Download - Malta Economic Update

www.maltaeconomicupdate.com MAY 2013

Achieving a Business Balance pg6Exclusive Sara Grech on the challenges and the will to achieve success

Cover Story

The Plaza Commercial Centre – celebrating

20 years of success pg18Lionel A Lapira discusses shres his news on

the celebrated shopping centre

exeCutive interviewof the Month

Double page bill presenting the winner of this year’s

prestigious awards pg10

Bov top entrepreneurof the year awardS 2013

A comprehensive interview with new PBS Chairman

Tonio Portughese pg52

SaveguardingBuSineSS ethiCS

Newspaper Post

c o n t e n t s10 | Special Feature

18| Commercial Markets

06Cover Story,Achieving a Business BalanceSara Grech exclusive on why deals work best when acquirers adapt to existing cultures and the importance of addressing management divides

30

22

18

Love Your WorldIng. Peter Vella, Alberta

Group’s Head of Business Development tells us why

Alberta is committed in participating in this world

revolution of the energy markets

Bearing of RisksWe feature an exclusive

interview with Mr Sohail Zubairi, CEO, Dar Al Sharia

Legal & Financial Consultancy

The Plaza Commercial Centre – celebrating 20 years of successLionel A Lapira talks about the commercial success of the historic landmark shopping plaza in Sliema

28Vision for GrowthWe interview the new CEO of SmartCity, Mr Abdullatif Al-Mulla

10Special FeatureBOV Top Entrepreneur of the Year Awards 2013We feature a double-page photo spread with the winners of this year’s BOV Top Entrepreneur Awards

For magazine and website advertising enquiries please contact: [email protected]

or call on (+356) 9940 6743

06 | Covery Story

30 | Renewable Energy 34 | Healthcare

c o n t e n t s28 | ICT 44 | Education

44

34Extending the Education Sector in MaltaWerner E Jung, co-founder of the Competence Center for Economic Development (CCED), presents his outstanding article on education

Living healthier,Living Longer

Dual Interview with Emcare’s Damien Digby and Roland Cachia on how Emcare is providing peace of

mind to the elderly who cannot afford to reside in a residential home

All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in The Economic Update are not necessarily those of the editor or publishers. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. The Economic Update is printed by Union Print and distributed free with The Business Weekly.

For editorial enquiries please contact:[email protected]

Please feel free to email us with your viewpoint, whether you agree or disagree with the standpoint of the personalities we interview or the topics we focus on. Your opinion, contribution, concern and feedback on our

articles and interviews are welcome. Please include full name, contact details

www.maltaeconomicupdate.com

We are in the full bloom of spring, when flowers envy each other, becoming jealous of their different colourful ensigns. Envy is lusting or longing for a thing or condition, or attribute belonging to someone else. Jealousy is defined as the inordinate obsession for something, someone, or condition that is the object of someone’s attention or ardour, wishing to possess exclusively, the thing or person in question.

Touching on the philosophy of envy and jealousy, there is only one conclusion I draw - that these are both destructive to all. They produce inordinate emotions and uncommon greed for person or things, thus they are both life destroying. We have all experienced jealousy and envy at some time or other. The secret is to let them go, throw them away, cast them into the sea of forgetfulness! We know we have often experienced envy. Someone more beautiful, more talented, more intelligent, having more beautiful clothes, jewellery, or luxury items, or getting the undeserved promotion or raise at work. There are those who became sad thinking they would not achieve all the things they envied possession of. That is an intensely soul deflating ordeal and one should not go there, we are aware to what depth such envy may lead to obsessive paranoia, abnormal behavioural and anti-social attitude.

My late dad used to tell me, “you are what you are, you have what you have. Always remember,” and I had to really meditate on this, ”you cannot metamorphose yourself to look like someone else, or clone their talent or personality. Even if you did, you would be a CLONE, a copycat, an unoriginal!” Pity the poor souls who spend their lives being their hero’s shadows, poor copies of the real thing, instead of being a sparkling original, stretching their horizons to be the best they can be with the talent and personality God gave them. It takes less work and imagination to expand and improve on oneself, than it does to research, stalk, and practice being an inferior COPY of someone else. In Ralph Waldo Emerson’s own words, “Envy is the tax which all distinction must pay.”

This month we pay tribute to Sara Grech, Malta’s iconic female real estate guru, an outstanding woman who has accomplished success in a male-dominated business by pursuing her dream, making her own choices and embracing life as a gift to enjoy. Our award-winning interviews showcase Plaza Centres Lionel Lapira who talks about running commercial shopping centres, Mr Sohail Zubairi of Dar al Sharia discusses Islamic Finance, Minister for Tourism Dr Karmenu Vella shares his views on the tourism industry, Ing Peter Vella from Alberta discusses renewable energy, Damien Digby and Roland Cachia sketch down healthcare technology services and artist Ruth Bianco shares her latest publication with us. Our talking point follows with new PBS Chairman Tonio Portughese and finally we go corporate with new SmartCity Head Abdulatif Al-Mulla.

Thanking our high profile contributors, I wish you a delightful read.

The Economic Update is published by:Network Publications Ltd.,

Angelica Court, Giuseppi Cali Str., Ta’ Xbiex, XBX1425, MaltaTel: +356 2131 6326/7/8 Fax: +356 2132 3432

Publisher John Formosa

Editor Martin Vella

Journalist Rebecca Hansen

Sales & Publication Manager Margaret Brincat

Graphic Designer Jessica Camilleri

Cover photography Nicky Scicluna

Printing Union Print

For magazine and website advertising enquiries please contact: [email protected]

or call on (+356) 9940 6743

Martin Vella

Contributors:Juanita Bencini; Liana Cachia; Jo Caruana; George Carol; Johnathan Dingli; Antonio

Ghio; Richard Geres; Patrick Hall; Werner E Jung; Vanessa MacDonald; Richard Wernick; Gabriella Zammit

Special Thanks: BPC; Circle Events Ltd ; Logix Communication ; Malta Fashion Awards; MIM; PBS; Xara Lodge; Richard Geres

Ben’s Good Cents: “GLASS, CHINA, AND REPUTATION ARE CLEARLY CRACKED,

AND NEVER WELL MENDED.”

E d

i t

o r

’ s

n

o t

e

COVER STORYINTERVIEW

MAY 2013 | THE ECONOMIC UPDATE

06 | www.maltaeconomicupdate.com

ACHIEVING A BUSINESS BALANCE

Sara Grech motivates people around her, ensuring that the wish to do what you want comes from within. Her credo is to take each day at a time and focus on what is right. Sara maintains that the most important thing to do is to have goals, without goals – it is very difficult to achieve, whilst big goals can create a fear of failure, lack of goals guarantees it. Those that take their time to think through what they want and write them down and commit, almost always succeed.

TEU: How do you apply the philosophy behind your phenomenal achievements to your own life?SG: Discipline first comes to mind along with the desire to help people realise their dreams. A fundamental factor is that one must always remember what a company is, which is simple really - a group of people, and as a leader you have to be a great listener, a good motivator and always praise people whilst looking for the best in them. Having fun in what you do makes a difference to your performance, so I always recommend that if you enjoy what you do keep doing it, if not, move on.TEU: As a woman have there been any obstacles that you have had to face that men typically do not and have there been any advantages?SG: All business owners face certain challenges, but women, because of their gender, often have additional challenges and obstacles that

their male peers are less likely to encounter. Working women who have children experience even more demands on time, energy and resources. But this does not mean women are less successful than men, in fact, statistics show that women are starting businesses at more than twice the rate of male-majority-owned businesses. The growing success rate of women entrepreneurs shows that they are resourceful, and able to succeed, despite the odds.

Real Estate is a male dominated industry, as a matter of fact I have been and still am the only woman in the industry to run her own real estate business. All of the women are agents and not owners. In the past I believe that because I am a woman it has been very

By Martin Vella

BACKGROUND

Sara Grech has been enthusiastic about property from ever since she can remember. As a girl, Sara would visit neighbours’ homes and discuss the houses with her family and friends. After returning from the US, she started up her business and ever since invested in real estate. Sara thinks that the current combination of good opportunities and good quantity of deal flow is in real estate, both locally and abroad, as she says, “Today there is more of an aversion to real estate than other areas.” In order to achieve above average results, Sara believes one has to think differently and better. “It doesn’t always work to do the opposite of what the herd is doing , she emphasises, “You have to know what they are doing , know why they are doing it, know what’s wrong with it, and then do the opposite.” That, is Sara Grech’s

favourite investment strategy.

Change is the law of life, and those who only look at the past or the present are certainly going to miss the future

Sara Grech with son Benjamin Grech



www.maltaeconomicupdate.com | 07

hard to recruit and retain agents as well as harder to achieve the developers trust.

Challenges for women begin in childhood. Young girls may be brought up to believe that they are only suited for certain professions or, in some cases, only to serve as wives and mothers. Gender lines are drawn early, and exclusions for women continue throughout adulthood. These constant messages may lead to a false belief that women do not belong in the high-powered corporate world. I work hard to change this, I give opportunities to women with some taking on the challenge and others quitting once they start a family. I find it such a shame to see potential in someone who loses the determination because she accepts the wishes of her partner. Woman need to try harder and those that do, then succeed. “Success comes in cans and not in cant’s”.

TEU: What is the relationship between Sara Grech and ENGEL & VOLKERS?

SG: Sara Grech celebrated the culmination of months of work to launch this Co-branded franchise partnership, for the whole of Malta and Gozo – Engel &Volkers Sara Grech.

Most of you will know the history of Sara Grech, A company I launched in 1987. Since then, with the help of my children, Benjamin, Semira and Hannah, and our dedicated and talented team, we have built the Sara Grech brand to become a household name in the residential and commercial real estate sectors across the Maltese Islands. Success has not come easy, but I believe we have risen to the challenges and I stand proudly behind what Sara Grech has become. The journey doesn’t stop here – not for me, not for my family, not for my team, and not for the many clients who have trusted us over the years. We believe in change – and we believe, it is a beautiful thing to consistently strive to reach new heights and achieve new dreams. Change is the law of life, and those who only look at the past or the present are certainly going to miss the future.

Because Sara Grech is in the business of making dreams come true, for so many people looking for their home or commercial property, this move marks a milestone achievement as we join forces in Malta and Gozo with Engel & Volkers – a world-renowned Hamburg-based

organisation with over 520 real estate brokerage shops in 37 countries.

There is something very special about Engel & Volkers – it is a globally recognised brand, with a reputation for representing the very best properties and working for top clients. Moreover they share so many of our core brand values: expertise, dedicated customer care, the highest standards and total discretion.

We are very proud to have secured the franchise licenses for residential and commercial and – together with my fiancé Raymond Bugeja – the franchise for yachting. While property is something we have been dealing in for decades, yachting is a new line of work for us. However it is no less close to our hearts. We are thrilled to be able to offer yachting brokerage services in Malta and Gozo.We are delighted with the co-brand Engel &Volkers Sara Grech and the brand Engel & Volkers Yachting, and we believe they will prove to be a very important step for the Maltese Islands and the real estate and yachting industries. They will also put our beautiful

islands further afield on the global map – whether for investment purposes or simply as a great place to live and enjoy. Yes, this is a unique and formidable opportunity as we bring together a world of real estate and yachting buyers and sellers from numerous countries worldwide.

TEU: At a time when most agents are battling tough market conditions, is there great merit in understanding what the top performers, such as ENGEL & VOLKERS SARA GRECH are doing within their businesses to ensure they consistently hit high sales volumes?

SG: Yes certainly. Our business model had to change. Gone are those days that a customer wants to enter an office premises and find ten people at their desks who can listen to each other’s conversations. Discretion is of utmost importance. Our efforts have frenetically gone into setting up and refurbishing the five lounges and training our people in the Engel and Völkers systems. We also moved our headquarters to our new

They share so many of our core brand values: expertise, dedicated customer care, the highest standards and total discretion

A FEW OF SARA GRECH’S GUIDELINES FOR ACHIEVEMENT

• Strive to create a larger value for the service you offer. Your rewards are always proportionate to the value you provide.

• Provide a ‘Reason Why’ customers should do business with you.

• You get to make the rules for your business. Don’t let industry norms dictate how you’ll work or who you’ll work with.

• Create your business around your life instead of settling for your life around your business.

• Consistently and constantly force yourself to focus on the ‘critically few’ proactive activities that produce exponential results.

• Your reputation always counts. Honour your obligations and agreements.

• Keep asking the right questions to come up with innovative solutions. “How?”, “What?”, “Where?”, “Who Else?” & “Why?” open up possibilities.

• You’ll never have a perfect business and you’ll never be totally “done”. Deal with it.

• Focus most of your time on your core strengths

• Develop and build your business’s personality that stands out. People want to buy from people.

• Go the opposite direction competitors are headed – you’ll stand out.

• Mastermind and collaborate with other smart entrepreneurs if they have futures that are even bigger than their present.

• Make your business AND doing business with you FUN!

• Give back! Commit to taking a % of your company’s sales and make a difference

BOV CARDSLOYALTY REWARDS PROGRAMME2131 2020 I bov.com

Your success is our goal.

Issued by Bank of Valletta p.l.c. 58, Zachary Street, Valletta VLT 1130 - Malta

* Terms and conditions apply. Valid for airline tickets booked directly with an airline and paid with a BOV participating credit card. For further information log on to www.bov.com or call +356 2131 2020

BOV CARDSLOYALTY REWARDS

PROGRAMME

your BOV Loyalty Points can now pay for your flights!

You can now redeem your BOV Loyalty Points against the value of airline tickets. BOV Cards Loyalty Rewards Programme - the best value for you!

valid for flights on any airline, to and from any destination worldwide*



market centre in Msida. Although this step came with challenges of its own, we knew that it was the right decision to take. It allowed our talented team to pool their resources and knowledge, and all that is Sara Grech…is now housed under one roof. This means that, even more than before, we are able to serve our clients in a formidable, unique and dynamic way.

Our beautiful new bespoke lounges are located in Sliema, Portomaso, Attard, Fgura, and St Paul’s Bay. These lounges will give us the ideal space to interact with those interested in buying, selling and renting residential or commercial property, as well as yachts… in elegant and stunning surroundings, designed specifically for this purpose. They are all very private and extremely welcoming, and we know that they can only facilitate us to go that extra mile for our clients. We are all very excited to have taken this step. In many ways it is a new beginning, but in others it is a natural continuation of the Sara Grech journey.

TEU: Do you think that manners make sales and is this a strategy which is often neglected?

SG: Most certainly, however our agents are well trained within the parameters of our core values: competence, exclusivity and passion. They are well versed with the market conditions and up kept up to date with property values.

TEU: Does identifying what motivates your prospects to buy help you to increase sales?

SG: Yes, undoubtedly so. When clients know that you know your business they feel confident about making the right choice. The choices we make, make us who we are and I work hard on a daily basis to ensure that our agents believe that there is nothing nicer than the truth. This then turns into repeat customers who, no matter what will not go elsewhere to satisfy their property investment needs.

TEU: Do you have to be always on your “A-game” when dealing with high-end customers, because the customers are very smart and business-savvy?

SG: Definitely, no other way will work. The high end customers are rightfully so demanding, time is of the essence and you need to be spot on. TEU: What types of reforms do people want implemented in the real estate sector?

SG: The reform of the residency permit which the government has announced will be launched by the end of May. The Malta permanent residence scheme was suspended

in December 2010 after an abuse of the system. We have been to exhibitions trying to attract foreign investors which were coming to a standstill. This reform is very important for the developers on the islands and the high end properties we have for sale.

TEU: What do you enjoy doing in your spare and where do your son and daughters come into the picture?

SG: Most of my free time is spent with Raymond and my children and my sons’ fiancé Bansi Pattni. We travel together and spend weekends together. Sailing is our favourite past time along with wining and dining. The girls and I love the spa and if when we can, we always book ourselves a pampering treatment before heading out to the pool area.

TEU


TEU: What is something most people don’t know about you?

SG: I am not so sure, all I can say is that I am a simple person who loves to cook for my family and spend all the free time I have with them. My fiancé Raymond is similar to me in that we love everything simple rather than anything fancy. Sitting on the terrace reading a book and chatting is our favourite pastime.

TEU: What accomplishment are you most proud of?

SG: The balance of my business life and the opportunity to have brought up three lovely children whom I am very close to and have a wonderful relationship with as a mother and business partner. All rights reserved | Copyrighted.

MAY 2013 | THE ECONOMIC UPDATE BOV TOP

ENTREPRENEURAWARDS 2013


1

3

2

4

The BOV Entrepreneur of the Year Awards 2013 was held at the Westin Dragonara Resort, on the 10th May 2013 and brought together the final 18 of Malta’s top business professionals all competing for The Economic Update’s most prestigious entrepreneurial awards. The event, which was sponsored by Bank of Valletta and organised by Circle Events, started off with a lavish black tie Gala Event, culminating with the much awaited Awards ceremony. Awards were attributed to four separate categories, being ‘Best Innovation Award’, ‘Entrepreneurial Spirit Award’, ‘Top Female Entrepreneur’, ‘Top Male Entrepreneur’, and ‘Top Entrepreneur Award 2013’.

The judging panel comprised of David G. Curmi, CEO MSV Life, Doris Sammut, president Malta Association of Women in Business, Tonio Zarb, KPMG senior partner, Rachel Vella, director of ROCS Group, as well as Michael Bonello, franchise owner RE/Max Alliance Group. The final votes for such an award was the result of a summation of 60% awarded by the aforementioned panel as well as 40% of votes received online via the magazine’s website.

James Abela and Matthew Sammut (NIU) were awarded the honour of ‘Best Innovation Award’. The title for ‘Entrepreneurial Spirit’ was won by Mark J Galea (Quad Consultancy). The title for ‘Top Female Entrepreneur’ was won by Sandra Zammit (TotallyFresh Ltd) while Ivan Bartolo (6PM Holdings) won the ‘Top Male Entrepreneur’. The highest accolade of the BOV Top Entrepreneur Award for 2013 was won by Ivan Bartolo.

The event, organised by Circle Events, with the cooperation of The Economic Update and Bank of Valletta, was an outstanding success. Particular thanks goes to John Formosa, Director of Circle Events Ltd.

BOV Top Entrepreneur Of The Year Award 2013

TEU

5

7

6

8 9 10

BOV TOP ENTREPRENEURAWARDS 2013



11

13

12

14 15

1. Ivan Bartolo awarded the BOV Top Entrepreneur Award by Charles Borg.2. Mark J Galea receiving best Entrepreneurial Spirit Award from John Formosa. 3. Ivan Bartollo, Winner of the BOV Top Male Entrepreneur of the Year Awards 2013 with Alfred Frendo, BOV Head of Finance. 4. Matthew Sammut and James Abela, winners of Best Inovation Award. 5. Guests at the BOV Entrepreneur of the Year Awards 2013. 6. Noel Scerri, Lorraine and Kenneth Micallef. 7. Karl and Christine Micallef. 8. Geoffery Farrugia, Handson Ltd. 9. Ryan Galea, Econetique Ltd. 10. Dr. Beverly Cutajar, Think Talent Ltd. 11. John and Monique Formosa. 12. Left to Right James Grima, Ingrid Zerafa, Agnieszka Kwiatkowska, Mark J Galea, Charmaine Galea, Simon Casolani, Antoaneta Basarbolieva, Marc Parra Perez. 13. Yazmine Attard, Ray and Marthese Attard, Ryan Attard. 14. Charles Azzopardi with Ramona Despott. 15. David J Dingli and wife. 16. Rachael Calafato, Sandra Calafato and Danielle Calafato. 17. Tonio and Doris Zarb. 18. Mr. Hadrien Majoie and Marina Majoie. 19. Sandra Zammit awarded the BOV Top Female Entrepreneur Award 2013 by Denis Zammit Cutajar.

18

16 17

19

MAY 2013 | THE ECONOMIC UPDATE BUSINESS MARKETS


BACKGROUND

The Company was established in 1957 when the site where the present Commercial Centre is situated was developed as the Plaza Cinema. For thirty years, The Plaza Cinema became a landmark in Sliema hosting thousands of visitors throughout its lifetime. Due to falling demand in the local cinema industry in the late seventies and early eighties, the Directors took a bold decision to close their cinema operations in the late 1980s. After carrying out research and a substantial investment, the Company developed the site into the country’s first managed shopping and office leasing centre. The Plaza Commercial Centre was inaugurated in December 1993 and has since earned a reputation as a convenient one stop shop for quality goods and services and its choice of local and international names.

TEU: What makes a shopping centre successful?LAL: There are many factors that analysts and investors take into consideration when determining whether a shopping centre is successful or otherwise. This analysis may be considered from two approaches, one being ‘property-driven’ and the other ‘consumer-driven’. Achieving a balance between the two will always be a challenge. The market is facing competitive rivalry and the threat of new entrants remains high; whether building new shopping centres or opening new high street shops. This does not necessarily mean that success is guaranteed. In this setting the bargaining power of customers is high and our company had to re-align and adapt its core competences to maintain a competitive advantage over new entrants to the industry. Consequently the provision of an exceptional shopping experience, every time, is considered one of the critical success factors in a consumer driven market.

TEU: What is unique about the Plaza Commercial Centre?

LAL: Looking back at the growth of the shopping centre industry during the past 20 years, we are in a position to assert that our location is the

single, most important factor which makes The Plaza Commercial Centre unique. Situated in the centre of Sliema’s Prime Commercial Area, The Plaza set the standards for the development of Sliema as Malta’s number one shopping and leisure destination. Achieving and maintaining a sustainable competitive advantage was also a critical factor and this assisted the Company to establish itself as a leader in the industry.

TEU: How can Management take a proactive approach towards ensuring the operational success of the Company’s key assets? LAL: The commercial leasing market faces intense competition and the need for a sophisticated approach towards managing and marketing shopping centres is greater than ever. Customer expectations change continually and consumers have become increasingly demanding,

The Plaza Commercial Centre – celebrating 20 years of success by George Carol

Situated in the centre of Sliema’s Prime Commercial Area, The Plaza set the standards for the development of Sliema as Malta’s number one shopping and leisure destination

MAY 2013 | THE ECONOMIC UPDATE BUSINESS MARKETS


refined and service conscious, expecting quality when seeking goods and services. Consequently, management needs to ensure that the provision of an exceptional service experience, every time, is critical in a consumer driven market. As a result of seeking to anticipate these ever changing needs and expectations, management had to build on the Company’s achievements by anticipating, adapting and improving its service offering and by adopting the philosophy that a unique location must create an exceptional opportunity to assist its tenants achieve success.

TEU: How do you develop and manage relationships with the local community, co-owners and tenants?LAL: The industry depends on key, timeless factors which require strong social skills to build and maintain long term relationships with all stakeholders. Borrowing St.Augustine’s wise words “audi partem alteram” “listen to the other side” is perhaps one of the most effective methods. Although we provide employees regular customer relationship management training, more often than not, the human attitude of imposing one’s opinion takes precedence over that of the community and customers. In this respect, we sought to adopt the axiom of first seeking to understand and then to be understood. Relationship management requires years to develop and once achieved, your reputation is established. Meeting stakeholder needs, wants and expectations is then enhanced through the investment in customer support systems, collaboration techniques, effective communication, public relations and IT systems.

TEU: How do you, by managing day-to-day operations, ensure optimal performance and full compliance with health, safety, labour and environmental regulations?

LAL: The Centre’s management is responsible for planning, managing, marketing, leasing, entertainment, maintaining the premises, security, cleaning and addressing health and safety issues. Our services free tenants from such responsibilities and allow them more time on task to manage their outlets by focusing on their marketing objectives and strategies. Plaza’s twenty year experience and reputation assures tenants and customers that compliance with health, safety and environmental regulations have been thoroughly tried, adapted and tested before. The Company’s health and safety policies are analysed, reviewed, and improved on a regular basis in the interest of all stakeholders, and checked independently by competent consultants.

TEU: What are the challenges of making investment decisions and performing financial modeling in commercial centres?

LAL: As in any investment decision, there is no guaranteed recipe for success; nonetheless

financial forecasts and market considerations take precedence. In the commercial centre industry, shareholders usually expect a return on investment not longer than ten years, ideally less. However, achieving an earlier rate of return would mean a higher leasing rate than the market price, hence increasing the risks. The economic, political, social, technological, legal and environmental factors would also need to be taken into consideration when making investment decisions.

TEU: What is your unique selling point and leasing advantages?

LAL: Since 1993, the Company consistently marketed its services as a one stop shop, conveniently situated in a central location and hosting the “best names under one roof.” The company “pegged” its unique selling proposition on what marketers call the “four P’s” of marketing, namely product, price, place and promotional strategy. In our case, Plaza’s unique central location was the key driver in our quest to achieve and maintain a competitive advantage. Leasing advantages were leveraged through service quality and adapting the company’s core competences to maintain its leadership status in the industry.

TEU: Does Malta still present opportunities in the shopping centre sector?

LAL: As mentioned earlier, the commercial leasing market faces intense competition and the need for a sophisticated approach towards managing and marketing shopping centres is greater than ever. Understanding the country’s demographics is the first step one needs to consider when determining whether the market still presents opportunities in this industry. Analysing the demographics, and targeting the segments of the population which the tenant mix is seeking to address would assist the investor to realise that opening a new shopping centre does not necessarily create a new market, but erodes an existing one. When considering the size of the local population and the country’s tourist arrivals, this rationale also applies to new outlets launching new brands wherein their long term sustainability is put in question. Perhaps Charles Darwin’s adaptation of Herbert Spencer’s “survival of the fittest” best describes the opportunities in the shopping centre industry. The strong brands survive the test of time whilst the weaker brands perish and are replaced with new contenders.

TEU: Do you think this market will be consolidated?LAL: Market consolidation occurs when larger, and financially stronger, organisations acquire smaller or weaker rivals competing in the same industry. This situation often arises during economic down turns when two complementary organisations join forces to increase their combined strengths to survive the economic challenges. More often than not, consolidation is more advantageous for the acquiring company and in a weak market, the larger company will maintain a higher valuation compared to the smaller and weaker one. Some studies indicate that not all mergers add value to shareholders, but experts in the field conclude that the consolidating company gains strategic benefits mainly through synergies. Locally, market consolidation could assist the industry players to achieve long term sustainability mainly through the benefit of economies of scale. TEU

In this respect, we sought to adopt the axiom of first seeking to understand and then to be understood

Editor’s Note

Lionel Lapira joined the Plaza Commercial Centre on 1 July 1994, occupying a number of posts within the company including Commercial Manager, Company Secretary, Compliance Officer and member of the Company’s Executive Management Committee. He has been a member of the ICSC (International Council of Shopping Centres) since 1995 and in 1999 was awarded AMD (Accredited Marketing Director), CMD (Certified Marketing Director) status by the ICSC. In January 2000, the company appointed him General Manager with responsibilities for operations, human resources, leasing, marketing and property management. With qualifications and experience in management, finance, marketing and diplomatic studies, Mr. Lapira obtained his MBA at Henley-Brunel University in 2005. Prior to joining Plaza Centres p.l.c., he occupied senior management positions in the local hospitality, entertainment and leisure industry. Mr. Lapira was appointed Chief Executive Officer on 1 January 2005 and has since served as Chairperson of Plaza’s Marketing Committee.

Call us on21 424 750

Call us on21 424 750

www.solarsolutions.com.mt

Experience - With over 25,000 photovoltaic modules (5MWp) Solar Solutions remains the largest RES Company with the largest proven portfolio in Malta. Solar Solutions carries the largest testimonial portfolio of satisfied clients who described their buying experience and relative savings.

Quality Brands – SOLAR SOLUTIONS only deals with large photovoltaic and Inverter manufacturers who do not only depend on the sales of Photovoltaic for revenue. Kyocera, Hyundai Heavy Industries, JA Solar and SMA are big organisations that inspire confidence in such investments. The financial and brand stability is a testimony to the organization’s promise of a 25 year guarantee on the photovoltaic solar modules.

Quality Materials – The experience gained gave us the know how to use the right quality materials, fittings and switchgear. Choosing

cheaper material can make your PV system cheaper but not as safe and long lasting making it costlier in the long run.

Quality Human Resources – A company is just as good as its employees. All employees are regularly trained

on their job and all abide by Solar Solutions ISO 9001 & ISO 14001 certifications. Right from the very start Solar

Solutions offers consultation followed by system design, eventually implementation and finally

customer care.

Affordability - Solar Solutions offers the best value for money solar

photovoltaic turnkey packages without compromising quality. This

means that when one compares like with like, Solar Solutions always

achieves the best priced solar photovoltaic solution.

2/3 Tal-Balal Road, Xwieki, L/O Għargħur, Malta

Experience - Quality - Affordabil ity

Get €2500 Grant*

* Sub

ject

to EU

form

al g

rant

appr

oval

PROPERTY



In recent years, Frank Salt Real Estate Limited has been awarded the top title for various prestigious awards such as Best Real Estate Agency In Malta. In addition it was also awarded for Best Marketing, Best Website and Best Lettings Agency. The company was also awarded as Best Lettings Agency in Europe. Rather than finding out why the Group has been accorded these accolades, we focus our lens on the company’s involvement in the property rise in Valletta.

BACKGROUNDDotted with quaint cafés and wine bars, Valletta is today one of Malta’s main tourist attractions, hosting majestic palaces, imposing bastions and a treasure of priceless buildings. It also provides stunning views of Malta’s Grand Harbour, and the city’s unique setting nowadays plays host to a series of cultural events. A hive of business activity during the day, the city switches to a slower gear for the night. Besides taking a stroll to admire the magic of the fortified capital amplified by the awe-inspiring lighting, one can use it to his own advantage and grab the opportunity to invest in some of the

amazing property on offer in the dense clusters of worn limestone buildings, the timber balconies, and imposing Churches.

TEU: What is your core businessand what is its primary focus?

GS: First of all when you talk about Frank Salt Real Estate you are discussing a group of companies, with the core business being Frank Salt Real Estate – the Estate Agency, including a network of fourteen offices throughout Malta and Gozo, with a staff complement of 115 employees. We have fully fledged divisions catering for commercial properties and for residential lettings making up our core competency. The residential letting department has more than doubled in the last year.

Homes of Quality is another company within the group catering for a niche within the local market, promoting a selection of the best quality properties from our database.. We have four dedicated consultants who are specialised in dealing with clients that are looking for that type of property.

Then there is Berkeley Investments which is the development arm of the group, where currently we have three developments running, namely a luxury development on Tower Road, the building of ten villas in St. Andrews and another block in Sliema.

There is an after-sales division which assists clients with the interior design and furnishing of their homes. We also have a projects division which takes care of larger projects such as, if someone requires construction work or finishing a property from shell. And finally, we have a property managementdepartment.

TEU: How do you correlate having a diversified real estate set-up combined and Frank Salt Real Estate’s consistent leadership in the market with your involvement, association and services when it comes to finding property in Valletta?GV: Valletta has been left on the back burner of the real estate market for a very long time. There is a lot of abandoned property. Slowly, slowly we are seeing an increase in demand for Valletta and we are seeing a lot of scope. With the investments made in Valletta in the past years, the city has become a more attractive

by Martin Vella

Valletta offers a unique and diverse market. Property which was overlooked is suddenly in demand and property which nobody wanted is suddenly a great investment

LIVING IN THE CITY


PROPERTY


place to invest and live. When prices hit rock bottom in the last couple of years, there was no real incentive for owners of these properties to get them restored or to sell or rent. Today this has changed.

Our type of clientele has also changed over the years and Valletta’s location is an important factor besides price, accommodation and views. We have a high demand from cultured North Europeans and people wishing to re-live history, discover and enjoy culture.

GS: We see huge potential in Valletta, which is becoming a cosmopolitan city. As a company, Frank Salt Real Estate is always on the lookout for areas where there is great potential. More than half of the properties in Valletta have been empty for years. Valletta has been a commercial centre not a residential city for too long. Now there is a lot of focus on Valletta, even though there are parking concerns and other accessibility problems.

We have highly educated and cultured clients from France and Italy for example who are mesmerised by the beauty of the city’s architecture and surroundings.

TEU: What type of properties are you offering?

GV: We offer a mixture of properties. From very small apartments which are suitable for short-let markets to townhouses and palazzinos. Customers also find the close proximty of restaurants in a historical setting alluring and the fact that they can find everything within a stone’s throw is an attractive factor.

The rental market is also in demand. Valletta offers a unique and diverse market. Property which was overlooked is suddenly in demand and property which nobody wanted is suddenly a great investment. Before, only properties with a view were sought after. Today, foreigners and locals are looking at investing in something which renders a return and also gives personal satisfaction in many ways. Whether it’s a penthouse, a harbour view apartment or a palazzo, we are able to find the right property at a good price.

GS: Valletta is a UNESCO World Heritage City built in the16th century during the rule of the Knights Hospitaller of the Order of St. John of Jerusalem and offers old houses of character, which we can also re-decorate. Added to this, one also has immediate access on foot to several gardens, museums and theatres as well as hundred large selection of restaurants and cafes offering a variety of cuisines at different prices. Valletta is a very safe city by day and by night. The notion that our Capital City is dead at night is changing. Besides the restaurants, we have recently seen many trendy wine bars proving to be very popular. We are talking about potential here and what we think is that by 2018 Valletta is going to change a lot. Now is the right time to buy a property, since in four to five year’s time the city will be booming with life.

GV: I walk with clients through Valletta and if you walk down Valletta looking through their eyes you would realise the immense wealth the city offers – the architecture, the museums, the palaces, the government buildings and old auberges, the parliament buildings, Castille, Barakka Gardens, the cafeterias, shops, restaurants and offices, the cathedral, the spectacular lights at night and the hidden treasures that such a cultural and historical place holds. It is nothing short of an open-air museum. It is a living experience of Baroque architecture, a monument donated by the Knights of St John nearly five centuries ago. Throughout the years, Valletta has welcomed emperors, heads of state, artists and poets and is now the permanent seat of the Maltese government.

So it’s no wonder that Valletta, despite its small size, is now one of the hottest tickets in the real estate market.

TEU: Tell us about your involvement in some of the properties available in Valletta and the impact of urban dwelling vs demand. How is the perception of working and living in Valletta changing, and what is the potential in terms of rental investment?

GV: To answer the first part of your question we have been seeing for a number of years many

young professionals based in Valletta; an architect or somebody in law for example, might want a base camp in Valletta, whether it’s an apartment with a terrace or a palazzino. They can walk to work and have everything around them so they don’t need to leave.

GS: This is a demand we have experienced and it’s fashionable. People living there find it extremely convenient there. They can dine, they can work there and they can shop and rest there. It is usually a young professional that seeks such property. But the rental potential is in high order and I can tell you there isn’t enough property for rental. Plus demand for living in Valletta is not limited only to people working or regularly commuting to Valletta.

Foreign demand is on the increase and the market prices are still moderate. Foreigners mostly want to buy a good palazzo which they can convert and which makes them feel like they own part of the city. For rentals, there is demand for everything. Many people who come from to Malta for the first time have only ever heard of Valletta. Hotels in Valletta benefit from this and this now this is having the same effect on demand for short-let apartments. When clients finally come here they love what they find.

If you walk down Valletta looking with their eyes you would realise the immense wealth the city offers

Biography

Frank Salt Real Estate is the leading real estate agency in Malta and Gozo, with a solid reputation for quality service built over 40 years of experience in the field of property in Malta. Established in 1969, the Frank Salt Real Estate Group is one of Malta’s leading real estate agencies, dealing primarily with property in Malta and Gozo and offering a one-stop-shop solution to all your property needs. The company offers the largest and most varied selection of properties for sale and to let in Malta and Gozo, being the agency of choice for all client tiers, be it local or foreign, be it first and second time buyers, investors or with a commercial interest. It holds associations with more than 50 overseas agents and representatives and offers a one-stop-shop approach to all property related needs.

Editor’s NoteGrahame Salt is Frank Salt’s younger son. He is a shareholder and a member of the board of directors. He has graduated with a Business and Computing Degree from the University Of Malta, and has been working with the company for the past twenty years. However since his father was the founder of the company, he often likes to point out that he has had real estate running through his blood since his toddler days.

Grahame speaks Maltese, English, Italian and French. Being involved in property for most of his life, most of his work experience has involved real estate. He specializes in handling non-residents coming to Malta to buy permanent or holiday homes or even investment properties. He has represented the company in numerous overseas exhibitions mostly in the UK, but also in Dubai, Hong

Kong, Holland, Italy, Sweden and South Africa. Grahame managed the Sliema Branch for a period of eight years starting in 1999. He is currently the managing director for Homes Of Quality Ltd and of Berkley Investments Ltd. which is the group’s investment company and is involved in a number of successful property developments. He is specialized in dealing with high net worth clients.

T. 2342 0000 e. [email protected]

TEU

If you are interested in buying, renting or selling properties in Valletta you can contact Frank Salt Real Estate on 23 794 999 or by email at [email protected]|www.franksalt.com.mt

Editor’s NoteGeorge is a people oriented person with a genuine passion for architecture, sailing and rock music. Began his career in real estate in 1986 and today holds more than 27 years of experience in Property, of which more than half have been as part of the Frank Salt Real Estate team. Since 2006 he has been managing the Sliema branch, one of the agency’s flagships. George believes property is an excellent investment vehicle and relishes being involved in his clients’ wealth creation and asset management. He has represented the company overseas on several occasions, primarily in the Scandinavian and Russian markets. George is married to Debby Dedomenico and they have two daughters.

T. 2342 1000 e. [email protected]

TRANSPORT& LOGISTICS



DHL expands accreditationfor secure cold chain

Cassar & Cooper expanding trailer services with new route

• 30 DHL Global Forwarding stations receive accreditation asQualifiedEnvirotainerProvider

• DHLplanstoenrolladditional48stationstotheprogramDHLGlobalForwarding, the air and ocean freight specialist within DeutschePostDHL,hasexpandeditsQualifiedEnvirotainerProvider(QEP)Accreditation to 30 stations in locations as far afield as Germany,France,UK,theUS,Egypt,Dubai,JapanandChina.ByaddingtheQEPAccreditation to itsmajor stations,DHL’s network is furtherintegrated with Envirotainer operational requirements - to ensurecustomerspropershippingoftemperature-sensitiveLifeSciencesandHealthcareproducts.Intheupcomingmonths,thecompanyplanstoadd48stationstotheQEPTrainingandQualityProgram.

“TheQEPAccreditationsupportsourcoldchainobjectives todeliverexcellent customer service with product integrity and regulatorycompliance in mind. Our expanded certification network coversalreadyover90percentofourcurrentEnvirotainervolume,andwewillcontinuetoenrolladditionalstationsworldwidetotheprogram,startingwithFrankfurt,Germany”,saysDavidBang,CEOofLifeConEx,DHLGlobalForwarding’stemperaturemanagementspecialists.Envirotainer,theworld-leaderincoldchainlogisticssolutions,developedtheQEPTrainingandQualityProgramtoincreasethequalitylevelsincoldchainmanagementintheairtransportationindustry.TheprogramincludestheGoodDistributionPracticeGuidancefromorganizationssuchas theParenteralDrugAssociation(PDA), the InternationalAirTransport Association (IATA) and the European Medicines Agency(EMA).

Envirotainer provides active temperature-controlled air freightcontainers maintaining product temperatures within the temperatureranges +2 to +8°C, +15 to +25°C and >-20°C in nearly any ambientconditionappearingalongshippingroutesglobally.Witharelationshipof more than 10 years, Envirotainer and DHL have formed a specialpartnership that has forged the way for the Life Sciences and theHealthcareindustryandactivecoldchainmanagement.

The partnership between DHL and Envirotainer facilitates theimplementationofwellplanned,secureandcompliantcoldchainlogistics,enabling clients to reach patientsworldwide throughDHL’s network of120LifeSciencesandHealthcarefacilitiesacrosstheglobe.

DHL Global Forwarding is represented in Malta by B.A.S. LTD.

ThelasttwoyearshasseenCassar&Cooper’sfreightandlogisticsunitfocusheavilyontheirroadfreightservices,givingtheircustomersdirectaccesstoMalta’smajortradingpartners.“Being pioneers in Malta’s freight forwarding industry has helped usbuildanetworkof strategicallyplacedpartners” saidVincentMicallef,SeniorManagerFreight andLogistics atCassar&Cooper,whoheadsthetrailerservicesunit.ThemostrecentadditiontotheirnetworkistheUKMaltaroute.Offeringatwotierweeklyservicethatwaslaunchedonthe3rdApril.Thetwotierserviceallowsforthestandardpickupserviceatcompetitiverateswhilstcustomersthatrequireaneconomicalsolutioncanopttousetheeconomyservice.“Our success is coming from the fact that we put together the rightcombinationofpriceandservicethatthemarketdemands”RayButtigieg,Cassar&Cooper’sGeneralManagerforFreightForwardingsays.TherecentlyaddedUKroutenowcomplimentstheGermanandItalianrouteswhichhavebeeninoperationforanumberofyears.ThetrailerservicesupplementsCassar&Cooper’sotherlogisticsbusiness,whichincludethehandlingofspecialandoutsizecargo,liveanimals,andtemperaturecontrolledmovements,removalsandrelocations. TEU

TEU

Represented by:B.A.S. LTD - 25, Air Cargo House,Triq G

.anni Vassallo, Luqa LQA 1511

Tel: +356 2558 4888Fax: +356 2167 7102 E-Mail: [email protected]: www.basmalta.com

Definitive Door-To-DoorService Across Europe

AIRFREIGHT PLUS is a DHL Global Forwarding service that combines the speed of shipping associated with an express carrier with the

individual care given by a freight forwarder.

Additional Services:

Airport to Airport, Door

to Airport & Airport to Door

AIRFREIGHT PLUS EUROPEWE CARE FOR YOUR

CARGO


Thomas Smith Group completes its full range of expertise. The Freight Forwarding division now also offers a worldwide cost-effective express courier service in collaboration with SDV, a subsidiary of Bolloré Logistics. A global leader in supply chain management, SDV offers services including logistics, international transport, customs brokerage, warehousing, and distribution.

Thomas Smith Logistics Manager, Ramon Azzopardi, says “As one of the pioneers in the local shipping industry, we strive to give our clients the broadest range of services available in the market. In line with our aim to offer the most reliable services to our customers, it is a pleasure to announce the worldwide courier service – a service which has very competitive export rates, and which gives personal attention to consignments, whatever that may involve”. Managing Director, Joe Gerada, added that this was a natural step for Thomas Smith to complete its range of services because it gives clients a complete one-stop-shop, hence greater flexibility. “SDV express courier allows businesses of all sizes to deliver low-cost tracked door-to-door courier service to overseas customers.”SDV ranks among the world’s top 10 in transport and logistics, and has a track record of being a high performer with an environmentally responsible approach. The company offers services to industries such as Oil & Gas, Aerospace, Healthcare, Cosmetics and Perfumes, Fashion, Telecom and High Tech. With its headquarters on the outskirts of Paris, France, the company runs a global network of 540 agencies and employs 32,000 professionals worldwide in 93 countries. For further details about this service, get in touch with the sales team at Thomas Smith, who will gladly assist you and guide you according to your specific needs. Call Thomas Smith on +356 2205 8170 or send an email on [email protected] TEU

THOMAS SMITH LAUNCHES EXPRESS COURIER SERVICE

By Liana Cachia, Marketing Manager at Thomas Smith

IMPORTING

GOODS FROM THE

UNITED KINGDOM?

SPAIN?CHINA?

ITALY?

SEAFREIGHT?AIRFREIGHT?

SERVICE WORLDWIDE

GROUPAGE

Contact Thomas Smith on

2205 8888

www.tcsmith.com

[email protected]

TRANSPORT & LOGISTICS

Etihad, the national airline of the UAE continues to open new routes and strategically positioning Freighter aircrafts across the globe, to cater for the various market demands.

From June, Etihad Cargo’s freighter fleet of nine aircraft will operate additional frequencies from Abu Dhabi to Benghazi, Dhaka, Frankfurt, Guangzhou and Khartoum. A new weekly route to the Saudi capital, Riyadh, will also commence in June, complementing the existing weekly freighter services in the Kingdom to Dammam.

Elsewhere in June, a new weekly freighter routing will commence to Vienna, and a twice weekly freighter operation to Singapore and Sydney will be added to network. This brings the total worldwide Etihad Cargo network to 89 destinations, eight of which are freighter only (Benghazi, Eldoret, Guangzhou, Hong Kong, Houston, Kabul, Sharjah, and Vienna).

Additionally the carrier will shortly also offer freighter capacity from Malta during the week through one of its SPA (Special Prorate Agreement) which in return will surely open new markets for Etihad and moreover local customers. Etihad Cargo is exclusive represented in Malta by ABC Logistics and may be contacted for further information on +356 2577 3244 or email address [email protected].



TEU

ETIHAD CARGO...Offering more freighter capacity

ABOUT ETIHAD AIRWAYS Etihad Airways, the national airline of the United Arab Emirates, began operations in 2003, and in 2012 carried 10.3 million passengers. From its hub at Abu Dhabi International Airport, Etihad Airways serves 89 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas, with a fleet of 73 Airbus and Boeing aircraft, and over 90 aircraft on firm order, including 41 Boeing 787-9 Dreamliners and 10 Airbus A380s. Etihad Airways also holds equity investments in airberlin, Air Seychelles, Virgin Australia, Aer Lingus and Jet Airways. For more information, please visit: www.etihad.com or www.etihadcargo.com

ISLAMIC FINANCE



Bearing of Risks

Dar Al Sharia in collaboration with the Malta Institute of Management will organize a Sukuk Workshop between the 25 and 27 of June. The aim of this workshop is to develop the essential knowledge required to understand Islamic financing and investment structures, one or more of which is used for issuing Sukuk. Understanding Islamic securitisation and the underlying documentation is also explained in the course besides restructuring options for a Sukuk. The Economic Update met up with Mr Sohail Zubairi, CEO of Dar Al Sharia Legal & Financial Consultancy, to learn more about Islamic Finance and advisory services.

TEU: Do you think that the ultra-low or zero interest rates maintained by regulators in major economies since the start of the financial crisis is an indirect acknowledgement of the genuineness of Islamic financial system?SZ: Islamic Finance has no room for interest as in Islam money has no price but is considered as equity and as such a medium of exchange. Islamic Finance is all about bearing of risks and sharing of gain or loss, as against conventional lending which is based on shifting the risk and ensuring guaranteed return to the lender, irrespective of the outcome of the application of money lent.

It was generally stated before the financial crisis of 2007 that interest based lending is risk averse whereas Islamic finance is risk akin and hence is highly risky. However, the unending financial crisis has proved that it was a myth. Whilst scores of conventional banks

and financial institutions have gone bankrupt besides conventional bonds have failed to meet with payment commitments, very few Islamic financial institutions were impacted, and that is also due to indirect fall out of the financial crisis and not due to any flaw in their business model.

The reaction of human beings in case of a financial turmoil is an evidence that the Islamic financing principles are closest to human nature. The close to zero interest rates could not have been nearer to Sharia principles as Sharia negates any kind of interest in a financial transaction. Similarly, Sharia principles have

By George Carol

Mr Sohail Zubairi meets with MIM President Reuben Buttigiegand MIM GM Omar Vella

The close to zero interest rates could not have been nearer to Sharia principles as Sharia negates any kind of interest in a financial transaction

Vilhena Broad opportunities Fund80072344 I vfm.com.mtBOV Branches / Investment Centres & Licensed Financial Intermediaries

The Vilhena Broad Opportunities Fund (Feeder Fund) is structured as a UCITS Master-Feeder Fund. It invests a minimum of 85% of its Net Asset Value in Class B1 Euro Shares of the Insight Broad Opportunities Fund, which is a sub-fund of Absolute Insight Funds p.l.c., a self-managed scheme, an open-ended investment company with variable capital with segregated liability between sub-funds incorporated under the laws of Ireland with registration number 431087. The value of the investment may fall as well as rise and any initial charges may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Prospectus and the Key Investor Information Document which may be obtained from Valletta Fund Management Limited (“VFM”), Bank of Valletta plc Branches/Investment Centres and other Licensed Financial Intermediaries. VFM is licensed by the MFSA. The Vilhena Funds SICAV plc is licensed by the MFSA and qualifies as a UCITS. Issued by VFM, TG Complex, Suite 2, Level 3, Triq il-Birrerija, L-Imrieħel, Birkirkara BKR 3000 Malta. Tel: (356) 2122 7311, Fax: (356) 2275 5661, Email: [email protected], Website: www.vfm.com.mt. Source: VFM

The harp is often perceived as a complex instrument. Likewise, managing exposure to different asset classes may be regarded as a complex task.

The new Vilhena Broad Opportunities Fund provides you with access to a broad range of asset classes including cash, bonds, equities and total return strategies which are actively managed to reflect changes in both economic and market conditions with the objective to potentially generate attractive returns.

multi stringed, multi asset

aBsolute returnINVESTMENT SOLUTIONS50% discount

up-front charge reduced from 4% to 2%

Lau

nC

h

OFF

er

36470 - VBOF Advert 210x270 ENG.indd 1 15/05/2013 15:15

ISLAMIC FINANCE


forbidden short selling since 7th century AD. Short selling has been one of the major causes of the financial crisis and hence it was curtailed and / or banned in several European countries as a natural retort. Several other examples could be provided to exhibit that the Islamic financing principles are genuine and sustainable as they are based on ethics, honesty, transparency, full disclosure, and fair distribution of evens and odds between the parties in a transaction. TEU: How are you instrumental in providing Sharia advisory services to various institutions?

SZ: Dar Al Sharia is part of the world’s first Islamic bank which is Dubai Islamic Bank (“DIB”). For decades DIB has spearheaded the promotion of Islamic banking in the region. It was natural that the world’s first Islamic finance consultancy firm also came from DIB. In addition, our founder and managing director Dr. Hussein Hamed Hassan is a highly respected and world renowned Sharia scholar. He is commonly known as the father of Islamic banking since he was instrumental in training the first ever batch of Islamic banking managers in DIB way back in 1975.

The reason for our high success is solid parent company support which strongly believes in Dar Al Sharia’s mission of spreading authentic Sharia guidance in an efficient manner through the strong team of professionals comprising of scholars, lawyers, bankers, financial analysts Sharia auditors and Sharia trainers painstakingly trained by Dr. Hussain for over the last ten years. Today we are the leading Shariah advisory firm providing consultancy to governments, Islamic banks and financial institutions, Takaful (Islamic insurance) operators, issuers of Sukuk,

fund managers, universities and any entity needing Islamic finance consultancy.TEU: What is your business relationship with the Malta Institute of Management and how do you define your working relationship with MIM?

SZ: We have entered into an arrangement with MIM to jointly work on the promotion of Islamic banking and finance in the region, including but not limited to launch of various Sukuk transactions in Malta by sovereign and corporate entities from inside and out of Malta.Perhaps Govt. of Malta could also consider the Sukuk route in meeting with its infrastructural and power needs. A Sukuk issue in Malta for up to the benchmark size (up to equivalent of US$ 500 Million) with European legal jurisdiction and investment grade rating may well set the tone for a series of Sukuk to be issued by regional and close-by countries. We are also preparing to offer Islamic finance training courses with MIM in Malta and shall commence our association with a comprehensive workshop on Sukuk during next month which shall be the first of its kind on the Island and in the neighboring countries.TEU: A one-stop solution centre for all Sharia, legal and financial consultancy for all types of Islamic financing and investment transactions, such as Sukuk, Funds, product development, conversion of conventional banks into Islamic institutions, etc. on the global level, how has Dar Al Sharia evolved from DIB’s own Sharia Coordination Department, the first ever experiment carried out by an Islamic bank?

SZ: As previously stated the generation of the idea of having a subsidiary in consultancy came about from Dr. Hussain who is one of the leading Shariah

Scholars in the world having vast experience. Indeed, his foresight once again proved his knowledge of the market. Dr. Hussain had endorsed Project Malta from the first day. In fact he gladly accepted MIM’s President Mr.Reuben Buttigieg invitation in 2009 to deliver a keynote address at the MIM Annual Islamic Finance Conference.Dr. Hussain acknowledges and commends the MIM efforts in organising such high quality conferences. He also believes in Malta’s potential in becoming a Islamic Finance hub in the region.

The transformation of DIB’s Sharia Coordination Department into Dar Al Sharia in 2007 was the result of ever increasing demand at that time which emanated from UAE’s Islamic financial institutions who wanted to benefit from the rich expertise the department had built since its establishment in 2004. As an independent firm, Dar Al Sharia was able to cater to the IFI’s needs on an ongoing basis. TEU: Tell us about Islamic Finance News Awards to Sharia consultancy subsidiary of Dubai Islamic Bank (DIB), Dar Al Sharia Legal and Financial Consultancy LLC, and why was it named the “Best Sharia Advisory Firm” ?

SZ: This acknowledgement was given by the MIM as well during their Mediterranean Awards second year in a row in 2012. Our efforts to promote genuine Islamic finance are recognised by the industry players who have voted Dar Al Sharia as the Best Sharia Advisory Firm 4th year in a row and the Best Islamic Consultancy Award consecutively for the last three years.All rights reserved | Copyrighted.


TEU

Editor’s NoteSohail Zubairi is the CEO of Dar Al Sharia Legal & Financial Consultancy, a subsidiary of Dubai Islamic Bank (DIB) launched in 2008. Just before that he served with DIB as Sr. Vice President and Head of Sharia Structuring, Documentation and Product Development since 2004. Sohail is commerce graduate from Karachi University and successfully pursued Institute of Bankers diploma as his post graduate studies. He started his banking career with MCB Bank in Karachi in 1975 as credit officer and joined Middle East Bank-Dubai in 1979 as corporate banker. He has held senior Corporate, Structured & Project Finance and Risk Management positions in prestigious organizations in the UAE. He has significant experience of the GCC market (over two decades) attained mainly in Large Corporate Finance, Risk Management and Syndication fields. In Credit Risk Management he was instrumental in setting up a focused RMD function at a prime European bank for its GCC operation and at a Dubai-based venture capital PJSC. While associated with Dubai Islamic Bank, he has played significant role in successful completion of financing the large projects based in the UAE and abroad, including Dubai World Trade Centre, Emirates Airline, Sahara Centre, Taweelah/Umm Al Nar/Shuweihat Power Projects, Tabreed, Brunei Gas Carriers, Malaysian Sukuk, DCA Sukuk, PCFC Sukuk, Nakheel Sukuk, NBC Mudaraba Sukuk and various other important transactions. In 2004, Sohail joined Dr. Hussain Hamid Hassan, Chairman Sharia Board DIB Group, (a great scholar of our time) from whom he learned the art of structuring transactions and was involved in many innovative Sharia compliant financing and investment products, including World’s First: Sharia-compliant Convertible Sukuk, Currency and Rate Swap, Personal Finance, national savings scheme and many others.

Perhaps the government of Malta could consider the Sukuk route in meeting with its infrastructural and power needs

IIG_Sailing_TMEU_210x270 5/15/13 11:01 AM Page 1

Composite

C M Y CM MY CY CMY K


ICT


Radio Frequency Identification (RFID) is a system that is going to replace barcodes. The system is made from 2 components, a passive or active RFID tag typically consisting of a chip and an antenna and a RFID reader that sends a signal to the tag and collects data. Active tags include a battery to enable them to transmit data over longer distances than passive tags. The distance covered between the sender, the RFID reader, and the receiver, the RFID tag, is determined by the power that each antenna is able to transmit. The shortest distance covered is considered as the effective range. This means that if your reader can transmit over a 10 meter range while your tag can transmit to a 10 cm range, the effective range is 10 cm.

Active tags include a battery to enable them to Many fear RFID because tags can be read from a distance. EU is facing loads of controversy for the idea of implementing RFID tags in European currency as people are stating that they can be tracked through these RFID tags. Some business people have taken this opportunity to produce wallets that prevent RFID tags from transmitting their data. Purchasing such wallets is considered by many a waste of money as RFID tags only contain a unique serial number. The information relative to that serial number is stored in another secure database. Without this database, the RFID reader cannot tell the difference between a €500 note and a packet of milk. Another security measure taken by the EU is to propose a RFID tag that has a very short effective range. For people getting an insight of your wallet contents would mean that the reader would be nearly touching your pocket and therefore it would be wiser for the ill intended mind to get a course in pick pocketing rather than investing in RFID technology.Authorities do not need RFID to track you down. Technologies like credit/debit cards, mobile/smart phones and security cameras can give a much higher degree of information that can identify you in a crowd with the same precision of a sniper. When implementing RFID, we have to take into consideration the objects being tracked. Some objects, like bottles of water, block RFID signals. Proposing a single tag that does all the tracking will not work unless the items being tracked are of the same composition. The approach of using

multiple types of tags to handle the different objects is more suggested. The RFID readers also have to be up to the challenge and should have the ability to perform multiple scans of the area in a relatively very short period of time in order not to slow down business operations.

Stores like Walmart are appreciating the benefits of RFID on a daily basis. Their stock levels are checked in real time and shelves are always stocked with products to sell. Furthermore, Walmart can determine exactly what products are required and when to reduce unnecessary costs like warehouse rent and products that are thrown away as their expiry date has lapsed. Walmart acknowledges the fact that placing tags on products at their stores is highly inefficient and has mandated all suppliers to supply products with the tags. This was done as applying tags at source is less complex and more effective as it will be part of the production line. Other large stores have also started similar mandates leading suppliers to update their production lines complimenting such requirements. As a result of a wider adaptation of RFID, prices have gone down and newer technology is emerging in the construction of tags. One technology currently being researched will enable us to apply RFID tags with the simple process of printing as we do with barcodes.Manufactures are implementing RFID tags on all products not only for the sake of obtaining cheaper RFID tags due to volumes but they are acknowledging the fact that RFID is giving more insights on their business such as the ability to determine the granular history of each individual product. This granular insight was not possible before and it helps manufacturers to better manage the ever shrinking budgets while increasing their profitability with the smallest efforts.The implementation of RFID tags is not just a simple process of installing tags and readers. If one is only considering this fact then RFID will be only a very expensive exercise with no benefit to the business. Businesses opting to use RFID, have first to look into what information they will be capturing and determine how such information can be used to increase profitability. This may require businesses to rethink their strategy, operational methodologies and logistics in order to properly benefit from the power of the RFID technology. TEU

A security measure taken by the EU is to propose a RFID tag that has a very short effective range

by Duncan Dimech and Ana-Marija ZafirovskaRFID - THE DEVIL INSIDE

Editor’s Note

Ms. Ana-Marija Zafirovska, the Business Solutions Advisor at EXOR Group Ltd, earned her Bachelor’s Degree in Sociology with the Ss. Cyril and Methodius University of Skopje, as well as a Postgraduate Certificate in Marketing with The Chartered Institute of Marketing. Ms. Zafirovska was actively involved in the journalism sector at International levels for the past 3 years and is a researcher on a number of European Union funded projects.

Editor’s Note

Mr. Duncan Dimech, the Managing Director of EXOR Group Ltd, earned his Masters Degree with the University of Liverpool, home of 9 noble prize winners, and specialised in Information Security. Over the past 15 years, Mr. Dimech has been involved on a number of projects for local and international business entities and is leading a number of IT research projects funded by the European Union. Mr. Dimech is a Member of the British Computer Society and a visiting lecturer at the University of Malta.

ICT



BACKGROUNDDubai Holding through TECOM Investments has sought to share its expertise in developing knowledge-industry business campuses in Dubai with other countries. In 2006, it signed an agreement with the Malta government to develop SmartCity Malta, a $300 million knowledge-industry business park in the city of Kalkara. It is also in talks with other countries in Asia and Europe to develop similar initiatives.

TEU: You are the Chief Business Development Officer at Dubai Holding, and prior to this, the GCEO of TECOM Investments, and preceding this, the General Manager of Microsoft South Gulf. How does all this vast expertise help you in developing and managing knowledge clusters including the ICT sector? AAM: As the Chief Business Development Officer at Dubai Holding, I am responsible for charting the vision and growth for the varied business interests of Dubai Holding, as well as leading key strategic initiatives at a group level. I also led the development of 11 business parks across five clusters in Dubai when I was Group CEO of TECOM Investments. These business parks now attract more than 50,000 knowledge workers.

Prior to that, during my nine-year stint at the Microsoft regional headquarters, I led the development of the subsidiaries in the Gulf. Throughout my career I have seen landmark projects from inception to completion and built valuable relationships. I intend to use this experience in my new role as CEO of SmartCity®.

TEU: You are considered as one of the Gulf region’s outstanding business leaders by the Middle East Excellence Awards Institute having been named Middle East Multiple Industry CEO of the Year, at the 7th Middle East CEO of the Year Awards. What does this award mean to you?AAM: The Middle East Multiple Industry CEO of the Year Award recognises and honours those leaders who have the ability to successfully lead organisations in more than one industry and thus contribute to making the region a globally competitive business and economic investment hub. Receiving the award was not only a great honour for me, but it was also an acknowledgement of my colleagues’ hard work and dedication. It was in recognition of the skill-set required to handle the complexities of different clusters and business models within a single organisation.TEU: Can you confirm who the new tenants for the Maltese ICT city are and what interest is being shown by local and international companies? Can you mention a few names please?AAM: Since June 2012, we have signed with a number of business partners. We will announce these details jointly with our partners, when they open their doors for business at SmartCity Malta very soon. SmartCity Malta is equally compelling for both local and international knowledge based companies.

TEU: What type of restructuring of the senior management responsible for the project will be taking place and how will management in Malta be empowered to make key decisions and senior executive level appointments?

AAM: A major change has been the increased autonomy and independence in the Malta office.SmartCity Dubai is enhancing the decision making capacity of the Malta office to ensure its successful development in line with the expectations of its shareholders. This will be achieved through senior appointments in SmartCity Malta including the appointment of a CEO and heads of departments.TEU: How does the board of Smart City Dubai intend to give the Maltese office more autonomy to make “key decisions” in relation to the development of the SmartCity project?AAM: The CEO of SmartCity Malta will report directly to the Board of Directors of SCM. Locally appointed heads of departments will also be empowered to make decisions in a more efficient manner for the benefit of current and future business partners.TEU: Where does SmartCity® stand in Dubai Holding’s diversification and Global expansion plans?AAM: SmartCity® is contributing to the global expansion plans of Dubai Holding through TECOM Investments. Through the development of a global network of business townships, SmartCity® is exporting its expertise in developing knowledge clusters, internationally. SmartCity Malta is the first European outpost of the global SmartCity

by Martin Vella

We will announce these details jointly with our partners, when they open their doors for business at SmartCity Malta very soon

Vision for GrowthSmartCity Malta is a joint venture between the Republic of Malta and SmartCity® where the Government of Malta has a 9% equity stake. It is designed to act as a knowledge based cluster for all information and communication technology (ICT) and media companies on the island. SmartCity Malta is committed to create foreign direct investment and knowledge sectors jobs for the people of Malta as well as make a significant contribution towards increasing the share of knowledge industries towards Malta’s GDP. In a rare interview with the new CEO of SmartCity®, Mr Abdullatif AlMulla, we endeavour to find out more about the change in SmartCity Malta’s autonomy, ventures with new partners and the way forward.

Abdullatif AlMulla, CEO of SmartCity, (right) confirming his commitment to the SmartCity Malta project during his meeting with the Prime Minister. Dr Joseph Muscat in April 2013


Malta’s National Theatre was built in 1731 and is a unique example of early baroque architecture and one of the oldest working theatres in the world.

www.teatrumanoel.com.mtTeatru Manoel, Museum Entrance, Old Theatre Street, Valletta. T: +356 2122 2618.

Teatru Manoel Tour

0655. Teatru - Economic Update - Tours Ad.indd 1 17/05/2013 11:21

ICT


network. SmartCity® utilises the vast experience of the management team that managed TECOM Investments during the challenging economic period. Despite this, TECOM Investments was one of outstanding performing companies in the region.

TEU: How does SmartCity Malta (SCM), function as a hub for all businesses based in SCM, and what is your vision here to make this hub profitable?AAM: We define profitability in terms of the success of our business partners. Business partners at SmartCity® benefit from these facilities through (1) access to international businesses and (2) a clustering approach. The SmartCity® brand of business townships is a network of businesses parks that connect business globally, providing access to international businesses.Moreover, by forming a hub of companies at each SmartCity®, companies operating within, benefit from networking and cluster effects.

TEU: The concept behind SmartCity Malta was to replicate the business township model in Malta for the Mediterranean, as the concept behind SmartCity Kochi is to replicate it for the entire Indian sub-continent. Do you agree and what are your views with this statement?

AAM: We believe that SmartCity Malta will contribute towards the diversification of the country’s economy through the further creation of knowledge industries. The concept behind both SmartCity Malta and SmartCity Kochi is to create a full-fledged live-work-play business township to foster the knowledge economy. While this international concept has proved successful in the Middle East, and is being replicated, business practices at SmartCity Malta and SmartCity Kochi are localized. We are building a Maltese management team and heads of departments for this purpose at SmartCity Malta.TEU: “Malta could be the future Dubai of the EU,” Klaus Pedersen, the Internationalisation Manager at Malta’s Chamber of Commerce told Al Arabiya English last April. Do you agree and to what extent can SmartCity Malta be the gateway to both Europe and North Africa and act as an incentive for global investments?AAM: Newly developing industries in Malta such as communications, ICT, media and financial services are similar to the expertise that Dubai has to offer in the Middle East, North Africa and South Asia. Like Dubai, Malta too is strategically located - in the heart of the Mediterranean basin that connects Europe to North Africa.All rights reserved | Copyrighted.

Editor’s noteAbdullatif AlMulla is currently the Chief Business Development Officer at Dubai Holding, a global investment holding company with interests in over 24 countries. He has recently been appointed CEO of SmartCity® as well. Prior to this, Mr. AlMulla was the Group CEO of TECOM Investments, a subsidiary of Dubai Holding that develops and manages

knowledge-industry clusters. As Group CEO of TECOM Investments, Mr. AlMulla played an instrumental role in providing strategic direction and driving new initiatives for TECOM Investments and all the subsidiaries: TECOM Business Parks, eHosting Datafort and Arab Media Group. Mr. AlMulla also has extensive experience in the IT sector.

Prior to joining TECOM, he was General Manager of Microsoft South Gulf. In his nine-year stint at the Microsoft regional headquarters in Dubai, he led the development of subsidiaries in the Gulf, Yemen and Pakistan. He played an instrumental role in securing Microsoft’s first ever enterprise agreement in the world with the Dubai Government, which put Dubai on the Microsoft radar. Mr. AlMulla also negotiated and closed over 50 agreements with governments and large corporations such as Oman, Dubai and Bahrain Governments, and Etisalat, ADNOC and QTEL. Mr. AlMulla is a member of many boards including BankMuscat SAOG, AXIOM, American University in UAE, Hamdan University, EIT, SmartCity and Dubai Financial LLC since 2012. At Microsoft, Mr. AlMulla was conferred the Microsoft High Distinguished President Award in 1998. He was a member of the Microsoft Middle East and Africa Leadership Programme. Mr. AlMulla has a Masters in Economic and Social Development, and Public Administration, from the University of Pittsburgh, and in Corporate Communication from the Duquesne University.

TEU

MAY 2013 | THE ECONOMIC UPDATE BANKING

INITIATIVES


Jo Caruana, founder of content creation company Writemeanything.com, tells the Economic Update why the content marketing world is ruled by words.

It’s a busy old social media world out there. By the time you’ve got to the office, trawled through your emails, updated your Facebook page (and, ideally, your Twitter, LinkedIn, Google+ and business blog too), it’s time to head home and put the dinner on. It’s a blink-and-you’ll-miss-it kind of thing that leaves you with very little time to do any actual work. But hey, if you don’t stay on top of your online presence, no one will know you’re there, right?

Wrong. Well… not completely, but ‘wrong’ because YOU don’t need to be the one to do it. On the contrary, what you need is a content specialist – someone to craft all the blog posts, updates, articles and tweets that you can imagine; thus leaving you with enough time to manage that little old thing you call your business.

For anyone wondering what I’m talking about, worry not. The content marketing world is hardly a new one. It’s been around for a long time, existing in newspaper advertorials, hovering around magazine print campaigns and lurking in bus shelters and on billboards. The only difference now is that it is all online, and the right content could open your business up to a plethora of new clients, wherever they may be in the world.

To sum it up, what we’re talking about here is words. Lots of words.

Forgetting up-to-the-minute design and crazy features, the online gods have come to realise that the internet is driven by words – searchable words that are found through Google and other search engines, and which take your product or service straight to the screen of your potential customers.

And with 18 billion searches for information taking place every month, can you really afford not to have rich, searchable content that stands out?

So how do you get started?

• BePresent. If you’re not set up on social networks, then you are missing out. Whatever the size of your business, you need a presence on Facebook, Twitter, LinkedIn and Google+. Meanwhile, there may be others – such as Pintrest and Foodbuzz – that could also work brilliantly for your niche.

• TellYourStory. Just as with anything, great content tells a fantastic story – one that will make your customers want to turn the pages and find out more. Through a developed understanding of your brand, a content creator will be able to find your story, and to tell it in a way that will capture attention.

• Build Your Brand. Your business is a brand, and everything you do needs to reflect that. Words build your brand in ways that other mediums simply cannot. The right works will reflect your customer-centric approach, knowledge, experience and nuances. You need to find the words that will work hard for you.

• Create Content. Content online is searchable. It’s searchable through the news section of your website, through your blog and through your social media. If you put it out there, it can be found. But if you don’t, well, your online presence can’t get any stronger. With this in mind you need to create as much content as you can – giving information on your products, your services, your successes, your industry in general, and even on related industries. If you create content then it, and you, will be found.

Of course, if content creation isn’t your thing, then you can choose to outsource it to a content creation agency. And that is exactly what Writemeanything.com is here to do.

Jo Caruana recently attended the Annual ASJA Writers’ Conference in New York, which highlighted all of the latest trends in content creation, marketing and PR.

For more information contact [email protected].

TEU

Why Content Marketing Will Work

For You

WEB CONTENT

Editor’s Note

Jo Caruana founded Writemeanything in 2006. As a qualified writer, she has a recent and varied portfolio of clients, both in Malta and overseas. As a journalist she currently edits Style on Sunday for the Sunday Times, while contributing to international publications that include Easyjet & BMI’s in-flight magazines, World Finance, Business Destinations and Overseas Living. Jo has also contributed to numerous websites in recent years and has a developed understanding of the Search Engine Optimisation system that will help to ensure your site is easily recognised online.

BANKING INITIATIVES



EBUSINESS

The Malta eBusiness Seminar which was held on the 2nd of May at the Westin Dragonara Report. deemed to be a very successful event, was the first edition of the event that attracted more than 130 delegates coming together to network, share best practice and learn about the increased ebusiness opportunities that are available today.

The event which was a joint initiative by CSB Group together with the Malta Institute of Management (MIM) was brought to a start with Parliamentary Secretary for Competitiveness and Economic Growth Hon. Edward Zammit Lewis addressing the audience. Dr Zammit Lewis highlighted the fact that eBusiness was an important pillar for Malta’s Digital Economy. In effect, he said that it was the government’s aim that the Digital Economy became one of the main economic pillars for Malta. The internet has indeed changed the way the world does business, it is thus of great importance that local companies understand how can make full use and benefit of eBusiness technologies. It was therefore no surprise that the event attracted a large number of business owners and individuals looking to take the entrepreneurial plunge and look into new ways of marketing, sales, and business development online. Via a series of a panel discussion and speaking sessions by local and foreign guests, the event was moderated by Ms Emma Diacono and explored the benefits and challenges of eBusiness, addressing the way the world is now conducting business and giving an understanding of how companies can take advantage of the technology they have at hand. The agenda content in fact ranged from Payment Gateways to Legal Implications, Cloud Computing, Online Marketing; Social Media & SEO, and Mobile Banking and Document Management, among others. Speakers included

representatives from Betclic Everest Group, Airmalta, The Economist, London, MoPowered London, Melita plc and CSB Advocates.Commenting, CSB Group CEO Michael J. Zammit said that ‘‘the Group will continue in its endeavours to remain at the forefront of eBusiness and we will continue with our developments with the intent of tapping further into foreign markets - for further growth of Malta’s Digital Economy.’’Sponsoring the event were Gold Sponsors Bank of Valletta, SG Solutions and Syspay. Silver sponsors included VacancyCentre.com, EB Learn, Melita, Infusion, Calamatta Cuschieri, CC Web Trader, Cloud Keeper, Cloud Account, APCO Limited, Golden Gate, Kinetix, Takeitdown.com, Regus and Malta Sotheby’s International Realty. Bronze sponsors were Portughes and DMAX ePaper. The event is also supported by Xerox, Anchovy Studios, thegofer.com, Farsons, Vianet and Emma Diacono Ltd.Commenting, CSB Group CEO Michael J. Zammit said that ‘‘the Group will continue in its endeavours to remain at the forefront of eBusiness and we will continue with our developments with the intent of tapping further into foreign markets - for further growth of Malta’s Digital Economy.CSB Advocates’ Dr Andrew J.Zammit also commented, saying “we are extremely satisfied with the quality of speakers who gave valuable practical insight into the digital economy and its tremendous potential. The feedback received from participants has been extremely positive and, with the support of all involved, we do look forward to making this an annual event to keep up with the continuous technological developments that change the way we learn, work and socialise”.For more information, kindly contact [email protected].

TEU

A successful eBusiness Seminar - CSB Group

Photo taken by the DOI during the eBusiness Seminar - From left: CSB Group Michael J. Zammit, CSB Advocates Managing Partner and CSB Group Director - Legal & Regulatory Dr Andrew J.Zammit, Parliamentary Secretary for Competitiveness & Economic Growth Hon. Edward Zammit Lewis, International ICT & Media speaker Carlo Donzella and Airmalta E-commerce Executive Antoine Vella


ICT


This emerges from an ICT Usage survey conducted by the National Statistics Office (NSO). The survey reveals a growing inclination for Maltese enterprises to minimise bureaucracy by turning to e-government services to obtain information and download forms. Nearly all – 95 per cent – of enterprises said they made use of such services, an increase of 12 percentage points from 2010.In the latest survey on ICT Usage and e-Commerce in Enterprises published by the NSO). This shows that during 2012, 96.6 per cent of enterprises employing a minimum of 10 people made use of computers, while 95.2 per cent were also using the Internet. However only 18.7 per cent of enterprises using the Internet also sell online and only 24.6 per cent buy online, and these reflect a slight drop from 2011. Results showed high levels of computer use throughout all enterprise size classes. Enterprises involved in the construction industry increased their level of computer use by 2.7 per cent, while the highest level of computer usage was recorded in the wholesale and retail trade sector (98.6 per cent).Most of the e-government sceptics surveyed – 38 per cent – said they didn’t use such services because they would still need to interact in person or resort to old-fashioned paper mail at some point down the line. There was a six per cent increase in the number of businesses with a website. But those websites are seemingly rudimentary ones, with relatively fewer websites featuring price lists, ordering facilities or personalised content than in 2010.Local online usage is closely linked with age. While 94.5 per cent of local 16-24 year olds are online, that figure declines as one rises up each age cohort. Despite the massive increase in 55-64 users, less than half the population within that age bracket can be classified as an Internet user.

Education levels also play an important role in determining Internet usage. While only 18 per cent of individuals with basic levels of education are Internet users, that figure rises steadily up to the point where practically every tertiary-educated person (98.4 per cent) is online.A closer look at the survey results confirms some gender stereotypes. Women are more inclined to spend their time online on social networks or reading up about health-related matters than men. Men, on the other hand, enjoy downloading software or using online banking more than their female counterparts.While Internet usage up by 5%, some 64 per cent of Maltese households had Internet access last year compared to 59 per cent the previous year. The survey also indicated that 67 per cent of Maltese households had computers. A large disparity in Internet access was found between households earning under €10,000 annually, with 36 per cent of these having access. In contrast, 93 per cent of households earning €25,000 or more annually had access.More than half the respondents aged 16-74 had made use of computers and Internet. The age group in which usage was highest was the 16-24 one, with over 90 per cent. It was also established that those that had achieved higher levels of education used the Internet much more than those that had not. In the three months before the survey, 97 per cent of all students said they had used the Internet as did 72 per cent of employed people.Almost 40 per cent of Internet users over the past three months said they used e-government services to obtain information. An additional 27 per cent used the services to download official forms.Sources: NSO; Malta Communications Authority; Times of Malta

TEU

INTERNET USAGE IN MALTAby George Carol and Rebecca Hansen

The latest figures on the use of Internet by Maltese enterprises highlight that despite totally embracing computers and the Internet, especially mobile devices and e-government services, fact is that there is still insignificant selling or buying online in Malta.

Banif Bank (Malta) is a credit institution licensed to undertake the business of banking by the MFSA in terms of the Banking Act 1994. Registered in Malta C41030 – 203, Level 2, Rue D’Argens, Gzira, GZR 1368, Malta.

www.banif.com.mt 2260 1000Call us from08:00 to 20:00

Level 1, 125-126 Main Street, St Julian’s

BELIEVE:AN ALTERNATIVEBUSINESSRELATIONSHIPbecause you are not a number.

Recognising that every business is unique, Banif offers flexible financial solutions that can be applied to finance a diverse range of business capital requirements, from start-up loans to business expansion projects. We promise to offer you a wide range of opportunities...

HEALTHCARE



Living Healthier, Living Longer

emCare is about giving ‘peace of mind’ to ourselves and our loved ones,through an electronic healthcare system which works to empower people to monitor their own environment and health. A range of devices and communication systems, are provided especially for people living at home on their own or those living with a medical condition. We approach the subject with Damien Digby, GM and Roland Cachia, Finance and Operations Manager to learn how emCare is giving peace of mind to service over 12,000 families in Malta.

TEU: What does emCare offer and what does it include?DD: emCare offers two basic services; one service is what we call eCare, which is all about monitoring a persons’ environment through a range of devices placed in the home that raise an alert whenever it senses any abnormalities or when a button is pressed, just as most people in Malta would understand of TeleCare but using the latest technology. The alerts go to our call centre, where a process is followed to contact the person’s nominated next of kin or emergency services immediately should that be required. Our second service is what we call eMonitoring, which monitors the body through a range of health checks such as blood glucose level, blood pressure, heart rate, temperature, etc. The

history of those tests are stored on emCare’s portal creating an electronic medical record that can be accessed by you, your GP or a loved one that has an interest in your health care.

RC: emCare’s packages provide a full service supporting our deviceswith an online & telephony communication channel. In our eMonitoring service for example your own electronic record can be accessed by your GP online and when a test falls out of a threshold set by your GP, can automatically send an email or SMS notifying them or your next of kin. When using eCare many of the devices trigger themselves, such as our on wrist fall alert, triggering an alert at our call centre where we communicate directly to the resident through a loudspeaker without the need to pick up a phone, dial a number or press a button. The call centre operates 24/7.

TEU: How safe is it for the elderly and vulnerable individuals to live independently in their own home with emCare?

RC: We are presently offering a number of different devices such as smoke alerts, intruder alarms, pill dispensers, on wrist fall triggers, chair pressure alarm, bed-wetting alarm and a number of other devices. One may take just the basic package and add other items as and when needed since emCare’s strategy is centred on giving people more independence to manage health conditions at home, and reducing the burden on hospital and clinical infrastructure.

DD:Our range of devices include glucose meters, blood pressure monitors, peak flow meters for patients with respiratory conditions, and pulse oximeters for monitoring heart rhythms and blood oxygen levels. An elderly and special needs package allows older or vulnerable people to live independently. Unusual circumstances detected by devices trigger alerts to the call centre for action to be taken immediately in case of extreme temperature, no motion, smoke, panic or falls.

TEU: How do Caremalta Group and 6pm plc provide a wealth of experience in care for the elderly in terms of expertise and technology?

DD: emCare has a fantastic advantage in that it stands on the shoulders of two giants. On one side you have CareMalta, a visionary organisation with an enviable reputation that have been providing elderly care services for over 20 years, and on the other side you have 6PM, a premier IT ‘company’

by George Carol

EmCare has a fantastic advantage in that it stands on the shoulders of two giants

HEALTHCARE



Living Healthier, Living Longer that is working directly in the health sector and has established an excellent reputation working directly with NHS in the UK. This ensures that what we create and develop is of extremely high standardsin terms of both technology and the care service. Combining these two skill sets together to provide a service with the synergy required so that such a system as emCare may be supplied. This is why CareMalta Group and 6pm are able to offer something quite unique and advanced.

TEU: What message do you wish to deliver about emCare services in eCare and eMonitoring?RC: With eCare our message is that technology has come a long way and there are ways that you can, with technological devices and dedicated services to assist people to live in their own homes for a longer period in their old age, without requiring constant family care to some degree. You can never ever replace the human element but if we can help keeping your parent or grandparent in their own home for even a few months longer in safety, we feel our service is definitely worth having.DD: eMonitoring on the other hand offers a very high level, innovative service. More than 50 per cent of people over the age of 60 have some kind of chronic condition and the management of that condition can be time-consuming and very difficult. What our technology does is that it gives you an ability to best manage that condition and ensures a communication loop with a GP is maintained at all times – not just on what happened the day during a clinical visit, but what has occurred over a longer period of time ensuring that any diagnosis conducted is made using a larger amount of accurate data and therefore a more informed remedy prescribed. TEU: Can you share the experiences of working with an ICT company such as

6PM on the emCare project and how do assistive technologies help people suffering for example from dementia?

DD: One of the great things about working with a company such as 6PM is that they have a way of making the impossible, possible. Six months ago we brainstormed a wish list and what we would hope to achieve and after hard work from all our stakeholders, dreams start materialising. emCare fuses both organisations’ expertise in healthcare and technology.

RC: 6PM listen to what we say without limitation and then come back with a concrete solution by getting the most possible of a brainwave and proposals we have. They can develop an idea into a product or a service. Accessibility, reliability, trust, understanding and delivery best define the relationship with 6PM.

TEU: What application expertise and guarantees do you provide to emCare customers?

DD: One thing we cannot guarantee is that we can in any way replace human interaction or the attention of a health care professional. What we can guarantee though is that when an emCare customer presses the button we will be on the end of the line with them. For a lot of people and those that care most about them that is real peace of mind - whether it’s 3am, or 3pm. There is somebody there ready, waiting and willing to answer their call anytime. We are with them not just in case of emergency cases but in caseswhere someone may feel lonely or scared in the middle of the night. As our slogan says – “We’re with you.”

TEU: emCare is a fascinating example of how business acumen can impact civic and philanthropic needs. Would you talk more about the ways business experience has helped?

DD: In April we attended an electronic health conference in Luxembourg with people in the industry from over sixty different countries. Leading academics, researchers, business entrepreneurs and paramedics were all in participation. The purpose of our attendance was to see what the rest of the world was doing and to keep what we feel is our responsibility

towards our customers by providing the best possible service available anywhere. What we found was that we are much further advanced in implementation than the vast majority and in fact we have already been invited back to present our experience next year. It’s my belief that an entrepreneurial attitude and applying commercial sense is what really makes any life improvement sustainable and that is a value that is ingrained in us at emCare – the market will always tell you if you are adding value or not. Here in Malta, we innovate with purpose, develop ideas with speed and are fiercely passionate and this is what I believe gives us a competitive edge. In simple terms, this is what emCare is all about.All rights reserved | Copyrighted.

What our technology does is that it gives you an ability to best manage that condition and ensures a communication loop with a GP is maintained at all times

Editor’s note

Roland Cachia has eighteen years experience in the financial services industry, whereby he specialised in international taxation and banking. Roland is a Certified Public Accountant and a member of the Malta Institute of Accountants and the Malta Institute of Taxation. Roland joined emCare as from the beginning of this year, taking responsibility of the finance and operations side of the business whilst pursuing a completely new challenge in his career in this fast growing industry.

Editor’s note

Damien Digby started his first business at the age of 15, spending his early business career in hospitality before embarking on a successful motor racing career. In the last 10 years he has been a consultant specialising in fast growth companies, acquisitions & business turnarounds working with more than 60 businesses internationally in addition to holding numerous board positions. He has developed 2 National franchises in Australia from scratch & created an SME training program that was sold to one of the big 4 Australian banks in 2009, currently being delivered to more than 10,000 SME’s every year. He commenced his role as General Manager with emCare in November, 2012.

TEU

Corporate Brief

emcare is Malta’s sole TeleCare & Telehealth service provider & operates a 24/7 Call Centre in Attard, Malta in addition to providing infrastructure supporting to the Government Telecare Service. The company services more than 12,000 customers daily. Emcare’s health monitoring solution is a unique full circle platform that takes health readings wirelessly via a tablet, stores information on a user accessible web portal& then communicates information instantly to authorized health care professionals & next of kin. Further customer information available at www.emcare360.com.mt

SPORTS

APRIL 2013 | THE ECONOMIC UPDATE


FINANCE

Business varies in size, its aims and financial requirements. The risk appetite and finance required are equally varied. One might ask what type of finance is right for my company.

BUSINESS CREDIT CARDSBusiness credit cards are a type of payment solution for businesses. Usually used for online payments and travel. It is always recommended to give employees who travel regularly a credit card with a predefined limit. Expenses are easily traceable, and it also minimises the risk of abuse.

PRE PAID CARDSPrepaid cards are becoming very popular nowadays. They operate similarly to credit cards but instead of using bank’s credit you are using your own money.

CASH FLOW FINANCE / INVOICE FACTORINGInvoice discounting and factoring are types of cash flow finance and is available to businesses who sell goods and services on a business to business basis, with no staged payments. This is usually an easier facility to get from a financial institution because there is less risk and it is easily auditable. Usually such transactions are with recourse or without. An advantage would be that a bank representative will be collecting the money so it is more likely money is collected. Invoice factoring can be used both for local sales as well for export.

GRANTSThere are many grants available if your business meets the criteria. A good starting point is to engage the services of an expert. The main issue with grants is that they appear and disappear in quick succession and the criteria for each grant can be difficult to meet. Some points one has to be careful with are: to be ready to put up some of your own money, to use the money for a specific purpose and also important not to start the project before you get an agreement in principle of funding. Another important issue is that the grant provider will seek to ensure that the grant has been applied for correct and qualifying purposes. Failure to utilise the grant for the agreed purpose can lead to call back of the funds and charge in interest rate.

HIRE PURCHASE / LEASING Hire purchase or leasing is a type of asset finance used to purchase specific assets, for example vehicles, machinery and equipment. Businesses or individuals possess and control the asset during an agreed term, while paying rent or instalments covering depreciation of the asset. With leasing,

the asset is not owned by the business or individual – although in many cases the asset is sold to the business or individual at the end of the term. Hire purchase instalments will cover the capital cost, so ownership is transferred once the last instalment is made. Both leasing and hire purchase agreements can be orientated around the specific requirements of the business or individual. Seasonal or annual payments can be arranged as opposed to monthly, and in some cases there is a possibility to deposit a lump sum payment at the end of the agreement which has the effect of reducing the repayments during the term.

STOCK MARKET LISTING Stock market listing is a way of raising long-term equity finance for your company by offering shares to potential public and institutional investors. Another way is to offer Bonds.In Malta it’s a common practice when there are large projects involved that run into millions that the company list in the Malta Stock Exchange or offer Bonds in a way to generate liquidity. The latter will usually vary from five to seven year issue and give a return of 4% to 7% on capital payable quarterly half yearly or yearly. In both cases the process can be complex and is unlikely to be suitable for smaller businesses, as the process involved can be time-consuming and costly. TRADE CREDIT Trade credit is probably the easiest and most important source of short-term finance available to businesses. A simple definition of trade credit would be an arrangement with its suppliers to buy goods and/or services on account without making immediate cash or cheque payments.

TRADE LOANSTrade finance, also known as import finance, provides funding for goods as they are transported from the seller to the buyer. It gives you the ability to pay your supplier for the purchase of finished goods, often from overseas.

SEED CAPITALIt is initial capital used to start a business. Seed capital often comes from the company founders’ personal assets or from friends and family. The amount of money is usually relatively small because the business is still in the idea or at the conceptual stage. Such a venture is generally at a pre-revenue stage and seed capital is needed for research & development, to cover initial operating expenses until a product or service can start generating revenue, and to attract the attention of venture capitalists. There are also investment groups who seek R&D stage as a good opportunity to invest. TEU

ACCESS TO FINANCE - PART 2

Editor’s NotePatrick Hall is director at DF Business Advisory Limited which form part of DF Group of companies.

Patrick Hall

by Patrick Hall

Executive Brief DF Business Advisory Limited was set up in 2012 for the purpose of offering a number of advisory services to the business community. Its main activities can be short listed in the following major areas of expertise:

· Company Set-up & Re-Location;· Business Restructuring;· Access to Finance and Funding

Opportunities;· Business Plans & Cash Flows;· Mergers & Acquisitions Advise;· HR Strategy;

DF Business Advisory will assist customers in all their requirements to help them establish their business in Malta, liaising with external Auditors, HR agencies, Estate Agencies providing them with assistance and independent opinion. Coordinating with DF Group of companies, DF Business Advisory will assist in any licenses, permits and other requirements to confine with Maltese law and requisites.

DF Group have a large Business Advice Team who has worked with a substantial amount of individuals looking to set up in business or improve and grow existing ones.

DF Business Advisory Limited operates from Il Piazzetta A, Suite 21, Tower Road, Sliema.Email: [email protected]

APRIL 2013 | THE ECONOMIC UPDATE

TOURISM


Having presented a wide-ranging first part exclusive in our April issue, we follow-up with Minister for Tourism Dr. Karmenu Vella on why Malta’s touristic profitability goes beyond attracting ever-greater numbers of tourists, as we discuss GDP, tackle cultural issues and substantiate his vision for the future.

TEU: Will the Incentive schemes to increase boutique hotels in Valletta (tax deductions on investments related to purchase and development of these sites and MEPA/MTA fees) be implemented during this year?

KV: You are here referring to the Palazzini Scheme which was launched earlier on this year with the aim of attracting proposals for the conversion of historic properties in historic urban cores. Over 20 submissions from all over the island have been received under the scheme.

The scheme gives owners and developers administrative assistance to transform their property into Palazzini – a form of

accommodation providing lodgers with a unique and authentic experience. They will also be guided on what funds they can take advantage of and given assistance for the production of business plans and feasibility studies. Properties which qualify under the Palazzini Scheme need to be a scheduled grade one or two building or situated in an urban conservation area.

The aim of the scheme iss to rehabilitate existing properties, with the exclusion of redevelopment/extensive extensions, and convert them into high quality tourism accommodation. Thus the aim is twofold: the rehabilitation of some of the many abandoned or uninhabited buildings in Malta with great historical and architectural value and the subsequent creation of a new quality tourism accommodation product aimed at the discerning visitor.

As to your direct question re tax deductions incentives etc, please note that the Scheme does not contemplate any new incentives but merely packages existing incentives offered by a variety of agencies and institutions.

Full details of the scheme can be obtained from www.mta.com.mt/palazzini

TEU: When you compare the GDP to tourism, how important is tourism to Malta?

KV: Although the Maltese economy has successfully diversified into a wider number of activities over recent years, tourism still continues to constitute an important component of the country’s overall generation of economic value added. Our estimates suggest that at direct level tourism generates around 12% of GDP, while at full economic impact level this figure may rise to around 25%. What positively differentiates tourism from other sectors of economic activity is the high multiplier effect of tourism expenditure. This ensures that the tourist Euro spreads far and wide across the economy creating economic wellbeing with each successive transaction and increasing GDP in the process.

Our estimates suggest that at direct level tourism generates around 12% of GDP, while at full economic impact level this figure may rise to around 25%

by Martin Vella

Hon. Minister Karmenu Vella delivering an opening speech during the launch of the 20th edition of the travel exhibition AMITEX organised by Air Malta held last April at MFCC Ta’ Qali

SynergiSing relationShipS - part 2

TOURISM

TEU: Besides the classical idea, is there any niche market people should know about in Malta and would you related this with the extensive cultural programme in preparation of 2018 - European Capital of Culture?KV: Malta is nowadays acknowledged to be a destination with a very diversified offer which is attractive to a wide number of segments. Such segmentation is not only useful in reducing the risk of overdependence on a limited number of source or motivational markets but also helps in the extension of the tourism season by attracting different motivational interests during different times of the year. Malta’s original market positioning during the early years of its tourism industry tended to focus heavily on its charms as a Mediterranean island with the coastal offer taking predominance over anything else. Over the last years there has been the universal recognition of the cultural dimension within our tourism offer. This dimension is gaining more and more importance so that up to 40% of our tourists list culture as one of the main reasons why they selected Malta for their holiday.The next phase of our strategy is to move the cultural dimension up another notch in the positioning of our destination by developing and growing the concept of Malta as a bona fide city destination. A city destination based on the experience of a living culture rather than a showcased culture. This is in line with what

modern tourists are seeking in the most successful destinations. V18 will be a vehicle which will help us in realising this strategy. V18 is not something which starts and ends during a particular calendar year but should be seen as a catalyst for the relevant paradigm shift in the cultural sphere which will in turn prove beneficial to our enhanced cultural tourism offer.TEU: Our readers are travel industry professionals - these are travel agent, tour operators, PR agencies, journalists, businessmen. Is there anything you want them to know about Malta and your vision for the future?KV: My vision is for a healthier, more profitable tourism industry which reaps benefits not only to its investors and operators but also to its workers and the wider community. A healthy industry creates good job opportunities making a career in tourism an attractive proposal. A healthy industry re-invests its profits creating additional economic activity in other segments of the Maltese economy. All of this improves Government revenues, thus enabling the authorities to invest in education, health, infrastructure and other priority areas. I intend to stimulate this via the honest involvement and participation of all relevant stakeholders and by using the advantages inherent in the newly structured portfolio of the Tourism, Aviation and Culture Ministry to ensure that such objectives are reached. All rights reserved | Copyrighted.

TEU

Editor’s NoteHon. Karmenu Vella was born on the 19th of June 1950. He graduated in Architecture, Civil Engineering and also with a Master of Science in Tourism Studies. He served as member of the Labour Youth Movement and was first successfully elected to Parliament in 1976 and continued to be elected in succession for nine consecutive times. Dr Vella was appointed as Minister for the Industry and as Minister for Tourism from 1996 till 1998. In 2001 he was appointed as executive Chairman of Corinthia Hotels International and a year later he served as executive Chairman of the Mediterranean Construction Co. Ltd. During the past three years he occupied the post of Chairman of Orange Travel Group. He served also as a Foundation member of Vodafone Malta Foundation and a Board Director of Betfaiir Group Ltd. Last March he was appointed again as Minister for Tourism.

Hon. Minister Karmenu Vella with RTK (Raiffeisen-Tours-Kooperation) Managing Director Thomas Bösl during the RTK Travel Agents conference held on 22nd April at Dolmen Hotel Qawra

Hon. Minister Karmenu Vella flanked by MHRA President Tony Zahra during the 1st MHRA Tourism Management Forum held during the 1st week of May at Xara Lodge Rabat



Accounting Advisory



International Financial Reporting Standard setting activity has been moving at a relatively fast pace in recent years. Just over the last two years the International Accounting Standards Board (IASB) has issued four new standards, revised another three and is currently writing or re-writing a further six standards.

The standards that are hot from the press or still on the drawing board cover a wide range of issues, including long standing concepts and principles, such as the concept of control and the recognition and accounting for revenue.

Some of the recently issued standards have become effective for annual periods beginning on or after 1 January 2013, with others coming into force over the next few years.

Keeping up with changes in IFRSs is a constant struggle and requires a considerable investment of time and resources if one needs to evaluate how the forthcoming changes in IFRS will impact the way they operate their business.

In recognition of the challenges that business might face in getting up to speed, KPMG will be holding a conference on 21 June to give participants an overview of these changes and provide insight on the implications that these changes will have on the way businesses report.

This article will give an overview of the standards and proposals that have been included on the conference agenda.

KPMG Global IFRS leader Mark Vaessen will open the conference by having a close look at how the IASB have responded to the financial crisis and the G-20 recommendations, and the approach the Board has taken in the revision of standards under the Convergence Project.

In view of his involvement as Chairman of the FEE Financial Reporting Policy Group, and his memberships on the IFRS Advisory Council and the EFRAG supervisory board, Mark will also consider these changes from an EU perspective.

The second session will present an expose ̀of the bankers’ perceptions on the information presented in financial reports.

Financiers and, in particular, banks are typically avid users of an entity’s audited financial statements. From a banker’s perspective, are financial statements providing relevant, decision-useful information, amidst the several pages contained in an annual report? What information is a bank seeking in particular from the annual financial statements? These are some of the aspects that KPMG is seeking the bankers’ views upon in preparation for this conference session.

A full session is being dedicated to IFRS 9 Financial Instruments which will be replacing IAS 39 once endorsed by the EU. IFRS 9 contains significant changes to the classification and measurement of financial assets. This session will highlight the main changes from the current requirements and will discuss the main implications that the new requirements are expected to have on non-financial services companies.

One of the more pervasive standards is, arguably, IFRS 13 Fair Value Measurement as it has an impact on anything being measured at fair value in an entity’s financial statements.

One of the objectives of the standard is to set out in a single IFRS, a framework for measuring fair value for various assets and, to a limited extent, certain financial liabilities. It also increases the transparency of fair value measurements by requiring detailed disclosures about fair values derived using models.

Two sessions will be devoted to IFRS 13, focussing on the impact that the recent changes are expected to have in particular on the valuations of non-current assets and financial instruments.

One of the long standing concepts that have been recently revised is that of control.

IFRS previously had two different consolidation models.

The new consolidation standard, IFRS 10, provides a single consolidation model applicable to all investees. Under the new model, an investor consolidates an investee when (1) it has power, (2) exposure to variability in returns, and (3) a linkage between the two.

This conference session will go through the elements and components of the ‘new concept of control’ and the considerations that need to be taken in applying this concept.

One of the more far-reaching issues currently on the Board’s agenda is recognition of revenue.

Under the proposed revenue recognition model, a company would recognise revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The timing and amount of revenue so recognised under the proposed model may therefore differ from that recognised under the extant standards.

The last session of the conference will take a close look at the current proposals on lease accounting by lessors and lessees.

Accounting for leases, in particular those of an operating nature, has been the subject of endless controversial discussions for years in view of their ‘off-balance sheet’ nature. Once final, the proposed model would bring significant changes in particular for lessees who, going forward, would have to recognise assets and liabilities relating to every lease they are party to.

The latter two sessions will discuss the current thinking and identify the major changes that the proposed models are expected to bring in practice.

About the conference

For more information about the IFRS conference please contact Delia Mifsud Inguanez on +356 25631297 or [email protected]

About the author

Jonathan heads KPMG’s Accounting Advisory Services team and is involved in providing technical advice on various IFRS issues. TEU

Forthcoming developments in IFRS – do you need to plan?

By Jonathan Dingli, Associate Director, Accounting Advisory Services – KPMG

During the last 20 years, The Plaza Commercial Centre has established itself as a Leader in the retail and commercial leasing industry providing retailers and office clients with high quality customer service and innovative marketing initiatives. With over 6,000 square meters of office space and a diverse portfolio, The Plaza is the right location for every business.

Maintaining our competitive advantage is not just our

responsibility but our mission.Our service quality is more than simply offering the right location or the premises; it is all about the people behind it, which is why clients have trusted The Plaza for the past 20 years.

Our newly refurbished offices range from 50 to 550 square meters equipped with a stand-by generator, 24 hour security and within walking distance of Sliema's Prime Commercial Area.

Office LeasingOpportunities

For further information contact:

a history of success. a future of opportunity.

irreplaceable location.

Plaza Management OfficeTel: 21 343 832/3/4Email: [email protected] www.plaza-shopping.com

PLAZASHOPPINGMALTA


TRAVEL


Emirates SkyCargo, the freight division of Emirates, one of the fastest growing airlines in the world, is set to increase its cargo capacity to Tokyo, Japan, when Emirates launches a daily non-stop flight between Dubai and Haneda Airport from 3rd June.Haneda Airport is located in Ota-ku, Tokyo, and handles the majority of domestic flights to and from Tokyo; it opened its doors to international carriers following the opening of the fourth runway and the international terminal in October 2010. Haneda is currently ranked as the second busiest airport in Asia, and will become Emirates third gateway into Japan, the others being Osaka and Narita, Tokyo.With the new daily flight to Haneda, Emirates SkyCargo is able to provide an additional 210 tonnes of cargo capacity per week, further supporting Japanese exports of mechanical components, electronic goods and automobile parts, and its imports of gas and oil products. Dubai is an important hub for the re-export of Japanese manufactured products to the Middle East, Africa and Central Asia. Emirates has been operating to Japan since 2002 when it introduced non-stop flights to Osaka, followed by its service to Narita International Airport in 2010. Emirates flies on a daily schedule from Malta to Dubai via Larnaka, Cyprus. Emirates SkyCargo is located on the First Floor at MIA Departures and can be contacted on tel. no 2166 0102, or at [email protected]. For more information on SkyCargo visit: www.skycargo.com

Most companies strive for exceptional customer service. Emirates goes beyond customer service and aims to exceed customer expectations. With one of the youngest aircraft fleets in the world, Emirates provides exceptional onboard services, top-notch and extensive inflight entertainment along with the latest cabin design elements. Emirates Business Class travellers from Malta can enjoy the personalised service onboard the Boeing 777-200 aircraft. Advanced seating controls to suit their preferences, including an inbuilt seat massage, together with more space offer extra comfort. Business Class means gourmet meals with complimentary fine wines and champagne as well as healthy options, all served on china tableware and on tray tables laid with fine linen. The inflight entertainment is a vast plethora of choices from the light-hearted and humorous programmes to informative documentaries: a time to relax from one’s busy life in order to recharge the brain for the next business meeting. Ice offers hours of enjoyment with 1,400 channels of on-demand entertainment on new digital widescreens to suit the mood of each and every passenger. The process of travelling to the airport, checking-in and waiting to board can be quite tiring for some. Emirates has eased this process by offering

a seamless on-the-ground experience to its passengers before they fly. Business Class travellers can relax in the comfort of a private chauffeur-driven car from home or office to Malta Airport, as well as on arrival at most Emirates destinations. At Malta Airport, the La Valette Lounge is an ideal place to relax before boarding. Around the Emirates network travellers can benefit from 35 Emirates dedicated lounges in international airports across six continents, including Emirates Terminal 3 in Dubai. These lounges can easily serve as extensions of their offices with full business centre facilities. Paul Fleri Soler, Emirates Malta Manager, says that for Emirates the journey matters as much as the destination. “Emirates is constantly launching new and exciting products and services to ensure travellers benefit from world-class innovations at every step of their journey with us. We lead the way in the industry and are continually evolving to meet the changing needs of our customers.” Emirates currently flies to 133 destinations in 77 countries. The airline flies on a daily schedule from Dubai to Malta via Larnaka, Cyprus, on a Boeing 777-200 aircraft. For more details and bookings one can contact Emirates Sales Office at MIA on tel 25577255, visit emirates.com/mt or contact the local travel agent.

TEU

TEU

Emirates SkyCargo strengthens trade lane with Tokyo

An Emirates Boeing 777-200LR that will be used on the Haneda route

SAY HELLO To A New Way Of Travelling On Emirates Business Class

Business Class Lounge at Emirates Terminal 3 in Dubai

B777 - serving tea in Business Class

MAY 2013 | THE ECONOMIC UPDATE ARTS &

CULTURE


I met Ruth Bianco courtesy of an invitation from Nicky Paris at her recent exhibition at Palazzo de Piro in the medieval and bewitching city of Mdina. The exhibition consisted of collage works and book publication by Ruth Bianco [Malta] and Richard Davies [UK].

TEU: Where has the inspiration been drawn for this book?RB: Through iconic films inspired from new wave movies.. the French new wave movement of the60s in particular, through the work of revolutionary filmmakers like Truffaut, Resnais and Godard, and the movement’s widespread international influence. The image on the book cover features Betty Davis, but that image was ‘serendipity’.. we found it embedded in a graffiti as we were walking through London and thought it fitted perfectly with our subject, so we used it for the cover..TEU: Have you been in London to organize exhibitions there?RB: Yes, in fact this exhibition, consisting of artworks and a book publication, was first launched in London… at The Horse Hospital in Bloomsbury, a contemporary venue for film and new media art. I then wanted to get the show to Malta and so we launched the book and artwork last November, at the Opus 64 Galerie, Sliema. And now, we have been delighted with a further Malta launch in the wonderful setting of Palazzo de Piro. Our plan is to transport the project for further travelling exhibitions in the UK and elsewhere.TEU: What is the representation of what you are doing?RB: The project is created in a contemporary fine art context.. we explore the art of collage, combining drawing, painting, projection installation and digital

arts in an ongoing process we call ‘collage upon collage upon collage’. This also stands as a metaphor for contemporary life. We live our life saturated in media images, and of course cinema has always had a powerful impact on society in the way it reflects and changes the cultural mentalities of society.TEU: What is the message you wish to bring out?RB: There is no didactic message as such.. the message is in the med ium and process. This concerns the consumption of the image; the way we reproduce ourselves through media, filmic and iconic imagery. Collage can also be said to represent a fragmentation of contemporary life, represented by the fleeting data around us. But, ultimately, we place such issues in an aesthetic context, which is the main objective of our art. We are looking at films we have enjoyed and have selected memorable stills and disparate bits to come together in new visual narratives. The process is a semblance of the contemporary ‘remix’ culture we have become. We live in a world of visual culture that encourages and thrives on appropriation and regurgitation of information. Visual culture, film and media have altered our sensibility and the speed at which we need to select, digest, and make sense of images. Similarly, collage is a process of abutting contrasting fragments into new connections. Collage is our main focus… it drove us to create and exchange sketches at distance, working between Malta and England, and the book came first. We enjoyed the process so much that the project continued to grow into the collection of framed artworks called ‘After the Book..’ The project is also about self-publication - a self-empowerment enabling a sense of freedom and independence, and hence we created our own ‘Wax Wings’ publishing title. TEU: Where can you get this book?RB: Locally from Agenda bookshops, and overseas from the Tate Modern London, the British Film Institute (BFI) London, the Victoria and Albert Museum, London, and others…

TEU: What type of films are you fusing together?

RB: …the French new wave movement first inspired us mainly because this was revolutionary, similar to how ‘collage’ revolutionized art at the turn of the 20th century. The new wave movement began with a small group of French filmmakers in Paris, as a counter reaction to blockbusters and the increasing commercialisation of the Hollywood film industry. These movies merge cult and art films, and are often experimental and out of the mainstream. So, interesting directors have intrigued us as much as the films they produced. As multi-media visual artists, our idea has been to explore new prospects in collage through tactile, digital, and spatial experimentation. New media and the moving image have opened new spaces for engaging with creative collage. We asked: How can we continue to evolve and experiment with the collage art form? Films are actually collage in motion. And this was the main reason we found it really interesting to explore filmic imagery in this way.TEU: Using stills?RB: That’s right, from stills. Stills from re-photography and combining other imagery, creating layers upon layers, upon layers. I would start with a sketch or painting for example, which I then photograph, and then start to cut it up and rework digitally, and then draw into it again... and so the process goes on.TEU: Sort of Andy Warhol?RB: Well Warhol expanded his canvas into pop culture through the technologies and techniques of his time. We extend beyond that legacy to explore the artistic, new media, and creative design tools available to us now, today.TEU: Using advertising?RB: No. We are not using advertising, though filmic iconography is similarly part of the growing legacy of global culture and ‘remix’.

CAMOUFLAGE,REVOLUTION, AND DESIRE

- drawing from movies by Martin Vella

TEU

Situated in the centre of Sliema’s Prime Commercial Area, The Plaza set the standards for the development of Sliema as Malta’s number one shopping and leisure destination

MAY 2013 | THE ECONOMIC UPDATE ARTS &

CULTURE


Editor’s NoteCamouflage, Revolution, and Desire with the subtitle ‘drawing from movies’, is a book art project by two visual artists Ruth Bianco (Malta) and Richard Davies (UK), exploring ‘collage upon collage upon collage’ through self-publication.The project amalgamates art and cinema reinterpreting the collage process through explorations uniting filmic iconography with tactile, spatial and digital media in the graphic fine arts. Memorable stills and frames drawn from a range of cult, new wave and its international influences, and movies notable for revolutionising the cultural boundaries of society and the screen have been freshly reinvented into new visual narratives at the artists’ choice.Working between Malta and the United Kingdom, Bianco and Davies began working on their project a few years ago, combining their love for film with art, and fusing innovative methods in the contemporary fine arts with new media and digital networks to inspire new prospects in collage and creative ‘post-productions’, as well as enabling ideas to flow and develop between different locations.Camouflage, Revolution, and Desire had a premiere launch on the 18 July 2012 at The Horse Hospital, in Bloomsbury, London, reputed venue for cutting-edge new media, film and art. The book is available at the Tate Modern London, at the BFI [British Film Institute] London and the Victoria & Albert Museum London, at the Turner Contemporary, Margate UK, and the BOZAR shop in central Brussels. The book is also available at Palazzo de Piro.

PALAZZO DE PIROThe magnificent 18th century Palazzo de Piro, located in Malta’s silent city, Mdina, has been restored to create a unique venue of cross-cultural, artistic and social dialogue. Palazzo de Piro Cultural Centre, operated by Infinitely Xara, features a program of various collections held by the Metropolitan Cathedral Museum, hosts premier artistic heritage events and offers an outstanding setting to showcase, promote and sell independent contemporary art. The venue, with panoramic views over Malta, also includes the Xpresso Café and Bistro by Infinitely Xara which works with local producers to provide visitors with high standards and healthy Maltese dishes, amazing sweets and coffees.Palazzo de Piro Cultural Centre offers a fully catered, state-of-the-art facility for events, meetings, small conferences, corporate dinners, private receptions, weddings and banquets from 10 to 300 people. Palazzo de Piro is a unique multifunctional cultural centre with a beautiful courtyard and terraces that will entrance your guests in this sympathetically restored stately building. Palazzo de Piro exudes a wonderful sense of history, yet artfully combines all the contemporary qualities and comforts. A grand staircase leads to light and airy rooms with high, hand painted ceilings and a beautiful rear terrace that looks out on to panoramic views.

Artist StatementCamouflage, Revolution, and Desire with the subtitle drawing from movies, is a collaborated book and art project by two multi-media visual artists exploring ‘collage upon collage upon collage’ through self-publication. This project amalgamates art and cinema reinterpreting the collage process through explorations uniting filmic iconography with tactile, spatial and digital media in the graphic fine arts. Memorable stills and frames drawn from a range of cult, new wave movies and their international influences, notable for revolutionising the cultural boundaries of society and the screen, have been freshly reinvented into new visual narratives at the artists’ choice.‘Unlike painting and literature, the cinema both gives to life and takes from it’, Jean-Luc Godard had said. Inverting this, the artists explore the collage process to both take from the cinematic context and give to it.Ruth Bianco and Richard Davies worked between Malta and the United Kingdom fusing innovative prospects in the contemporary fine arts with new media networks enabling creative ideas to flow and connect between disparate locations. The outcome of this project emerges as a seventy-two page full colour artistic publication with an introductory essay by the artists and a foreword by Karen Sanig (Head of Art Law at Mischon de Reya Solicitors, London). This book publication is presented together with a collection of unique editioned collage works entitled After the Book - drawing from movies, emerging as explorations in creative ‘post-productions’ by the artists.

BIOGRAPHYRuth Bianco [b. Malta] creates work and projects addressing interventional space and territories using a variety of multimedia processes. Travel, migration and transboundary movement often feature in her work as creative mechanisms to question the expansion and consumption of space. She explores digital transmedia and forms of connectivity in contemporary fine art research practice. She has travelled with her work to participate in significant exhibitions, such as Dans la Nuit des Images at the Grand Palais in Paris, a European exhibition representing ten years of international contemporary audiovisual and multimedia art. She has represented Malta in an exhibition featuring selected women artists from Europe called ART’FAB Femmes d’Europe: La premiere edition de l’Ete Culturel de Saint-Tropez, France 2006, and also represented her country in Breakthrough and Nieuwe EU-Landen, Kunstzentrum in The Hague at the time of the 10 new countries in the EU accession of 2004. Most recently SHE took part in Stemperando Biennale 2012 travelling to Torino, Cosenza, Rome; and the Sarajevo Winter Festival 2013. Her work is held in international collections including the Tate Gallery, London; Victoria and Albert Museum, London; Royal College of Art, London. Ruth has an MA and PhD in Fine Art from the University for the Creative Arts, Kent, UK, and is presently Senior Lecturer in Art and Design in the Faculty for the Built Environment at the University of Malta where she teaches contemporary culture, spatial installation in architecture and digital arts. W: www.ruthbianco.com | E: [email protected] | T: +356 99867867

BIOGRAPHY Richard Davies [b. United Kingdom] has produced work which has been the result of international travel as an artist documenter. His practice investigates the interaction between the artistic transition into the digital age and the world’s evolution into a new geo-political epoch. Previous projects have included a commission by the Imperial War Museum, London, to create drawings of the Normandy Landing Beaches in Northern France; an expedition to Russia to produce an artistic record of the 1991 Moscow Political Coup; a survey throughout the USA tracing the lifetime architecture of Frank Lloyd Wright; a documentation of the controversial land clearance in Beijing at the time of the creation of the 2008 Olympic Stadium, and more recently a contemporary analysis of the cultural legacy of the May Student Riots that originally took place in Paris in 1968. Richard is a Royal College of Art graduate and a recent Director of Fine Art at the University for the Creative Arts in the United Kingdom. He is a Visiting Professor in Fine Art at the Remnin University, Beijing, China and has undertaken consultative and lecture invitations to universities including the Krakow Academy of Fine Art, Poland, the Bauhaus University, Weimar Germany, and the Auckland University of Technology, New Zealand.

W: www.rggdavies.com | E: [email protected] | T: +44 7724724027

MAY 2013 | THE ECONOMIC UPDATE EU:

VOCATIONAL TRAINING


by Werner E. Jung

Education, especially language training is contributing a significant part to the Maltese GDP. Due to its established reputation and infrastructure, as well as its location and climate, Malta has a competitive advantage when it comes to teaching “The No One Business Language”, English and is attracting students from all over the world. The educational sector has extended successfully into some niches like, management, tourism, ICT etc. An area which has been approached less intensively is modern manufacturing methods and adult vocational training.

The EU is facing continuous pressure for immigration from the Southern and Eastern Neighbourhood countries, while at the same time creating less and less jobs in the low skilled labour sector and importing large quantities of products from Far East. Due to the proximity to the EU, the Southern and Eastern Neighbourhood regions have an inherent advantage in the supply chain in terms of speed and flexibility. However, most companies in the area, especially Small and Medium sized companies, (SMEs), which create the most jobs around the world, lack basic skills and techniques to assure top quality, flexibility in production and efficient use of available resources. The availability of cheap labour is an

asset; however the skill level at the shop floor level is seldom up to international standards. There is a great need for vocational training in these regions. It would be “slightly exaggerated” to assume that Malta could be “The Centre” in Europe and send out a whole army of vocational trainers into all of the concerned countries, while lacking skilled labour itself for their own manufacturing sector. However, why should Malta not become a European Hub for these kinds of activities?

One such step in right direction has been taken last December through the formation of the Competence Centre for Economic Development (CCED) in San Gwann. The organisation has been set up as a non-profit foundation and is just a start. The objective of the CCED is:• TrainingCentreformodernmanufacturing

methods at the shop floor level and to train managers and supervisors of SMEs from developing and emerging markets.

• “Train the Trainer” Programs forprofessionals who will then operate and teach the methodologies in the local language in their countries.

• AppliedResearchtodeveloptheoptimumset of methods and tools for manufacturing SMEs in developing and emerging markets to be competitive .

• Setting up satellite Training and SupportCentres in the individual countries which will train and support local SMEs in the local language.

Turkey has successfully launched such aninitiative on a national level with the support of EUfunding.InthepastcoupleofyearsTurkeyhastaken a very aggressive and successful approach to improve the international competitiveness of its SMEs and to slow down migration from the country in the already overpopulated urban areas. Several government supported projects, with support from EU, have been initiated in the past decade.TheABIGEMproject(EuropeanTurkishBusiness Centres Network) is a cooperationbetween the European Mediterranean Partnership” (EUROMED) and the TurkishChambersofCommerceandIndustry(TOBB).The purpose was to improve the international competitiveness of SMEs, especially in less industrialised areas. The concept was for external experts, to train a task force in several of theses business centres through pilot projects in the area. (Train the Trainer).These in turn then servicetheindustryintheirarea.ThesuccessofTurkishSMEs in the areas like automotive supplies, furniture, electrical equipment and parts etc. speaks for itself. Unemployment in these areas has decreased and migration towards the major cities was reduced. (The author himself was part of this project as a senior external expert and successfully helped establish a centre in Konya trained a task force as well as supervising several pilot projects.)

The CCED is based on a similar concept. It has been set up as aNon-Profit-Organizationin Malta and is a partnership between the EIE Group from Malta and Flexible Factory from Germany. At a later point potentiallyother partners will join the organisation. These partners can be private entities as well as institutions. The concentration is on the modern methods for manufacturing, logistics and supply chain management. The workshops will be targeted on the development of SMEs and “training of trainers” in developing and emerging markets. This will be complemented by research; each society has its own cultural, social and economic parameters, which cannot be ignored when devising the optimum strategy for an industry and region. However, through

Extending the Educational Sector of Malta

Every effort will be undertaken to establish the CCED in Malta as one of the top European institutes in this area of expertise

EU:VOCATIONAL

TRAINING


the exchange of ideas and customs similarities and synergies can be exploited. The CCED will train managers and supervisors from SMEs in the Southern and Eastern Neighbourhood regions. Specifically it will train local personnel to act as multipliers in the regions. These will then teach personnel of SMEs in the local language. The home base for the CCED will be in Malta, which provides a centralised location to establish such an institute. Every effort will be undertaken to establish the CCED in Malta as one of the top European institutes in this area of expertise. By concentrating on adult vocational and management training, the CCED can help “jumpstart” the improvement of these economies.

As the organisation grows there will be a steady expansion into the various countries. Satellite training and support centres will be opened with trained personnel as soon as warranted. This will be done in cooperation with local institutions, like Ministries of Economics and Industry and Chambers of Commerce of Industry, as well as local industry. Staffed with local personnel who will go through the more intensive “train the trainer” courses and being supported by experts, they will be able to teach and support local companies in the local language. The aim is to make these centres self sustaining in the medium-term through the services they are providing locally.

KEY OBJECTIVESTraining Centre for the modern manufacturing methods, focusing on Quality, Flexibility, Speed, On-time Delivery and Cost control. Initially the concentration will be to train managers and supervisors of SMEs from the Southern and Eastern Neighbourhood regions. Changes are brought about by leaders and their visions. Managers work towards goals to and give directions towards these visions. Both types of people are needed to act as multipliers in their countries. By being exposed to other cultures and ideas through formal and informal interchange at the institute in Malta, these leaders and managers will broaden their horizon to enable them to compete in a global economy. Through the cooperation with the EIE Group these courses of the CCED can also be complemented with general management courses and/or also with business English courses

“Train the Trainer” Program for professionals who will then operate and teach in their

respective countries in the developing and emerging markets, specifically the Southern and Eastern Neighbourhood regions. A special training program is set up to train future trainers who will then turn train and educate people in their own home countries in their local language. Besides being taught the methods and techniques in manufacturing and logistics, special emphasis will be given to teaching techniques and training methods.

Applied Research to develop the optimum set of methods and tools for manufacturing SMEs in developing and emerging economies to become competitive on an international scope. Every region / country has its own cultural heritage ands its own socio-economic structure. These have to be taken into account when developing a methodology which will suit the particular environment; INNOVATION INSTEAD OF IMITATION. In the past many implementations of lean manufacturing and the alike have failed because people have been slavishly following “cook book recipies” developed in and for Japan or the US. There is no need to repeat these mistakes..

Management and Leadership education. Management and Leadership is the most important factor in success. The paradigm shift from internal optimisation to customer satisfaction demands visionary leadership. Leadership is about influencing others to take actions and adopt behaviours that accomplish a goal or mission. It is important to stress this aspect for the future managers of projects in their countries.

Setting up satellite Training and Support Centres in the regions / countries. These centres will be staffed with personnel trained at the CCED. They will be set up in cooperation with local institutions, like Chambers of Commerce or development organisations. These centres will be the base for regional training and support for local SMEs in their local language. Here the emphasis is on adult vocational training at the shop floor level.

Support during project implementation in local companies in the regions; in particular conducting joint pilot projects. Experienced consultants from the CCED will provide support, where necessary, during implementations in local companies. They will also ensure the quality and the achievement of the defined goals of the implementations. In the Project Master Plans certain periodic checks are included to assure a high quality level of implementation.

The European Commission has identified several priorities to stimulate the manufacturing sector within the EU as well as third markets. These

include “…strengthening the skills of human resources employed in manufacturing as well as the progressing the market openings for industrial products and related services…..” In this respect the CCED will also develop a curriculum for EU based companies who plan to send their own personnel into these markets.

These leaders and managers will broaden their horizon to enable them to compete in a global economy

TEU


Biography

Werner E. Jung has a long experience in management positions in international companies, such as Mercedes Benz, Sony, Eli Lilly, Vishay Intertechnology, Siemens Building Technologies etc. working in many countries around the world. Since 1997 W. Jung has concentrated on Lean Manufacturing and Logistics. He developed the methodology of “The Flexible Factory” which concentrates on the core issues and takes up minimal resources for implementation. In 1999 Mr. Jung founded his own consulting company, with clients all over Europe. Over the years Mr. Jung has assisted a wide spectrum of manufacturing companies to become more competitive in the world markets through speed, flexibility, quality and cost control. He has a broad international experience in many industries. Lately he has been involved as a consultant, trainer and speaker in several developing and emerging markets, such as Bulgaria, Turkey, Kazakhstan and Egypt. He is the co-founder of the Competence Center for Economic Development (CCED) in San Gwann, Malta. Mr. Jung holds a Masters Degree in Industrial Engineering from the Swiss Federal Institute of Technology and a Master of Science in Management from the Massachusetts Institute of Technology.


BANKING


A DEBT-AVERSE NATION

A survey by the European Central Bank has confirmed what many people already know: The Maltese do not like being in debt and are the third most fiscally conservative in the euro area.

A survey by the European Central Bank has confirmed what many people already know: The Maltese do not like being in debt and are the third most fiscally conservative in the euro area.

According to the survey, only 34.1% of Maltese household have any debt at all – and of these, less than half have a mortgage.

The ECB report gives an interesting snapshot of various trends relating to people’s assets and debts. The Household Finance and Consumption Survey shows that in Malta, people have debts that are 6.2 times as large as their assets – a far cry from the euro area average of 21.8, let alone from the 41.3 times registered in the Netherlands. Only Slovenians are more conservative with a ratio of 3.9.

And people’s income levels do not seem to inordinately boost their propensity to borrow. The debt-to-income ratio for Malta is 52, comfortably below the euro area average of 62.Ratings agencies love to point out that banks in Malta have a large exposure to property, and that this sector is subject to downside risks. But the reality is more complex and somewhat less dramatic than it is portrayed.

A bank’s exposure to property comes in three forms: directly through home loans; when property is collateral against a personal or business loan; and for loans to construction and real estate developers. The local banks cut down on lending for development a considerable number of years ago when the building frenzy started which led to the oversupply seen today in certain categories of property and in certain locations.

When it comes to home loans, a considerable percentage of the Maltese actually pay up their mortgages earlier than scheduled – with a very low rate of defaults.

However, some of the findings of the ECB survey have raised eyebrows as they seem to contradict evidence on the ground which indicate that the majority of people pay off their credit card usage straightaway. For example, the survey, which unfortunately relies on data which is in some cases two or three years old, revealed an interesting statistic about credit cards, which challenge the perception (and BOV’s own experience!) that the Maltese are conservative when it comes to credit cards: it claims that 13.1% of households have credit card debt, the third largest percentage within the euro area. In fact, this percentage contradicts the main thrust of the survey’s conclusions about the Maltese being very prudent with their debt.

When it comes to access to borrowing, the Maltese experience is in line with the euro average: 18.5% of households applied for credit within the last three years – with the highest rate seen in Cyprus (44%) and the lowest in Austria (7.4%). The fact that only 9.7% of applications for credit were turned down or not granted in full – the third lowest rate in the euro area – could explain why Malta has avoided the worst of the recession that has gripped Europe: People’s ability to keep purchasing meant that the economy kept rolling. This was possible because the banks in Malta were liquid and did not ovvereact to the crisis as many banks in other countries did, closing off all credit lines indiscriminately. Banks in Malta were also well aware of the fact that their willingness to help the economy could spell the difference between pushing Malta into a recession – or preventing it. It will come as no surprise that the highest refusal rate – 41.4% – was seen in Greece – and that figure is based on data gathered even before the collapse of the country and its banking system.

The survey revealed other interesting facts about the Maltese and their money: In the euro area, mutual funds, bonds and publicly-traded shares make up less than 10 per cent of a household’s investments. In Malta, bonds were preferred over mutual funds (15% compared with 3.9% respectively), while publicly-traded shares account for 7.6% of a household’s financial assets – the second highest rate in the euro area.

Vanessa Macdonald is the BOV spokesman.

By Vanessa Macdonald

TEU

Only 9.7% of applications for credit were turned down or not granted in full – the third lowest rate in the euro area

The service you deserve from the people you trust

The One Stop Shopfor all your commercial property requirements

T:2158 4888 • M:7958 4888 / 9921 5730 • DOORSREALESTATE.COM • FACEBOOK.COM/DOORSRES

COMMERCIAL OUTLETSWAREHOUSES OFFICE SPACE

Calypso Manufacturing Limited5, Cospicua Road, Fgura FGR 1261, Malta.

Tel: 2180 4588 | Fax: 2180 4487 | e-mail: [email protected]

RENEWABLE ENERGY



Love Your World

TEU: How do you identify and develop renewable energy business development strategies?PV: Global investment in renewable energy and fuels increased 17% to a new record of $257 billion in 2011. This was more than six times the figure for 2004, and 94% more than the total in 2007, the last year before the acute phase of the world financial crisis. Investment in renewable energy was subdued in the first three months of 2012, in the face of uncertainty over future policy support in Europe and the US. Although there were, by May, a few signs that governments were trying to clarify specific issues for investors, there was not yet any evidence that investment levels would accelerate in the rest of the year. Figures from the Bloomberg New Energy Finance database of deals and projects show that asset finance of utility-scale renewable energy projects in Q1 2012 was $23.3 billion (after adjusting for reinvested equity), down 36% from the fourth quarter of 2011 and 14% below the figure for the first quarter of last year. In fact, Q1

2012 was the weakest quarter for renewable energy asset finance since the first quarter of 2009, in the depths of the financial crisis.

The use of renewables is increasing faster than any other resource stream, widespread adoption is constrained by a multitude of policy, regulatory and financial barriers and Malta is not an exception to this. As a country and as industry entrepreneurs we do our best to achieve the challenging energy targets which we have and the local authorities and the Maltese government are key stakeholders in this. Policies which allow for a dynamic environment and financial incentives such as the recently launched residential grants and the existent Feed in Tariff are an important part of this industry.

Alberta’s plans are to increase its presence and growth in the sector both locally and internationally.

TEU: There are many ways how we can start being more careful about consuming energy in the home. How do Alberta’s renewable energy products make a big difference and help to lower the household’s energy consumption costs significantly?

PV: Alberta’s products range from photovoltaic panels through which one can generate one’s own electricity to solar water heaters which produce the necessary hot water using the sun’s energy to under floor heating installations coupled to heat pumps. For those who have the availability of physical space we can also suggest wind energy solutions through micro wind turbines. For others who have already availed of these technologies and still want to invest in energy efficient solutions we can propose solutions to other areas of the building such as solar films, solar blinds and solar lighting.

By Martin Vella

The Alberta Group is committed in participating in this world revolution of the energy markets by strengthening its Renewable Energy team by focusing a group of dedicated engineers and technicians in the design, installation and commissioning of renewable energy systems which to date are primarily photovoltaic and solar thermal systems. Ing. Peter Vella tells us that Alberta is also actively looking as to how it can contribute in other areas of the industry including R&D.

BACKGROUND

The renewable energy division of the Alberta Group has experience in the installation of solar photovoltaic and heating systems and started off on the biggest PV project to date on the islands. Installation & commissioning of wind turbines have also been done. The company is also present in the areas of heat pumps, solar blinds, intelligent plugs and solar lighting.

Peter Vella

Investment in renewable energy was subdued in the first three months of 2012, in the face of uncertainty over future policy support in Europe

RENEWABLE ENERGY



Call on 2549 0303 to set your appointmentSan Ġwakkin Road, Mrieħel BKR3000 e. [email protected] www.alberta.com.mt

Don’t leave your rooftop a dead space.Few things come for free – sunlight is one of them. Use this to your advantage and invest in our PV systems that are of the highest International Quality standards. Not only will you save energy for your home or business, but you can sell it too. Talk to us today and we’ll shed light on ways to lower your energy bills.

TEU: What are the energy solutions for the business and the public sector that you offer?

PV: As anyone in the field knows energy-saving solutions need to be reviewed on site and are very specific to the context. The Alberta RE division is geared up to cater from the very small residential roof to the commercial building and to those who are even more enterprising and would want to invest in renewable energy farming. We are committed to succeed in this industry both from a commercial perspective and also to be proud to say that we are part of those others who are committed to the sustainability of the environment and to the planet at large.TEU: Is it important that your workforce mirror the diversity of your customer base?

PV: The RE Team is set up to cater for the various technologies which are to date prevalent in the sector. We have engineers who can design and do the necessary calculations as part of the client’s proposal who are then supported in the field by qualified technicians both on the electrical and mechanical aspects of the installed systems.TEU: In providing those savings to customers, can you be a part of economic development for Malta?

PV: We definitely see ourselves as part of the economic cycle of the country. Alberta has a very rich and successful history in other areas such as the security and fire management industries. To date the group is proud to have made it also in the renewable energy sector and can contribute to the nation’s achievements. Alberta will be kicking off the installation of the largest photovoltaic project on the island at 4.2 MW which is planned to be commissioned towards the end of the year.

All rights reserved | Copyrighted.

TEU

Editor’s Note

Ing. Peter Vella’s career spans across a number of years of continuous growth and responsibility in the manufacturing industry and recent senior positions, in Operations Management in the Waste and Transport industries. In his role as a Business Development Manager, Ing. Vella will be working closely with the Directors on the strategic development of the Renewable Energy Division within the Group while also spearheading the Division to new areas in the renewable energy industry both locally and internationally. The combination of his knowledge and expertise as a successful professional together with hands-on operational management experience brings added value to the management structure of the company. Peter graduated in Mechanical Engineering and Hydrology from the University of Malta and followed an MBA with Henley College. He is presently reading for an MSc in Sustainable Energy with the ISE (University of Malta)



CORPORATE INTERVIEW OF THE MONTH


SAFEGUARDING BUSINESS ETHICS– PART 1

In a head-to-head interview with the new PBS Chairman, Dr Tonio Porthugese, The Economic Update’s Editor goes straight to the heart of the problem and asks the Chairman about how he intends to find the right modus vivendi for the Public Broadcasting Services, checking the role of Dr Porthugese, who discusses transition and new reform of the National Broadcasting Policy.

BACKGROUND

Tonio Porthugese was a director of PBS in the early nineties, has vast experience both in Malta as well as abroad. He is a lecturer in management and is the author of a number of books and publications. Portughese also served as chairman of the Industrial Tribunal and chairman of the ETC.

TEU: Following extensive discussions to enhance the communication level and cooperation between them, the Broadcasting Authority (BA) and PBS have recognised each other’s constitutional roles. In order this spirit of collaboration and commitment may be implemented, and in a historic goodwill gesture, PBS has ceded all its court cases against the BA. What do you comment on this positive development?

TP: Drawing back on the past to learn from it, we had a situation where there was a breakdown in communication and lack of cooperation between the BA, which is the watchdog for broadcasting according to the constitution, and PBS. There were misunderstandings and I had instructions from our major shareholder, consisting of the general public, that we must drop any court cases instituted against the BA and not follow court proceedings to allow us turn a new page in the relationship with the Broadcasting Authority. This new page is based on the recognition from our side that the Authority has the function given to it by the Constitution to act as a watchdog over PBS ensuring impartiality and balance in broadcasting services. This means first and foremost mutual respect and does not mean that there will not be any disagreements in future. Why? Simply due to the fact we are an operational entity. However, we have a strapping agreement to work together and whenever there are differences PBS shall continue to recognise the autonomy of the BA. Since PBS has the dual function and mission to provide programmes of information, current affairs, news and entertainment, it shall seek to find a modus vivendi on how we can work together and convince each other that the best means to attain this in future is by seeking dialogue. The BA has a very delicate function and we are obliged by law and the constitution that we have every right to show our reactions and give our recommendations. In the end, both of us have roles which are clearly defined in Maltese law and we are starting this new page by closing the chapters of the past and working to have

the highest quality level of broadcasting in Malta.TEU: Your appointment may be viewed in the light of recent political appointees, which have raised considerable concern that members in the PBS board were readying a charge across the line of neutrality to promote programming that better suits the government. Do you agree with this and what is the reinforced mission assigned to the new board?

TP: We had our first board meeting and I can say that I am extremely satisfied with the appointed Directors, who principally come from business and media backgrounds. I must say that there is no hidden agenda here and the mission handed down to me, the Board and also the editorial panel, headed by Joe Sammut, at PBS is clear. We have an unequivocal and transparent remit, meaning the government made it very clear that its policy was that PBS observed all the requisites of the Constitution at all times, which is that of total balance and impartiality. We serve no other agenda except this. This means that while we have to safeguard fairness and independence without prejudice, we must also improve and provide the highest level of quality programmes to the Maltese and Gozitan audience.

by Martin Vella

We have an unequivocal and transparent remit, meaning the government made it very clear that its policy was that PBS observed all the requisites of the Constitution at all times

Martin Vella, Editor of The Economic Update, interviewing PBS Chairman, Dr Tonio Porthugese

CORPORATE INTERVIEW OF THE MONTH



Our shareholder is not the private sector, it is the Maltese public, who through the government gives us a certain contribution so that we may operate certain programmes which are a prioirity also for the government, although without political nuance or implication. Therefore, we are entrusted to provide the best broadcasting service possible. PBS has to reflect all the evolution from all the different sectors of Maltese society. In the past we had a structured, monolithic society. Today everything has evolved, especially technology, so we have to change and adapt our mentality. This new mentality means building on the good that exists. Without going into any comfort zone, today PBS enjoys the highest viewership, which is nearly 70%. In radio, we stand on the third tier, so we have a lot of impetus and margins to improve our radio stations.I have outlined our main focus during our board meeting, mainly that we must not forget that this is a public corporation, we are registered with MFSA, so we have our financial and business obligations. We are not a profit-making organisation, but we are not here to make a loss neither. We must ensure economic sustainability in the long-term. A flow-chart and deployment factor will then come enforce to ensure sustainability. 2013 is a transitory year, with increased spending due to the long election campaign. However, from the revenue figures we evaluated there are signs of a recovery. TEU: Taking a bit of the past, on to the present and straight to the future, can you give us your brief assessment of the historical evolution of broadcasting in Malta and where do you wish to take it?TP: Let’s begin first on how broadcasting was established and follow the below historical chart to map the beginnings and be able to register important timelines.The origin of broadcasting in Malta dates back to the first broadcast transmitted from the Naval Wireless Station at Rinella in 1933. In 1934 an agreement was reached between the Government of Malta and the Rediffusion Group of Companies to set up a sound wired system in Malta and Gozo. Rediffusion (Malta) Ltd inaugurated its broadcasting services in Malta on November 11, 1935.Rediffusion (Malta) Limited’s control over broadcasting was further developed on 28th September 1961 when a contract was signed between the Government of Malta and the Malta Television Services which among other things bound the company to start operating a television station in Malta. The transmissions were launched on 29 September 1962. This company enjoyed an almost absolute monopoly until the 8th January 1973 when Radio Malta was set up and managed by the Malta Broadcasting Authority. A very important development in the history of broadcasting in Malta happened in 1975 when Telemalta Corporation was established by ACT XVI of parliament. This corporation became responsible for broadcasting in Malta and the company became known as Xandir Malta. Radio Malta was incorporated in this

company. On 27 September 1991 PBS Limited – a wholly owned Government limited liability company was set up on the understanding of taking over Xandir Malta – the broadcasting division within Telemalta corporation – therefore accomplishing the objective of providing public broadcasting services in the Maltese Islands. I was on the first board set-up, which consisted of Mannie Spiteri, the late Charles Arrigo, Lawrence Mizzi, Dolores Cristina and myself. We had to objective a making a smooth migration from a labour intensive business employing over 500 people to a technology-driven one (today we have over 80 employees). The aim of PBS Ltd is to fulfil its mission by offering a wide spectrum of high quality radio and television programmes as well as precise and fair news. Although this activity in itself does not generate revenue, it contributes indirectly towards this end by attracting sponsorships and airtime sales. Public Broadcasting Services Limited operates one general interest television channel and three radio stations. Being a commercial company, PBS Ltd is directed by a Board, which is nominated by Government being the only major shareholder. The Chief Executive who deals with the running of the Company is responsible to the Chairman. PBS Ltd provides extended public service obligation (EPSO) programmes for the cultural, social and educational development of the society.Today, we know that the 8 o’clock news bulletin is the mostly viewed and we have to retain its credibility and improve its standing. Together with dissett, these are internal productions of quality to compete with the private broadcasting.TEU: From a labour intensive transition, have the regulations governing broadcasting worked in past?TP: These regulations must be revised. The last National Broadcasting Policy was published in May 2004. PBS has sent its proposals to the government so that this policy is duly revised and become more relevant with modern times. We have made various dissertations and I feel this is the right time to reactivate the adjournment process of this policy.

There are a lot of structures that were established in 2004 which still make a lot of sense, among which are the Editorial Board, which is focused on selecting and screening programmes, content, etc. This is a commercial entity and the Board of Directors is chosen by the major shareholder, the public, represented by the government.

TEU: Do you think it is going to be a problem for the new Board to update and revise new regulations and what new regulations will be required to ensure impartiality and credibility?TP: At the present stage I am not involved directly on this Board and government has still to declare what it is going to do with it. I am certain that it will be able to confront the National Broadcasting Policy, which is due for an overhaul. We did mention this issue in our first meeting and there are a lot of things which have to be fine-tuned. When this policy was drafted, the PBS was not what it is today. Are those structures accustomed to today’s needs or do they need modification? Basically, you have a flat organisation today, which is relatively good, however, do you work with this set-up, or do you advance to embrace and improve more modern technology? Today, we are completing on a new technologically advanced, innovative, state-of-the-art project known as the Creativity Hub, which shall provide friendly-user facilities to production houses, local and overseas. This is a major investment and there is a huge interest from production houses to use this hub, which I think will revolutionise broadcasting services.

All rights reserved | Copyrighted.

Note: Part 2 of this interview will be published in The Economic Update’s June issue.

TEU

Editor’s NoteTonio Portughese has been associated with business and industry throughout a span of 35 years performing top managerial positions with a vast field experience not only in Malta but also in industrial enterprises in Italy, France, Morocco, Singapore, China and Malaysia as worldwide coordinator of HR Development Programmes. He is also active in training and development, having been one of the founding lecturers of the ST University in France, and in Malta shared his extensive international experiences with different bodies. He was decorated with the recognition of ‘Cavaliere dell’Ordine al Merito della Repubblica Italiana’ and has published the book entitled “People Engagement for Business Excellence and Social Well-Being” addressing practical field case studies and best practices through inspirational leadership. He has recently been appointed new Chairman of the Public Broadcasting Services. Mr Porthugese was also honoured with ‘Gieh ir-Repubblika Membru Ordni tal-Mertu

We have made various dissertations and I feel this is the right time to reactivate the adjournment process of this policy

Adrian Attard Trevisan developed his interest in science since the early age of fourteen. He was more intrigued by scientific modules rather than other subjects, as this presented more attractive opportunities and interesting outcomes. Having moved to the UK originally with a keen interest in Audio Engineering, Adrian has always had a deep fascination in the mechanisms within the human body especially in the mysteries within the mind. The Maltese neuro-scientist, who holds a doctorate in neuroscience from University of London and is currently finalising his first year of a second doctorate in Human Physiology in collaboration with the Universita Degli Studi Di Milano, spent almost five years developing the EEG (electroencephalography) technology, which has a worldwide patent.So why did Dr Attard Trevisan choose to study applied scientific research and not medicine, and why is there so much attention on neuroscience now? He has no hesitation to answer saying, “It is no mystery that even though we have been able to explore the furthest reaches of space, and developed unrivalled artificial structures, we still lack knowledge on the human brain structure and how it functions. This presented me the opportunity to go where no other human has gone.”

Following his studies, mainly in the multidisciplinary area of biomedical engineering, Adrian managed to get into medical school on a research doctorate in the emerging area of neurophysiology. This helped enabled him to try to merge his interest in science and medicineAdrian’s work involved researching new paths and connections between audio and Neurology for a number of UK researching networks. His interest kicked off when he found himself chosen

to work in France on a project co-ordinated by the European Space Agency and Orange Labs (France Telecom). This was the first time that he tried to merge his interest in Audio and EEG together. The result was extremely interesting, and following that he managed to publish a few research articles that are until now used as the basis for a number of technologies that help people to better understand and monitor brainwaves in an auditory format. With over five years dedicated to developing the EEG (electroencephalography) technology, which has a worldwide patent, Adrian has even written a book on it, called Introduction to Brain Music System, and the technology is being distributed in the US.

He chose to use his neuroscience knowledge to tackle autism when he was working in France’s European Space Agency and after meeting a family whose child had Asperger syndrome, a variant of the disorder, Adrian together with AAT Research, released the MENTe headband along with the Brain Music System software as a product that offers a standardised therapeutic treatment based on SonifiedNeurofeedback to individuals suffering from a wide range of mental and neurological conditions, particularly Autism Spectrum Disorder. SonifiedNeurofeedback is used to accurately and cost effectively convert brainwaves, monitored by an EEG collecting device, into musical sounds in order to alter and attain a pleasant frequency of brain activity. “By analysing the components of an EEG output

from a test subject, (namely Alpha, Beta, Delta and Theta waves) the Brain Music System converts these waves into music by a number of computational methods (namely the modified LORETA, an algorithm created specifically for this system).When this process is modified and presented back to the subject as an altered musical representation in a loop form, it can help to level the brainwaves as a structured type of therapy,” he explains, adding that, “Unlike other methods of therapy, the BMS along with the MENTe provide a realistic, inexpensive and portable alternative that could be used both inside and even outside a traditional clinical setting.”Having recently patented his ground-breaking product the ‘MENTe Headband’, we ask Dr Attard Trevisan how important is this medial aid and what are the number of dynamic applications it provides. “The MENTe Headband can have a number of dynamic applications. Standard drivers help any developer to integrate the device to any Bluetooth-reading system. This is also an opportunity to diversify the uses of the MENTe Headband within different industries. Apart from the medical applications mentioned above, the MENTe also provides,” Dr Attard Trevisan clarifies.



SCIENTIFICRESEARCH &

DEVELOPMENT


Developing Research, Saving Livesby Martin Vella

AAT is the brainchild of neuroscientist Dr Adrian Attard Trevisan. He is backed by a team of scientists, engineers, researchers and designers with significant experience in managing internationally funded research projects (both EU and privately). Attard Trevisan’s new medical aid is the first hardware medical product produced in the world that helps children with autism. In this interview we talk with Dr Attard Trevisan, who insists his ground-breaking headband, known as MENTe, is not a cure for autism, rather a “special aid”.

COMPANY DNAFOUNDED: 2011HQ: MarsaEMPLOYEES: 10PRODUCTS/SERVICES: MENTe, Brain Music System, Numetrik (Neuromarketing Services)MEDICAL AIDS/DEVICE: • MENTe:Hardware,• BrainMusicSystem:SoftwareWEBSITE: www.aatresearch.org

Unlike other methods of therapy, the BMS along with the MENTe provide a realistic, inexpensive and portable alternative that could be used both inside and even outside a traditional clinical setting.

AWARDSMENTe and BMS have been awarded the Malta Innovation Award for Technology for 2012. The awards are organised by the Maltese Ministry of Finance, the Economy and Investment together with the Ministry for Fair Competition, Small Business and Consumers, as well as the World Intellectual Property Organization. The Awards recognize excellence in the efforts of individuals and companies to develop innovative ideas, concepts or operational processes with the potential to be both unique and sustainable. In the case of the Technological Innovation award, the focus is on the creation of new or improved tools that can solve problems and enhance the outcome of a particular process from the use of such equipment or implements.

BACKGROUND

Adrian Attard Trevisan is a the Managing Partner of AAT Research Ltd, and a researcher within the Human Physiology Department at the Universita

Degli Studi Di Milano and Head of R&D at AAT Research Ltd. His background as a Medical

Neurophysiologist has resulted in the creation of a system called “Brain Music System” which enables

patients with Neurological Conditions to live a better life and has just patented MENTe, a medical

aid which assists children diagnosed with autism.MENTe Headband

TEU: How are you able to gather neurological data of a group of subjects and observe their response to specific stimuli through the use of the MENTe Headband?

AAT: To enhance functionality and comfort, the MENTe’s sensors were fitted into a simple black cloth strap, easily worn around the head by tightening and securing with Velcro. A Bluetooth device is connected to the headband, as well as an ear piece which also acts as a sensor. The ear piece is able to earth the system and therefore reduce noise from the data collection. A USB Bluetooth adaptor or dongle is provided with the headband, as well as a USB connector for charging the Bluetooth device. The data generated could easily be monitored and analysed through a live feed with the BMS software.

TEU: How are you marketing this product and which country are you most focused on?

AAT: Presently we have representatives in both China and America. Following a major distribution agreement with a leading Chinese / German firm, AAT Research took part in the ChinaMed 2013. In this event we showcased the MENTe, displaying its features and attributes to those who attended. Through our channel partners we now have representation in all the major cities in China.

TEU: What is the Research and Development team at AAT Research currently developing as a system which is intended to increase focus and attention for people who want to optimise their output potential?AAT: AAT research has partnered with several foreign entities, including two universities: Universita’ DegliStudi di Milano and London Metropolitan university, to work on research projects. These research studies will lay the foundations for our related future product development projects.The Research and Development team at AAT Research is also currently developing an extension product of our Brain Music System which is aimed at increasing focus and attention for people who want to optimise their output potential. This system will operate with the MENTe headband technology, and is mainly aimed at helping stressed out people and children suffering from a condition called ADHD.TEU: In conclusion, what do you hope to achieve in future with your base of production in Malta and which countries you wish to reach?AAT: AAT Research is aiming at distributing the MENTe globally, primarily to offer aid to autistic patients and provide an additional tool to help families communicate with their autistic children or relatives. Moreover, we are a research based company, constantly seeking to upgrade our products and produce ground-breaking

innovations products, which are effective yet affordable. By having both our R&D and production departments under one roof , we are aiming at having better control and therefore be able to monitor and produce our products under a high level of quality assurance.All rights reserved | Copyrighted.

SCIENTIFICRESEARCH &

DEVELOPMENT



Through our channel partners we now have representation in all the major cities in China

“I was intrigued by how people think and thus I ended up leaving Malta to

go discover more about one of the things that fascinated humans for centuries,

THE BRAIN.”Dr Adrian Attard Trevisan

“After using the MENTe for almost a year, our daughter now has a longer concentration span, is happier, calmer, shows affection and acceptance of peers and siblings, respects her parents, and is more obedient.”

“My son is eight years old and he is on the Autism Spectrum. We decided to give a try and make use of the Mente. Although we had to wait a month to see the first changes, now we are noticing that he is paying much more attention and his vocabulary has increased a lot in a short time. He is also trying to experiment and taste new foods and enjoys communicating more. The teacher who was unaware that he is using the Mente commented on the above as she noticed the changes too.”

TEU

PARENTS’ TESTIMONIALS FOR THE BMS – AUTISM AID

AAT Research Ltd’s are now represented in China thanks to a distribution deal with german firm Anseos GmbH

BUSINESS INNOVATION



DEVELOPING TALENT

Recognise the pattern? Each one was between the ages of 20 and 26 when they founded what turned out to be one of the most successful companies of our lifetime. So why are we sometimes surprised when we get to know about a local high flyer?

The Economic Update sat down for a ‘one-on-one’ interview with the person we’d describe to be the ‘brains behind the brains’ of Malta’s leading ICT institute, ICE Malta. You’ll be seeing quite a bit of this enthusiastic visionary, mark our words. In the meanwhile, welcome to what we consider to be an iconic moment in any business story – here’s the first time Nikolai Sammut, meets the press as he steps into the entrepreneurial spotlight.

TEU: What’s your role at ICE Malta (awarded Innovative Entrepreneurs 2013)? NS: I still smile when I hear our title – most of all because in the case of the ICE Malta business story, it was an idea which snowballed into such a unique business venture. The awards night was a humbling experience for the team, we embrace and we understand the weight of our award and our responsibility to ensure that we continue to be innovative, dynamic and leaders in the delicate industry of education. My role - while I appreciate the business side, and admittedly, it’s an aspect I find quite intriguing, my

strength is and will always be, education – the study experience we give our students, the opportunities we present to them and the mentorship we offer. Being an educational institute with the dynamics of a business, is a delicate balance to maintain, my role in the ICE Malta trio, is to ensure that while the business grows at the pace we have planned, we continue to have the heart and soul of a fine educational entity positioning the students needs at the centre of it all.

TEU: What’s your greatest passion? ICT or education?NS: Here’s my logic. Education needs more entrepreneurs and entrepreneurs should be eager to invest in education – Simple. Now add the ever growing ICT industry to this mix – and you will see how the concept of designing an institute such as ICE Malta was truly a simple idea which was quite essential for the Maltese Islands. Bring all this together and there you go - that’s my passion. We are living in a world where we appreciate and understand the value of knowledge; we strive to make ourselves better than ever before, we are ambitious, motivated and aspire to excel. In this day and age one we would like to believe that we don’t need to convince anyone about the value of education. That is been taken care of so all we have to do is give individuals the opportunity to evolve. TEU: What has been your greatest milestone to date? NS: Without a doubt, seeing our ICE Malta students presenting their portfolios and watching them

achieve worldwide certifications is always a recurring milestone in itself. The ICE Malta team takes pride in knowing our students personally – getting to know what our students want to achieve, what their career paths are – we are part of the successful future and achieving the dream career they dreamt of as children. On the other hand, we also make it our priority to keep ourselves on the ball as regards to all that the ICT industry needs – we must ensure that we offer worldwide recognised certifications which the industry needs, not just locally but all over the globe. The fact that we have become so relevant in the local ICT educational arena, in such a relatively short period of time, is our inspiration to give back so much more. You see, this is what is so wonderful about bringing together entrepreneurship and education – you are developing and designing a business which is making a great difference not only to an individual’s life but to the whole community. This is the feeling we share with our team, our tutors and what we constantly communicate with our worldwide recognised partners – let’s be an important part in the education of our country because we are our own finest resource. TEU: Where do you envisage ICE Malta to be five years from now.NS: The design and development of an ICT institute is just like I’m watching my own dream come true! Just like we strive to inspire people to dream we obviously have our own dreams and plans for the institute. It’s great to have an inspirational vision for the institute, but a vision is not the same as a strategy. Matthew, James and I work tremendously hard to ensure that our business growth is steady whilst I am driven to confirm further ICT certifications for the ICE Malta portfolio, establish new study opportunities for our students and eventually replicate the success of ICE Malta in other potential markets. All rights reserved | Copyrighted.

TEU

Corporate BriefICE Malta is committed to giving individuals the opportunity to achieve ICT worldwide recognized certifications by prestigious partners Microsoft, CISCO, Adobe, Autodesk amongst others. The institute has embarked on a CSR Programme which encourages their staff, tutors, students and corporate partners to give students a study experience which is unique to the Maltese islands.

While the business grows at the pace we have planned, we continue to have the heart and soul of a fine educational entity positioning the students needs at the centre of it all

Editor’s NoteDirector at the Institute of Computer Education, Malta, Nikolai Sammut, has a passion for website development, cutting edge design, UI/UX, and finds great satisfaction in sharing knowledge, inspiring creativity and encouraging students to excel and reach their career aspirations. Nikolai values education immensely and believes that our islands are full of creative talent waiting to be discovered. As director of one of the island’s leading ICT institutes, taking care of the day to day running of the school, he gives great priority to giving individuals a unique study experience including practical experience, one to one attention and access to the latest technology.

(Some of the) Most SuccessfulEntrepreneurs of our Time and Their (Age):Founders of Google: Sergey Brin (25) & Larry Page(25)

Founders of Apple: Steve Jobs (21) & Steve Wozniak (26)Founders of Microsoft: Bill Gates (20) & Paul Allen (22)

Founder of Facebook: Mark Zuckerberg (20)Founder of Wal-Mart: Sam Walton (26)

At Frank Salt Real Estate we can assist you at every stage of your life, from finding your first home, to moving to a larger or smaller home as your lifestyle dictates. Be it due to a growing family, down-sizing or simply investing in a finer property, we have what it takes.

WWe carry out hundreds of valuations every month and hold unparalleled knowledge of property values and availability. Contact any of our branches to nd out about our specialised service for second time buyers or to receive a hand-picked selection of good value properties.

t. 23 794 794 | www.franksalt.com.mt

NEW LICENCING SCHEMENOW SEPA

COMPLIANT*

"More than 8,000 people get paid with our software"

PAYROLL SOFTWARE PACKAGES

contact us: [email protected] www.databyte.com.mt +356 2345 6300

GET READY FOR THE NEW

• AutomatedFSS,N.I.&BonusesCalculations• FSSReports&ElectronicSubmissions• CompleteDataHistoryforbackdatedreports• LeaveRecords

• PayrollDataExporttoMSExcel• DirectCredits• ApplicationAudit• Time&AttendanceExcelDataImport• FREESoftwareUpdates• FREEMonthlySupport• FREESoftwareUpgrades

PLUS

ALL IN ONE BUNDLE!

FAST – SIMPLE – COST EFFECTIVE

Terms & Conditions Apply

*An EU Payment System for Bank Transfers

from 2014

BANKING INITIATIVES



KEY POINTS• HSBC Emerging Markets Index: 51.3 (prior 52.5)• Chinese growth slows to six-month low• Future output expectations across emerging markets weaken to

seven-month lowThe HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI™ surveys, fell to 51.3 in April, from March’s 52.5. That signalled a slowdown in economic growth in global emerging markets, to the weakest for over a year-and-a-half. Data broken down by broad sector showed similarly weak growth rates for manufacturing output and services activity. Three of the four BRIC nations registered slower output growth in April, most notably in China. The exception was Brazil, although its rate of expansion remained modest overall. Elsewhere, manufacturing output growth slowed in the majority of economies covered.New business growth slowed to the weakest since last August. Notably, the rate of expansion in the service sector slowed to the weakest since May 2009, the start of the current growth sequence.Employment barely rose in April, with the rate of growth the joint-weakest in the post-crisis period. Meanwhile, the volume of outstanding business declined for the twelfth month in a row.Cost pressures were at their weakest in nearly four years of rising input prices. Manufacturers’ input prices declined for the first time since September. Meanwhile, prices charged for goods and services declined marginally, following a seven-month sequence of inflation.

BUSINESS EXPECTATIONSThe HSBC Emerging Markets Future Output Index is a new series tracking firms’ expectations for activity in 12 months’ time. The index fell for the second month running in April, and signalled the weakest sentiment since last September. The weakening in confidence was equally pronounced across both manufacturing and services.

HSBC EMERGING MARKETS INDEX

DATA SUMMARY

DATA SUMMARY

TEU

HSBC Emerging Markets IndexEMERGING MARKET GROWTH SLOWS IN APRIL

Editor’s NoteThe HSBC Emerging Markets Index, a weighted composite indicator derived from national HSBC Purchasing Managers’ Index™ (PMI™) reports in 16 emerging economies, published on a monthly basis.

The Purchasing Managers’ Index™ (PMI™) surveys on which the EMI is based have become the most closely-watched business surveys in the world, with an unmatched reputation for accurately anticipating official data. The survey data are collected using identical methods in all countries, with survey panels stratified geographically and by International Standard Industrial Classification (ISIC) group, based on contributions to GDP. Around 7,500 firms are surveyed in total.

Survey responses reflect the change, if any, in the current month compared to the previous month based on data collected mid-month. For each of the indicators, a ‘diffusion’ index is produced, which reflects the percentage of positive responses plus a half of those responding ‘the same’. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change. An index reading above 50 indicates an overall increase in that variable, below 50 an overall decrease. All data are seasonally adjusted.

Further analysis | For more PMI survey findings, please visithttp://www.hsbc.com/hsbc-com/news-and-insight/emerging-markets

MAY 2013 | THE ECONOMIC UPDATE CORPORATE

GOVERNANCE


BACKGROUND AND SCOPEThere is no denying that many participants in the funds industry believe that directors of investment funds generally failed to react properly in the midst of a global financial crisis. As a result, a number of jurisdictions have overhauled their corporate governance framework. The Malta Financial Services Authority (the “MFSA”) published a Corporate Governance Manual for Directors of Investment Companies and Collective Investment Schemes on 15th February, 2013. The manual has been developed

against the backdrop of the MFSA’s increased emphasis on corporate governance which in the funds industry varies widely according to the laws and regulations applicable to the fund, its investment manager and even investors.

FUND DIRECTORSThe traditional management role in the fund context is played partly by the investment manager or sponsor and partly by the other service providers meaning that the fund does not have management staff or employees and the monitoring role rests with the fund board. The manual recommends that a fund board should have no less than 3 directors and that a fund with more than 7 directors would likely lose efficiency. A board with an uneven number of directors ensures action being taken since a majority vote is possible. The quorum for any board meeting should be a majority of directors.Boards tend to function most effectively when their individual members bring a diverse set of skills to the boardroom, thereby creating a board with a mosaic of skills and perspectives. Their individual skill sets need to reflect functions carried out by the fund’s service providers: portfolio management, risk management, operations, legal and regulatory, accounting and audit, compliance. Such extensive skill set coverage may produce helpful information for investors who seek to know more about their fund.The presence of independent representatives on a fund board, capable of challenging the decisions of the management, is widely considered a means of protecting the interests of investors. Executive directors appointed by the manager or the sponsor of the fund are not independent directors. Executives of a service provider to the fund may sit on a fund board – however such directors are not considered to be independent. The fund Chairman is responsible for running board meetings and for communication between the investment manager and the board, or investors and the board. The manual suggests that board meetings be held on a quarterly basis to review the performance and operations of the fund. Physical meetings should factor in the cost and whether that cost is appropriate with the financial resources of the fund. If only one meeting is held in person annually, it should be the meeting that reviews and approves the audited financial statements.

WHAT IS AN INFORMATION PACK?The Chairman should ensure that the information pack for a board meeting includes all information necessary for the board to consider the meeting’s agenda and which should be sent at least 2 business days prior to the date of the board meeting. The investment management report is probably the most important report in the board pack and reporting will vary according to the type of investments. Such report must provide information that will enable a board to understand and oversee the portfolio from a performance, risk, liquidity and compliance perspective. An administrator’s report could

include: a valuation and financial report, a shareholder activity report, a compliance comfort letter, any relevant internal audit and/or SSAE 16 report (as may be required), any comments on service level during the period and any significant matters that have arisen. The auditor should present the fund’s audit plan and timetable to the board for its review and approval once it is agreed with the investment manager or sponsor of the fund.

SHAREHOLDER COMMUNICATIONSThe board should ensure that shareholders receive legally required communications and appropriate disclosures.

ANTI-MONEY LAUNDERING AND COMBATING FINANCING OF TERRORISM Investment funds that do not have a physical operational set-up in Malta and are not involved in the acceptance and processing of subscriptions and the collection of funds from investors may delegate the implementation of their AML/CFT obligations, including customer due diligence, record-keeping, risk-assessment procedures and reporting obligations to the administrator.

INDEMNITY AND INSURANCEThe manual asserts that fund directors should be indemnified by the fund to the full extent permitted by law. This is subject to carve-outs relating to negligence, fraud and willful misconduct. Appropriate insurance cover should also be in place for fund directors in the form of a directors and officers (D&O) insurance policy.

CRISIS MANAGEMENTA fund board should anticipate potential crises that could affect the fund, for example pricing errors or irregularities. The Fund board should ask the fund’s service providers to provide periodic updates on their respective business continuity and disaster recovery plans (“BCP”).

RESIGNATION BY A DIRECTORThe manual identifies circumstances such as material and unsolvable conflicts of interest affecting the director which may lead to resignation from a fund board. In line with standard MFSA requirements, a resignation by a fund Director must be notified to the MFSA within 14 days. The appointment of a new director should be reflected in writing between the fund and the Director.

CONCLUSIONIn summary the objective of the new manual is to make sure that the fund board is adopting corporate governance measures to ensure better governance and increase transparency. The MFSA evaluates, the directors in terms of their fitness, integrity and probity as part of the approval process. Fund directors need to be allocated sufficient time to review and analyse matters being presented to them. They also need to ensure that they have sufficient resources to enable them to discharge their duties to the fund. The manual does not establish a “quantum” of directorships, but indicates that there is a limit above which a director would be acting irresponsibly by taking on additional directorships. Each fund Director must be able to defend, usually in hindsight, the number of directorships held at any given time. Any sound corporate governance program needs to take into account the concept of proportionality which recognizes that funds and management companies with greater resources will be able to do more with respect to corporate governance. Finally the manual emphasis the importance of training of fund board directors. Fund directors should avail themselves of the growing number of director and specialist training courses given by fund industry associations, national and international directors associations, universities and service providers such as law firms and audit firms. Contacts: Juanita Bencini, Partner, Risk Consulting , KPMG Advisory Services. Tel 2563 1053Gabriella Zammit, Manager, Risk Consulting , KPMG Advisory Services, Tel 2563 1412

Investing in Good Corporate Governance: MFSA publishes Manual for Investment Funds

TEU

by Juanita Bencini & Gabriella Zammit

Gabriella Zammit is a Manager in the Risk Consulting Advisory Services team at KPMG in Malta.

ENTREPRENEURIAL INNOVATION



MAKING A HUGE DIFFERENCE

“This is such a great way to honour those who go above and beyond in helping to nurture and grow our community,” says James with elation conspicuous all over his face.The Best Innovation Award provides recognition of those individuals and organisations that have made significant contributions, taken risks, and provided leadership to ensure the continuing economic success of ICE Malta Ltd, the ongoing success of James and Matthew, and the growth of entrepreneurial talent and energy in the community.This award is not merely an award for accomplishment, however, but a benchmark of success for those outstanding individuals, organisations and corporations who are nominated and selected to receive this prestigious award. Additionally, the Best Innovation Award serves as a tangible collaboration between The Economic Update and winners such as ICE Malta Ltd, who represent the community, that clearly establishes the power of cooperation and united vision.Matthew is the co-founder, director, and stakeholder of ICE Malta Ltd. His passion for creativity, entrepreneurial success, nature, and history is contagious throughout the company. He motivates, inspires, and appreciates his staff as though they are part of his own family. As the other driving force behind ICE Malta Ltd’s success, James oversees each department and directs and coordinates activities to achieve profit and return on capital. James establishes strategic direction and implements goals, operating plans, policies, and establishes organisational structure. He advises staff and reviews results of the business operation. His role at ICE Malta Ltd includes the duties of director, co-founder, and business development, they strive to work for a common vision. The Best Innovation Award recognises both James and Matthew as a team who have shown support of the company’s engagement and

commitment mission. Both Matthew and James have done their utmost to put in action ICE Malta Ltd’s mission, “to engage the community in learning,” as Matthew explains. ICE Malta Ltd is committed to volunteerism and ICT education community involvement! Students and employees take part in a variety of team building events, service-learning opportunities, and volunteer events that foster and strengthen the bond between one another.

James declares that this award “shall spur us to “encourage, coach and mentor entrepreneurs in our classes, providing a broad base of support to help multiple entrepreneurs achieve success.”Speaking after the announcement of the awards, Matthew said: “I have been very fortunate to have enjoyed mentoring and support on a range of areas of the business, including developing a creative intelligence planning for market, through the various programmes over the past 12 months. But this award is a huge boost for my company and my colleagues.”Martin Vella, Editor of The Economic Update, which co-sponsored the BOV Top Entrepreneur Awards and was responsible for all the nominees said: “The judging panel recognises the huge contribution which entrepreneurship has to play in the economic recovery, and ICT programmes, such as ICE Malta Ltd’s ICT educational courses, which play an important part stimulating and supporting entrepreneurship,” “ICE Malta Ltd led by Matthew, James and Nikolai is an extremely worthy winner for its best innovation and leadership qualities, and we look forward to working with them in the future.” TEU

James Abela, Business Director, and Matthew Sammut, Creative Director, from the Institute of Computer Education thank you all those who have been and continue to be a part of the innovative culture that has enabled them to win the prestigious Best Innovation Award during this year’s BOV Top Entrepreneur Awards held at the Westin Dragonara. To mark their continuous growth and celebrate this achievement we find out why ICE Malta Ltd are making a big difference in ICT Education in Malta.

The Best Innovation Award serves as a tangible collaboration between The Economic Update and winners such as ICE, who represent the community,

ICE Malta led by James, Matthew and NikolaiJames Abela, Matthew Sammut, John Formosa

James Abela, delivering his speech during dinner

MAY 2013 | THE ECONOMIC UPDATE HEALTH &FITNESS


Central to this growing research is the role of dopamine, the neurotransmitter that • signalswhenrewardsarepresent;• motivatesustoseekrewards;• promotesexploringandlearningaboutrewards;and• maintainsawarenessaboutreward-relatedcues.

Cocaineandherointargetandhijackthisrewardsystem.Sodoappetite-controllinghormones,leadingagrowingnumberofresearcherstoconsiderobesityfromthestandpointofaddictionneuroscience(Dagher2012).

Dopamineisactuallydispersedthroughoutthebrain.Ninetypercentofthedopamineneuronsintheventraltegmentalarea(VTA)becomestimulatedwhenwe’reabouttoeat.

ANTICIPATION AND SATISFACTION Animal studieshavehelpedusunderstand the addictive effects of food.Whenratsaregivenfreeaccesstoamixofthetypicalhyperpalatablefoodsavailable to humans—chocolate, cheesecake, bacon, sausage and otherfat and processed products—the rat’s brain structure changes the sameway it would if cocaine were ingested. YaleUniversity researchers usedfunctionalMRI(fMRI)studiestoprovethatbothleanandobesewomenwhodemonstrateaddictivebehaviouraroundfoodshowthesamepatternofneuralactivityasachronicdrugabuser:veryhighlevelsofanticipationoftheirdrugofchoice—inthiscase,achocolatemilkshake—butverylowlevelsofsatisfactionafterconsumption.

DO HYPERPALATABLE FOODS ACT LIKE HEROIN? Issugarasaddictiveasheroinorcocaine?Couldthatcupcakewiththemile-high frosting act like crack to a susceptiblebrain?Animal studiesreveal thathyperpalatablediets,andsweetones inparticular,aremorerewarding—andpotentiallymoreaddictive—than intravenouscocaineandheroin(Ahmed2012).What about withdrawal from the hyperpalatables in comparison to drugs?Substance abuse researchers note that the brain adaptations that result fromregularlyeatingfoodsthatlayersalt,fatandsweetflavoursarelikelytobemoredifficulttochangethanthosefromcocaineoralcoholbecausethefood-relatedadaptations involvemanymoreneuralpathways.Almost allof thedopamineneuronsintheVTAareactivatedinresponsetofoodcues(Wang&Tsien2011).Labratswithunlimitedaccesstoahigh-fat,high-carbohydratedietalmosteatthemselvestodeath.They’llvoluntarilywalkacrossanelectrifiedplateandendurepainfulshocksinordertogettheirjunkfoodhit.Inonestudy,whenratshadaccesstohigh-fat,high-carbohydratefoodforonly1houraday,theyconsumed65%oftheirdailycaloriesinonesitting,continuouslygorginguntilthefoodwasremoved.However,whenthefooddisappearedtheydidn’tsimplyshrugtheirrodentshouldersandturnbacktoregularchow.Instead,theywithdrewandcurledupintoafoetalposition,soothingthemselveswithnervoushand-wringing,andbecomingexcessivelytwitchyandeasilystartled.Theywerehungryfortheirfix.Withoutit,theyendedupwith“theshakes”( Johnson&Kenny2010).In humans, there’s clear evidence that habitual consumption of calorie-densehyperpalatableselicitschangesinbrainresponsesthatmirrorthosethatoccurduringdrugaddiction.Andakintodrugs,thesesamefoodsareimplicated in cravings and in the perception of loss of control (Pelchat2002).Speakingofcravings,95%ofthefoodshumansmostcraveare,notsurprisingly, calorie-dense. Why do we favour calorie-dense foods? It’saboutsurvival.Whenfoodwasscarce,ingestingcalorie-densefoodsgaveusouroptimalchanceofsurviving.Thatisnotthecasetoday.

THE ROAD TO RECOVERY: AN INTEGRATIVE MIND-BODY APPROACH Byharnessingthepowerofepigenetics(thestudyofhowtheenvironmentinfluencesourgenestructure),itispossibletoreininimpulsivity,strengthenPFCfunctionandrecoverfromfoodaddictionforalifetime.Herearesimple,proactivestepstoachievedetoxificationandsustainablerecoveryMIND Studieshave shown that simply reducing stress canenhance functioningandreturnittolevelsofnonstressedpeople.That’swhyradicalstressreductionremainsatoppriority.Meditationisacentralfocusofsuccessfuladdictionrecovery.FOOD SUPPLEMENTATIONThe foodswe eat actually influence our geneticmakeup.The goal is tochoose foods that promote health through optimal gene expression.Followingaretwoexamplestoillustratehowtoapplyepigeneticsthroughnutrition.Choline: Studies on rats have shown that supplementing withdietary choline can increase the nerve growth factor in the prefrontalcortex, improvingmemory and precision helping reduce aging deficits.Acetylcholine is also credited with strengthening synapses—theconnections between neurons—particularly when we’re learning andusingour short-termmemory(Rasmusson2000).Althoughourbodiesgeneratecholine,weneedfoodsourcestomaintainadequatelevels.Omega-3s: are used by the brain to form 60% of its fat-based cellstructure.These fatty acids ensure that cell membranes will be flexibleenoughtoletinothernutrients.Studieson8-10yearoldboysshowedthatsupplementingwithOmega-3sinfluencedtheirabilitytocalmdownandfocusmore.ItalsoshowedthatthemoreOmega-3stheytook,thehighertheirabilitytoconcentrateandthefastertheirreactiontimesbecame.MUSCLE Regularphysicalactivityfacilitatesneurogenesis,augmentsbrainfunctionand significantly aids in relapse prevention and sustained recoveryfrom addiction. Studies on children have shown that vigorous exerciseperformedfor40minutes,5timesaweekimprovedIQlevelsby3.8points.One study found that 10 (30-minute) sessions of moderate treadmillwalkingovertwoweekswasenoughtocutaddicts’marijuanasmokinginhalf,eventhoughtheaddictswerenotaskedtocutdownandhad,infact,explicitlysaidtheydidn’twantto.Participantscuttheiroriginalintakebyathirdevenafterthestudywasover(Buchowskietal.2011).Another study found that after a year of taking 40-minute walks threetimesaweek,sedentaryolderadultsreversedtheirbrains’agingprocessbyalmost2years.Thosewhoremainedsedentarysawtheirbrainsshrinkbyalmostthesameamount.

Is food addictive like cocaine?

Editor’s NoteRichard Geres is an internationally certified Personal Trainer and Nutrition Specialist specialising in weight-management and functional fitness. Over the last 18years he has helped thousands of individuals achieve slimmer, fitter and healthier bodies through lifestyle modifications and personalised exercise programmes. He can be contacted for seminars and individual consultations through his website on www.richardgeres.com.

TEU

by Richard Geres Can food products influence our brain in much the same way as drugs? Yes, according to newly published data and a growing chorus of scientists.

TOP ENTREPRENEUR



Sandra Zammit, founder and CEO of smoochie drinks has recently been awarded with the BOV Female Entrepreneur of the Year 2013 Award. Our Editor catches up with the busy and alluring self-made businesswoman to learn more about her fascinating story and enhtralling journey.

BACKGROUNDWith a background in human resources management and public relations, and hardly any experience in the fruit drinks sector or financial planning, Sandra took a huge bank loan, and assisted by the Equal Project (an EU pilot project handled by Malta Enterprise and ETC), she opened her own bottled smoothie facility... and since then never looked back.

Visibly thrilled and fighting to hide her emotions, Sandra struggled to find words on being asked about her role model for her other female entrepreneurs. “We have a lot of women in our business, all working incredibly hard to pull out the stops and deliver the most awesome entrepreneurial spirit. At smoothies we love the work that we do – we build a lot of fun into it and around it. Fun is at the essence of what we do,” she jubilantly declares.

Sandra said that being an entrepreneur does not necessarily mean that you necessarily need to have the capital or a family business to back you up. “It means that you really want to do something different for yourself and for society, something you really believe in. Women in particular don’t realise what a lot they have to offer.”

Sandra was determined to have her family live a healthier lifestyle. When she realised how many calories her family was consuming from juice, soft drinks and other beverages, she was resolute to find something more interesting. Scanning the labels of every beverage she could find only yielding more disappointment; every drink she picked up contained either loads of calories or questionable diet sweeteners, which didn’t even taste refreshing. Finally out of desperation, she started slicing fruit, blending as smoothies without adding a lot of calories. Surprisingly, this simple solution was

a hit with her family. She realised then that someone should make a simple fresh and pure unsweetened fruit-juice as a substitute for all the artificial juices.

She never imagined that one day she would make lovely bottled smoothies out of fresh fruit with no sugars additives or concentrates. “Our smoothies are really fresh and they only last 6/7 days. We deliver every other day and visit approximately 40 outlets a day. It is very hard work but we have a lovely team and really enjoy

it. We are the first people to have started bottled smoothies in this part of the world,” she says.

Despite having no experience in the beverage industry, facing tough economic times and competing with corporate giants, Sandra followed her intuition that this was a product that would sell, and created smoothies.

In just five years, her perseverance, determination, and innovation brought smoothies to the shelves of all retailers and many other stores in Malta. “I am really looking forward to my new role as female entrepreneurship ambassador. Even if I manage to make a difference to just one person during my role as the BOV Top Female Entrepreneur, then I think I would have done my job,” she says.

The smoothies concept is unique from the way it actually started, being a mother of four kids with no business acumen whatsoever, and no financial backing, with a huge business loan, Sandra even had to put up her house as collateral! “When I started smoothies, I wanted to have a product that was better than any other product produced anywhere in the world. The idea being the simplest you can imagine. Blend fruit and bottle it, refrigerate immediately, without using any preservatives or heating treatments. “All other bottled smoothies and smoothies in tetra packs on the market are pasteurised, most of which do not even need to be refrigerated and have a shelf life as long as a year! When fruit is pasteurised the enzymes are killed and taste and texture as well as colour are completely altered,” Sandra explains.

Sandra’s keen sense of observation noticed that in the UK, Australia, and USA smoothies made from pasteurised fruit started to appear and were rapidly gaining in popularity. She thought the smoothie idea was cool, stating that “it’s a way of putting the much-need fruit into your body without the hassle of having to wash and peel the fruit beforehand.”

The biggest lesson she’s learned to date is if you make a product that you believe in and stay true to your message, your loyal consumers will become your best advocates and help spread the word. TEU

Perseverance, Determination, and Innovation

Judge’s comments

Sandra Zammit is an inspirational female entrepreneur who has built one of the foremost health-friendly fruit juices in Malta. Sandra’s commitment to continuous rapid innovation has been reflected in sales growing five times over in five years. As well as developing initiatives within the company to coach and inspire female staff to achieve their full potential, she is an inspiration to all female entrepreneurs.

Even if I manage to make a difference to just one person during my role as the BOV Top Female Entrepreneur, then I think I would have done my job

by Martin Vella


MAY 2013 | THE ECONOMIC UPDATE Technology

On the 8th of May the Hon. Edward Zammit Lewis, Parliamentary Secretary for Competitiveness and Economic Growth, carried out the keynote speech at the Exigy conference – Enabling Business Growth through Technology – an event which brought together CTOs, Financial Directors, Operations Managers and Procurement Managers of medium to large-sized organisations who would like to gain a better insight into the latest technology trends.

“As New Government we will be supporting events of this type as these act as a showcase of business innovation, aimed at stimulating more organisations to regard technology as an investment, rather than an expense, allowing businesses to make the next step for growth. Events like the one on the 8th of May, demonstrate how the right technology investment will help companies transform their processes to control their operations, strengthen customer relationships and achieve better results.” explained the Hon. Edward Zammit Lewis.The Hon Zammit Lewis described that for Malta to grow and strengthen its economical standing, we need to achieve economic growth that is realistic and sustainable. The New Government has to take measures to stimulate the economy, empower growth in current businesses and in the creation of new ventures. The Hon. Zammit Lewis continued, “We will enable employment and create a climate where local and foreign businessmen would want to invest. Government’s key objective in this regard is to enable economic growth that reaches everyone both by promoting measures to unleash the potential of our talented and dynamic people and applying digital technology in an intelligent and innovative way.” Within this context, Malta will developing a Digital Economy which is robust, modern and amongst the best globally, and which will foster sustainable economic growth, wealth and well-being for all. The Digital Economy will align to the government’s mandate and to EU’s Digital Agenda and aims at leading Malta to be amongst the best in Europe through spearheading initiatives to create the ideal entrepreneurial climate concluded the Hon. Zammit Lewis.Background information on this conference available here:www.exigy.com/Enabling_Business_Growth_Through_Technology.aspx

THE HON. EDWARD ZAMMIT LEWIS INTRODUCES EXIGY ICT CONFERENCE BY EMPHASISING THE IMPORTANCE OF TECHNOLOGY

FOR THE ACHIEVEMENT OF ECONOMIC AND BUSINESS GROWTH

TEU

OPINION



Legal certainty, through proactive and forward looking regulation is essential. This should not simply come as a reaction reflex and being efficiently rapid in the transposition of rules emanating from Brussels. The State should strive to promulgate and promote endemic legislation which truly reflects our national aspirations and highlights the advantages that Malta can indeed offer as an ICT centre of excellence.

Being competitive in the constantly changing ICT environment also depends on a country’s legislative edge and maintaining your regulatory regime open to innovation and at the same time pragmatic and devoid of excessive bureaucratic burdens. The incredible progress that Malta registered in the field of ICT policy during the past decade enabled us to be recognised at an international level in various fora and served as the backdrop for the increasing forward direct investment achieved in relation to ICT. The ever-increasing number of remote gaming companies, technology driven financial services companies as well as other operators directly involved in information technology services is a proud testament to this. This sound success was not only achieved through strategic and forward looking government policy but also through the introduction of legal regimes which mirror our national realities and aspirations. Throughout the past years, Malta has established itself as a true example of proactive and innovative ICT legislation but much more needs to be achieved in order to guarantee further growth of the industry.One of the first purely local interventions in our regulatory frameworks mirroring this legislative pro-activeness was the introduction of obligations of providers of international bandwidth to have arrangements in place with their competitors in order to bind them to accept

to carry on an interim basis international traffic originating from their competitors should the latter develop a fault on their submarine cables. The high dependency that our tiny island has on international bandwidth, especially in the field of remote gaming and financial services as well as the faults that were being reported on such submarine cables as a direct result of the voluminous sea traffic passing between Malta and Sicily, were the main instigators of this legislative intervention.

The introduction by the communications regulator of specific test and trial frequency licencing schemes aimed at alluring companies who wish to carry out further research and limited trials of new technologies has also borne fruit.

Malta was the first EU country to regulate remote gaming. This enabled us to quickly establish ourselves on the ICT map of this exciting and expanding niche industry. The influx of foreign companies and the establishment of foreign backed start-ups relating to gaming has been phenomenal and even though presently the market is going through a phase of consolidation where the big players are constantly taking control of smaller operators the gaming authority is still receiving interest for new licences and new business models. The availability of advantageous corporate structures and the increasing number of tax related incentives directly tailored to the creative industry has also made this possible.

The importance of regulatory and legislative intervention should never be underestimated. It is also through technology neutral and clear legal frameworks that foreign investors will obtain sufficient piece of mind that Malta is the place to be.

Malta must remain competitive and a step ahead. Serious consideration must be now given to the recognition of present technologies and how legislation can leverage accelerated economic growth and sustain FDI in information technology related industries and services.

The introduction of specific regulatory and authorisation schemes relating to cloud computing services should be on top of the agenda. Whilst the European Union has only recently started mulling on the various legal challenges that cloud computing presents, Malta has the golden opportunity to be an important actor and lead the way as it did in relation to remote gaming through the strategic introduction of legal models by which the protection of cloud users is recognised as well as setting the stage for the attraction of cloud computing services operators to Malta.

Furthermore, the introduction of legislation relating to skills gaming, an increasingly growing and lucrative industry should not be left on the back burner. In the field of ICT law, every day lost means that other jurisdictions will not only catch up with us more quickly but enable them to position themselves in a situation where their national packages are more attractive and resulting in having the largest multinational players in this field opting to set up shop elsewhere.

Needless to say, the State must be the primary driver for this realisation. One bold step in this direction was the publication of the Digital Rights

The incredible progress that Malta registered in the field of ICT policy during the past decade enabled us to be recognised at an international level in various fora

By Antonio Ghio

Realising Competitive iCt advantage thRough pRoaCtive legislation

Ensuring that Malta remains a leader in the pack when it comes to the Digital Economy takes more than just developing attractive corporate

and tax related incentives or establishing the right structures to produce sufficient human capital that investors opting for Malta would require.


LITERATURE


“I say to you today, my friends, that in spite of the difficulties and frustrations of the moment I still have a dream. It is a dream deeply rooted in the American dream.I have a dream that one day this nation will rise up and live out the true meaning of its creed: “We hold these truths to be self-evident; that all men are created equal.”I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave-owners will be able to sit down together at the table of brotherhood.I have a dream that one day even the state of Mississippi, a desert state sweltering with the heat of injustice and oppression, will be

transformed into an oasis of freedom and justice.I have a dream that my four little children will one day live in a nation where they will not be judged by the colour of their skin but by the content of their character.I have a dream today.I have a dream that one day the state of Alabama will be transformed into a situation where little black boys and black girls will be able to join hands with little white boys and white girls and walk together as sisters and brothers.I have a dream today.I have a dream that one day every valley shall be exalted, every hill and mountain shall be made low, the rough places will be made plains, and the crooked places will be made straight, and the glory of the Lord shall be revealed, and all flesh shall see it together.This will be the day when all of God’s children will be able to sing with new meaning “My country ‘tis of thee, sweet land of liberty, of thee I sing. Land where my fathers died, land of the pilgrim’s pride, from every mountainside, let freedom ring.”And if America is to be a great nation this must become true. So let freedom ring from the

prodigious hilltops of New Hampshire.Let freedom ring from the mighty mountains of New York.Let freedom ring from the heightening Alleghenies of Pennsylvania!Let freedom ring from the snow-capped Rockies of Colorado!Let freedom ring from the curvaceous peaks of California!But not only that; let freedom ring from Stone Mountain of Georgia!

Let freedom ring from Lookout Mountain of Tennessee!Let freedom ring from every hill and mole hill of Mississippi.

From every mountainside, let freedom ring.When we let freedom ring, when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of God’s children, black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of that old Negro spiritual, “Free at last! Free at last! Thank God almighty, we are free at last!” - Martin Luther King, Jr. TEU

Editor’s NoteThe Reverend Dr. Martin Luther King, Jr. was put in the Birmingham, Alabama jail, in 1963, for leading a non violent protest against segregation. He believed that through violence, nothing would be gained.

In a letter that he wrote while jailed, he wrote: “Non violent direct action seeks to create such a crisis and foster such a tension that a community which has constantly refused to negotiate is forced to confront the issue.” Injustice anywhere, is a threat to justice everywhere. One who breaks an unjust law must do it openly, lovingly.”

Martin Luther King, Jr. was very much influenced by the life of Mahatma Gandhi, one of the greatest Indian leaders and Henry Thoreau, who was a philosopher.

He struggled greatly for their freedom and lead in a non violent manner, both blacks and whites to marches and boycotts and sit downs and was later to receive the Nobel Peace Prize.

In 1964, President Johnson signed “The Civil Rights Act of 1964,” stating that under the Constitution, blacks had the same rights as whites, both in the South and North.

He was shot and murdered in 1968, as he prepared to help in support of a strike of the Memphis, Tenn. sanitation workers and a march for the poor people. As he stood outside his motel room, he was assassinated by James Earl Ray.

The Reverend Dr. Martin Luther King, Jr. was born on January 15, 1929. The Third Monday in January, Martin Luther King Day, which is a national holiday in the United States, is celebrated in his honour. Sources: Bennett, Leone, Jr., What Manner of Man: A Biography of Martin Luther

King, Jr. Chicago, Johnson, 1964; Nobel Lectures, Peace 1951-1970, Editor Frederick W. Hagerman, Elsevier Publishing Company, Amsterdam, 1972; Wikipedia.

There can be no real and abiding happiness without sacrifice. Our greatest joys do not result from our efforts toward self-gratification, but from a loving and spontaneous service to other lives. Joy comes not to him who seeks it for himself, but to him who seeks it for other people.- H. W. Sylvester.

Martin Luther King, Jr. said these “I Have a Dream” words on August 28, 1963, in front of the Lincoln Memorial of Washington, DC, to a crowd, in protest to discrimination and racism against African Americans:

I Have A Dream Martin Luther King, Jr.

Like an unchecked cancer, hate corrodes thepersonality and eats away its vital unity.

Hate destroys a man’s sense of values and hisobjectivity. It causes him to describe the

beautiful as ugly and the ugly as beautiful,and to confuse the true with the false and

the false with the true. Power at its bestis love implementing the demands of justice.

Justice at its best is love correctingeverything that stands against love.

- Quote by the Reverend Dr. Martin Luther King, Jr.


FASHION


The conclusion to the third Mercedes-Benz Fashion Week Malta was reached on Saturday 11th May as thousands of fashionistas descended on the Malta Fairs & Conventions Centre at the 15th edition of Malta Fashion Awards sponsored by Vodafone RED and Diet Coke.

THE AWARDS WENT TO…Female Model Award Nominees: Gaby CurmiFemale Photomodel Award Nominees: Valentina RossiMale Model Award Nominees: Karl BonniciMale Photomodel Award Nominees: Robert GaleaHairstylist Award Nominees: Annalise AzzopardiMake-up Artist Nominees: Mateja CamilleriPhotographer Award Nominees: Bernard PolidanoFashion Stylist Award: Caroline ParisNail Technician Award: Barbara ButtigiegNew Fashion Designer: Ritianne Zammit

Two additional Awards were handed to Steve Vella and Marisa Grima for their oustanding contribution to fashion. TEU

Vodafone RED Malta Fashion Awards

Photos courtesy: Dennis Calleja, Mark J. Schembri and Eman Borg

The show ended with a special surprise 15th

anniversary award being presented to

Adrian J. Mizzi himself by his

core team.

+356 9922 8637

Amazing food, beautifully cooked. Great service. Great Cocktails!

Also specialising in seafood dishes and platters

JF LOGISTICS LIMITEDVinci Buildings, B. Bontadini Street,

Birkirkara BKR 1732, MaltaTel: (+356) 2069 1053 | Fax: (+356) 2131 7934

Email: info@jfl ogistics.com

jfl ogistics.com

YOU NEED IT

EFFICIENCY FOR WHEN

• Local Courier Service• Messenger Service• Same Day Delivery• Secure & Traceable• Tailor-made to Clients Requirements


TAX


The Polish Ministry of Finance has prepared new draft legislation to combat tax avoidance involving the transfer of income by Polish companies to companies founded in countries with more favorable tax treatment than in Poland.

The draft has been submitted for inter-ministerial consultation. It will introduce into Polish tax legislation the principle of taxation in Poland of profits of controlled foreign companies, commonly called: CFC - Controlled Foreign Corporations. Such companies need not be founded in tax havens, but also in other countries with preferential tax regimes. Poland is one of the few EU member states not to have such legislation on the statute books.According to the Ministry the draft aims to ensure that Polish companies will pay tax in Poland on income earned by a controlled company established or administered in a country with a lower tax burden. This additional income would be taxed in Poland at the standard rate of corporate income tax at the rate of 19 per cent.

The foreign company would be considered a CFC if at least half of its revenues can be classified as passive income, eg from dividends, interest income, gains from the sale of shares, income from intellectual property. If this is the case the Polish company would pay 19 percent tax on all of the CFC’s income, active and passive. It seems that at least two separate tests will apply:Firstly, the new rules would be applied if a foreign company is resident in a country or territory in which the statutory income tax rate at least 25 percent less than Polish personal income tax rates (currently a maximum of 32 per cent) or the Polish corporate income tax rate (currently 19 per cent) or where foreign income - in this case from Poland- in general is not taxed. This means that states with a corporate income tax of 14.25% or below such as Ireland, Cyprus, Bulgaria and Hungary, all of which are used for tax efficiencies by Polish companies, would be caught by the CFC rules. Malta and the UK would not be.Secondly the new regulations would address only those Polish companies, which have at least 25

percent of the shares, or 25 per cent of the voting rights in the company’s governing bodies (eg, the board of directors), or 25 per cent of those shares entitled to the right to participate in the profits.The draft will be developed to include a solution that would avoid multiple taxation of the same income as well as the introduction of a minimum threshold below which the provisions of the controlled foreign company legislation in general would not be used.According to the Polish Ministry of Finance the new rules on CFCs does not violate the provisions of international agreements on the avoidance of double taxation to which Poland is a party, so the ministry does not foresee the need to change them. The Ministry assumes that the new rules will come into effect at the beginning of 2014.This article was written by Richard Wernick - CSB Group Structured Tax Services ConsultantFor more information, kindly direct your request to [email protected]

TEU

POLAND PLANS TO INTRODUCECFC RULES FROM 1 JANUARY 2014

by Richard Wernick

Richard Wernick- Structured Tax Services Consultant

NEWSMAKERS



Thomas Smith Group announced that it shall once again support the annual Mdina Grand Prix event organised by the Valletta Grand Prix Foundation. The three-day event will take place on the 11th through to 13th October, and has already attracted many local and international race drivers.

Mr. Joe Gerada, Thomas Smith Group Managing Director said, “we are proud to extend this relationship with such a dedicated foundation and recognised event. The interest generated, bringing local and international classic car enthusiasts and spectators together in a picturesque setup within Malta’s former capital city, is significant. We are therefore thrilled to be part of this exciting and prestigious event.” Indeed, the Valletta Grand Prix Foundation claims that this year’s event will involve a minimum of 70 participating cars, and around 25,000 spectators over the duration of the event.

An avid classic car aficionado himself, Mr. Gerada emphasises on Thomas Smith Group’s dedication to supporting local sports. “I believe this event will showcase to the rest of the world our great island, our people and our culture.”

This year’s Mdina Grand Prix marks its fifth year, with the original two held around the Valletta bastions, and the subsequent years against Mdina’s historical backdrop. Further information about the Mdina Grand Prix event, schedule of races, and registration, can be found on the official website www.vallettagrandprix.com.

Thomas Smith Group is one of the longest established service group of companies on the island, specialising in international shipping services and insurance. Visit www.tcsmith.com for more information about the vast range of services Thomas Smith Group can offer.

This morning the Hon. Edward Zammit Lewis opened The Malta eBusiness Seminar a joint initiative by Malta Institute of Management (MIM) and CSB Group.

The Parliamentary Secretary stated that the New Government views eBusiness as an important pillar for Malta’s Digital Economy. In effect it is the Government’s aim that the Digital Economybecomes one of the main economical pillars for our county.

“eBusiness has offered local businesses increased opportunities to branch further afield and tap foreign markets at relatively low cost, it has also offered local consumers other avenues to shop around to find the better deal from the comfort of their own homes. It comes as no surprise therefore that today, 64% of local Internet users shop online. We aim to ensure that both the local industry and local consumers continue to benefit from this reality. MCA Research indicates that 15% of local firms sell their products and services via eCommerce, the New Governments aim is to create the right context for more local businesses to use these technologies allowing for more Economic Growth” explained the Hon Edward Zammit Lewis.

The Hon Zammit Lewis explained that today a good number of people from the local business community coming together across industries to learn about the latest trends and share best practice with other entities, seminars like the one today provides a perfect platform for networking between eBusiness stakeholders. The Internet has indeed changed the way the world does business, it is thus of great importance that local companies understand how can make full use and benefit of eBusiness Technologies. MITA also plays an important role in developing eBusiness related skills which are much needed by our industries in today’s Digital Economy, through initiatives such as ESkillsAlliance which helps the local human resources we can strengthen the use and benefits of eBusiness applications. The Malta Communication Authority also has an important role in supporting eBusiness both via eCommerce Monitoring and eCommerce Fora.

6PM is pleased to announce a major extension to their EDM contract with a major Mental Health Trust. The initial contract was awarded in November 2011 to pilot 350 users of the solution, utilising the EMC XCP Documentum platform for the management of Medical Record archives. Since the implementation, the Trust have identified several other uses of the platform and have now purchased an additional 1,500 users to rollout across the Trust to new areas such as Occupational Health.

”Trust employees have embraced the use of the platform very quickly and are identifying new uses on a regular basis, particularly the effective use of the process management elements. Given their current rate of progress, I believe that they will have a very sophisticated configuration within twelve months, much of which they are making available to other Trusts” commented Steve Wightman, Deputy Chief Executive Officer, 6PM Holdings plc.

THOMAS SMITH GROUP ANNOUNCES

ASSOCIATION WITH MDINA GRAND PRIX

FOR A SECOND CONSECUTIVE YEAR

MAJOR MENTAL HEALTH TRUST

EXTENDS 6PM EDM SOLUTION

TEU

TEU

TEU

THE HON. EDWARD ZAMMIT LEWIS, PARLIAMENTARY SECRETARY FOR COMPETITIVENESS AND ECONOMIC

GROWTH, OPENS THE MALTA eBUSINESS SEMINAR

OPINION



Legal certainty, through proactive and forward looking regulation is essential. This should not simply come as a reaction reflex and being efficiently rapid in the transposition of rules emanating from Brussels. The State should strive to promulgate and promote endemic legislation which truly reflects our national aspirations and highlights the advantages that Malta can indeed offer as an ICT centre of excellence.

Being competitive in the constantly changing ICT environment also depends on a country’s legislative edge and maintaining your regulatory regime open to innovation and at the same time pragmatic and devoid of excessive bureaucratic burdens. The incredible progress that Malta registered in the field of ICT policy during the past decade enabled us to be recognised at an international level in various fora and served as the backdrop for the increasing forward direct investment achieved in relation to ICT. The ever-increasing number of remote gaming companies, technology driven financial services companies as well as other operators directly involved in information technology services is a proud testament to this. This sound success was not only achieved through strategic and forward looking government policy but also through the introduction of legal regimes which mirror our national realities and aspirations. Throughout the past years, Malta has established itself as a true example of proactive and innovative ICT legislation but much more needs to be achieved in order to guarantee further growth of the industry.One of the first purely local interventions in our regulatory frameworks mirroring this legislative pro-activeness was the introduction of obligations of providers of international bandwidth to have arrangements in place with their competitors in order to bind them to accept

to carry on an interim basis international traffic originating from their competitors should the latter develop a fault on their submarine cables. The high dependency that our tiny island has on international bandwidth, especially in the field of remote gaming and financial services as well as the faults that were being reported on such submarine cables as a direct result of the voluminous sea traffic passing between Malta and Sicily, were the main instigators of this legislative intervention.

The introduction by the communications regulator of specific test and trial frequency licencing schemes aimed at alluring companies who wish to carry out further research and limited trials of new technologies has also borne fruit.

Malta was the first EU country to regulate remote gaming. This enabled us to quickly establish ourselves on the ICT map of this exciting and expanding niche industry. The influx of foreign companies and the establishment of foreign backed start-ups relating to gaming has been phenomenal and even though presently the market is going through a phase of consolidation where the big players are constantly taking control of smaller operators the gaming authority is still receiving interest for new licences and new business models. The availability of advantageous corporate structures and the increasing number of tax related incentives directly tailored to the creative industry has also made this possible.

The importance of regulatory and legislative intervention should never be underestimated. It is also through technology neutral and clear legal frameworks that foreign investors will obtain sufficient piece of mind that Malta is the place to be.

Malta must remain competitive and a step ahead. Serious consideration must be now given to the recognition of present technologies and how legislation can leverage accelerated economic growth and sustain FDI in information technology related industries and services.

The introduction of specific regulatory and authorisation schemes relating to cloud computing services should be on top of the agenda. Whilst the European Union has only recently started mulling on the various legal challenges that cloud computing presents, Malta has the golden opportunity to be an important actor and lead the way as it did in relation to remote gaming through the strategic introduction of legal models by which the protection of cloud users is recognised as well as setting the stage for the attraction of cloud computing services operators to Malta.

Furthermore, the introduction of legislation relating to skills gaming, an increasingly growing and lucrative industry should not be left on the back burner. In the field of ICT law, every day lost means that other jurisdictions will not only catch up with us more quickly but enable them to position themselves in a situation where their national packages are more attractive and resulting in having the largest multinational players in this field opting to set up shop elsewhere.

Needless to say, the State must be the primary driver for this realisation. One bold step in this direction was the publication of the Digital Rights

The incredible progress that Malta registered in the field of ICT policy during the past decade enabled us to be recognised at an international level in various fora

By Antonio Ghio

Realising Competitive iCt advantage thRough pRoaCtive legislation

Ensuring that Malta remains a leader in the pack when it comes to the Digital Economy takes more than just developing attractive corporate

and tax related incentives or establishing the right structures to produce sufficient human capital that investors opting for Malta would require.

NEWSMAKERS



“Malta was among the first European countries to be served by Emirates. It was the eighth European destination and the 41st destination worldwide,” said Paul Fleri Soler, Country Manager for Malta. “The airline has quickly grown to a major carrier in Malta. During the last 15 years Emirates has continued to reaffirm its commitment by upgrading its capacity with a Boeing 777-200 aircraft, helping us meet the growing passenger demand and enhancing trade opportunities.” Ranked as the major scheduled carrier eastbound out of Malta, Emirates operates daily flights to Dubai with an option to stop in Larnaka, Cyprus. In addition to passenger service, Emirates SkyCargo has increased its belly-hold capacity from 13 tonnes to 17 tonnes on the Boeing 777-200, further increasing trade prospects for Malta across the Emirates network. Key exports from Malta include pharmaceuticals, electronic products, live animals and refrigerated goods such as fresh fish, while some of the main imports are technical and mechanical equipment, textiles, live fish, fresh food from the Far East and fresh fish from the Middle East. Passengers travelling in First Class or Business Class on Emirates flights can take advantage of Emirates complimentary chauffeur-drive service to and from the airport in addition to a generous baggage allowance of 40 kgs. “Emirates has redefined air travel and we look forward to offering a unique A380 experience to our global travellers. When it comes to travelling, Emirates, now flying under the banner of ‘Hello Tomorrow’, goes to great lengths to ensure comfort, efficiency and attention to detail for passengers,” added Mr Fleri Soler. Emirates employs 130 Maltese nationals, including 89 Cabin Crew and 11 flight Deck Crew who are mainly based in Dubai. The airline seeks to recruit cabin crew members on an average of three times a year. The second recruitment session in Malta this year will take place on 11th May. Flight information and bookings can be obtained from Emirates Sales Office, Tel no: 2557 7255 or the preferred travel agent, or at www.emirates.com/mt . TEU

TEU

EMIRATES MARKSFIFTEEN YEARS IN MALTA

Fifteen years after launching services to Malta, Emirates airline’s commitment to the market remains as strong as ever. Providing the Maltese with a vital daily link to the East, Emirates has a direct positive impact on the Maltese economy, carrying over 490,000 passengers since 1998.

On 16th April 2013, Mons. Philip Calleja presented the second volume of ‘Ġrajjiet Li Ma Ninsa Qatt’ to Mr Patrick Aquilina, APS Bank Marketing Manager at the Crèche run by the Congregation of the Ursuline Sisters of St Angela Merici in Sliema. This publication is made up of a collection of articles that Mons. Calleja has written on ‘Leħen is-Sewwa’ newspaper. All proceeds from the sale of this book will be donated to the mentioned organisation. The sponsorship of this book falls in line with the CSR Programme of APS Bank, which comprises of a variety of projects including Music, Art, Sport, Photography and the like. This was highlighted by Mr Aquilina after the book presentation.This publication can be obtained from the Catholic Institute, ‘Dar l-Emigrant’, the Jesuits’ Church in Valletta, ĊAK, Emmaus, M.U.S.E.U.M. and ‘Il-Qarrej Nisani’. Volume 1 of this series can be bought from the Catholic Institute, ‘Dar l-Emigrant’ and the Jesuits’ Church in Valletta.

APS Bank sponsors the second volume of ‘Ġrajjiet Li Ma Ninsa Qatt’

Mons. Philip Calleja (first from right) during the presentation of the book in the presence of Sr Stefania Caruana – one of the sisters at the Crèche, Fr Anthony Caruana - Director of Salesian Press and Mr Patrick Aquilina - APS Bank Ltd Marketing Manager (from left to right)

Several German companies are considering Malta as a location for their expansion plans and are keen to visit the country to explore its business environment as a result of meetings held with Malta Enterprise representatives during major business events.Forming part of the initiatives being undertaken by the Malta Enterprise Germany Office to promote Malta as a safe and reliable investment location for German companies, participation in the business events over the past months was mainly focused on sectors such as advanced manufacturing, aviation, as well as ICT and digital gaming.Malta was one of the new markets being presented at the Quo Vadis digital gaming conference held in Berlin during the last week of April. Attracting digital game developers and the most important communication and networking platforms of the games industry, this year Quo Vadis was spotlighting the trends in emerging markets which are enjoying a dynamic rise in digital gaming.During the month of April, Malta Enterprise representatives were also promoting Malta and held a large number of meetings at the Aircraft Interiors Expo in Hamburg and the Hannover Messe Fair, where they also invited prospective investors for fact finding missions to Malta.With around 9,000 visitors and 500 exhibiting companies from 26 countries, the Aircraft Interiors Expo played host to the world’s largest display of aircraft interiors products and services and provided an ideal opportunity to showcase Malta’s growing aviation cluster.Attracting 6,500 exhibitors from 62 countries, this year’s Hannover Messe Fair was the strongest edition in the past ten years and consolidated the Fair’s position as the world’s premium showcase for industrial technology. Particular focus was given to integrated industries and the trend towards cross-industry networking and integration.The Malta Enterprise Germany Office will continue with its initiatives in the coming months, amongst others through the participation in specialised industry fairs, the organisation of Malta Roundtables, as well as the hosting of business delegations in Malta.

MALTA PROMOTED AT MAJOR INDUSTRY FAIRS IN GERMANY

TEU

© 2013 K

PMG

, a Maltese civil partnership and a m

ember firm

of the KPM

G netw

ork of independent mem

ber firms affiliated w

ith KPM

G International C

ooperative (“KPM

G International”), a Sw

iss entity. All rights reserved.

KPMG’s IFRS ConferenceForthcoming developments in IFRS - Do you need to plan? Keeping up with changes in IFRSs is a constant struggle. The ongoing changes in IFRS exert pressure on companies to call for regular updates on recent developments. More importantly, companies also need to evaluate how the forthcoming changes in IFRS will impact the way they operate their business.

KPMG’s IFRS conference will cut through the complexity of these changes, thus providing insight on the implications that the newly issued standards and those on the drawing board will have on the way businesses report. Topics on the agenda include the changes in fair value measurement, financial instruments, the new concept of control, revenue recognition, and leases.

For reservations please contact Delia Mifsud Inguanez T: 2563 1297

For more information, please contact our IFRS experts;

David CaruanaPartner, Advisory

Hilary Galea-LauriPartner, Audit

Noel MizziPartner, Audit

Jonathan DingliAssociate Director, Accounting Advisory Services

[email protected]

www.kpmg.com.mt