happier engag-ing in e-commerce, so long as affordable, high-quality cross-border delivery services exist. Through the Digital Single Mar-ket Strategy, the Commission aims to launch measures that will improve price transparency and regulatory oversight for European deliveries, particularly for small shipments.

Mark seychell

“The commission believes that the creation of a connected digital single market to bring down such barriers can generate up to €415 billion of additional annual growth in the union.”

THe digiTal single MarkeT sTraTegy – a sTep clOser TO a True inTernal MarkeT

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pOlicyPoor access to digital content is another stumbling block to get-ting the most out of the digital single market. One can under-stand this when considering that access to digital content is gov-erned by the 2001 Information Society (InfoSoc) Directive – leg-islation which was in force even before streaming and video-on-demand (VOD) services had even taken off. There is no doubt that the InfoSoc Directive has become outdated as it does not reflect advances in the fields of commu-nication and digital content.

One of the main issues emanating from this is geo-blocking, which is proven to act as another barrier to e-commerce and accessibility to digital content. Geo-blocking is the practice of denying access of websites and services, or alter-ing prices, based on geographi-cal location. Businesses could revert to territorial restrictions due to a number of reasons, such as territoriality of laws and license and rights acquisition at a national level, particularly when talking about digitally streamed content. Due to the fragmenta-tion between 28 different national

regimes, some businesses sim-ply find that it would not be profit-able to adapt to the national laws of smaller member states, such as Malta, which have such small consumer bases. 45 per cent of companies that consider selling digital services online stated that copyright restrictions preventing them from selling abroad are in fact a problem. This is certainly undesirable in what is supposed to be a single market. Also, and even more surprisingly, less than 4 per cent of all VOD content in the EU is available across bor-ders. While consumers should not be blocked from access-ing goods and services that are made available elsewhere in the EU, businesses should also not have to face such difficulty when attempting to access the single market with its entire base of 500 million consumers.

Undoubtedly, the EU needs a more harmonised copyright regime which can boost the cre-ative industries by means of facil-itating the portability of content, reducing territorial restrictions, all the while ensuring a correct balance between the access of content and fair remuneration for the right-holders. The Commis-sion is looking to publish legisla-tive proposals before the end of 2015, which will aim to increase copyright harmonisation while modernising the enforcement of intellectual property rights. In addition, the Commission will look to counter targeted aspects of geo-blocking by pushing leg-islative proposals in 2016. Such action may potentially include updating the e-commerce frame-work and the Services Directive.

The Commission’s strategy for completing the digital single market certainly offers a large number of in-depth proposals, covering a wide spectrum of pol-icy areas that are sure to be of interest to businesses and con-sumers alike. Its efforts prove that it is indeed an integral part of the EU’s strategy to ensure that future digital developments will be catered for in a digital single market, comparable to the physi-cal single market. With the local business community’s best inter-est in mind, the MBB endeavours to follow upcoming legislative developments as closely as pos-sible.

“The eu needs a more harmonised copyright regime which can boost the creative industries by means of facilitating the portability of content, reducing territorial restrictions, all the while ensuring a correct balance between the access of content and fair remuneration for the right-holders.”




business updaTe

Complementing the Chivas Regal collection of premium blended Scotch whiskies, Chivas Regal Extra is one of the richest, most generous tasting blends within this category, crafted for those who look for more. Tak-ing Chivas Regal’s famous, award-winning house style to a new taste experience, Chivas Regal Extra con-tinues the legacy of founding broth-ers James and John Chivas, who pioneered and excelled in the art of blending whiskies in the 19th century.

Created from an exceptional blend of rare whiskies and aged in sherry casks from the Oloroso in Spain, it truly is a unique new blend. The secret of its generous flavour lies with the way the rich sweetness of the Span-ish sherry reacts with the oak wood of the cask. The result is a whisky that’s both deep in aroma, rich in fruitiness and generous in sweetness. For the discerning whisky drinker, it’s a taste experience like never before.

Flavours of Chivas Regal Extra

Colour Dark in shade with a warm amber glow.

Nose Fruity sweet with notes of ripe pears and melon, creamy toffee, milk choc-olate, cinnamon and a hint of ginger.

Taste Sweet ripe pears in syrup, vanilla car-amel, cinnamon sweets and almonds in the background.

Finish Beautifully rounded mouth feel, lead-ing to a long, luxuriant sweet finish.

Chivas regal is marketed and distributed by Farsons Beverage Imports Co. Ltd. trade enquiry t: 2381 4400.

aTTrans – deliVering MOre THan JusT gOOds

Since 1976 and under the guidance of its founder Philip Attard, Attrans has estab-lished itself as the leading transport com-pany on the island. Now in its second gen-eration and under the management of Philip Attard Jnr. Attrans prides itself on being in a position to offer a wide range of services to our various types of clients, providing logistical solutions to and from any European destination to Malta and to North Africa.

The company is based on 25,000 square metres in Zebbug, Malta, and houses our offices, workshops and warehousing facilities. In addition to this, we have sub-sidiaries in Italy (Attrans Italia), and two in the Netherlands (Attrans BV and Attrans North Africa), also fully equipped with administration offices, workshops and warehousing facilities.

The fleet of Attrans Ltd is currently made up of Volvo tractor units and over 300 trailers. Our fleet comprises many differ-ent types of vehicles, suited for the differ-ent types of services we offer. Our trucks and trailers are strategically placed at our own depots throughout Europe, Morocco and Tunisia in order to serve customers efficiently and effectively 7 days a week, 365 days a year. We at Attrans believe that the continuous investment in our fleet has placed us one step ahead of our competi-tors, providing Attrans with the best pos-sible transport solutions available. We are convinced that we have the experi-ence and ability, and that is why Attrans is delivering more than just goods.

Attrans International transport. t: 2258 5500; e: [email protected]; www.attrans.com

keep diabeTes in cHeck

Diabetes or Diabetes Mellitus is a dis-order of the metabolism where the body has trouble using glucose for energy. When we eat, our body breaks down foods known as carbohydrates (found in fruit, vegetables, bread, pasta, dairy, and sweets) into glucose, which is sent to our cells through the bloodstream.

When our body’s systems detect glucose in the blood (particularly during a meal or snack times), an organ called the pan-creas releases an appropriate amount of a hormone called insulin. Insulin makes it possible for our cells to absorb glu-cose and provide the energy our body and brain need to function.

Type 1 Diabetes – Type 1 diabetes (previ-ously called juvenile diabetes or insulin-dependent diabetes) is a disorder of the body’s immune system that results from the pancreas not producing any insu-lin. Type 1 diabetes represents only 5 to 10 per cent of all diagnosed cases. It is currently managed with a rigid therapy of artificial insulin, usually self-adminis-tered.

Type 2 Diabetes – Type 2 diabetes (previ-ously called adult onset diabetes) results when the body doesn’t respond appropri-ately to insulin, a condition called ‘insulin resistance.’ This more common (90 to 95 per cent of all cases) variety of diabetes often runs in families or racial groups, but can also be caused by poor diet and an inactive lifestyle.

Managing diabetes requires the careful, regular and frequent monitoring of blood glucose levels along with the appropriate therapy and diet as prescribed by your physician. Several devices are nowadays available to assist in returning any dia-betic to an independent, safe and high quality lifestyle. These devices include home glucose monitors, continuous glu-cose monitoring systems and wearable insulin pumps.

For further information contact technoline Ltd on t: 2134 4345.

geT TO knOW cHiVas regal exTra a biT beTTer!


business updaTe

bank Of ValleTTa – yOur bank Over the past 15 years, Bank of Valletta has grown from a bank focused on conventional bor-rowing and deposit products to a full-fledged financial services provider. This was by no means a revolution but rather an evolu-tion that remained constant to its vision – the client.

This evolution has witnessed Bank of Valletta branching out to develop a professional invest-ment services arm, able to assist its clients with managing their wealth. It also became the lead-ing SME bank, providing inno-vative financing solutions for this sector that it recognised as the backbone of the Maltese economy from early on. Starting with the BOV JEREMIE financ-ing package, it has continued to

develop financing solutions, like BOV4SME and BOV Start Plus.

However, Bank of Valletta’s offering goes beyond product development and hinges upon the quality of service and long-term working relationship that it always recognised as its trade-mark. Thus, whilst strengthen-ing its retail network and invest-ing in its human resources, Bank of Valletta launched regional Investment Centres as well as Business Centres, to ensure that its clients could discuss their individual needs with the right people at their convenience.

Bank of Valletta has contin-ued and will continue to evolve, in order to remain the bank of choice for its client base. Speak

to us today to see how we can assist you to grow your business.

You may contact your preferred branch, visit www.bov.com or call BOV Customer Service Centre on t: 2131 2020 for further details.

Bank of Valletta p.l.c. is a public lim-ited company licensed to carry out the business of banking and invest-ment services in terms of the Bank-ing Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta).

Hsbc MalTa launcHes €75M MalTa Trade fOr grOWTH fund

HSBC Bank has launched a new €75 mil-lion Malta Trade for Growth (MTFG) Fund following the success of the first €50 mil-lion trade fund launched in December 2013.

The aim of the €75 million MTFG Fund is to help Maltese companies take their business beyond Malta to new frontiers and achieve international growth thanks to HSBC Group’s ability to capture value from its global presence, in particular through the creation of new trade corri-dors in the emerging markets.

During the launch of the second tranche of the MTFG Fund, HSBC Malta also unveiled its “Why Malta?” video on Malta

in five international languages: Arabic, French, German, Spanish and Mandarin – in addition to the already-available Eng-lish version. The video promotes Malta as a business destination and highlights the way HSBC can help businesses set up base in Malta as well as local businesses to thrive internationally.

The launch at the Saluting Battery at Upper Barrakka Gardens was led by Min-ister for Finance Hon. Prof Edward Sci-cluna, who was joined by HSBC Malta CEO Mark Watkinson, Head of Commercial Banking Michel Cordina, Head of Global Banking and Markets James Woodeson and a number of invited guests.

MalTcO inTrOduces syndicaTes feaTure fOr grOup playWith the introduction of the Maltco Syn-dicates, a group of colleagues, friends or family can now play Lotto, Quaterno+ or Super 5 together, by choosing their favou-rite set of numbers as well as the amount of money that each participant would like to pool.

Setting aside the fun and excitement gen-erated by playing as a team, people are also encouraged to play in groups in order to increase the combinations of numbers played, thus improving the chances of winning.

Whilst not new to players, this innova-tive Syndicates feature offered by Maltco provides every participant with the oppor-tunity to own a share ticket based on the amount of money pooled. Consequently, whenever there are winnings, participants can cash their portion independently by presenting the winning share ticket at any of the 230 Maltco outlets around Malta and Gozo.

Although the Player’s Syndicate has only recently been launched in the market, it has already become popular with col-leagues at the place of work who make it a practice to frequently pool in a small sum in order to try their luck and play together. In such cases, one individual normally takes the initiative to encourage his col-leagues to participate and select the num-bers to be played. Once this is decided, the person simply goes to one of Maltco’s outlets and plays the desired syndicate. Along with the Master ticket, the organ-iser will be given separate tickets for all participants (share tickets), which will be distributed to all participating players. Once the draw results are announced and the numbers chosen result in a winning amount, each participant can cash the winnings independently.

to facilitate the process of organising and participating in Syndicates, Maltco Lotteries has created an online Syndicate Wizard service and can be accessed from www.maltco.com/syndicates or visit any Maltco POS for more information.

“Why Malta?” video on Malta, now in five international languages apart from English: Arabic, French, German, Spanish and Mandarin

HSBC Malta Head of Commercial Banking Michel Cordina welcoming the guests, joined by HSBC Malta CEO Mark Watkinson, Head of Global Banking and Markets James Woodeson and the Minister for Finance Prof Edward Scicluna



Documents

Business agenda 23