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MALTA<br />
BUSINESS REVIEW<br />
ISSUE <strong>27</strong> JANUARY <strong>2017</strong><br />
COVER STORY<br />
PEOPLE, CREDIBILITY & TECHNOLOGY<br />
SHIELD Consultants Managing Director<br />
John Schembri talks about risks<br />
06<br />
12<br />
TALKING POINT<br />
Ynet <strong>2017</strong>: An Optimistic Prediction<br />
Predication for <strong>2017</strong> by famed thinker Michael Laitman<br />
16<br />
ANALYSIS & DEBATE<br />
Fasten Seatbelts and make sure it’s really tight<br />
Werner E Jung’s review of events taking shape around us<br />
46<br />
BUSINESS<br />
The New Rules of Marketing<br />
It’s time to supercharge our marketing with Peter Fisk
Design, Innovation<br />
& Excellence<br />
02/06/<strong>2017</strong> 19:30<br />
BIGHI ESPLANADE &<br />
GARDEN, KALKARA<br />
FOR FURTHER INFORMATION CONTACT<br />
Margaret Brincat M: 9940 6743<br />
E: margaret@mbrpublications.net
Malta Business Review<br />
06 COVER STORY<br />
PEOPLE, CREDIBILITY & TECHNOLOGY<br />
Shield Consultants Managing Director, John<br />
Schembri talks about risks<br />
10 SPECIAL REPORT<br />
WORLD EMPLOYMENT AND SOCIAL OUTLOOK<br />
ILO special report on the drivers of the global<br />
growth s<strong>low</strong>down<br />
12 TALKING POINT<br />
YNET: “<strong>2017</strong>: AN OPTIMISTIC PREDICTION<br />
A unique and optimistic prediction for <strong>2017</strong> by famed thinker Michael Laitman<br />
36<br />
your perfect atmosphere<br />
Our Golden Partners<br />
Continental Cars Ltd.<br />
44<br />
12<br />
06<br />
CONTENTS<br />
<strong>January</strong> <strong>2017</strong><br />
16 ANALYSIS & DEBATE<br />
VIEW FROM THE MOUNTAIN SERIES: FASTEN<br />
SEATBELTS AND MAKE SURE IT’S REALLY TIGHT<br />
Werner E Jung returns with a compelling view of<br />
events taking shape around us<br />
20 EU PRESIDENCY<br />
VISIT BY THE PRESIDENT OF THE EUROPEAN<br />
UNION AND THE COLLEGE OF COMMISSIONERS<br />
Jean Claude Juncker talks of an EU where dignity,<br />
peace and wellbeing are central<br />
22 YACHTING<br />
KEY CONSIDERATIONS WHEN PURCHASING A YACHT<br />
Eqiuom’s VAT Director Ayuk Ntuiabane discusses<br />
key areas to consider when purchasing a yacht<br />
16<br />
32 DAVOS <strong>2017</strong><br />
WORLD ECONOMIC FORUM ANNUAL MEETING<br />
An exclusive guide of the most salient newsmakers in DAVOS<br />
courtesy of Florian Eder and Brian Heath of POLTICO<br />
36 FOCUS<br />
WHY RUSSIA IS USING THE INTERNET TO UNDERMINE<br />
WESTERN ECONOMIES<br />
Irish writer Maria Farrell analyses the recent hacking<br />
controversies and cautions on the threats and risks<br />
40 BUSINESS TURNING POINT SERIES<br />
8 BEST PRACTICES FOR IMPROVING YOUR WORK-LIFE<br />
BALANCE<br />
Paul Petroni reasons out why work-life balance is the Yeti of the<br />
professional world<br />
44 LESSONS ALL ENTREPRENEURS CAN LEARN FROM<br />
BUSINESS PIVOTS<br />
There are important lessons to be learnt from transformation,<br />
tells us Nathalie Clarkson<br />
46 THE NEW RULES OF MARKETING<br />
Let’s find out why it is time to supercharge our marketing<br />
according to Peter Fisk<br />
52 COMPANY PROFILE<br />
A BUSINESS IMPERATIVE<br />
David Demicoli, Managing Director, Casasoft Ltd showcases the<br />
reasons of his company’s growth<br />
PUBLISHER<br />
<strong>MBR</strong> Publications Limited<br />
OFFICES<br />
Highland Apartment - Level 1,<br />
Naxxar Road,<br />
Birkirkara, BKR 9042<br />
+356 2149 7814<br />
EDITOR<br />
Martin Vella<br />
TECHNICAL ADVISOR<br />
Marcelle D’Argy Smith<br />
SALES DIRECTOR<br />
Margaret Brincat<br />
DESIGN<br />
Jacqueline Muscat, Adam Munton<br />
ADVERTISING<br />
Call: 9940 6743 or 9926 0163/4/6;<br />
Email: margaret@mbrpublications.net<br />
or admin@mbrpublications.net<br />
CONTRIBUTORS<br />
David Abela; Jean Paul Abela; Jackey Backman;<br />
George Carol; Nathalie Clarkson; Jean Paul<br />
Demajo; David Demicoli; Maria Farell; Peter Fisk;<br />
Rob, Boston; Werner E Jung; Thomas Mahoney;<br />
Michael Laitman; Ayuk Ntuiabane; Paul Petrone;<br />
Brian Scudamore; James Vella Clark<br />
SPECIAL THANKS<br />
BOV; Demajo Dental; DOI; Eqiuom; FIMBank;<br />
International Labour Organisation; LinkedIN;<br />
Ministry for Finance; Ministry for Tourism; OPR;<br />
POLITICO Brussels Playbook & Davos Playbook;<br />
PRINT PRODUCTION<br />
Printit<br />
QUOTE OF THE MONTH<br />
After living with their dysfunctional behaviour for so<br />
many years (a sunk cost if ever there was one), people<br />
become invested in defending their dysfunctions rather<br />
than changing them.<br />
Marshall Goldsmith Moj<br />
Disclaimer<br />
All rights <strong>res</strong>erved. No part of this work covered by copyright may<br />
be reproduced or copied and reproduction in whole or part is strictly<br />
prohibited without written permission of the publisher. All content<br />
material available on this publication is duly protected by Maltese<br />
and International Law. No person, organisation, other publisher or<br />
online web content manager should rely, or on any way act upon<br />
any part of the contents of this publication, whether that information<br />
is sourced from the website, magazine or related product without<br />
first obtaining the publisher’s consent. The opinions exp<strong>res</strong>sed in the<br />
Malta Business Review are those of the authors or contributors, and<br />
are not necessarily those of the editor or publisher.<br />
Talk to us:<br />
E-mail: martin@mbrpublications.net<br />
Twitter: @<strong>MBR</strong>Publications<br />
Facebook: www.facebook.com/MaltaBusinessReview<br />
EDITORIAL<br />
Malta Business Review<br />
The editorial board of the MALTA BUSINESS REVIEW and the<br />
Publications Management Committee of <strong>MBR</strong> Publications<br />
Limited have been involved in ongoing efforts to improve the<br />
value of our publications to our readers. A number of changes<br />
in our current policies have recently been made and are initiated<br />
in this issue. The most noticeable of these is the new cover and<br />
content pages. In designing this cover, we have attempted to<br />
illustrate to the MALTA BUSINESS REVIEW readers that we our<br />
true to our spirit of innovation, value creation and change.<br />
Over the years our Publications Management has discussed<br />
changes in the way that references are cited in same of the new<br />
content design and p<strong>res</strong>entation. Many of our authors like the<br />
current format of an author and biography p<strong>res</strong>entations. This<br />
format has given a direct indication of both who was involved in the <strong>res</strong>earch and profiling cited,<br />
and how current the data should be. As printing costs are always increasing, an alteration in print is<br />
also in the offing.<br />
Finally, two broader issues, electronic submission and open access to the published literature are<br />
under consideration. The editorial board is working with the Publications Management toward<br />
enhancing and electronic submission and updating web/online and set out an improved social<br />
media pronounced p<strong>res</strong>ence. We trust that these changes, keeping in sync with modern times, will<br />
be welcomed positively and anyone who wishes to recommend any valid suggestions is welcome to<br />
write to us.<br />
At <strong>MBR</strong> Publications Limited, p<strong>res</strong>erving our strong culture is a top priority. We must continue to<br />
embed the values of integrity, fairness and accountability in all that we do. Doing the right thing<br />
forms the foundation for how we do business, and our Code of Conduct rep<strong>res</strong>ents our shared<br />
commitment to operate with the highest level of ethical conduct. The quality of the goods or<br />
services that government procu<strong>res</strong> is obviously a very important consideration in deciding which<br />
supplier should be awarded a particular public contract. It fol<strong>low</strong>s that in the regulation of public<br />
procurement, particular attention should be given to the role of quality (also called functionality)<br />
in the adjudication of public tenders and the final award decision. Apparently, there are times<br />
when vested inte<strong>res</strong>ts are concerned that the distinction between <strong>res</strong>ponsiveness and qualification<br />
seems to break down, with the <strong>res</strong>ult that the distinction between qualification and award criteria<br />
becomes, or rather is intentionally, blurred.<br />
It is in this regard that our company has filed a judicial protest against Yachting Malta. As long as I<br />
remain at the helm of the company, I shall not tolerate anyone trying to use and abuse our good<br />
intentions, and take us for a ride. We shall speak up if we have concerns or suspect violations,<br />
and shall always safeguard our inte<strong>res</strong>ts, according to local laws and regulations and wherever we<br />
operate, or endeavour to operate correctly, protecting confidential information and intellectual<br />
property— trust is essential to our business success<br />
We stand to fight to ensure best ethical business practices, and that we are always dealt fairly and<br />
in good faith, and shall never al<strong>low</strong> anyone to take unfair advantage of our sound practices, ideas,<br />
information and written submissions through manipulation, concealment or abuse of privileged<br />
information. Personal investment activities should never conflict with public and business, or client<br />
inte<strong>res</strong>ts, and we shall never offer, give, solicit or receive anything of value if it is intended to be<br />
used, abused or exploited. We shall stand up to anyone who gives, or appears to give, an improper<br />
business advantage or benefit through manipulation or prejudice.<br />
No amount of intimidation and threats will deter us from pursuing our righteous path, and no<br />
twisting of truth shall discredit and smear our sound reputation.. Only those who have committed<br />
wrongdoing need be afraid. The ones who are on the right side of the coin do not have anything to<br />
fear.<br />
Remember, we are in charge of our own decisions. No one, at any level, has the authority to tell us to<br />
do something unethical or illegal, or intimidate or blackmail us. And in this quest, we are determined<br />
to take whatever action is vital to safeguard our and defend our inte<strong>res</strong>ts, and protect our noble<br />
reputation.<br />
Malta Business Review’s editorial opinions are decided by its Editor, and besides reflecting the Editor’s<br />
opinion, are written to rep<strong>res</strong>ent a fair and impartial rep<strong>res</strong>entation of facts, events and provide a<br />
correct analysis of local and international news.<br />
Agents for:<br />
Martin Vella<br />
Editor in Chief<br />
4 5<br />
www.maltabusinessreview.net
Malta Business Review<br />
COVER STORY OF THE MONTH<br />
COVER STORY OF THE MONTH<br />
Malta Business Review<br />
<strong>MBR</strong>: When the opportunity p<strong>res</strong>ented<br />
itself at SHIELD Consultants, what made<br />
you feel it would be the right fit and<br />
career destiny?<br />
JS: First off, I created SHIELD Consultants<br />
from scratch, with two business<br />
partners, back in 1999 when security<br />
was embryonic in Malta and risk<br />
management a distant pipedream.<br />
The commercial opportunity came<br />
about due to a breakthrough change<br />
in security related legislation and the<br />
decision to change career path at that<br />
time was mine and mine alone. In 2004,<br />
regulations governing maritime security<br />
came into effect on an international<br />
scale. I was still a serving officer back<br />
then and remember reading the laws,<br />
determining in my mind that I could<br />
meet the standard requirements and<br />
simply <strong>res</strong>igned my commission. It really<br />
was as simple as that. You could argue<br />
that the real drive was a need to be truly<br />
and solely in charge of my own destiny.<br />
Over the years SHIELD has<br />
invested in and built itself a<br />
burgeoning reputation in Malta<br />
<strong>MBR</strong>: Looking at the broad array of<br />
challenges and risks, are there specific<br />
areas that you focus on?<br />
JS: The area I enjoy working in most is<br />
organizational security and <strong>res</strong>ilience.<br />
Within this, my specialization is in<br />
risk assessment, risk analysis and<br />
designing operational risk management<br />
systems within critical infrastructure.<br />
I particularly enjoy challenging<br />
environments and have been fortunate<br />
enough to contribute in places such as<br />
People,<br />
Credibility &<br />
Technology<br />
By Martin Vella<br />
Prior to our first issue for <strong>2017</strong>, the Malta<br />
Business Review always aims to surface the main<br />
challenges, most compelling opportunities, and<br />
best practices in business, we asked SHIELD<br />
Consultants Managing Director, John Schembri,<br />
for his views on the challenges and complexities<br />
and, how corporate affairs professionals can<br />
manage risk within their organisations.<br />
Libya, Saharan Algeria, Kurdistan, Iraq<br />
and even Pakistan. At the moment<br />
Somalia and Lebanon may even be<br />
opportunities, let’s wait and see. Of<br />
course, against that backdrop is all the<br />
work we do in Malta.<br />
It is professionally challenging and<br />
intellectually satisfying to assist<br />
organisations in diverse fields such<br />
as aviation, oil and gas, maritime<br />
installations and critical infrastructure to<br />
put together <strong>res</strong>ilient security programs<br />
that can withstand the business case.<br />
<strong>MBR</strong>: Is the SHIELD Consultants client<br />
the larger, more complex institution or<br />
is it much broader than that?<br />
JS: Good question. We cater for all<br />
manner and size of organisations, really.<br />
Keep in mind that our portfolios include<br />
security, information security, health<br />
and safety, business continuity, maritime<br />
security, emergency <strong>res</strong>ponse, crisis<br />
management – basically those aspects<br />
of businesses that require attention<br />
from an operational risk perspective.<br />
In Malta we protect a wide range of<br />
organisations, of various structu<strong>res</strong><br />
and sizes. Our international clients are<br />
actually quite large in size, as you can<br />
expect.<br />
<strong>MBR</strong>: When services can sound similar<br />
across companies, does it come down<br />
to your people, your credibility or the<br />
technology?<br />
JS: I might have written that question<br />
myself! Thank you! In reality all three<br />
elements create the mix.<br />
The SHIELD team is composed of<br />
amazing individuals, all of whom are<br />
highly qualified and exude the correct<br />
attitude and temperament. Emotional<br />
intelligence within the Company is high,<br />
as it needs to be within the profession.<br />
We invest a lot of effort in selecting the<br />
correct type of person to join our team.<br />
Over the years SHIELD has invested<br />
in and built itself a burgeoning<br />
reputation in Malta, which favours our<br />
credibility, as we are beginning to see<br />
also internationally. Since 2014 our<br />
reputation within the security industry<br />
in general has literally shot up and we do<br />
not intend to relent.<br />
SHIELD embraces and harnesses<br />
technology in a very unique manner.<br />
We are at the forefront of managing<br />
operational risk in near-enough real time<br />
through our own specialist software<br />
solution, STORM.<br />
That combination of talent, ethics, high<br />
standards, hard work and innovation<br />
is a magical brew, which is well worth<br />
nurturing.<br />
<strong>MBR</strong>: Are the risks different today than<br />
they once were or are we just hearing<br />
about them more?<br />
JS: Risk is an intrinsic part of life, which<br />
in turn, as we know, is ever changing. So<br />
risk is by definition dynamic.<br />
We certainly live in an extremely<br />
challenging epoch, characterized by<br />
volatility, in which a perfect storm of risk<br />
appears to have hit us. Globalisation;<br />
migration; untrammeled liberalism;<br />
nationalism of the pernicious kind;<br />
recurring financial recessions; failing<br />
states; excessively powerful media;<br />
incompetent statesmanship; it can make<br />
for very despondent reading. So yes, in<br />
a sense, the risk is very real and at the<br />
same time, you sense, the media report<br />
with a sense of purpose, if not glee.<br />
But let’s not forget that opportunity<br />
is always the flipside to risk and the<br />
times we live in are also characterized<br />
by unprecedented opportunity.<br />
Technology; information systems;<br />
transportation systems; human<br />
intellectual capital; renewable energies;<br />
health care and well-being; State<br />
reconstruction; wealth re-distribution;<br />
sustainable environments – these are<br />
all immensely powerful opportunities<br />
which beckon us to embrace and bring<br />
about meaningful change for the better.<br />
And in my personal world-view, risk<br />
management truly can be a force for<br />
good. Its intrinsic properties dictate so.<br />
Risk is an intrinsic part of<br />
life which, as we know, is<br />
ever changing. So risk is by<br />
definition dynamic<br />
<strong>MBR</strong>: On another issue, is it disheartening<br />
to see where the relationship between<br />
the police and the public has gone?<br />
JS: If you are referring to the recent<br />
violent attack as a <strong>res</strong>ult of road rage, that<br />
was absolutely despicable and should be<br />
condemned in the harshest of terms.<br />
I am wary of being drawn into an<br />
argument in the limited space available.<br />
All I am prepared to say is that the Police<br />
carry out a vital job and we must all, as<br />
<strong>res</strong>ponsible citizens, not only uphold<br />
the rule of law but also <strong>res</strong>pect and<br />
support and value the Services, all of<br />
them. Unfortunately politics percolates<br />
down into all aspects of our lives in<br />
this Country and we seem incapable of<br />
taking a detached, objective view.<br />
Personally I am of the opinion that a<br />
lot of good work is happening within<br />
and around the Malta Police Force and<br />
we should all take a longer term view<br />
of improvements rather than criticize<br />
at every turn and opportunity. Public<br />
order and societal wellbeing are in the<br />
National inte<strong>res</strong>t and should be above<br />
partisan politics.<br />
<strong>MBR</strong>: Did you know early on that you<br />
would end up heavily engaged in Risk<br />
Management and that this would<br />
eventually lead to you being recognized<br />
as Malta’s Best Entrepreneur of the Year,<br />
as well as scooping two other p<strong>res</strong>tigious<br />
awards in Malta’s Best Entrepreneur<br />
Awards 2016, including CSR?<br />
JS: I have always enjoyed the challenge<br />
of facing up to risk, believe me. But<br />
to expect to win the National awards?<br />
That sort of thing is quite simply unforecastable<br />
(laughs).<br />
I truly enjoy working in the risk profession<br />
and feel blessed with the work. The way<br />
I see it, the work we do at SHIELD places<br />
us at the service of our clients, which is<br />
a privilege for which I openly thank all<br />
our stakeholders who might be reading<br />
this article.<br />
<strong>MBR</strong>: In your Risk Management work,<br />
was it difficult to maintain a positive<br />
attitude with all the difficult situations<br />
you had to face?<br />
JS: Sometimes I feel jaded, I do admit.<br />
That said, I am naturally a “glass half full”<br />
individual and am in love with life. I am<br />
generally risk prone and not risk averse.<br />
My big let down is frustration. Poor<br />
standards and mediocrity generally<br />
irritate me a great deal and try my<br />
patience big time. That said, the<br />
flipside is that I have learnt the value of<br />
perseverance and patience; something I<br />
would not have imagined ten years ago.<br />
I also draw great strength from within my<br />
family, our lifestyle and even my hobbies,<br />
which I have quite a number of. <strong>MBR</strong><br />
All Rights Reserved / Copyright <strong>2017</strong><br />
SHIELD Managing Director – Winner of Malta’s Best Entrepreneur of the Year Award 2016<br />
“Hailing from a military background as a foundation<br />
for my outlook towards risk management consultancy,<br />
in 2004 I made a conscious transition into business as a<br />
second career after eighteen years of military service,<br />
by founding SHIELD CONSULTANTS LTD. Under my<br />
guidance and technical orientation SHIELD has grown<br />
into a market leader in the field of operational risk<br />
management, comprising five pillar disciplines: security<br />
risk management; business continuity; emergency<br />
planning and crisis management; fire risk and HSE.”<br />
6 7<br />
www.maltabusinessreview.net
Malta Business Review<br />
SALES & MARKETING<br />
"The Good, The Bad, & The Ugly":<br />
Sales Edition<br />
Clint wipes sweat from his<br />
glistening brow as he faces the<br />
mid-afternoon sun on his walk<br />
back to his car from a sales call. Last quarter<br />
was a lean one, and he just barely met his<br />
sales target. This quarter will be different.<br />
He can feel the warm waters of a whitesand<br />
beach lapping at his toes, waters that<br />
will come to him when he b<strong>low</strong>s past his<br />
target this quarter and qualifies for the<br />
annual company sales retreat. He needs<br />
that vacation.<br />
Angel reads his latest email from Clint, and<br />
sits back in his handed-down office chair.<br />
His employer has a goal to reach, and he’s<br />
dead-set on being the one to deliver a<br />
solution. If he delivers, he’s got an excellent<br />
chance at being promoted this year. His<br />
latest acquaintance, Clint, appears to<br />
understand those goals. Angel has been let<br />
down by sales reps too many times to feel<br />
any confidence in Clint’s ability to deliver.<br />
As the chair emits a familiar squeak, Clint<br />
ponders his next move.<br />
Tuco’s the wildcard. He knows that his<br />
firm’s target audience often has very<br />
By Rob Boston<br />
specific goals. He knows that his firm’s<br />
products help them meet those goals.<br />
Clint’s counterpart in marketing is an expert<br />
at crafting content that communicates<br />
how his firm’s products help companies<br />
meet those goals, and he’s crafted a lot of<br />
very useful content. Problem is, he’s not<br />
a field guy. He doesn’t get to sit in front<br />
of customers and listen to their problems.<br />
He’s got the keys, but he’s not sure where<br />
the door to new business is.<br />
These three are far from being desperados,<br />
but they do have a singular mission- to<br />
reach Angel’s employer’s goals. If they<br />
do that, they all win. Clint gets a nice<br />
commission check, and gets to relax on the<br />
beach for a week next May. Tuco gets to<br />
prove that his market <strong>res</strong>earch is accurate,<br />
and that his content is useful. Angel gets<br />
to be a hero, and jumps to the top of the<br />
list of internal candidates for the next<br />
available senior management position.<br />
Here’s the bottleneck- Tuco and Clint don’t<br />
always work well together. In fact, Clint<br />
has had choice words for Tuco on more<br />
than one occasion because he felt that<br />
Tuco was withholding valuable collateral<br />
that could be used to close deals. Add in<br />
Angel’s distrust of Clint, and you’ve got a<br />
pretty sticky situation.<br />
The fact is, these three don’t need to be<br />
adversaries. They share a common goal,<br />
and collectively have the tools they need<br />
to reach it. Clint can use Tuco’s content<br />
to demonstrate his firm’s ability to help<br />
Angel’s employer reach their goals,<br />
thereby proving the value of the content<br />
Tuco has created. When Angel sees how<br />
well-informed and capable Clint and his<br />
firm are, he’ll know he’s found the solution<br />
he needs to stand out and increase his<br />
chances of promotion.<br />
The question here is how to bring these<br />
three together in a healthy way. At<br />
PandaDoc, we believe in making it easy for<br />
Clint to leverage Tuco’s content during the<br />
sales process. In doing so, we al<strong>low</strong> Clint<br />
to demonstrate his employer’s innovation<br />
and ability to his prospects. The <strong>res</strong>ult is<br />
shorter sales cycles, higher close rates,<br />
and true ROI for marketing content and<br />
collateral.<br />
BOV<br />
Investment<br />
Funds<br />
Some people think investments are<br />
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understand and choose the right<br />
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To learn more about how your sales<br />
and marketing teams can work closer<br />
together, check out our latest ebook:<br />
"The Smarketing Libary: Content Assets<br />
Every Sales & Marketing Team Need to<br />
Collaborate On". <strong>MBR</strong><br />
Creditline: PandaDoc<br />
EDITOR’S<br />
Note<br />
BOV INVESTMENT FUNDS<br />
8<br />
Image credit: Mental Floss<br />
Rob is the P<strong>res</strong>ident<br />
of Risr Marketing, a<br />
marketing agency based<br />
in San Antonio, Texas.<br />
He works with the internal team at Risr to<br />
produce content and campaigns for clients<br />
around the world.<br />
2122 7311<br />
bovassetmanagement.com<br />
BOV Branches/Investment Cent<strong>res</strong><br />
& Licensed Financial Intermediaries<br />
Past performance is not necessarily a guide to future performance. The value of the investment can go down as well as up. Investments should be based on the full details of the Prospectus, Offering Supplement<br />
and the Key Investor Information Document which may be obtained from BOV Asset Management Limited, Bank of Valletta p.l.c. Branches/Investment Cent<strong>res</strong> and other Licensed Financial Intermediaries. BOV<br />
Asset Management Limited is licensed to provide Investment Services in Malta by the MFSA. The BOV Investment Funds is a common contractual fund licenced by the MFSA as a collective investment scheme<br />
pursuant to the Investment Services Act and the UCITS Directive. <strong>Issue</strong>d by BOV Asset Management Limited, registered add<strong>res</strong>s 58, Triq San Żakkarija, Il-Belt Valletta, VLT 1130, Malta. Tel: 2122 7311, Fax:<br />
2<strong>27</strong>5 5661, E-mail: infoassetmanagement@bov.com, Website: www.bovassetmanagement.com.mt. Source: BOV Asset Management Limited
Malta Business Review<br />
SPECIAL REPORT<br />
SPECIAL REPORT<br />
Malta Business Review<br />
World<br />
Employment and<br />
Social<br />
Outlook<br />
Trends <strong>2017</strong><br />
The ILO's World Employment and<br />
Social Outlook: Trends <strong>2017</strong><br />
takes stock of the current global<br />
labour market situation, assessing the<br />
most recent employment developments<br />
and forecasting unemployment levels<br />
in developed, emerging and developing<br />
countries.<br />
It also focuses on trends in job quality,<br />
paying particular attention to working<br />
poverty and vulnerable employment.<br />
Key findings<br />
1. Economic growth continues to<br />
disappoint and deficits in decent<br />
work remain widespread.<br />
Where is unemployment highest?<br />
Where are workers most likely to be in<br />
vulnerable employment?<br />
Where are they most likely to be living<br />
in poverty? Explore the data behind the<br />
World Employment and Social Outlook –<br />
Trends <strong>2017</strong>.<br />
Economic growth continues to disappoint<br />
and deficits in decent work remain<br />
widespread<br />
Global GDP growth hit a six-year <strong>low</strong><br />
in 2016, at 3.1 per cent, well be<strong>low</strong><br />
the rate projected in the previous year.<br />
Looking ahead, global economic growth<br />
is expected to pick up modestly in <strong>2017</strong><br />
(3.4 percent) and 2018 (3.6 per cent).<br />
However, as this report highlights, the<br />
forecasts for growth for <strong>2017</strong> have<br />
continually been revised downwards<br />
over recent years (from over 4.6 per cent<br />
forecast in 2012 to 3.4 per cent forecast<br />
in 2016) and there is persistent elevated<br />
uncertainty about the global economy.<br />
The rather disappointing economic<br />
performance in 2016 and the be<strong>low</strong>trend<br />
outlook for <strong>2017</strong> raise concerns<br />
about the ability of the economy to (i)<br />
generate a sufficient number of jobs, (ii)<br />
improve the quality of employment for<br />
those with a job, and (iii) ensure that the<br />
gains of growth are shared in an inclusive<br />
manner. Countries around the globe are<br />
facing the twin challenges of repairing the<br />
damage caused by the crisis and creating<br />
quality employment opportunities for<br />
new labour market entrants. First, global<br />
unemployment is expected to rise by 3.4<br />
million in <strong>2017</strong>.<br />
Global unemployment levels and rates<br />
are expected to remain high in the<br />
short term, as the global labour force<br />
continues to grow. In particular, the global<br />
unemployment rate is expected to rise<br />
modestly in <strong>2017</strong>, to 5.8 per cent (from<br />
5.7 per cent in 2016) – rep<strong>res</strong>enting 3.4<br />
million more unemployed people globally<br />
(bringing total unemployment to just<br />
over 201 million in <strong>2017</strong>). And while the<br />
global unemployment rate is expected to<br />
hold relatively steady in 2018, the pace of<br />
labour force growth (i.e. those in search<br />
of employment) will outstrip job creation,<br />
<strong>res</strong>ulting in an additional 2.7 million<br />
unemployed people globally.<br />
The increase in unemployment levels<br />
and rates in <strong>2017</strong> will be driven by<br />
deteriorating labour market conditions<br />
in emerging countries (as the impacts of<br />
several deep recessions in 2016 continue<br />
to affect labour markets in <strong>2017</strong>). In<br />
fact, the number of unemployed people<br />
in emerging countries is expected to<br />
increase by approximately 3.6 million<br />
between 2016 and <strong>2017</strong> (during which<br />
time the unemployment rate in emerging<br />
countries is expected to climb to 5.7 per<br />
cent, compared with 5.6 per cent in 2016).<br />
Of notable concern are developments in<br />
Latin America and the Caribbean, where<br />
the unemployment rate is expected to<br />
rise by 0.3 percentage points in <strong>2017</strong>, to<br />
reach 8.4 per cent – largely driven by rising<br />
unemployment in Brazil.<br />
In contrast, unemployment is expected<br />
to fall in <strong>2017</strong> in developed countries (by<br />
670,000), bringing the rate down to 6.2<br />
per cent (from 6.3 per cent in 2016). In<br />
Europe, notably Northern, Southern and<br />
Western Europe, unemployment levels<br />
and rates are both expected to continue<br />
to fall, but the pace of improvement will<br />
s<strong>low</strong>, and there are signs that structural<br />
unemployment is worsening. The same<br />
applies to Canada and the United States.<br />
For example, in both Europe and Northern<br />
America, long-term unemployment<br />
remains elevated in comparison to precrisis<br />
levels and, in the case of Europe, it<br />
increased recently, despite the reductions<br />
in the unemployment rate. In fact, in the<br />
EU-28, the share of unemployed people<br />
who had been looking for a job for 12<br />
months or longer reached 47.8 per cent in<br />
the second quarter of 2016, up from 44.5<br />
What are the drivers of the global growth s<strong>low</strong>down?<br />
Several drivers have continued to underpin<br />
s<strong>low</strong> economic growth. In particular,<br />
subdued private investment and trade<br />
f<strong>low</strong>s have remained a major concern for<br />
both current economic conditions and the<br />
medium-term outlook. The trend decline<br />
in investment and trade is creating a large<br />
gap in aggregate demand, which cannot be<br />
fully offset by public spending because of<br />
the tight fiscal constraints (and is unlikely<br />
to be filled by private consumption due to<br />
sluggish employment and labour income<br />
growth). Moreover, forgoing investment<br />
today <strong>res</strong>ults in <strong>low</strong>er productive capital<br />
stock and productivity growth in the future,<br />
thus <strong>low</strong>ering income growth.<br />
• Weak productivity gains and slack investment<br />
growth are mutually reinforcing: S<strong>low</strong><br />
productivity growth and subdued aggregate<br />
demand – exacerbated by policy uncertainty<br />
in some large economies – continue to<br />
hold back private investment, especially in<br />
developed countries.<br />
per cent for the same quarter of 2012.<br />
Furthermore, in the second quarter of<br />
2016, more than two-thirds of this group<br />
– a total of 6 million people – had been<br />
unemployed for over two years.<br />
2. World Employment and Social<br />
Outlook – Trends <strong>2017</strong><br />
Unemployment levels in developing<br />
countries are also expected to increase in<br />
Low commodity prices are likely to continue<br />
to <strong>res</strong>train private investment in the<br />
extractive sectors, while overcapacity in<br />
some highly capitalintensive sectors is likely<br />
to constrain investment growth in China.<br />
Furthermore, fiscal policy remains tight in<br />
oil-exporter economies of the Arab States<br />
and in crisis-hit emerging countries (such<br />
as Brazil and the Russian Federation), which<br />
is likely to <strong>res</strong>ult in additional reductions in<br />
public investment in these countries.<br />
• Trade deceleration persists: As aggregate<br />
demand – especially the more tradeintensive<br />
components – remains weak,<br />
trade volumes are unlikely to pick up<br />
in <strong>2017</strong>. The global volume of trade in<br />
goods and services is estimated to have<br />
expanded by only 1.2 per cent in 2016,<br />
the s<strong>low</strong>est rate since 2009 and the third<strong>low</strong>est<br />
rate of trade growth over recent<br />
years.<br />
Source: UN DESA, forthcoming<br />
<strong>2017</strong> (by 450,000), with unemployment<br />
rates hovering at around 5.5 per cent in<br />
<strong>2017</strong> and 2018. For many developing and<br />
emerging countries, however, chronic<br />
poor-quality employment – as rep<strong>res</strong>ented<br />
by high sha<strong>res</strong> of own-account workers and<br />
contributing family workers (collectively<br />
classified as workers in vulnerable forms of<br />
employment) and working poverty – takes<br />
centre stage. <strong>MBR</strong><br />
Source: ILO’s Trends Econometric Models, November 2016.<br />
10 11<br />
www.maltabusinessreview.net
Malta Business Review<br />
TALKING POINT<br />
Ynet:<br />
12<br />
Terrorism, waves of immigration,<br />
Brexit, Donald Trump, jingoism,<br />
ISIS, the legalization of soft<br />
drugs, climate crises, raging<br />
social networking, and a host of<br />
negative dramatic events plagued<br />
us in the past year. Summarising<br />
the year is the easy part; the<br />
wisdom is in understanding<br />
what must change so that next<br />
year’s summary will be better.<br />
Rav Laitman with an optimistic<br />
prediction for the year <strong>2017</strong><br />
“<strong>2017</strong>: An Optimistic Prediction”<br />
2016 was a year of many upheavals in the<br />
entire world. It was a complex, intense<br />
year full of sharp turns that ultimately<br />
permeated the public consciousness<br />
with the recognition that we are in a<br />
problematic social, economic, and security<br />
situation. This recognition is also the best<br />
thing that has happened to humanity, and<br />
it also grants an opening to great hope.<br />
It turns out that we can succeed in anything<br />
or at least prevent deterioration if we just<br />
change our way of thinking. The secret of<br />
success lies in identifying the connection<br />
between the various negative events,<br />
locating the factor that motivates them,<br />
neutralizing it, and in this way, balancing<br />
the course of events in <strong>2017</strong>.<br />
The End of the Era of Egoism<br />
According to Kabbalah, the factor that<br />
links a variety of events, both positive<br />
and negative, is the egoistic nature of<br />
humans—the desire to receive pleasure<br />
and delight—the attempt to benefit<br />
maximally and succeed in all areas of life,<br />
even if we trample others on the way<br />
there.<br />
What is surprising about the year 2016 is<br />
that there already are clearly recognisable<br />
signs of the end of egoistic development<br />
after the thousands of years of the<br />
existence of the human species. The wars,<br />
crises, and great disappointments that we<br />
experienced this year are a sign that the<br />
egoistic system in its exploitative form<br />
doesn’t work anymore.<br />
The egoistic fuel has run out. There is<br />
no more drive to enter into financial,<br />
commercial, political, military, and<br />
cultural competition because the end<br />
is in sight. In this way, no one wins; all<br />
of us lose. Combine the processes of<br />
globalisation, advanced technology, and<br />
three-dimensional printers in the equation<br />
occupying the world, and the conclusion<br />
is that the future in the labour market<br />
starting from the year <strong>2017</strong> will be very<br />
different than what we have been familiar<br />
with up to now. In such a situation, even<br />
more severe events are liable to happen<br />
than what we were exposed to in the past<br />
year.<br />
A Time for Renewal<br />
Egoism will not disappear. It is inherent<br />
in us from birth. But the moment the<br />
understanding becomes more clear in<br />
the consciousness of humanity that if<br />
we continue to operate only from our<br />
egoistic nature, we will fall into an abyss,<br />
only then can the need for an essential<br />
change be awakened, and from it, we can<br />
begin to search for a new method that will<br />
transcend the negative power of the ego<br />
for somewhere new and positive.<br />
The desire for profit, the drive to<br />
succeed, and mutual competition that<br />
have motivated us up to now—the<br />
characteristics and inclinations of human<br />
nature—will not blur or become extinct.<br />
We need to learn to use them wisely and<br />
beneficially, instead of for an individual’s<br />
personal benefit, directed toward the<br />
benefit of all of society.<br />
The method of connection that the ancient<br />
wisdom of Kabbalah offers provides a<br />
way that can change our attitude toward<br />
Michael Laitman<br />
others, treat each other correctly, and<br />
make a living from each other, but with<br />
<strong>res</strong>pect. With the help of a process<br />
that integrates study and experiential<br />
workshops, the ability to connect with<br />
each other is developed. We become<br />
closer to each other emotionally, and we<br />
transcend our innate egoistic nature to a<br />
broad, eternal, and higher reality.<br />
Symbolically, the end of the year is<br />
celebrated with the end of Chanukah, the<br />
Festival of Lights. From the darkness, the<br />
Light breaks through; from the crack in<br />
the ground, the plant sprouts, and from<br />
the crisis, life is born. I have never been so<br />
optimistic toward a new year in which the<br />
two components required for achieving<br />
a good and happy life have been placed<br />
together before our eyes: despair in the<br />
<strong>res</strong>ults that we have achieved so far, and<br />
in contrast, the wisdom of Kabbalah is<br />
available to everyone who desi<strong>res</strong> it; it<br />
provides the right direction toward the<br />
royal road. The future is in our hands. <strong>2017</strong><br />
can be optimistic. <strong>MBR</strong><br />
EDITOR’S<br />
Note<br />
Michael Laitman is a<br />
leading global thinker and<br />
the founder of the ARI<br />
Institute. He has developed an educational<br />
method that can be applied to every area of<br />
our lives; social, economical, educational and<br />
environmental.<br />
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Malta Business Review<br />
HIGHER EDUCATION<br />
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Malta Business Review<br />
ANALYSIS & DEBATE<br />
ANALYSIS & DEBATE<br />
Malta Business Review<br />
VIEW FROM THE MOUNTAINS<br />
FASTEN SEATBELTS...<br />
…. AND MAKE SURE IT’S REALLY TIGHT.<br />
By Werner E. Jung<br />
We are all in for a rough ride –<br />
you are going to experience<br />
a new kind of roller-coaster<br />
– one which might not be very joyful<br />
and where we do not know whether the<br />
breaking system at the end will work.<br />
2016 has seen the transformation of<br />
our lives into a post-factual existence.<br />
“I spare myself the idle question of how<br />
we will be in the future, and use the<br />
future instead as a perspective of the<br />
contemplation of today, then I will not<br />
ask who we are, but who we have been”,<br />
Roger Willemsen wrote in his manuscript<br />
in 2015 before his early demise in 2016.<br />
It seems that he fo<strong>res</strong>aw the trend<br />
that man is not driving innovation and<br />
technology any more, but instead man<br />
is being driven by technology and his<br />
own innovations. Or as T.S. Eliot wrote:<br />
“Where is the Life we have lost in living?<br />
- Where is the wisdom we have lost in<br />
knowledge? - Where is the knowledge<br />
we have lost in information?”<br />
Whilst the world is anxiously awaiting<br />
what Mr. Trump, holding the most<br />
powerful office of the world, is going<br />
to tweet next – we are all sitting still,<br />
shivering like the rabbit in front of the<br />
rattlesnake. The irony is that Mr. Trump<br />
and his slogan of “Make America great<br />
again” in itself is post-factual. The<br />
“Good Old Days” are not coming back<br />
– manufacturing jobs, when cars were<br />
predominantly assembled by real people<br />
on an assembly line, are a thing of the<br />
past. Real people today program the<br />
robots which do the assembly. What will<br />
happen when the people who voted for<br />
him, most of them not beeing the ones<br />
doing the programming, will realise this?<br />
We are seeing on a daily basis that the<br />
majority of corporate managers, our<br />
so called “business leaders”, typically<br />
are whining wimps when it comes to<br />
making tough but sustainable long-term<br />
decisions. What they care about, are<br />
short-term profits, stock prices and their<br />
own bonuses, which in turn are tied to<br />
short-term profits and stock prices…..<br />
All Mr. Trump has to do is to send out<br />
a tweet and the CEOs of Carrier, Ford,<br />
GM etc. cave in, postponing the future<br />
of their industry – but making sure<br />
that their bonuses will still be intact for<br />
another year….<br />
The “Good Old Days” are not<br />
coming back – manufacturing<br />
jobs, when cars were<br />
predominantly assembled by<br />
real people on an assembly<br />
line are a thing of the past<br />
We have all grown used to false promises<br />
by our elected rep<strong>res</strong>entatives, and in<br />
the words “Grown Used To”, lies the real<br />
danger for all of us; and it is our own<br />
damn fault. We have to ask ourselves:<br />
Was the election of Trump, Brexit and<br />
the “right wing” developments we are<br />
experiencing in Europe, just unfortunate<br />
“We were those who knew,<br />
but did not understand,<br />
full of information,<br />
but without perception,<br />
rich on knowledge,<br />
poor on understanding.<br />
So we went,<br />
not stopped by ourselves.”<br />
Roger Willemson<br />
or a “hiccup of history” which will correct<br />
itself. Adam Smith, the forefather of<br />
modern macrocroeconomics, believed<br />
that an “Invisible Hand” will eventually<br />
correct market asymmetries and<br />
imbalances and, strangely enough, there<br />
still are economists around who actually<br />
believe this. The effects of globalisation<br />
have shown us to great extent, that the<br />
“Invisible Hand” is exactly what it says<br />
– Invisible! So do not wait for anything<br />
to correct itself – it ain’t gonna happen!<br />
The taxpayers are the ones who pay<br />
for market imbalances. Barrak Obama,<br />
in his final add<strong>res</strong>s to the nation, said:<br />
“The biggest treat to democracy is<br />
complacency”! All we have to do is look<br />
around us to see the effects. In the US<br />
we have are experiencing the mutation<br />
of democracy to “moneycracy” – “one<br />
person, one vote” hast been transformed<br />
to “one dollar, one vote”. And when<br />
we see that in Brussels we have more<br />
than thee lobbyists for every elected<br />
rep<strong>res</strong>entative, we have to realise that<br />
Europe is not far away.<br />
The extent of our complacency is<br />
exemplified by the reactions to the<br />
terrorist attack in Berlin: whereas<br />
there was a great show of solidarity of<br />
politicians, social groups and media<br />
when the attacks happened in Paris<br />
and Brussels, there was almost nothing<br />
to be seen in and about Berlin. “It<br />
was inevitable – just a matter of time,<br />
when it was going to happen” was the<br />
common attitude one seemed to come<br />
across. How sick can our society get?<br />
The big difference between the EU and<br />
the USA is that America probably can<br />
be fixed. When the going gets tough,<br />
America comes first for Americans – this<br />
is why the right to bear arms is written<br />
into the constitution and why this right<br />
is also being defended by many people<br />
who have no intention of ever buying<br />
a gun. How many people in Europe are<br />
going to stand up for “Europe First” –<br />
certainly not many in my part of the<br />
woods. Where is our solidarity with<br />
Our Europe? A recent survey among<br />
the EU population revealed that<br />
for only 12% of all people put<br />
Europe first.<br />
Malta, normally too small to<br />
notice, in contrast to many<br />
financial institutions, which are too<br />
big to fail, has an opportunity to set a<br />
mark during the next six months of her<br />
p<strong>res</strong>idency of the European Union. Will<br />
she / can she, live up to this challenge<br />
and opportunity? The only alternative<br />
may well be the “Reset” button for<br />
Europe…..<br />
Maybe taking charge of the steering<br />
wheel is a better idea than to fasten<br />
seatbelts…… <strong>MBR</strong><br />
EDITOR’S<br />
Note<br />
Werner E. Jung, lecturer<br />
and writer, looks back at<br />
an eventful international<br />
management and consulting career. He lived<br />
and worked in many countries around the<br />
world. As consultant and lecturer he took<br />
a special inte<strong>res</strong>t in SMEs and developing<br />
markets. After the financial crisis in 2008,<br />
he discontinued his “old style” teachings and<br />
has taken to <strong>res</strong>earch into socio-economic<br />
developments. The focus is on the rising<br />
inequalities and the <strong>res</strong>ulting disruptions.<br />
Mr. Jung holds a degree in Industrial<br />
Engineering and Business Management from<br />
the Swiss Federal Institute of Technology and<br />
the Massachusetts Institute of Technology.<br />
He now lives in the foothills of the Bavarian<br />
mountains. wej@think-different.org<br />
16 17<br />
www.maltabusinessreview.net
Malta Business Review<br />
TOURISM<br />
Record Year for<br />
Cruiseline Passengers<br />
IT INTERVIEW OF THE MONTH<br />
Malta Business Review<br />
According to figu<strong>res</strong> published this<br />
morning by the National Statistics<br />
Office (NSO), 2016 was yet another<br />
record year for cruiseline passengers visiting<br />
Malta. Cruiseline vessels entering our Grand<br />
Harbour last year carried a total of 682,222<br />
passengers, meaning an increase of nearly 2%<br />
on 2015. Among the total passengers, more<br />
than 626,0000 were foreign passengers, which<br />
is also a growth of 4.3% on the previous year.<br />
Minister for Tourism Edward Zammit Lewis<br />
welcomed these positive figu<strong>res</strong> for the local<br />
cruise line sector. The Minister noted that<br />
according to a study commissioned by the<br />
Valletta Cruise Port (VCP), it is estimated that<br />
in 2015 the cruiseline industry contributed<br />
around €90 million through direct expenditure<br />
into the Maltese Economy. “Moreover, the<br />
multiplier effect increases this contribution<br />
and creates even further economic benefits”,<br />
explained Minister Zammit Lewis.<br />
Minister Zammit Lewis stated that the sister<br />
island of Gozo is also reaping extensive<br />
economic benefits from the success generated<br />
by the cruise sector. In 2016, according to<br />
figu<strong>res</strong> produced by Transport Malta, 19 cruise<br />
port calls were registered in Gozo, carrying<br />
nearly 7,000 passengers. “This number of<br />
passengers is actually double that recorded in<br />
2012,’’ continued the Minister for Tourism.<br />
The Minister noted that Malta is<br />
strategically positioned in the middle of the<br />
Mediterranean, and also enjoys a <strong>res</strong>ilient<br />
level of security, while this industry is serving<br />
as an important incentive for regeneration<br />
projects and investment, particularly within<br />
the Grand Harbour region.<br />
Minister Zammit Lewis affirmed that the<br />
Government is committed to continue<br />
investing and working to maintain the cruise<br />
sector on the growth path in the short and<br />
long term through more infrustractural<br />
investment and further collaboration with<br />
stakeholders, in order to attract more<br />
cruiseliners towards Malta and Gozo.<br />
Economic revenue from cruising is not the<br />
only contribution that Malta benefits from<br />
this sector. Passengers spend a few hours on<br />
local sho<strong>res</strong>, and enjoy a taste of what the<br />
country has to offer, that is, a fantastic tourist<br />
destination and a natural choice for their<br />
holidays. Many passengers are charmed by<br />
our islands during their short visit and decide<br />
to return for a longer holiday. “Cruising is<br />
serving as an exceptional and very effective<br />
showcase for our islands”, explained the<br />
Minister for Tourism.<br />
Valletta Cruise Port stated that 2016 was<br />
another very positive year, with 42 cruise<br />
companies and 81 different cruise liners<br />
calling the port. Clearly, the cruise industry<br />
is growing year-on-year, and is increasingly<br />
contributing towards Malta’s economic<br />
growth and prosperity.<br />
During the year, Valletta Cruise Port, a<br />
subsidiary of the biggest cruise port operator<br />
worldwide, Global Ports Holding, was the<br />
recipient of two awards: namely, the Best<br />
Terminal Operator by Cruise Insight, and<br />
the Best Mediterranean Port & Destination<br />
Award by Cruise Excellence Awards. These<br />
awards reflect the company’s drive towards<br />
excellence, and certify the efficient port<br />
infrastructure and outstanding service,<br />
including passenger f<strong>low</strong>s, safety and<br />
security, besides the attractiveness of the<br />
destination itself.<br />
Acquiring ‘Homeporting’ operations is key<br />
to the growth of this sector, and there is<br />
intense competition within all Mediterranean<br />
cruise ports on this front. The Government<br />
is committed to work relentlessly, together<br />
with all stakeholders, to attract more<br />
cruiseline companies that are inte<strong>res</strong>ted in<br />
offering cruises that set sail and terminate<br />
at our harbour. “Therefore, it was of great<br />
satisfaction that last year we secured our<br />
second homeporting operation for Malta,<br />
with the p<strong>res</strong>tigious P&O Oceana,” Minister<br />
Zammit Lewis stated.<br />
During <strong>2017</strong>, this cruiseline is expected to<br />
effect <strong>27</strong> port calls, carrying over 100,000<br />
passengers on a Fly and Cruise programme,<br />
together with another 5 port calls, where<br />
another 10,000 passengers will be visiting<br />
Malta as a port of call. The Minister for<br />
Tourism stated that thanks to such new<br />
initiatives, the cruiseline sector in Malta is<br />
growing succesfully, and our tourism industry,<br />
and economy at large, is benefitting both<br />
directly and indirectly.<br />
“These <strong>res</strong>ults reflect the coordinated and<br />
collaborated drive amongst all stakeholders,<br />
particularly Valletta Cruise Port, to continue<br />
developing our product and promote Malta<br />
as a unique and effective destination for<br />
Mediterranean cruises,” concluded Minister<br />
for Tourism Zammit Lewis.<br />
Furthermore, the Malta Cruise Network<br />
Forum was also established, bringing<br />
together in one forum all stakeholders to<br />
ensure that Malta delivers efficiently, reliably,<br />
and flexibly, to the cruise lines and their<br />
passengers, while ensuring alignment among<br />
all parties involved.<br />
The forecasts for financial year <strong>2017</strong> raise<br />
the bar even higher, with a target of over<br />
700,000 passenger movements through 330<br />
port calls.<br />
Stephen Xuereb, CEO of Valletta Cruise Port<br />
and COO of Global Ports Holding commented<br />
that: “The cruise industry is growing, with<br />
more new ships being ordered, in line with<br />
increased demand. Between 2016 and 2026,<br />
the total of new beds coming on-board<br />
exceeds 220,000 worldwide. Continuous<br />
timely investment in our infrastructure and<br />
our service delivery is paramount for us to<br />
remain competitive. A planning application<br />
for a €6 million project to widen Quays 4/5<br />
has been submitted. Plans are being finalised<br />
to redevelop the Old Power House to create<br />
further quayside cultural and entertainment,<br />
with additional check-in facilities. <strong>2017</strong> is<br />
also the run-up year to Valletta 2018, where<br />
Valletta will hold the title of the European<br />
Capital of Culture, with the calendar of events<br />
adding exciting layers to what the destination<br />
already offers.” <strong>MBR</strong><br />
Credit: Ministry of Tourism/DOI<br />
18 19<br />
www.maltabusinessreview.net
Malta Business Review<br />
EU PRESIDENCY<br />
Visit by P<strong>res</strong>ident of the European<br />
Commission Jean-Claude Juncker and the<br />
College of Commissioners<br />
“I urge you to make the European Union a<br />
place where the dignity, the peace, and the<br />
wellbeing of all is effectively and truly central”<br />
This was the message which P<strong>res</strong>ident of<br />
Malta Marie-Louise Coleiro Preca relayed to<br />
the P<strong>res</strong>ident of the European Commission<br />
Jean-Claude Juncker who is on an official visit<br />
to Malta with the College of Commissioners.<br />
P<strong>res</strong>ident Coleiro Preca shared her vision of the<br />
need for a more united Europe, stating that for<br />
meaningful unity to be achieved and nurtured<br />
“we need a stronger European Union”.<br />
We need a European Union for the people<br />
Reiterating what she had stated during<br />
the visit of the P<strong>res</strong>ident of the European<br />
Parliament Martin Schulz in December 2016,<br />
the P<strong>res</strong>ident said that we need a European<br />
Union which is socially conscious, strongly<br />
democratic, embedded in solidarity, and which<br />
prioritises the wellbeing of every member of<br />
our diverse communities and societies.<br />
Denoting the challenges which are currently<br />
being experienced across the Union, “in<br />
terms of its economic, social, and political<br />
life”, P<strong>res</strong>ident Coleiro Preca said that<br />
these challenges offer an unprecedented<br />
opportunity for deep-rooted review and,<br />
where necessary, reform.<br />
“I urge you to take this chance to adapt the<br />
structu<strong>res</strong> and instruments of our Union, so<br />
that they can fully embrace the real concerns<br />
of all those who call Europe their home”, the<br />
P<strong>res</strong>ident said.<br />
Our traditions embody our core values,<br />
which we make tangible when we safeguard<br />
universal human dignity, when we protect<br />
universal human rights, and when we<br />
celebrate universal human freedoms.<br />
Speaking about our traditions, the P<strong>res</strong>ident<br />
said that these embody our core values,<br />
values which are made tangible when<br />
universal human dignity is safeguarded;<br />
when universal human rights are protected;<br />
and when universal human freedoms are<br />
celebrated. The P<strong>res</strong>ident said that securing<br />
a meaningful reform of the Union must not<br />
mean a break with our traditions.<br />
At a time when different interpretations of<br />
the European project and its future are being<br />
proposed, with voices calling for walls to be<br />
built, for borders to be reinforced and for<br />
divisions to be reasserted, P<strong>res</strong>ident Coleiro<br />
Preca appealed to all those p<strong>res</strong>ent and said<br />
that “we cannot be silent or complicit when<br />
so much is at stake”, whilst adding that “we<br />
must remind one another of the important<br />
gains we have made”. Such gains have been<br />
made, the P<strong>res</strong>ident said, in terms of the<br />
bridges which have been built “to unite<br />
us”; the friendships which have been made<br />
“across our borders; and our solidarity, which<br />
we have nurtured in the service of peace”.<br />
There is precious little talk of the<br />
‘Founding Mothers’ of Europe<br />
Referring to the point which some people<br />
make when saying that a return to the values<br />
of our Founding Fathers is what is needed,<br />
the P<strong>res</strong>ident reminded those p<strong>res</strong>ent of<br />
the fact that there is precious little talk of<br />
the ‘Founding Mothers’ of Europe, stating<br />
that “there is much we should learn from<br />
the example of Europe’s women, such as the<br />
Founder of the European Union of Women,<br />
Dr Lola Solar”, who had, in 1953, already<br />
recognised the fundamental importance<br />
of a cultural synergy between the different<br />
political and economic ambitions of the<br />
<strong>res</strong>pective countries.<br />
The most essential message of our founders is<br />
their great awareness of the need for friendship,<br />
for solidarity, and for peaceful collaboration<br />
amongst us all. P<strong>res</strong>ident Coleiro Preca echoed<br />
once more her belief that the spirit of solidarity<br />
must be p<strong>res</strong>ent throughout our lives. She said<br />
that solidarity “must begin with our individual<br />
choices, percolating up from our families and our<br />
communities, into our societies, our institutions,<br />
and across our nations”.<br />
The power of the individual, as a catalyst for<br />
transformation, cannot be unde<strong>res</strong>timated.<br />
The P<strong>res</strong>ident said that we are the ones who<br />
must begin to make a difference, by rejecting the<br />
structural opp<strong>res</strong>sions which have <strong>res</strong>ulted in one<br />
in four people within the European Union to live<br />
at risk of poverty or exclusion, according to the<br />
latest data from Eurostat.<br />
The P<strong>res</strong>ident also said that without a Union which<br />
prioritises the emotional, psychological, physical<br />
and cultural wellbeing of its citizens, “there can<br />
be no positive change towards greater equity,<br />
peace and prosperity”. “We cannot al<strong>low</strong> certain<br />
individuals and communities to go on being<br />
systematically excluded, even if they are not the<br />
majority, from full and equitable participation in the<br />
life of our Union. This will only create environments<br />
of hostility, which will <strong>res</strong>ult in potential extremism<br />
and violence’, the P<strong>res</strong>ident stated.<br />
P<strong>res</strong>ident Coleiro Preca st<strong>res</strong>sed that exclusion<br />
cannot be tolerated, ir<strong>res</strong>pective of whether it was<br />
brought about by economic precarity, by social<br />
marginalistion and stigma, by displacement, or by<br />
the inequality experienced by certain individuals<br />
because of their faith traditions, their gender<br />
identity, or their sexual orientation.<br />
The Founders of the Union worked to build<br />
peace and solidarity through our economic<br />
collaborations, in order to lessen social tensions<br />
and reduce poverty.<br />
The P<strong>res</strong>ident reminded the members of<br />
the College of Commissioners that it is their<br />
<strong>res</strong>ponsibility “to ensure that such collaborations<br />
continue, while also ensuring that the social<br />
values of Europe are reflected in the social and<br />
cultural lives of our communities and nations”;<br />
she also said that they must revitalise the<br />
European Project by ensuring that the institutions<br />
are connected to the aspirations of the European<br />
peoples, whilst adding that Europe’s institutions<br />
must reflect the principles of social inclusion.<br />
“We must work together to make our European<br />
family of nations a better place, where dialogue<br />
replaces division; where friendship triumphs over<br />
suspicion; where peace speaks more strongly<br />
than hostility”, P<strong>res</strong>ident Coleiro Preca said.<br />
Finally, the P<strong>res</strong>ident urged the College of<br />
Commissioners to make the European Union a<br />
place where solidarity is the defining characteristic<br />
of our European identity, “and an inheritance<br />
of lasting benefit for both p<strong>res</strong>ent and future<br />
generations”. <strong>MBR</strong><br />
Photos: DOI/OPR -- Creditline: OPR<br />
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20
Malta Business Review<br />
YACHTING<br />
YACHTING<br />
Malta Business Review<br />
Key considerations when<br />
purchasing a superyacht<br />
Ahead of Ayuk Ntuiabane’s attendance as a speaker at the ‘Opportunities<br />
in Superyachts’ conference on 23 February, Equiom’s VAT Director discusses<br />
the key areas to consider when purchasing a superyacht.<br />
Yacht ownership for vessels operating in European waters has become increasingly complicated. The introduction of new<br />
maritime and employment laws, changes to the VAT rules that apply to charters, and the requirement to obtain charter licences<br />
and appoint fiscal agents rep<strong>res</strong>ent some of the many challenges. One area which is often overlooked relates to setting up the<br />
most appropriate ownership structure for the vessel as well as the ongoing administration.<br />
There is a vast array of company, trust and foundation jurisdictions to select from and, accordingly, it is difficult to identify the optimum<br />
structure without obtaining specialist advice. Making the wrong decision can be costly.<br />
Some of the key areas owners should<br />
consider are:<br />
Ownership structu<strong>res</strong> - ownership<br />
can be by means of companies, trusts<br />
or limited partnerships. For corporate<br />
structu<strong>res</strong>, consideration needs to be<br />
given to the type of company and how<br />
it is structured in terms of directors,<br />
shareholding and capitalisation to ensure<br />
any potential liabilities are ring fenced.<br />
Tax - what is the corporate tax position for<br />
the structure? Are there any tax treaties or<br />
double taxation agreements relevant to<br />
the structure? Are there benefit in kind<br />
charges as a <strong>res</strong>ult of the structure? What<br />
are the rules governing inheritance tax in<br />
the chosen jurisdiction? Full consideration<br />
of these tax issues ensu<strong>res</strong> the structure<br />
can be tax compliant from the outset.<br />
VAT – is VAT registration required? If so,<br />
in which jurisdiction should the company<br />
register? VAT fiscal agents may also<br />
need to be appointed for commercial<br />
yachts. Owners should consider the VAT<br />
implications both on acquisition and<br />
disposal of the yacht. Suitable VAT planning<br />
is necessary for all yachts operating in EU<br />
waters regardless of the owner being non-<br />
EU <strong>res</strong>ident and operating within European<br />
waters under temporary admission rules.<br />
VAT planning is essential when VAT rates<br />
vary from 18 to <strong>27</strong>%.<br />
Legislation - this is particularly important<br />
where finance is required to purchase the<br />
vessel. Sophisticated corporate laws are<br />
a key consideration as disputes can arise<br />
where there is joint or shared ownership<br />
of the yacht. High regulatory standards<br />
and reporting requirements are therefore<br />
seen as an advantage when selecting a<br />
jurisdiction.<br />
Yacht registration - consider if the yacht<br />
will be chartered, as this will impact on the<br />
choice of flag, the manning requirements,<br />
the registration type and the survey costs.<br />
Many flag states, including the popular<br />
Maltese flag, have qualified ownership<br />
requirements. The flag choice may have<br />
an impact for VAT purposes. There can<br />
be significant variance in costs between<br />
yacht registries as some registries charge<br />
an annual tonnage tax and require the<br />
appointment of a local Rep<strong>res</strong>entative<br />
Person. Lastly, flags of convenience should<br />
be avoided as they are generally subject to<br />
more frequent port state authority checks.<br />
Insurance - insurance premium tax rates<br />
are another consideration when choosing<br />
a registry. Owners should also ensure the<br />
appropriate level of hull and machinery<br />
insurance and crew medical cover.<br />
Finance - political and economic stability<br />
of the owning vehicle is key where finance<br />
is required to facilitate the new build or<br />
purchase. Banks must be comfortable<br />
with all aspects of the ownership structure<br />
and are more willing to lend to quality<br />
jurisdictions knowing that they can easily<br />
enforce their charge if required.<br />
Corporate administration -<br />
some owners choose to delegate<br />
the administration to their captains.<br />
Invariably they often do not have the<br />
time, particularly for active charter yachts.<br />
The captain's time should be freed up to<br />
manage his crew and concentrate on the<br />
safe operation of the vessel. Delegating<br />
these functions to a trusted corporate<br />
service provider or a yacht management<br />
company with specialist yachting<br />
knowledge and expertise is a wise decision.<br />
The maintenance of company records, VAT<br />
and financial reporting may appear to be<br />
straightforward but the financial penalties<br />
can be significant for non-compliant<br />
companies. The penalties in getting it<br />
wrong, particularly with regard to VAT, can<br />
By Ayuk Ntuiabane<br />
often far outweigh any perceived savings.<br />
In conclusion, professional advice should be<br />
sought at an early stage of the acquisition<br />
process. The legislation and regulations<br />
governing the ownership and operation<br />
of superyachts are continually changing<br />
and what may be appropriate today may<br />
change in the future. It therefore pays to<br />
appoint a professional corporate service<br />
provider which specialises in yachting in<br />
order to ensure ongoing tax compliance<br />
of the structure. This gives absolute peace<br />
of mind for owners, leaving them free to<br />
enjoy their yacht.<br />
As experts in our field, Equiom can advise<br />
you on the most efficient path when it<br />
comes to yacht ownership and the most<br />
effective structure plan for you. Looking<br />
after a fleet of yachts worth €2.3 billion,<br />
we manage a portfolio of ownership<br />
structu<strong>res</strong> for some of the world’s most<br />
p<strong>res</strong>tigious and valuable superyachts, with<br />
all the hallmarks of outstanding service<br />
and dynamic, innovative solutions. Equiom<br />
operates across multiple jurisdictions<br />
serving corporate and private clients on a<br />
global scale. <strong>MBR</strong><br />
EDITOR’S<br />
Note<br />
Ayuk Ntuiabane works<br />
with Equiom’s yachting<br />
and aviation clients and<br />
their advisers to optimise<br />
the asset ownership structu<strong>res</strong> and business<br />
models required for secure and cost-effective<br />
operation of yachts and aircraft within the<br />
EU. This can include the exploitation of these<br />
assets for income, or simply accessing the EU<br />
for temporary use. Ayuk also provides VAT<br />
support and opinions relating to yachting and<br />
aviation financing and asset due diligence.<br />
22<br />
www.maltabusinessreview.net<br />
23
Malta Business Review<br />
BUSINESS LEADERSHIP<br />
Why Employees Aren’t Invested<br />
By Jackey Backman<br />
Taking comfort to a<br />
whole new dimension<br />
Does it seem that despite everything<br />
you’ve tried you just can’t seem to get<br />
your employees to be truly invested?<br />
Do either of the fol<strong>low</strong>ing somewhat<br />
describe your work environment?<br />
• Employees drag their feet<br />
unmotivated and whiny, giving only<br />
a mediocre performance?<br />
ESSENTIALS<br />
FFICIENCY<br />
XPERIENCE<br />
XCELLENCE<br />
• 2. Do you experience high turnover?<br />
At an estimated $15,000.00 per employee<br />
turnover costs and unmotivated employees<br />
are not only affecting the morale of the<br />
people being left behind every time some<br />
one leaves, which in turn affects the<br />
remaining employees performance, it’s<br />
directly impacting your bottom line.<br />
How to tackle the above “symptoms” (and<br />
I do mean symptoms as they are not the<br />
problem only indicators of a problem) slightly<br />
differs. Nonetheless in 500 words here are<br />
some pointers to get you moving in the right<br />
direction.<br />
Ask yourself this question:<br />
“Would you want to work for you?”<br />
Based on the core values of your demographic<br />
employee pool, aka your ideal candidates, do<br />
you provide an Outstanding Employer Brand<br />
that makes your workplace a great place to<br />
work? Human beings are emotionally driven;<br />
are your leaders fully equipped with the EQ<br />
(emotional intelligence) based competencies<br />
to deal with the human element? In other<br />
words, do your leaders even have have the<br />
skills to tackle the problem of employee<br />
retention? It’s highly unlikely or you wouldn’t<br />
be experiencing these symptoms. That<br />
means the cards are stacked against you right<br />
from the start.<br />
VISION<br />
What is your vision? People want to know<br />
they are part of something great and they<br />
want to make an impact. So if your greatest<br />
allure is a few ping pong tables, flexible<br />
work hours and a hefty pay cheque (all<br />
attractive, value added featu<strong>res</strong> by the<br />
way)…I guarantee you there’s someone<br />
right around the corner offering a bigger<br />
table.<br />
INVEST IN YOUR LEADERS<br />
Human beings are loaded with insecurities.<br />
People more than ever are turning outwards<br />
to validate themselves. It’s far beyond what<br />
kind of car you drive, or which brand of<br />
jeans you wear, today it’s whether or not<br />
you get enough likes or who’s fol<strong>low</strong>ing<br />
your tweets.<br />
Nowadays your employees need strong<br />
leaders that can validate them and their<br />
choices. They need leaders to point them<br />
in the right direction, that understand how<br />
to drive desired behaviour, create healthy<br />
supportive work environments and how to<br />
give an effective kick in the butt if required,<br />
without all the drama and still achieve the<br />
mandated directives.<br />
BE AUTHENTIC<br />
Authenticity is a huge value for our<br />
Millennial generation. How is your<br />
workplace authentic? It probably is at the<br />
core, but do your employees know it? Is it<br />
communicated through everything you do<br />
and how you operate?<br />
For your success! <strong>MBR</strong><br />
Jackey Backman<br />
EDITOR’S<br />
Note<br />
Jackey Backman<br />
specializes in emotional<br />
intelligence, soft skills<br />
development, and<br />
organizational and personal behavioural<br />
change. She is a candid yet compassionate<br />
international speaker and trainer who has<br />
delivered highly motivational and lifechanging<br />
p<strong>res</strong>entations to more than 35,000<br />
people during the past 20 years. In her talent<br />
development and management consultancy<br />
she works exclusively with start-up to midsize<br />
companies (up to $50MM). Through<br />
her highly integrated Business Operating<br />
System (BOS), she consults with and teaches<br />
senior leadership executives and middle<br />
management the essential processes by<br />
which organizations build well-founded,<br />
exceptionally well-formed, solid teams.<br />
The whole process is designed to maximize<br />
human potential and nurture healthy<br />
productive work environments to facilitate<br />
exponential growth. Through her personal<br />
development training company, One Spirit<br />
Inc, she offers certification programs in<br />
Neuro Linguistic Programming, and provides<br />
workshops and retreats for individuals ready<br />
to go beyond conventional thinking to lead<br />
exceptional lives. Through the Emotional<br />
Intelligence Soft Skills Academy (EISSA), a<br />
division of One Spirit Inc., Jackey provides<br />
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24
Malta Business Review<br />
<strong>MBR</strong> EU & GLOBAL NEWS ROUND-UP<br />
<strong>MBR</strong> EU & GLOBAL NEWS ROUND-UP<br />
Malta Business Review<br />
COMMISSION ON TOUR:<br />
WELCOME TO POLITICAL GYMNASTICS, <strong>2017</strong> STYLE:<br />
OTHER EU PARLIAMENT HIGHLIGHT — COMMISSIONER OETTINGER …<br />
The first college of<br />
commissioners meeting<br />
for <strong>2017</strong> will take place<br />
Wednesday, after the whole<br />
college travelled to Valletta<br />
in Malta during 2nd week of<br />
<strong>January</strong> <strong>2017</strong>. <strong>MBR</strong><br />
PARLIAMENT IS DEFINITELY BACK TO SCHOOL …<br />
Paul Taylor calls for f<strong>res</strong>h<br />
blood in the European<br />
Parliament, labeling the<br />
declared candidates in next week’s<br />
p<strong>res</strong>idential election fixers rather<br />
than leaders. “Europeans deserve<br />
better than a choice between<br />
two dull Italian politicians and a<br />
veteran Belgian federalist out of<br />
sync with public opinion as the<br />
next p<strong>res</strong>ident of the European<br />
Parliament.”<br />
Guy Verhofstadt<br />
Meanwhile, Guy Verhofstadt and Beppe Grillo are set to inject the<br />
building with an unexpected dose of adrenalin today. They propose<br />
Italy’s Brexit-supporting populist 5Star Movement ditch their UKIP<br />
allies in the Parliament and join the arch-EU (and sometimes federalist)<br />
liberal ALDE group. If finalized, the merger would cement ALDE as the<br />
third-largest bloc in Parliament, but potentially leave it at the mercy of<br />
its new largest member. Nicholas Hirst covers the basics of the planned<br />
political marriage. <strong>MBR</strong><br />
WHAT’S NEXT:<br />
5Star members finish voting in an internal<br />
referendum at noon, and the ALDE bureau<br />
(its executive committee composed of<br />
national delegation leaders) starts at 5:30<br />
p.m. The Parliament deadline for notifying<br />
changes in party group size (which affects<br />
parliament-funded <strong>res</strong>ources for <strong>2017</strong>) is<br />
<strong>January</strong> 11 at 6 p.m.<br />
On the ALDE side, while there is serious discontent among the ranks,<br />
the working assumption is that the plan will pass the party’s executive<br />
committee (bureau) and full group. On the 5Star side, it’s impossible<br />
to predict their direct democracy system. But Grillo holds all the cards.<br />
If the party rejects the idea, it’s proof of how democratic it is. If it’s<br />
split, he can gracefully change tack. If it supports the move, his vision<br />
is validated. <strong>MBR</strong><br />
Questions that had the EU bubble scratching its collective head<br />
Sunday included:<br />
• How will Verhofstadt square this move with his opposition to<br />
nationalism and populism?<br />
• What else, other than 17 votes for the Parliament p<strong>res</strong>idency, is<br />
changing hands?<br />
• Which political party would want ALDE at a coalition table if it<br />
meant the 5Star Movement tagging along?<br />
• Will this simply push the EPP and Socialist group back together<br />
again?<br />
From a pure party management perspective: how did one side of the<br />
deal start a referendum on it, before many on the other side even<br />
learned of its existence?<br />
Counter-narrative — Maybe this isn’t about the European<br />
Parliament. Is the ALDE leadership team of Guy Verhofstadt, Sophie in<br />
‘t Veld and Pawel Telička attempting to defuse Grillo’s destabilization<br />
of Italian (and by extension European) politics by bringing him into the<br />
mainstream tent at European level?<br />
Hypocrisy alert: In the wake of the 2014 European elections,<br />
Verhofstadt wrote on Facebook that teaming up with Grillo would be<br />
“to abandon the European project … It is impossible for any <strong>res</strong>ponsible<br />
pro-European group to take the Movement 5Stars on board.”<br />
So what changed — a summary of the political agreement between<br />
the two parties: Playbook has seen the shared manifesto and powersharing<br />
deal drafted by ALDE and 5Star leadership. We are bound<br />
not to quote the agreement to protect sources, but here’s what you<br />
should know:<br />
The two groups identify themselves as radicals who share core<br />
values including freedom, equality and transparency and believe in a<br />
fundamental overhaul of the EU.<br />
• 5 Star Movement commits to the European Union as an essential<br />
counterweight to uncontrolled globalization.<br />
• The two groups want a smaller Commission, more powerful<br />
Parliament, and a deeper single market.<br />
• They claim the euro currency has failed to deliver.<br />
• The power-sharing arrangement will see the broad ALDE group<br />
in Parliament managed by its “executive vice p<strong>res</strong>idents,” in’t<br />
Veld (ALDE), Borrelli (5Star) and Marielle de Sarnez (European<br />
Democracy Party).<br />
• The parties admit to being split or diverging on economics and<br />
finance, trade, agriculture, industry, EU regional funding, and<br />
culture policy.<br />
What Grillo says: “Staying in the EFDD is tantamount to facing the next<br />
two-and-a-half years without a common political goal, with a delegation<br />
that will have no inte<strong>res</strong>t in bringing home concrete <strong>res</strong>ults,” he wrote in<br />
a blog post published Sunday 1st week Jan ‘17.<br />
What the jilted EFDD party has to say: Not happy, but not giving up.<br />
By the numbers — ALDE and 5Stars agree half of the time.<br />
The list of people Verhofstadt is alienating with this move threatens<br />
to be a long one: It starts with Italy’s Europe Minister Sandro Gozi,<br />
and continues with vanquished liberal p<strong>res</strong>idential contender Sylvie<br />
Goulard, who blogged of her calm contempt for the plan. <strong>MBR</strong><br />
Martin-Schulz-p<strong>res</strong>ident-European-Parliamen<br />
Commissioner Günther Oettinger p<strong>res</strong>ented his case today at 6 p.m. 9th <strong>January</strong> for taking over the Commission’s budget and<br />
human <strong>res</strong>ources portfolio, fol<strong>low</strong>ing Kristalina Georgieva’s <strong>res</strong>ignation. The “exchange of views” will be p<strong>res</strong>ided over by Ingeborg<br />
Gräßle, who like Oettinger belongs to Germany’s Christian Democratic Union.<br />
While around half of MEPs will be playing hardball, Gräßle is firmly in Oettinger’s corner. “I’d like us to use the opportunity for what it’s<br />
supposed to do — to get to know the candidate in order to better work with him,” Gräßle said. “The more we antagonize him, the more<br />
difficult it will be afterward to work together.”<br />
UK — JOHNSON FLIES TO NY TO VISIT TRUMP<br />
TEAM: Boris Johnson, Britain’s foreign secretary, is expected to meet Trump’s son-in-law, Jared<br />
Kushner and incoming White House chief strategist Steve Bannon in New York for the U.K.’s<br />
government’s first formal face-to-face meeting with the new Trump administration.<br />
UK — CORBYN COPIES TRUMP PLAYBOOK: “U.K. Labour leader Jeremy Corbyn has signed off on a<br />
plan to adopt Donald Trump-style media tactics in a bid to turn around his poll ratings, according<br />
to a senior party official familiar with the initiative,” report Tom McTague and Charlie Cooper.<br />
“Corbyn’s inner circle, alarmed at the party’s dramatic slump in support, agreed over Christmas to<br />
overhaul their media strategy, taking direct inspiration from the U.S. p<strong>res</strong>ident-elect’s agg<strong>res</strong>sion<br />
against mainstream TV networks and newspapers, which they hope will whip up support among<br />
those already distrustful of the media. <strong>MBR</strong><br />
BREXIT CORNER …<br />
Commissioner Günther<br />
Oettinger<br />
COMMISSION — MEGA-MERGER HEARING: Dow and DuPont will today defend their $130 billion merger at a Commission hearing. Investigators are particularly<br />
worried that the deal would lead to less innovation, and there are claims that a wider set of three mega-deals in the agrochemical sectors will put an oligopoly<br />
on top of world food markets, with farmers at their mercy. Nicholas Hirst and Simon Marks have the story for POLITICO Pro Agriculture and Food subscribers.<br />
COUNCIL — GERMANY BLOCKING TRANSPARENCY ON SPECIAL TAX DEALS: POLITICO’s Simon Marks has learned via a freedom of information request that<br />
Germany has waged a behind-the-scenes fight to prevent the public disclosure of tax rulings between governments and multinational companies. The story is<br />
available to POLITICO Pro Technology and Financial Services subscribers.<br />
CYPRUS REUNIFICATION — THE ENDGAME THIS WEEK: Sara Stefanini reported on a make-or-break week for both Cyprus and the EU, which needs a win to<br />
demonstrate it is a peace-bringing force in the world. The odds for success are slightly better than even, according to Stefanini. If they manage to strike a deal, it<br />
would mean separate but simultaneous referendums to bring a final end to “a 43-year standoff and Turkish Cypriots’ inclusion in the European Union.” <strong>MBR</strong><br />
COMMISSION — JUNCKER CAN’T SHAKE<br />
THE BAD TAX NEWS: This time it’s an investigation by EU competition tsar<br />
Margrethe Vestager into ENGIE, the recently rebranded Belgian electricity<br />
company (formerly Electrabel), that’s making uncomfortable reading for<br />
European Commission P<strong>res</strong>ident Jean-Claude Juncker.<br />
Vestager’s case suggests the Luxembourg tax authority turned a blind eye<br />
to blatant tax dodging. Juncker, who was the country’s prime minister at<br />
the time, has always said he didn’t get involved in Luxembourg’s generous<br />
Jean-Claude Juncker,<br />
European Commission P<strong>res</strong>ident<br />
tax rulings in favor of companies like ENGIE. And yet Luxembourg is such a tiny government, and there were<br />
so many tax rulings of this nature, that Juncker is finding it difficult to escape criticism-by-association.<br />
More details, by Nicholas Hirst, are available to POLITICO Energy and Financial Services Pro subscribers. Also<br />
from L’Echo and DPA.<br />
Left-wing MEP Fabio de Masi and Green MEP Sven Giegold argue the role of a secretive EU tax body should<br />
be called into question, as its 19-year existence has done little to limit agg<strong>res</strong>sive corporate tax practices<br />
across the bloc. (Link for POLITICO Pro Technology and Financial Services subscribers). Earlier this week, the<br />
Guardian published an article that accused Juncker of secretly blocking EU initiatives to curb tax avoidance,<br />
via the Brussels tax group, which was first set up in 1998 to prevent EU countries from being played off against<br />
one another by global companies. <strong>MBR</strong><br />
TECH — HACKERS INCREASINGLY TARGETING EU, KING SAYS:<br />
“It’s clear that many institutions across Europe and more widely, and<br />
that includes the European Commission, are subject to a continuously<br />
increasing number of cyber attacks from different sources,” Julian King,<br />
the EU security commissioner, told the FT. “These threats are persistent,<br />
they are agg<strong>res</strong>sive, and more and more dangerous and potentially<br />
destructive.” The most dangerous are those that aim to “undermine<br />
Donald Trump and Vladimir Puttin the trust in our democracies,” he said.<br />
US — TRUMP ACKNOWLEDGES RUSSIA PLAYED ROLE IN DNC HACKS: Incoming White House chief of<br />
staff Reince Priebus said Sunday that U.S. P<strong>res</strong>ident-elect Donald Trump accepts that Russia played a role<br />
in hacking the Democratic National Committee and Clinton campaign Chairman John Podesta.<br />
FOCUS ON FINLAND …<br />
Back when Finland was run by Russia, Playbook’s great grandparents set off by boat from a Swedishspeaking<br />
enclave in southern Finland, for Australia. A hundred years on from independence from<br />
Russia, celebrations are in full swing and will continue all year. Russia’s P<strong>res</strong>ident Vladimir Putin has also<br />
confirmed a summer visit to mark the celebrations. <strong>MBR</strong><br />
MEET MICHEL<br />
BARNIER’S BREXIT<br />
DREAM TEAM: Britain’s<br />
negotiating team in<br />
Brussels has been in<br />
the spotlight fol<strong>low</strong>ing<br />
the <strong>res</strong>ignation of Ivan<br />
Rogers from his post<br />
as EU ambassador. But<br />
Michel Barnier, the EU’s what of the other side<br />
Brexit negotiator<br />
of the table? Michel<br />
Barnier, the EU’s Brexit negotiator, has assembled a<br />
team of roughly 30 staffers from secretaries to top<br />
advisers. The taskforce, which is likely to double<br />
in size, is thus far notable for being composed of<br />
francophone EU nerds and former Barnier staffers.<br />
MAY SENDS SINGLE MARKET SIGNAL: In an<br />
interview with Sky News show “Sophie Ridge<br />
on Sunday,” The<strong>res</strong>a May confirmed she will<br />
meet Donald Trump in the U.S. next month and<br />
defended the U.K. government’s friendly embrace<br />
of the p<strong>res</strong>ident-elect despite his “unacceptable”<br />
comments on women, reports Tom McTague.<br />
“In the biggest hint yet that she is prepared to<br />
abandon the single market, the Tory leader said<br />
Britain was leaving the EU and will not seek to keep<br />
elements of membership.”<br />
A SOFT BREXIT IS A ‘FAKE BREXIT’ SAYS MICHAEL<br />
GOVE: Fake Brexit must be stopped, writes the now<br />
backbench MP Michael Gove, for BrexitCentral, a<br />
pro-Brexit website.<br />
“The vote on 23rd June last year was not simply<br />
a rejection of the democracy-denying, growthdiminishing,<br />
job-destroying EU, it was a vote for<br />
wholesale change … We are still far too unequal<br />
a society … The good news is that leaving the<br />
European Union makes it easier for us to rebalance<br />
our economy … we need to deliver a full Brexit,<br />
not settle for fake Brexit … We don’t want to be<br />
bound by being members of the customs union.”<br />
ROGERS FORMALLY RESIGNS FROM UK CIVIL<br />
SERVICE: The former British ambassador in<br />
Brussels did not seek another role within the U.K.<br />
civil service. <strong>MBR</strong><br />
Credits: POLITICO Brussels Playbook;<br />
rheath@politico.eu | POLITICO SPRL;<br />
26 <strong>27</strong><br />
www.maltabusinessreview.net
Malta Business Review<br />
GAMING<br />
DraftKings continues international expansion<br />
About<br />
DraftKings<br />
Photo / DOI: Pierre Sammut<br />
DraftKings is an innovative sportstech<br />
entertainment platform,<br />
changing the way consumers<br />
engage with their favourite sports,<br />
teams and athletes worldwide.<br />
DraftKings, headquartered in<br />
Boston, MA, offers daily and weekly<br />
fantasy sports contests across ten<br />
professional sports in the U.S.,<br />
Canada and the United Kingdom.<br />
Founded in 2012 by Jason Robins,<br />
Matt Kalish, and Paul Liberman,<br />
DraftKings is the exclusive daily<br />
fantasy sports partner of Major<br />
League Baseball, The National<br />
Hockey League, NASCAR and the<br />
Canadian Football League.<br />
The Malta Gaming Authority has<br />
issued a Controlled Skill Games<br />
License to DraftKings, with<br />
regulations that will protect consumers,<br />
while bringing sports fans in Europe closer<br />
to the sports they love.<br />
DraftKings Inc., announced that its<br />
subsidiary, DK Malta OpCo Ltd has been<br />
granted a Controlled Skill Games License<br />
from the Malta Gaming Authority (MGA),<br />
fol<strong>low</strong>ing Malta’s recent introduction of a<br />
new regulatory regime for certain games<br />
of skill.<br />
DraftKings is the world’s largest skill-based<br />
Fantasy Sports (FS) platform, al<strong>low</strong>ing<br />
players to compete in daily or weekly<br />
Manager Game-type online contests<br />
across the largest variety of professional<br />
sports, including seven leagues of Football<br />
(soccer), North American Sports (NFL,<br />
MLB, NBA, NHL, CFL & NASCAR), Mixed<br />
Martial Arts, Golf (PGA & European Tour)<br />
and eSports.<br />
The Skill Games License will enable<br />
DraftKings to operate in Malta and other<br />
select European countries. DraftKings<br />
intends to begin offering Fantasy Sport<br />
contests in some markets in the first<br />
quarter of <strong>2017</strong>, with additional countries<br />
to fol<strong>low</strong>.<br />
“Malta’s intention to regulate digital skill<br />
games with a prize was first announced in<br />
December 2014 when the MGA published<br />
a consultation document. From then<br />
onwards, the MGA sought the input of<br />
various industry stakeholders and experts<br />
in order to develop a framework which<br />
facilitates the development of the sector,<br />
while ensuring adequate protection for<br />
players and fairness of the games”, said<br />
Executive Chairman of the Malta Gaming<br />
Authority Joseph Cuschieri.<br />
We have taken a <strong>res</strong>ponsible, fair and less<br />
conservative approach in order to enable<br />
companies such as DraftKings, in obtaining<br />
a license to operate in Malta and other<br />
European countries, whilst protecting the<br />
consumers. Such a regulation will again<br />
put Malta at the forefront in the sector<br />
of the digital economy”, said Minister for<br />
Competitiveness and Digital, Maritime and<br />
Services Economy Dr Emmanuel Mallia.<br />
“We are excited to embark on this<br />
important phase of our international<br />
expansion,” said DraftKings co-founder and<br />
CEO Jason Robins. “We are pleased that<br />
Malta has recognized the need for special<br />
regulation of certain skill-based games<br />
such as online fantasy sports, which are an<br />
important and growing sector of the digital<br />
economy. The Malta Gaming Authority has<br />
been a terrific partner in terms of depth<br />
of analysis, appreciation of DraftKings’s<br />
product, and examining how our system is<br />
built to provide maximum enjoyment and<br />
peace of mind to our customers. We take<br />
pride in being regulated by this Authority.”<br />
DraftKings’s announcement comes<br />
nearly a year after it began successfully<br />
operating in the United Kingdom. With<br />
more than seven million registered players<br />
worldwide, DraftKings has experienced<br />
significant growth since its 2012 inception.<br />
In 2016, the company saw year-to-year<br />
growth of 20 percent, and a twelvefold<br />
increase since 2014. In the United<br />
Kingdom, DraftKings has averaged nearly<br />
20 percent month-over-month growth of<br />
its user base in the first nine months of<br />
operation, outpacing the growth curve of<br />
the US launch for the same time period.<br />
“We are excited to embark on this<br />
important phase of our international<br />
expansion,” said DraftKings co-founder and<br />
CEO Jason Robins. “We are pleased that<br />
Malta has recognized the need for special<br />
licensing of daily fantasy sports and other<br />
skilled based games. The Malta Gaming<br />
Authority is an innovative organization<br />
and it is clear that they have put a lot of<br />
thought and rigor into this process.”<br />
The strength of the company and success in<br />
the United Kingdom underpins DraftKings’<br />
further European expansion. <strong>MBR</strong><br />
Credit: THE MINISTRY FOR COMPETITIVENESS AND<br />
DIGITAL, MARITIME AND SERVICES ECONOMY/DOI<br />
28
Malta Business Review<br />
BUSINESS NETWORKING<br />
Getting<br />
Face<br />
Time Is<br />
The Best<br />
Way To<br />
Network.<br />
Here's<br />
How To<br />
Kill It.<br />
By Brian Scudamore<br />
Call me old-fashioned, but I have<br />
found person-to-person networking<br />
is still one of the most powerful<br />
business tools there is. Twitter, LinkedIn<br />
and the <strong>res</strong>t have their place, of course.<br />
But in a digital era when everyone is<br />
swarming virtual channels, old-school<br />
networking is especially important. It’s a<br />
lost art, and one that’s worth re-learning.<br />
The numbers show how influential face<br />
time is: Ninety-five percent of people<br />
say it’s essential for long-term business<br />
relationships. Studies show that 93% of<br />
communication is done through body<br />
language, and face-to-face meetings<br />
generate 30% more ideas than virtual<br />
ones.<br />
As someone running four companies, I<br />
depend on the power of my networks to<br />
help me efficiently problem-solve, share<br />
news, and create new opportunities. Here<br />
are my key tips for building and nurturing<br />
your network the old-fashioned way.<br />
Pick Up The Phone<br />
How did I successfully pitch the 1-800-GOT-<br />
JUNK? story to Oprah and the Wall Street<br />
Journal? I picked up the phone. It sounds<br />
simple, but a phone call – even a cold call<br />
– can have huge impact. In fact, you’re<br />
10 times more likely to close a deal over<br />
the phone than over email. It’s a more<br />
effective way to make an emotional appeal<br />
and it’s a way to stand out from a crowded<br />
inbox (a critical advantage, given that the<br />
average person receives 121 emails per<br />
day). So get dialing.<br />
Make Conferences Work For You<br />
Even better than a phone call? Making your<br />
first imp<strong>res</strong>sion face-to-face. Conferences<br />
are a great place to do this, especially if<br />
you make a conscious effort to connect<br />
with the key players and influencers once<br />
they’re off the stage. I once chased down<br />
Subway founder Fred DeLuca after he<br />
was done speaking so I could ask for his<br />
advice about franchising. From there, we<br />
developed a mentor-mentee relationship<br />
that lasted fifteen years and changed<br />
my business for the better – all because<br />
I didn’t let the opportunity for a one-onone<br />
pass me by. <strong>MBR</strong><br />
EDITOR’S<br />
Note<br />
Brian Scudamore is the<br />
founder and CEO of<br />
O2E Brands, the banner<br />
company for 1-800-GOT-JUNK?, WOW 1<br />
DAY PAINTING, You Move Me, and Shack<br />
Shine. He is a strong believer in ongoing<br />
personal and professional development, and<br />
likes to show others how to use goal-setting<br />
to take the lead in their own business. As<br />
someone who is passionate about people,<br />
he created a corporate culture where we are<br />
building something bigger, together. The<br />
author is also Forbes contributor and sha<strong>res</strong><br />
stories of entrepreneurship: vision, growth<br />
and people.<br />
CORPORATE<br />
Brief<br />
EDITOR’S<br />
Note<br />
30
Malta Business Review<br />
DAVOS <strong>2017</strong><br />
DAVOS <strong>2017</strong><br />
Malta Business Review<br />
World<br />
Economic<br />
Forum<br />
Annual<br />
Meeting<br />
Welcome to POLITICO’s<br />
Davos Playbook, our<br />
guide for this month’s<br />
gathering in the Swiss<br />
Alps. Florian Eder and<br />
Ryan Heath have teamed<br />
up to make this little<br />
extra goodie possible for<br />
you.<br />
Anthony Scaramucci Stars<br />
As ‘The Trump Whisperer’:<br />
The billionaire founder of SkyBridge Capital<br />
was mobbed by journalists clamoring to get<br />
into a hastily organized p<strong>res</strong>s briefing after<br />
his on-stage session with the forum’s Philipp<br />
Rösler on Tuesday. Speaking shortly after<br />
The<strong>res</strong>a May announced the U.K. would not<br />
seek to remain in the EU’s single market,<br />
Scaramucci backed May’s determination<br />
to go it alone. “I wouldn’t bet against the<br />
United Kingdom,” he said.<br />
Gossip: Scaramucci was called home<br />
shortly after his remarks in Davos and was<br />
already on a plane to the U.S. on Tuesday<br />
evening.<br />
Background<br />
THE EUROPE FIX: Donald Trump bookends this<br />
Davos. Opening festivities (in a sense) from his<br />
office in Trump Tower on Monday, he lashed out<br />
at Angela Merkel, declared NATO “obsolete” and<br />
rooted for the EU’s downfall in his first interview<br />
with European newspapers since winning the<br />
p<strong>res</strong>idency. The Donald’s ascendance to the most<br />
powerful job in the land closes things up here on<br />
Friday too. And of course, in between The<strong>res</strong>a<br />
May delivered her Brexit démarche to Europe, in<br />
another sobering dose of reality.<br />
The world as the Davos crowd knew it for decades<br />
is coming apart at Mach speeds. Sure, the<br />
“European project” was bruised up by migration,<br />
economic stagnation, financial crises and various<br />
populist uprisings. Nothing compa<strong>res</strong> to the<br />
double b<strong>low</strong> of its second-largest economy pulling<br />
out altogether, and a new p<strong>res</strong>ident in America –<br />
usually the patron saint of Europe’s postwar order<br />
– sounding openly hostile to it.<br />
The diagnosis of the predicament, mixed in with<br />
anxiety only a few steps removed from panic, is<br />
dominating discussion so far. Ideas are not in short<br />
supply. POLITICO co-hosted an event Wednesday<br />
Europhiles can temporarily<br />
rejoice until the next Trump<br />
tweet: Scaramucci said Trump “wants to<br />
have a great relationship with the EU. I really<br />
believe that, if we can get the trade deals<br />
right.” He couldn’t offer any commitment to<br />
continue negotiations on the EU-U.S. trade<br />
deal TTIP, however.<br />
DAVOS PLAYBOOK WOULDN’T<br />
BE POSSIBLE WITHOUT Gabe<br />
Brotman and Vince Chadwick.<br />
BREAKFAST BATTLE: Gillian Anderson<br />
(of X-Files fame) is throwing around some rare<br />
7 a.m. A-list star power,<br />
headlining a breakfast<br />
discussion on forced<br />
labor. That’s the time<br />
slot normally <strong>res</strong>erved<br />
for worthy and wonky<br />
discussions like Deloitte’s<br />
“Smart cities and smart<br />
nations,” one of the<br />
sessions that will go headto-head<br />
with Anderson<br />
today. Let’s see if the host,<br />
CNN’s Richard Quest, can<br />
pull in the same numbers<br />
Anderson does. Playbook<br />
will keep tabs.<br />
called, p<strong>res</strong>criptively, “Fixing Europe’s Disunion.”<br />
One of the panelists, Pierre Moscovici, the former<br />
French finance minister and current European<br />
economic commissioner, argued “the way to<br />
combat populists is to be popular — to show<br />
<strong>res</strong>ults,” primarily by improving the economy.<br />
“More Europe” is his answer. Joseph Stiglitz, the<br />
Nobel Prize-winning economist, blamed the euro,<br />
but seconded Moscovici’s call for budget transfers<br />
from rich countries to poor and a eurozone finance<br />
minister. Others talked about touting the EU’s<br />
benefits more effectively, and much was made of<br />
spending more on infrastructure. But how any of<br />
this will go down with European voters, say in a<br />
Germany asked to pick up these checks, wasn’t<br />
discussed.<br />
For the last 50 years of the 20th century, the point<br />
of the EU was not to repeat the first 50 years: A<br />
Continent, at peace and prosperous, nothing more<br />
or less. The power of this narrative – that one<br />
Big Idea – is gone. It needs a new one. The EU’s<br />
leaders see an opportunity in the current crisis<br />
too, to find that elusive fix. “Brexit is a wake-up<br />
call for us,” Moscovici said. Though the European<br />
political class hopes it’s sufficient, it won’t leave<br />
Davos any more optimistic than it arrived.<br />
That’s where the<br />
compliments ended: Brussels<br />
is too far removed from local markets and<br />
concerns in the eyes of Trumpland: “His<br />
[Trump’s] political observation is not that<br />
he wants the EU to go away but that it<br />
is not being managed effectively for the<br />
people it is supposed to serve.”<br />
The most direct criticism<br />
of Trump: Without naming the U.S.<br />
p<strong>res</strong>ident-elect, Xi told participants: “We are<br />
not jealous of the success of others. We will<br />
open our arms to other countries.”<br />
RAGE AGAINST THE MACHINES:<br />
Alert readers will have seen the signs long<br />
ago, and the World Economic Forum itself has<br />
been pushing the theme of a “Fourth Industrial<br />
Revolution” for more than a year. In a widely read<br />
article published December 21, the New York<br />
Times’ Claire Cain Miller pinpointed automation,<br />
not China, as the real American jobs killer. The<br />
European Parliament released a report <strong>January</strong><br />
12 on how to regulate robots’ role in our world,<br />
while McKinsey analysts declared automation is<br />
inevitable. Then there’s Uber’s head-first dive into<br />
driverless cars and Amazon’s exponential use of<br />
robots. Like it or not, pretty much everyone will<br />
be forced to talk automation this week.<br />
So it was no surprise that WEF founder and chief<br />
Klaus Schwab add<strong>res</strong>sed the issue in his speech<br />
to open this year’s event. What did surprise<br />
was Schwab’s stirring language as he called for<br />
more humanization and voiced fears that we<br />
now face “nearly an avalanche” of technological<br />
transformation with little political capital left to<br />
help pay for the adjustment. Hence Schwab’s<br />
lament: “Davos is a global village but an isolated<br />
place.”<br />
Bankers are used to being bashed; for politicians it’s<br />
a daily ritual. But tech titans who bask in delivering<br />
convenience are not ready for the backlash their<br />
products are generating. Automation could eat<br />
the global middle-class alive. That may be the real<br />
killer message from Davos <strong>2017</strong>. Donald Trump<br />
and Marine Le Pen may be symptoms of emerging<br />
populism. Globalization may indeed be one of its<br />
causes. But if the tech sector can’t do more to<br />
solve the problems it helps create, then the Davos<br />
Man could truly face extinction.<br />
DAVOS INSIGHT — CHINA MAKES ITS PITCH:<br />
Chinese P<strong>res</strong>ident Xi Jinping sounded more<br />
Silicon Valley than single-party Communist<br />
leader at times during his opening keynote<br />
speech in Davos, issuing a strong rebuke<br />
against protectionism. If Xi wanted his carefully<br />
calibrated and reassuring remarks to contrast<br />
sharply with the style of U.S. P<strong>res</strong>ident-elect<br />
Donald Trump, he succeeded, in a speech<br />
peppered with quotes from Dickens, Chinese<br />
proverbs and his own jokes.<br />
Xi spoke directly from the Davos playbook<br />
— even naming it “Schwab-onomics” after<br />
the WEF’s grand seigneur. Some wondered,<br />
however, if his description of the forum as a<br />
“cost-effective brainstorming session” was a tad<br />
backhanded.<br />
He went on to defend economic globalization<br />
from the attacks of populist politicians, arguing<br />
it does more good than harm. It was an<br />
alternate new world order to the one laid out<br />
by the U.S. p<strong>res</strong>ident-elect in an interview a day<br />
earlier — and Xi seemed to be applying for the<br />
vacant job as global sheriff.<br />
Special Add<strong>res</strong>s by Joe Biden,<br />
Vice P<strong>res</strong>ident of the United States<br />
In the final days of P<strong>res</strong>ident Barack Obama’s<br />
administration, Joe Biden is add<strong>res</strong>sing Davos for the<br />
last time as Vice P<strong>res</strong>ident. He’s expected to share<br />
his thoughts on global security and the relationship<br />
between the United States and Europe.<br />
ARTIFICIAL INTELLIGENCE:<br />
Is it replacing or amplifying humans? The<br />
judgements were mixed at an Infosys<br />
session on “Keeping the machines in check.”<br />
One angle Playbook had never considered<br />
before: the ability of algorithms to teach<br />
themselves to breach antitrust laws without<br />
knowing it. The WEF has produced a handy<br />
summary of Ginny Rommetty (IBM), Satya<br />
Nadella (Microsoft), and others weighing in<br />
on the role of AI. IBM launched a new set of<br />
principles it is committed to using regarding AI.<br />
REAL WORLD: Days before Trump’s<br />
inauguration, General Motors announced<br />
it would invest $1 billion in the U.S. and<br />
Wal-Mart promised to create 10,000<br />
additional jobs there by the end of the year.<br />
Bayer announced an $8 billion <strong>res</strong>earch<br />
investment in the U.S. after discussions with<br />
the Trump team.<br />
An economist’s view: Li Daokui, from Tsinghua<br />
University: “One of the few things on which<br />
China and Trump agree is that the dollar must<br />
fall,” h/t La Stampa’s Marco Zatterin.<br />
Christine Lagarde's 2013<br />
warning about inequality<br />
In the session Squeezed and Angry: How to<br />
Fix the Middle-Class Crisis, IMF Managing<br />
Director Christine Lagarde spoke about the<br />
Davos speech she gave in 2013 warning<br />
about rising inequality.<br />
Here is excerpt from her speech - watch from<br />
13:55 for her main warning:<br />
"You can be absolutely sure that nations<br />
will revert to their natural tendency of<br />
hiding behind their borders, of moving<br />
towards protectionism, of listening to<br />
vested inte<strong>res</strong>ts, and they’ll forget about<br />
transcending those national priorities."<br />
—Christine Lagarde, speaking in 2013<br />
"Why did people not listen, I don’t know,<br />
but certainly I got a strong backlash, from<br />
economists in particular saying that it<br />
was not really any of their business to<br />
worry about these things," she said in this<br />
morning's session.<br />
P r i v a t e<br />
c a p i t a l<br />
welcome: “In<br />
the past, we’ve relied<br />
on governments to<br />
power our countries;<br />
we now need to bring<br />
in the private sector<br />
to help empower<br />
our economies and people,” said Cyril M.<br />
Ramaphosa, South Africa’s deputy p<strong>res</strong>ident,<br />
during a panel discussion on the future of<br />
energy across the African continent.<br />
The Klaus Schwab reply: “We cannot go<br />
back to old policies,” the forum’s founder<br />
said. “We cannot take recipes which may<br />
have worked in the old world but are not<br />
working anymore in the new world.”<br />
The most popular line came when Xi likened<br />
protectionism to “locking yourself in a dark<br />
room,” in that “you keep out wind and rain but<br />
also air and light.” He added that “no one will<br />
win a trade war.”<br />
THRIVING AT DAVOS: It’s the serendipity,<br />
stupid: Keep your eyes open and chunks of<br />
your agenda free. You will be late at times.<br />
You will run into old friends and inte<strong>res</strong>ting<br />
people. <strong>MBR</strong><br />
Source: POLITICO Davos Playbook; POLITICO SPRL<br />
32 33<br />
www.maltabusinessreview.net
Malta Business Review<br />
DENTAL CARE<br />
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34<br />
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A middle-aged career woman with a very active social life finally takes the plunge and<br />
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The treatment consisted of all-ceramic metal free <strong>res</strong>torations; 6veneers, a 3-tooth<br />
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Malta Business Review<br />
FOCUS<br />
FOCUS<br />
Malta Business Review<br />
Why Russia<br />
Is Using the<br />
Internet to<br />
Undermine<br />
Western<br />
Democracy<br />
Powerful Russians were terrified by the<br />
internet in 2011. Now they have made<br />
sure we are, too.<br />
By Maria Farrell<br />
At a recent international meeting on<br />
internet freedom and democracy,<br />
one of the chairs made an unusual<br />
request: He asked contributors to share<br />
only <strong>res</strong>earch <strong>res</strong>ults, not anecdotes. I was<br />
puzzled—why did this need to be said?<br />
The couple of hundred attendees were<br />
policy wonks and government ministers.<br />
Politicians’ talking points and newspaper<br />
editorials might base their calls to action<br />
on horror stories, but the professionals<br />
look for the data, right?<br />
Half an hour later, a panel opened up to<br />
the audience for questions, and then I<br />
understood. A woman from an “official”<br />
Russian nongovernmental organization<br />
started to speak. Though her English was<br />
excellent, her statement-as-a-question<br />
was pretty incoherent. We can’t have<br />
unfettered internet freedom, she said,<br />
because just a few months ago, a boy in<br />
central Russia got hooked on an online<br />
game. When his parents cut off his access,<br />
he tried to kill them. I think she said one<br />
of them survived. It was all a bit emotional<br />
and confusing. But her point was as clear<br />
as it seemed ridiculous: The state must<br />
control the internet to stop boys in central<br />
Russia from stabbing their parents with<br />
kitchen knives.<br />
Now, I live in the United Kingdom, where<br />
the state does more surveillance than any<br />
other functioning democracy and requi<strong>res</strong><br />
extra-legal and untransparent censorship by<br />
internet service providers (because “Won’t<br />
somebody think of the children?”). But even<br />
to me, this statement—at an international<br />
meeting, no less—sounded borderline<br />
unhinged. I wasn’t the only one. Around the<br />
room, people smirked as they fiddled with<br />
their interpretation headsets. A few raised<br />
eyebrows and exchanged knowing smiles.<br />
Chatting to a European diplomat afterward, I<br />
asked what had just happened. “Oh, it’s just<br />
what they do now,” he said. He had recently<br />
worked at the U.N. in New York and observed<br />
Russia’s new M.O.: tell scary stories and<br />
wreck the chance of a reasonable discussion.<br />
Trolling, basically. Gesturing around at the<br />
room of people mostly from Europe and<br />
countries on Europe’s periphery, he said,<br />
“They don’t want this kind of thing to work.”<br />
By “this kind of thing,” he meant the<br />
multistakeholder internet governance<br />
model, which brings together governments,<br />
business people, civil society, activists, and<br />
internet engineers. Russia’s discomfort with<br />
it is well-known. Along with China, Saudi<br />
Arabia, and Iran, Russia has long lobbied at<br />
the U.N.’s International Telecommunication<br />
Union to keep decision-making to<br />
governments.<br />
But as I wrote a couple of weeks ago, U.S.<br />
foreign policy on the internet hasn’t played<br />
so well abroad, either. Internet Freedom<br />
can sound like just another way to lock<br />
in U.S. tech firms’ first-mover advantage<br />
and de facto monopolies. American “soft<br />
power” seems anything but benign to<br />
leaders of autocracies. To them, the muchtouted<br />
ability of tech giants like Twitter and<br />
Facebook to facilitate revolutions looks like<br />
deliberate sedition by a foreign power.<br />
Russia’s leaders already see Western<br />
conspiracy everywhere: the Orange<br />
Revolution, the Arab Spring, the entire<br />
internet. All of these play out in Moscow<br />
as plots by the U.S. and its allies to ensure<br />
the world order protects only Western<br />
values and therefore Western inte<strong>res</strong>ts.<br />
And we play right into their hands, saying<br />
the internet is a samizdat—the famously<br />
hand-copied literature of opposition to<br />
Soviet rule—and claiming the Che Guevara<br />
of the 21st-century is a network. (And rather<br />
ahistorically, too, given the United States’<br />
violent antipathy to Guevara’s aims.)<br />
Does the internet drive people-powered<br />
revolutions? Maybe. It’s complicated. But<br />
2011 began with the Arab Spring chasing out<br />
the rulers of Tunisia and Egypt, and ended<br />
with Moscow’s middle classes taking to<br />
the streets in Facebook-organized protests<br />
against electoral corruption. Facebook did<br />
more than just make it easier to organize;<br />
in a year of popular revolution, it let some<br />
Russians feel they were part of something<br />
bigger, that they had a chance. It was a<br />
profound shock to Putin’s government. To<br />
Putin’s ex-KGB mindset, there is no such<br />
thing as spontaneous, popular protest. In<br />
his world, power is vertical. Someone is<br />
always pulling the strings. So the Russian<br />
state married its existential pessimism to the<br />
West’s internet cheerleading. The internet<br />
had to be brought under control.<br />
The Red Web, by Andrei Soldatov and<br />
Irina Borogan, shows that before 2012,<br />
Russian internet censorship was surprisingly<br />
decentralized and inconsistent. It took the<br />
shock of the short-lived middle class revolt<br />
for Russia to really go on the offensive.<br />
Opposition websites were hit with powerful<br />
and coordinated distributed denial of service<br />
attacks, trolling, and disinformation. Deluged<br />
with pro-government propaganda, local<br />
news platforms basically gave up trying to<br />
separate fact from political fiction. The sheer<br />
volume of fake news, plus its sophistication,<br />
meant algorithms could no longer tell the<br />
difference. (To be fair, humans—even those<br />
in democracies—have trouble sorting fake<br />
news from real, too.)<br />
To Putin’s ex-KGB mindset,<br />
there is no such thing as<br />
spontaneous, popular protest<br />
In 2012, new censorship measu<strong>res</strong> were<br />
brought in, using technologies that<br />
indiscriminately block add<strong>res</strong>ses and<br />
inspect each packet of data. The official<br />
rationale? “To protect the children.” Data<br />
localization rules were also introduced,<br />
requiring data about Russian citizens to<br />
be stored on servers physically located in<br />
Russia. The official rationale? To protect<br />
Russians against American surveillance,<br />
post-Snowden. The internet in Russia<br />
was starting to come under control, but<br />
for a state that believed it was facing an<br />
existential threat, it wasn’t enough.<br />
Russia turned its attention abroad. At<br />
a 2012 U.N. meeting to create binding<br />
international telecommunications rules,<br />
Russia and Iran lobbied hard to increase<br />
the role of states in internet governance. A<br />
last-minute procedural U-turn caused most<br />
Western countries to walk out. The chance<br />
for global agreement was dead. While the<br />
authoritarian states failed in their highprofile<br />
U.N. efforts, they continue to make<br />
steady prog<strong>res</strong>s in standardization study<br />
groups where real work gets done. But it<br />
still wasn’t enough.<br />
When Russia finally emerged from internal<br />
chaos, it was eager to take its place in the<br />
international order.<br />
The Russian state lacks the discipline<br />
and capacity of the Chinese state. It is<br />
too insecure to think long-term, as the<br />
Communist Party of China does. Nor does<br />
Russia offer a lucrative enough market to set<br />
its own terms of engagement with foreign<br />
firms. So Russia can’t assume into itself the<br />
parts of the internet it wants (economic<br />
growth) and isolate and expel the parts it<br />
rejects (accelerated political change). But the<br />
internet, with its politically and economically<br />
disruptive power, remains both a symbol and<br />
a channel of Western values and inte<strong>res</strong>ts.<br />
A purely defensive Russian <strong>res</strong>ponse was<br />
never going to be enough.<br />
So Russia did the only thing it could: It<br />
took the West’s proudest, strongest, most<br />
transformational tool and helped to turn<br />
it against us. Internet jiujitsu, in the form<br />
of information war (what we used to call<br />
propaganda) and cyberwar (plain old<br />
hacking and sabotage), turned the energy of<br />
the networks against their creators.<br />
Russia almost certainly hacked the<br />
computers of U.S. election officials and<br />
the Democratic National Committee, and<br />
funneled its damning findings through<br />
willing stooges. This is not a fringe view. We<br />
still don’t know whether the U.S. p<strong>res</strong>identelect<br />
sha<strong>res</strong> more with Vladimir Putin than<br />
just an onanistic cult of toxic masculinity.<br />
Links between the U.S. right and the Kremlin<br />
are murky, though I expect more information<br />
will emerge. But even if we find proof,<br />
millions of Americans will simply refuse to<br />
believe it. Homegrown propaganda sites will<br />
amplify and disseminate disinformation, as<br />
they did all through the U.S. election. Russia’s<br />
adversary during the U.S. p<strong>res</strong>idential<br />
election was not Hillary Clinton but faith in<br />
the American electoral process.<br />
Kremlin propaganda outfits like RT and<br />
Sputnik agg<strong>res</strong>sively push a mix of news and<br />
conjecture whose aim is not to convince<br />
viewers that a particular narrative is true<br />
but rather that they live in a world where<br />
disinte<strong>res</strong>ted, objective fact does not, indeed<br />
cannot exist. Their stories are disseminated<br />
further by right-wing populists around<br />
Europe. The Kremlin has funded far-right<br />
parties’ growth across Europe, just as the<br />
Soviet Union funded far-left ones in the Cold<br />
War. But this time, the aim is not to create a<br />
new, socialist world order, but to destroy the<br />
possibility of any stable global order at all.<br />
And the internet is key to that. As the<br />
internet’s democratization of speech cuts<br />
across traditional channels, more people’s<br />
views can be heard. But in a deluged ideas<br />
market, the law of supply and demand<br />
applies. Each view is worth less, and our<br />
ability to reflect and discriminate between<br />
them disappears. Hearing everyone’s<br />
Cont. on pg 38<br />
36 37<br />
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Malta Business Review<br />
FOCUS<br />
TRANSPORT & LOGISTICS<br />
Malta Business Review<br />
Vladimir Putin in Berlin on Oct. 19. 2016<br />
Cont. from pg 36<br />
opinions on everything all the time sums to<br />
a helpless sense that it’s all broken and no<br />
one can be trusted. We retreat further into<br />
our echo chambers where dissenting views<br />
become unknown unknowns. For Putin, this<br />
stuff is pure gold. The loss of civility and trust,<br />
and the radical flattening of political space,<br />
which the Kremlin so feared, turn out to be<br />
perfect for turning democracy against itself.<br />
It can be insidious. The recent statesponsored<br />
attempts on the Gmail accounts<br />
of well-known U.S. prog<strong>res</strong>sives likely isn’t<br />
aimed at finding out who they know and<br />
what they think—just reading the New<br />
York Times tells you that. It signals that<br />
our private talking and thinking spaces<br />
are no longer secure. Writers who believe<br />
they are listened to by even a “friendly”<br />
government will self-censor. When you can’t<br />
think, talk, and listen freely, you don’t act<br />
independently. Civil and political rights aren’t<br />
just nice to have; they’re the basis of a stable<br />
and scalable global order. (There are good<br />
historical reasons we codified all this stuff<br />
after World War II.)<br />
What to do? Understand first that this is<br />
something we are largely doing to ourselves,<br />
and second that Russia’s profound cynicism<br />
is, paradoxically, utterly sincere. Yes, the<br />
Kremlin has remade the Russian internet<br />
in its own paranoid, hierarchical, and<br />
slightly shambolic image. Yes, the Russian<br />
government is agg<strong>res</strong>sively spreading its<br />
nationalist and nihilist world view around<br />
the world. But ask yourself why, in little<br />
more than a decade, Russia switched from<br />
being an enthusiastic joiner of international<br />
institutions to a wrecker, why Russia become<br />
the ultimate online and offline troll.<br />
It signals that our private<br />
talking and thinking spaces<br />
are no longer secure<br />
We in the West ideologically and materially<br />
helped to wreck Russia’s post-Communist<br />
economy and make it a kleptocracy. People<br />
died. When Russia finally emerged from<br />
internal chaos, it was eager to take its place<br />
in the international order. But the credibility<br />
to Russians of that order was damaged<br />
by several events, including the bombing<br />
of the Chinese Embassy in Belgrade, the<br />
invasion of Iraq, and the U.K. and France’s<br />
2011 adventure in Libya. As the West<br />
punishes Russia for invading its neighbors<br />
and slaughtering Syrian innocents, Russia<br />
might observe that we believe in rule-bound<br />
self-<strong>res</strong>traint only when it suits us. I am just<br />
EDITOR’S<br />
Note<br />
as frightened and angry as anyone else<br />
that Russia is using the best things about<br />
democracy—openness and freedom of<br />
speech—to undermine it. But I can partly<br />
see why it acts as it does.<br />
The tactic I saw being used by the “official<br />
NGO” woman was just a Kremlin technique,<br />
sure. But the anger and fear motivating<br />
her comment seemed genuine. Powerful<br />
Russians were terrified by the internet in<br />
2011. Now they have made sure we are, too.<br />
For people like me who work in internet<br />
governance, the biggest challenge of the<br />
next decade is no longer how to get the<br />
next billion online, or even how to curb the<br />
global monopolies taking over the traditional<br />
roles of government. It’s how to protect the<br />
most important part of our global critical<br />
infrastructure: democracy.<br />
This article is part of Future Tense, a<br />
collaboration among Arizona State<br />
University, New America, and Slate.<br />
Future Tense explo<strong>res</strong> the ways emerging<br />
technologies affect society, policy, and<br />
culture. <strong>MBR</strong><br />
Sources: SLATE, NEW AMERICA, AND ASU<br />
Maria Farrell is an Irish writer and consultant on internet governance and policy,<br />
based in London. She blogs at Crookedtimber.org.<br />
Looking<br />
into the<br />
Future<br />
By David Abela<br />
2016 was a turbulent year for the shipping<br />
industry. Personally, the fol<strong>low</strong>ing three<br />
issues were the main topics discussed in<br />
our own forums. First, we had the new<br />
form of terrorism where the agg<strong>res</strong>sors<br />
hijacked freight trucks to conceive their<br />
attacks. The Nice and Berlin attacks<br />
immediately spring to mind. We also<br />
had to make do with weekly problems in<br />
the French port of Calais where irregular<br />
immigrants where constantly trying to get<br />
into the UK illegally by climbing into moving<br />
freight trucks. This <strong>res</strong>ulted in increased<br />
security, which in turn <strong>res</strong>ulted in several<br />
delays, which also affected Maltese<br />
imports from the UK. Finally, the Hanjin<br />
Shipping Line (one of the world’s largest<br />
shipping lines) bankruptcy brought about<br />
a global stock market meltdown especially<br />
in the Far East, great discomfort to the<br />
thousands of families directly concerned<br />
and huge delays for the shipments that<br />
were being handled by Hanjin at the time<br />
of its financial collapse. Tens of Maltese<br />
importers were directly affected by this.<br />
If we look at the local market, one has to<br />
say that imports and exports continued to<br />
increase steadily. It is no secret that the<br />
Maltese economy is faring magnificently<br />
in spite of the uncertain economic<br />
environment still felt throughout the<br />
world and one can feel the good factor<br />
in almost all the sectors of the<br />
local economy. Over here<br />
at EuroBridge,<br />
we have truly<br />
enjoyed 2016<br />
which <strong>res</strong>ulted<br />
in us breaking<br />
all the records<br />
established just<br />
the previous year.<br />
Towards the end<br />
of the year, we<br />
got the ‘cherry on<br />
the cake’ when we were awarded Malta’s<br />
Best in Business ‘Outstanding Industry<br />
Contributor’ Award.<br />
As we look to <strong>2017</strong> and beyond, us<br />
at EuroBridge know there are many<br />
challenges ahead. We will embrace such<br />
challenges and make sure that we continue<br />
towards our aim to offer complete<br />
customer satisfaction. In fact, there are<br />
3 main projects we are already working<br />
on with the customer in mind. First is to<br />
move into our new state-of-the art office in<br />
Qormi, which will occur over the next few<br />
months and secondly, to make as many as<br />
our procedu<strong>res</strong> as paperless as possible<br />
increasing our efficiency throughout.<br />
Finally, we have also started the process to<br />
digitalize the local delivery process, which<br />
will give our customers the opportunity to<br />
know in real time when their next delivery<br />
will take place.<br />
In the meantime, we will continue<br />
searching for better deals and improve our<br />
foreign networks as much as possible. We<br />
are already renowned for our efficiency<br />
when dealing with our customers and<br />
their shipments but we know there is<br />
always room for improvement. This can<br />
only be achieved by staying on your toes,<br />
listening and discussing issues with all<br />
your partners, them being colleagues,<br />
customers or suppliers.<br />
If you would like to know more about<br />
EuroBridge and its services, we invite you<br />
to visit our website www.eurobridge.com.<br />
mt. We would also be thrilled if you could<br />
communicate directly with us by calling<br />
our office on 22487000 or send us an<br />
email on sales@eurobridge.com.mt. We<br />
always sign with our motto ‘Yours to count<br />
on’ and it is our intention that you feel you<br />
can always count on us for your shipping<br />
needs. <strong>MBR</strong><br />
38 39<br />
www.maltabusinessreview.net
Malta Business Review<br />
BEST PRACTICE<br />
8 Best Practices for<br />
Improving Your Work-Life Balance<br />
By Paul Petrone<br />
MALTA’S BEST ENTREPRENEUR OF THE YEAR AWARDS<br />
SMARTCITY MALTA | FRIDAY, 30 TH JUNE<br />
<strong>2017</strong><br />
MALTA’S<br />
BEST<br />
ENTREPRENEUR<br />
OF THE YEAR<br />
AWARDS<br />
<strong>2017</strong><br />
MALTA’S LARGEST AND INTERNATIONALLY RECOGNISED BUSINESS AWARDS<br />
Make <strong>2017</strong> the year where your personal life and professional life are finally treated equally.<br />
Work-life balance is the Yeti of the professional world – often discussed but rarely seen. And even<br />
the people who have claim to seen it, well, you probably don’t believe them anyway.<br />
In reality though, it is achievable. It’s just a skill, and like any other skill, there are best practices<br />
you need to learn to master it. Good thing for us, “Chaos Crusher” Dave Crenshaw has spent<br />
his career studying work-life balance to uncover those best practices, which he shared in his<br />
LinkedIn Learning course, Balancing Work and Life.<br />
Eight of those best practices are:<br />
1<br />
Create a line in the sand between<br />
work and personal time.<br />
A “line in the sand” is the time each day where you<br />
stop your work and start your personal life each<br />
day, Crenshaw said in his course.<br />
Not everyone needs the same “line in the sand”<br />
– for some people it might be 6 or 7, for some<br />
people it might be 4:30 and then back to work<br />
from 8 to 8:45, and then off again. The point is to<br />
have a clear line and honor it, Crenshaw said.<br />
2<br />
Schedule power-down time<br />
between that line in the sand.<br />
Once you hit your “line in the sand”, you should<br />
have some power-down time where you don’t<br />
immediately take up family <strong>res</strong>ponsibilities,<br />
Crenshaw said. For many people, this is the<br />
commute, where Crenshaw said it is essential to<br />
focus your mind on non-work related thoughts.<br />
If you don’t have a commute or your commute<br />
is short, there are other options. For example,<br />
you could exercise or do a hobby, Crenshaw said.<br />
Whatever you do, this 30-minute-or-so powerdown<br />
time will give you more energy for the <strong>res</strong>t<br />
of the day.<br />
3<br />
Create a tech-free sanctuary.<br />
One of the biggest threats to a good work-life<br />
balance is our phones and tablets, which are<br />
constantly buzzing with new texts and work<br />
emails. If you aren’t careful, you’ll get swal<strong>low</strong>ed<br />
up by all these updates and essentially be working<br />
all the time.<br />
To fix that, Crenshaw recommends having a tech-<br />
free sanctuary in your house. Maybe it’s your<br />
bedroom, so you aren’t checking email before bed.<br />
Also, when you are with your family, you should do<br />
your best to stay off your phone, Crenshaw said.<br />
This will make that time higher quality and it sends<br />
a message that they come first, not work.<br />
4<br />
Use just one calendar.<br />
One problem Crenshaw sees again and again is<br />
that people have multiple calendars – say one for<br />
work and one for personal – or no calendar at all.<br />
A better solution is to have just one calendar, he<br />
said.<br />
The reason is that you are just one person and<br />
you only have so much time in a week. By having<br />
one calendar, you hammer home that point home,<br />
Crenshaw said. Also, it’s easier to stay organised<br />
that way.<br />
5<br />
And don’t schedule every minute<br />
of that calendar.<br />
Along those lines, Crenshaw recommended not<br />
trying to fill up every minute of your calendar with<br />
tasks, meetings and appointments. Instead, give<br />
yourself time to handle the unexpected or even<br />
just to give you time to reflect.<br />
6<br />
Schedule your vacations well in<br />
advance and make a plan.<br />
Often, before we go on vacation, we work more<br />
and our work-life balance is thrown out-of-whack.<br />
To fix this, Crenshaw recommends scheduling your<br />
vacations as far in advance as possible and then<br />
planning accordingly.<br />
It’s also essential to keep your vacations free<br />
of work. This will actually al<strong>low</strong> you to be more<br />
productive when you get back, as often your best<br />
ideas come when you aren’t so consumed by the<br />
daily grind.<br />
7<br />
Proactively schedule time when you<br />
are hit with something unexpected.<br />
We all have unexpected events in our lives,<br />
whether they be positive or negative, which can<br />
drastically change your work-life balance. Using a<br />
positive example, your business suddenly booming<br />
is a great thing, but it can also mean more work<br />
and therefore affect your work-life balance.<br />
How should you handle unexpected events like<br />
this?<br />
First, acknowledge the unexpected event and<br />
realize the impact it’s going to have on your time.<br />
Then go to your calendar and literally schedule<br />
time to al<strong>low</strong> yourself to either process that<br />
unexpected event (if it’s negative) or make time for<br />
it (if it’s positive). The quicker you can make a plan<br />
for dealing with whatever the unexpected event is,<br />
the better you’ll be able to handle it.<br />
8<br />
Focus on <strong>res</strong>ults, not busyness.<br />
Finally, Crenshaw said the biggest key to having<br />
a great work-life balance is changing your<br />
perception. And that means focusing on <strong>res</strong>ults,<br />
instead of busyness.<br />
For example, you aren’t successful because you<br />
work 10 hours a day or even if you are a top-five<br />
salesperson at your company if that’s affecting<br />
other parts of your life. You’re successful if you<br />
are getting positive outcomes in all areas, meaning<br />
happiness in your job and happiness in your<br />
personal life.<br />
That means valuing both your personal and<br />
professional time equally. The quicker you do that,<br />
the quicker you’ll attain a lasting work-life balance.<br />
Along with time management and other business<br />
skills, LinkedIn Learning has thousands of courses<br />
on the latest tech and creative tools. <strong>MBR</strong><br />
Credit: LinkedIn Learning<br />
CELEBRATING<br />
6 YEARS<br />
OF ENTREPRENEUR<br />
EXCELLENCE<br />
INFO<br />
FOR FURTHER<br />
INFORMATION PLEASE<br />
CONTACT<br />
Margaret Brincat<br />
• M: 9940 6743<br />
•<br />
VISION, GROWTH AND PEOPLE<br />
40
Malta Business Review<br />
F&B INTERVIEW OF THE MONTH<br />
WASTE MANAGEMENT<br />
Malta Business Review<br />
BEYOND<br />
EXPECTATIONS...<br />
By Jean Paul Abela<br />
When sitting down with Noel Borg of Mannarinu Caterers, the conversation inevitably turns<br />
to the humble beginning of their catering business in the 1950s. Years later the business was<br />
inherited by the younger son Noel and his wife Bridget who nowadays along with their two<br />
sons manage a company committed to creating catering that surpasses expectations.<br />
“Going that extra mile for our clients has<br />
always been part of our vision as we seek<br />
to provide delicious food with added<br />
touches of class, creativity and quality,”<br />
says Noel Borg of Mannarinu Caterers.<br />
Nothing sets the tone of one’s celebration<br />
quite like an elegant, delicious menu.<br />
One of the most important choices one<br />
will make, as far as guests’ enjoyment is<br />
concerned, is the cuisine one chooses to<br />
offer. Whether one is having a reception<br />
with an offering of small bites and<br />
tasty treats, or planning out a refined,<br />
three-course meal – one must have full<br />
confidence in his wedding caterer.<br />
The hallmarks of Mannarinu caterers<br />
With over 50 years’ experience in the<br />
industry, Mannarinu and its highly trained<br />
team has the knowledge to guide it’s<br />
clientele to perfection. Mannarinu has keen<br />
attention to detail, high level of customer<br />
service coupled with a true sense of style in<br />
food display and table settings.<br />
The team is passionate about making every<br />
event an incredible experience, regardless<br />
of the size. Whether entertaining a few<br />
friends for a special occasion, hosting a<br />
substantial amount of guests for a lavish<br />
gala, or planning a garden wedding,<br />
dedicated staff will assist the clients’ needs<br />
and challenges before flawlessly planning<br />
the event.<br />
What kinds of cuisine does Mannarinu<br />
Caterers specialise in?<br />
Mannarinu is well known for its vast<br />
selection of food items, from traditional<br />
delicacies to recent innovations. All items<br />
are carefully produced locally from the<br />
finest and most natural ingredients with<br />
no added p<strong>res</strong>ervatives. Mannarinu can<br />
also customise menus to one’s unique<br />
taste. Food stations are a creative way to<br />
showcase the character of the new couple<br />
while wowing guests and pleasing an array<br />
of picky palates. Mannarinu’s signature<br />
dishes exquisitely fuse classic recipes<br />
along with innovative items. Guests may<br />
feast their eyes and bellies with spicy<br />
tuna, crazy crab, cooked salmon and Ebi<br />
kyuri at the Sushi table. The key to a show<br />
stopping coffee table is all in the detail and<br />
understanding on how best to display your<br />
delicacies. With over thirty types of mini<br />
petite fours and two chocolate fountains,<br />
our coffee table makes a statement at your<br />
wedding. The Cheese and Parma table<br />
includes cheeses from a variety of regions<br />
as well as quality salami and Parma ham.<br />
The Pasta table also offers an array of<br />
pasta accompanied with different sauces.<br />
For an extra touch of class and celebration,<br />
guests will have the opportunity to choose<br />
from a selection of whiskies from the<br />
Whisky Bar.<br />
The key to a show stopping<br />
coffee table is all in the detail<br />
and understanding on how<br />
best to display your delicacies<br />
Although Mannarinu’s past has been a<br />
celebration of success and the p<strong>res</strong>ent<br />
is very bright, the journey never stops.<br />
The future entails continuous hard<br />
work. "You're only as good as your last<br />
performance. The past is part of history<br />
but you have to build on last week or last<br />
night's performance to ensure the future<br />
remains strong,” explains Noel. <strong>MBR</strong><br />
All Rights Reserved / Copyright <strong>2017</strong><br />
Wasteserv acqui<strong>res</strong> National<br />
Champion status in the European<br />
Business Awards<br />
WasteServ Malta Ltd is<br />
one of the Maltese<br />
National Champions<br />
selected for The European Business<br />
Awards 2016/<strong>2017</strong>. The independent<br />
awards programme, sponsored by RSM<br />
International, now in its 10th edition, has<br />
tens of thousands of participants and this<br />
year spans 34 different countries.<br />
Wasteserv entered the competition<br />
under the Environmental and Corporate<br />
Sustainability award category and<br />
has been chosen after the first phase<br />
of judging. The independent panel<br />
evaluated participants on the core values<br />
of innovation, ethics and success and<br />
National Champions will now go through<br />
to the second stage of the competition,<br />
which also includes a public vote. You<br />
can watch our story & vote for us by<br />
Wednesday 1st March!<br />
http://www.businessawardseurope.<br />
com/vote/detail-new/the-awardfor-environmental-corporatesustainability-1/19836<br />
Wasteserv Chairman, Mr David Borg said,<br />
“It is truly an honour for Wasteserv to have<br />
been selected as a National Champion<br />
in this p<strong>res</strong>tigious competition. We are<br />
extremely proud of the work we’ve done<br />
so far to serve the local community and<br />
we are glad to see our achievements<br />
being recognised at this level in Europe.”<br />
Wasteserv’s success in improving<br />
drastically the waste management<br />
infrastructure in Malta over the past 2<br />
years formed the basis of the company’s<br />
entry into the competition. Between<br />
April 2015 and February 2016, Wasteserv<br />
Malta inaugurated 4 new facilities – a<br />
Civic Amenity site at Ta’ Qali, a central<br />
location in Malta, an Autoclave Rendering<br />
Plant complementing the incinerator<br />
facility in Marsa, an underground<br />
new waste facility in Gozo and finally<br />
the biggest achievement being the<br />
inauguration of the €50 million ‘Malta<br />
North’ facility located within the Magħtab<br />
Environmental Complex. In line with<br />
Wasteserv’s vision, a vision redefined<br />
fol<strong>low</strong>ing a rebranding exercise launched<br />
in July 2015, all these new facilities<br />
contribute to ‘creating <strong>res</strong>ources from<br />
waste’ either through the preparation<br />
of materials for recycling or through the<br />
generation of renewable energy from the<br />
treatment of non-recyclable waste. <strong>MBR</strong><br />
For further information:<br />
www.businessawardseurope.com<br />
www.wasteservmalta.com<br />
42 43<br />
www.maltabusinessreview.net
Malta Business Review<br />
BUSINESS TURNING POINT SERIES<br />
BeSmartOnline!<br />
Malta Business Review<br />
BeSmartOnline!<br />
continues the fight<br />
against online risks:<br />
Funds allocated for<br />
the 4th phase of<br />
the BeSmartOnline!<br />
project. A number of<br />
initiatives planned to<br />
be implemented over<br />
the next 30 months<br />
Lessons all entrepreneurs can learn from business pivots<br />
By Nathalie Clarkson<br />
According to one estimate, as many as 20 per cent of businesses have undergone a significant transformation as they<br />
have grown. Whether your business is looking to pivot or not, there are important lessons to be learnt from this trend.<br />
Are you at a turning point in your life or career? Then read on to find the inspiration for making the most of it.<br />
Listen to your<br />
customers<br />
No matter what<br />
kind of product<br />
or service you’re<br />
running you need<br />
to know what your<br />
customers think of it. Photo<br />
sharing service Flickr started<br />
life as an online roleplaying<br />
game, but they realised that<br />
the most popular part of their<br />
offering was the small photo<br />
sharing element. When it came<br />
to looking at pivoting, it was<br />
clear to the team what direction<br />
the product should be going in<br />
as they knew what their users<br />
liked.<br />
“It turned out the fun was in the<br />
photo sharing,” Caterina Fake,<br />
co-founder of Flickr, said in a<br />
2006 interview with USA Today.<br />
“Had we sat down and said,<br />
‘Let's start a photo application,’<br />
we would have failed. We would<br />
have done all this <strong>res</strong>earch and<br />
done all the wrong things.”<br />
Take inspiration<br />
from everything<br />
Had Howard<br />
Schultz not<br />
travelled to Italy<br />
in 1983, your<br />
morning coffee<br />
could look very<br />
different. The Starbucks CEO<br />
was inspired by the European<br />
coffee shops that he visited<br />
to change the direction of the<br />
business.<br />
"I saw something in Italy which<br />
was the genesis of it all,”<br />
Schultz said in a 2013 interview<br />
with ABC CBN. “What I saw<br />
was people coming together<br />
and human connection over<br />
coffee and it was the romance<br />
of the beverage that was the<br />
genesis of the idea.”<br />
In the same way,<br />
entrepreneurs should always<br />
be aware of what they're<br />
seeing and experiencing and<br />
consider how it could affect<br />
their business.<br />
Think outside<br />
the box<br />
N i n t e n d o<br />
might now be<br />
synonymous with<br />
video games but<br />
the company’s roots<br />
are actually in trading cards.<br />
Between the years of 1889 and<br />
1956, the company exclusively<br />
created playing cards. It wasn’t<br />
until they found themselves<br />
struggling to survive in the<br />
Japanese toy market in 1966<br />
that the company developed its<br />
first product, an extending arm<br />
released as the ‘Ultra Hand’ in<br />
time for the Christmas rush. It<br />
sold over a million units.<br />
However, the story goes that<br />
this toy would never have been<br />
created had it not been for<br />
maintenance engineer Gunpei<br />
Yokoi who was <strong>res</strong>ponsible for<br />
fixing conveyor belts at the factory.<br />
He developed the product for his<br />
own entertainment. However,<br />
spotting it in the factory was<br />
potentially the best move Hiroshi<br />
Yamauchi, p<strong>res</strong>ident of Nintendo<br />
at the time, made as Yokoi went<br />
on to create the Gameboy –<br />
one of Nintendo’s most popular<br />
products of all time.<br />
Stay ahead of the<br />
game<br />
Android started<br />
its life as a camera<br />
operating system<br />
that would al<strong>low</strong><br />
users to connect<br />
their camera to their PC.<br />
However, the team quickly<br />
realised that the sharp decline<br />
in camera ownership meant<br />
that their product was heading<br />
for a niche market. As such,<br />
they decided to pivot into<br />
mobile operating systems – a<br />
market where there was and<br />
is a huge potential for growth.<br />
“We decided digital cameras<br />
wasn't actually a big enough<br />
market,” said co-founder Andy<br />
Rubin. “I was worried about<br />
Microsoft and I was worried<br />
about Symbian, I wasn't<br />
worried about iPhone yet.”<br />
Launching with a mobile<br />
operating system in 2005 put<br />
Android significantly ahead of<br />
their major competitor Apple,<br />
which didn’t enter the market<br />
until 2007 – which offers an<br />
explanation as to why Android<br />
enjoyed a 88 per cent market<br />
share in 2016. <strong>MBR</strong><br />
Creditline: Virgin Group Digital<br />
Fol<strong>low</strong>ing the successful application<br />
for EU funds under Connecting<br />
Europe Facility, the fourth phase of<br />
the BeSmartOnline! project was officially<br />
launched during a p<strong>res</strong>s conference held<br />
this morning.<br />
This marks yet another important<br />
milestone for the consortium, which<br />
can now continue its work as the ‘Safer<br />
Internet Centre’ in Malta.<br />
BeSmartOnline! has been the national<br />
flagship initiative that promotes the<br />
safer use of the Internet for the past<br />
six years. These funds will al<strong>low</strong> it to<br />
carry on this mission over the next 30<br />
months. The project is coordinated by<br />
the Malta Communications Authority and<br />
implemented through a consortium made<br />
up of the Foundation for Social Welfare<br />
Services, the Office of the Commissioner<br />
for Children, and the Directorate for<br />
Quality and Standards in Education (DQSE).<br />
The overarching mission of the consortium<br />
is to proactively safeguard the well-being<br />
of children as they navigate and explore<br />
the Internet in order to ensure a positive<br />
online experience. It also aims to help<br />
children fully recognise and reap the<br />
benefits of the many opportunities that<br />
the Internet can p<strong>res</strong>ent. This is done<br />
through the implementation of a number<br />
of awareness-raising and educational<br />
initiatives targeting children and their<br />
supporting networks, particularly parents,<br />
carers, and educators. In this regard, the<br />
learning objectives and outcomes of the<br />
Personal, Social and Career Development<br />
(PSCD) subject, which focus on digital<br />
citizenship, are instrumental in reaching<br />
all students within compulsory schooling.<br />
Appoġġ, through the Foundation for Social<br />
Welfare Services, has been offering the<br />
services of a helpline, which is provided<br />
through the national supportline 179,<br />
through which the general public,<br />
especially children, carers and educators,<br />
can seek help in the event that they have<br />
fallen victim to, or encounter cases of<br />
online risk. The helpline has had significant<br />
impact, receiving over <strong>27</strong>0 calls in 2016,<br />
with cyberbullying and sexting topping the<br />
reasons for support.<br />
Aġenzija Appoġġ also administers a hotline,<br />
an online portal accessible through www.<br />
childwebalert.gov.mt where individuals<br />
can report websites containing images<br />
or videos depicting child sexual abuse<br />
material (CSAM) . In 2016, approximately<br />
32 web pages containing over 3200 child<br />
sexual abuse images were analysed and<br />
inputted in the iCCAM platform. Through<br />
this platform the Maltese Hotline alerts<br />
international colleagues about CSAM<br />
hosted on their countries’ servers. As<br />
of last year, the hotline also started<br />
contributing to the ICSE (International<br />
Child Sexual Exploitation) image database<br />
managed by Interpol.<br />
A number of <strong>res</strong>ources developed over<br />
the past year were also p<strong>res</strong>ented during<br />
the launch. Resources included: a digital<br />
game that promotes critical thinking<br />
and which has since been installed on<br />
all tablets distributed in primary schools.<br />
The PSCD section with the Department of<br />
Curriculum developed workbooks for all<br />
students in years 3, 4 and 5.<br />
Commenting during the launch,<br />
Minister Emanuel Mallia highlighted the<br />
importance of finding the right balance<br />
between on the one hand harvesting an<br />
economic environment that supports the<br />
proliferation of innovative technologies<br />
and services and, on the other hand,<br />
instilling the necessary skill set in the<br />
younger generation and the supporting<br />
community to ensure a healthy and positive<br />
digital experience, without engendering a<br />
sense of fear of technology. ‘Our aim is<br />
to ensure that everyone fully enjoys the<br />
benefits of technology. Whilst the benefits<br />
are plentiful, risks are still a reality and<br />
they need to continue to be add<strong>res</strong>sed.<br />
This project, together with other initiatives<br />
such as the Malta Security Strategy, which<br />
will be launched in the coming weeks,<br />
contribute to making the Internet a safe<br />
place for our users. It is heartening for me<br />
to see such collaboration between entities<br />
and the truly positive outcomes that are<br />
<strong>res</strong>ulting,’ continued the Minister.<br />
On his part, Minister Evarist Bartolo<br />
lauded the initiatives being undertaken<br />
and how these are fully supporting<br />
and complementing the digital literacy<br />
programme. ‘The synergies created<br />
between the BeSmartOnline! project<br />
partners and numerous education<br />
departments it has worked with over the<br />
years are truly commendable and proof<br />
that pulling the same string can really<br />
render <strong>res</strong>ults. Although digital natives,<br />
our students still need to understand and<br />
appreciate the need for proper online<br />
conduct—it is not a technology issue, but<br />
rather a behavioural one. Just as we teach<br />
them the rules of the street, we need to<br />
instil the same mindset for the online<br />
world. The BeSmartOnline! project has<br />
been instrumental in this regard and the<br />
initiatives rolled out over the years have<br />
truly complemented our digital literacy<br />
programme.’<br />
Minister Michael Farrugia made<br />
reference to the importance of a strong<br />
support system and the indispensable<br />
services offered by the helpline 179 and<br />
the hotline. ‘Education and technical<br />
knowledge are both critical elements<br />
that need to be add<strong>res</strong>sed in a coherent<br />
manner and it is highly reassuring to see<br />
that the BeSmartOnline! Project is doing<br />
exactly this. <strong>MBR</strong><br />
Creditline: Doi/The Ministry For Competitiveness<br />
And Digital, Maritime And Services Economy<br />
44 45<br />
www.maltabusinessreview.net
Malta Business Review<br />
MARKETING<br />
MARKETING<br />
Malta Business Review<br />
A<br />
new generation of businesses (new<br />
technologies, new business models,<br />
new leadership) is emerging to<br />
add<strong>res</strong>s a new generation of customers<br />
(new audiences, new geographies, new<br />
aspirations). Marketing exists to connect<br />
businesses and customers, in relevant and<br />
profitable ways.<br />
A new approach to marketing is therefore<br />
required. Some of the new approaches,<br />
and maybe the language, will be familiar.<br />
But not all, and not joined up as a<br />
fundamental approach to driving business<br />
performance. Together, some call it<br />
Marketing 4.0 or Exponential Marketing,<br />
but whichever labels you apply, it involves<br />
a seismic shift in philosophy and practice.<br />
It fundamentally challenges every<br />
marketer who still turns first to their<br />
strategic plan. And then to their advertising<br />
agency, or even their web developer.<br />
It is fundamentally digital in mindset,<br />
but human as well as technological. It<br />
demands analytical thinking, content and<br />
networks, but also vision and creativity.<br />
It requi<strong>res</strong> new types of leaders, and a<br />
new mindset for every marketer. It is built<br />
around 7 transformations. These are the<br />
“new rules of marketing” ...<br />
The New Rules of<br />
MARKETINGBy Peter Fisk<br />
4. Brand Storytelling<br />
Forget brands built around<br />
who you are – brand logos,<br />
slogans and ownership.<br />
People engage with brands<br />
about them, brands that<br />
reflect their aspirations, and<br />
brands that connect them<br />
with other people who share<br />
their values and aspirations.<br />
Brand stories are living<br />
fables, encouraged by the<br />
company, but interpreted and<br />
spread by people to people.<br />
Content must be realtime and<br />
relevant, and keep moving<br />
forwards. Encouraged but not<br />
controlled. Inspiring, human<br />
and memorable.<br />
5. Social Influencers<br />
Forget advertising, whether a<br />
TV campaign with 30 second<br />
slots, or even personalised<br />
mailings – people are not<br />
listening, and they don’t<br />
trust you. Instead they trust<br />
people like them, friends and<br />
peers. Word of mouth in a<br />
digital world, PR and celebrity<br />
endorsement is replaced by<br />
Instagramers or Youtubers<br />
who they trust. Brand stories,<br />
advocates, and community<br />
building help to guide and<br />
shape this influence.<br />
6. Enabling Experiences<br />
Forget customer experiences<br />
as a semi-automated series of<br />
incentivised touchpoints built<br />
around the “sale”, think instead<br />
from a customer’s perspective.<br />
Think about the experience<br />
they have – the outcomes, not<br />
the inputs, what they do not<br />
what you do. Which is usually<br />
more about how they use,<br />
apply and exploit the products<br />
and services which they buy,<br />
rather than the purchase itself.<br />
Use their language, think about<br />
their experience, and how they<br />
use, store, apply and even dispose<br />
of products and services.<br />
Enable them to achieve more.<br />
7. Exponential Growth<br />
Forget an obsession with sales<br />
volumes, even revenues, which<br />
are the short-term measure<br />
of sales people. Marketers<br />
should be focused on growing<br />
the business – profitably and<br />
sustainably – creating a better<br />
business future, and a longterm<br />
platform and guide for<br />
customers. Think profitably.<br />
Think growth. Think economic<br />
value creation. Exponential<br />
growth is now the expectation<br />
of investor, achieved by<br />
harnessing the power of<br />
branded networks, social<br />
influence and agile business<br />
models. Fast, exciting and<br />
rewarding.<br />
1. Growth Hacking<br />
Forget strategic planning that is s<strong>low</strong>,<br />
structured and stable – instead think<br />
of strategy like a portfolio of fast and<br />
relentless experiments, seizing and shaping<br />
the best opportunities for growth. It still<br />
needs direction and choices – a vision still<br />
matters, making sense of change, having<br />
a clarity purpose, and a defined context<br />
in which to hack. Strategy becomes agile<br />
and creative, outside in, big ideas and<br />
small experiments, driven by changing<br />
markets and customer aspirations, rather<br />
than fixed by your own capabilities and<br />
products.<br />
2. Customer Analytics<br />
Forget mass-market segmentation,<br />
whether geographic, demographic or<br />
anything else. People are individual,<br />
and don’t want standardised solutions.<br />
The power of big data, connecting and<br />
interpreting, automating and exploiting<br />
– together with more qualitative and<br />
creative insights through customer<br />
immersion and “design thinking” – is<br />
used to focus, engage, customise, deliver,<br />
support, enable the right customers over<br />
time. Linking to the hack culture, is the<br />
ability to keep learning, about people,<br />
about yourself, and what works.<br />
3. Platform Innovation<br />
Forget innovation around a product, or<br />
even a service. Think strategically about<br />
how you can shape the market, in particular<br />
the platform that engages buyers and<br />
sellers, suppliers and distributors. Business<br />
model innovation, channel innovation,<br />
price innovation, then fol<strong>low</strong>. Innovation<br />
is about shaping the market and all its<br />
dynamics to your advantage, whilst also<br />
personalised for each individual through<br />
micro-innovation – collaborative and<br />
customised solutions and experiences.<br />
These new rules of marketing, and specifically<br />
the 7 transformations, are the cornerstones<br />
of my next book and also of a new range of<br />
inspiring keynotes and practical workshops.<br />
We explore each mantra in detail, with<br />
detailed case studies together with the tools<br />
and partners for action.<br />
a provocative challenge for change. Of<br />
course, solutions are not black and white.<br />
Every business still has a mix of structured<br />
and hacked strategy, uses a box of earned<br />
and paid media, and has a balance of push<br />
and pull. But it is a rapidly changing area,<br />
a revolution.<br />
the future, engages the customer and<br />
aligns the organisation to deliver. It is the<br />
growth engine, the innovation catalyst and<br />
customer champion. Markets are changing<br />
at incredible speed, requiring new agility<br />
and new capability.<br />
Whilst of course, every market and every<br />
business is different, the 7 mantras are<br />
Marketing is the driving force of business<br />
– it moves the business forwards, shapes<br />
There has never been a more exciting time<br />
for marketing, or to be a marketer.<br />
<strong>MBR</strong><br />
46 47<br />
www.maltabusinessreview.net
Malta Business Review<br />
ECA REPORT<br />
Malta Business Review<br />
European Court of Auditors Report<br />
2015 p<strong>res</strong>ented to Parliament<br />
Photo: DOI / Pierre Sammut<br />
“For a reform to work it has to be built<br />
on transparency and accountability,<br />
together with strong financial foundations.<br />
Citizens cannot possibly begin to consider<br />
trusting the European Union Institutions<br />
unless they are convinced that we are<br />
appropriately taking care of their money<br />
and that we are keeping a good account of<br />
how we are doing this.”<br />
This was the message delivered by Mr Leo<br />
Brincat, Member of the European Court<br />
of Auditors (ECA) when on Monday, 12<br />
December 2016 he p<strong>res</strong>ented the Court’s<br />
Annual Report covering the financial year<br />
2015 to Deputy Speaker Ċensu Galea<br />
and then to a joint session of the Public<br />
Accounts Committee, the Economic and<br />
Financial Affairs Committee as well as the<br />
Foreign and European Affairs Committee.<br />
The ECA Member said that European<br />
citizens are inte<strong>res</strong>ted in the source of<br />
the budgetary funds; how they are spent;<br />
what is the p<strong>res</strong>ent financial situation; and<br />
whether the accounts rep<strong>res</strong>ent a true and<br />
fair view, as well as whether the estimated<br />
overall level of error remains significantly<br />
above the materiality th<strong>res</strong>hold of 2%.<br />
People want to know whether the<br />
European Institutions are transparent in<br />
the way they manage these finances, even<br />
more so at a time when public inte<strong>res</strong>t<br />
and awareness are becoming increasingly<br />
evident as to the determination of whether<br />
there were errors, waste and/or potential<br />
fraud during the past financial year. Saying<br />
that the level of error stood at 3.8% does<br />
not mean that €5bn from the EU finances<br />
were wasted. What would have actually<br />
happened is that, at the testing stage the<br />
ECA would have verified whether the EU<br />
budget was used in accordance with their<br />
intended purpose, whether the costs<br />
charged were properly calculated, and<br />
whether the eligibility conditions were<br />
adhered to. In fact, the percentage of 3.8%<br />
refers specifically to this.<br />
The report clearly shows that errors relate<br />
mainly to ineligible costs being declared<br />
by beneficiaries. Additionally, some of<br />
the projects that were examined did not<br />
meet eligibility conditions set out in the<br />
regulations and/or the national eligibility<br />
rules.<br />
Mr Brincat announced that while the<br />
European administrative expenditure had<br />
the <strong>low</strong>est estimated level of error (0.6<br />
%), the Court again found the highest<br />
estimated levels of error in EU spending<br />
under ‘Economic, social and territorial<br />
cohesion’ (5.2 %) and for ‘Competitiveness<br />
for growth and jobs’ (4.4%). The ECA<br />
Member remarked that if the Commission,<br />
authorities in the Member States or<br />
independent auditors had made use of<br />
all information available to them, they<br />
could have prevented, or detected and<br />
corrected a significant proportion of the<br />
errors before the related payments were<br />
made.<br />
Mr Brincat highlighted the exp<strong>res</strong>sed EU<br />
Audit’s concern that the Commission has<br />
not produced a cash f<strong>low</strong> forecast covering<br />
the next 7 to 10 years. He made this<br />
remark in view that such a forecast would<br />
EDITOR’S<br />
Note<br />
enable stakeholders to anticipate future<br />
payment requirements and budgetary<br />
priorities. The ECA Member also welcomed<br />
the spending of EU money in line with the<br />
principles of sound financial management:<br />
economy, efficiency and effectiveness.<br />
In the 2015 Annual Report, Malta is<br />
mentioned generally in the context of the<br />
reporting data on all 28 Member States,<br />
as well as being sampled for reviews in<br />
the Court’s assessment of the European<br />
Commission’s control systems. During<br />
2015, no specific findings on Malta were<br />
reported in the Annual Report.<br />
During the meeting, Mr Brincat explained<br />
in detail the Court’s commitment to<br />
further renew and strengthen itself, after<br />
pointing out that the ECA is p<strong>res</strong>ently<br />
facing a number of new challenges and<br />
opportunities.<br />
He concluded by saying that as the Court<br />
is approaching the 40-year mark since its<br />
establishment, its commitment towards<br />
its inter-institutional enhancement and<br />
strengthened links with stakeholders is<br />
increasing thus, helping it to continue<br />
working towards fulfilling its own mission<br />
<strong>MBR</strong><br />
statement.<br />
Creditline: House of Rep<strong>res</strong>entatives/DOI<br />
The European Court of Auditors is the independent external audit institution of the European Union<br />
established by the EU Treaty. The ECA plays a crucial role in ensuring effective EU accountability to<br />
citizens for the public funds put at stake to meet EU objectives by identifying risks to the financial inte<strong>res</strong>ts<br />
of EU citizens; providing independent assurance on EU financial management; and advising policy makers<br />
on how to improve the use of EU public funds. The Court of Auditors operates as a collegiate body of 28 Members, one from<br />
each Member State. The college adopts: Annual reports (on the EU budget and the European Development Funds, covering the<br />
reliability of accounts, the regularity of income and spending and performance issues); Specific annual reports (on EU agencies and<br />
bodies); Special reports (assessing the economy, efficiency and effectiveness of selected areas of the EU budget); Landscape reviews<br />
(on selected areas of EU policy, analysing broader challenges and long term trends) and Opinions (on new or revised rules and<br />
regulations with financial impact audit reports and opinions by the Court). ECA’s publications contribute to public oversight of<br />
the implementation of the EU budget and to informed decision-making on EU governance arrangements, policy and programme<br />
design and the allocation of EU funds. Spending totalled €145.2 billion in 2015, or around €285 for every citizen. It rep<strong>res</strong>ented 2.1<br />
% of the total general government spending of EU Member States. The full 2015 Annual Report of the European Court of Auditors,<br />
together with other materials, including photos and videos, can be accessed on the ECA website at http://www.eca.europa.eu/en/<br />
Pages/AR2015.aspx<br />
48 49<br />
www.maltabusinessreview.net
Malta Business Review<br />
iGAMING: THE EMPLOYER BRANDING TOUR<br />
Videoslots.com<br />
A workplace away from work<br />
FOR SALE<br />
buy. sell. rent. consult.<br />
FOR SALE<br />
By Thomas Mahoney<br />
We thank you for tuning in again to read about the forefront of employer branding. Our tour’s second<br />
stop takes us to a leading iGaming employer brand…Videoslots.com<br />
Videoslots.com boasts to be the<br />
world’s largest and most innovative online<br />
casino offering players over 1800 games,<br />
exceptional customer service and unique<br />
featu<strong>res</strong> like no-other. A Casino that is<br />
constantly coming up with Innovative<br />
products and ideas such as the unique<br />
‘Battle of Slots’. The organisation’s core set<br />
of values are introduced by the fol<strong>low</strong>ing<br />
phrase; ‘Tickle the Family’, which stands<br />
for; Transparency, Innovative, Creative,<br />
Kick-ass, Leaders, Entrepreneurs and<br />
Family members.<br />
When walking through the front door at<br />
Videoslots.com the instant feeling one gets<br />
is purely colourful and fun! It feels exactly<br />
like walking into a luxurious home with the<br />
most part of it being an office. Visually it’s<br />
an attack of cool ideas such as mural art,<br />
office décor and an overlay of green colour<br />
coming from numerous clusters of plants<br />
at the end of each line of working stations.<br />
This organisation really embraces their<br />
employer branding concepts! Videoslots.<br />
com promises anyone who forms part<br />
of the ‘family’ to benefit from working<br />
in brand new offices and in an eclectic<br />
ambience with great flexibility.<br />
I was toured around by Lorraine, the Events<br />
and Office Coordinator and Ulle, the Chief<br />
Operating Officer whom both introduced<br />
me to their growing concepts. As their<br />
slogan states, working there just feels like<br />
a work place away from work, rather than<br />
spending another day at a regular office.<br />
On route to satisfying their objective they<br />
have created a cosy and comfortable<br />
working atmosphere. This also contributes<br />
to maximize the best working attitudes<br />
whereby staff members are extremely<br />
friendly, and everyone is ready to assist<br />
other team members to highly perform<br />
and prog<strong>res</strong>s well.<br />
By now you would think, ‘WOW, this is just<br />
great’. Wait, there is more! The top floor is<br />
mostly dedicated to employee recreation.<br />
One can find a stunning terrace with ample<br />
space, chairs and tables for recreational<br />
purposes, from where one could also<br />
work or also hold team meetings or team<br />
events.<br />
The product brand is very customer<br />
centric, and the customer support agents<br />
are highly trained on all the products and<br />
EDITOR’S<br />
Note<br />
services Videoslots.com offers before they<br />
are permitted to effectively participate on<br />
the job and get in contact with customers.<br />
Employees also partake in ‘team leader’<br />
battles giving support agents a platform<br />
to showcase their skills sets and abilities,<br />
which gives them a chance to get noticed<br />
and to climb a step higher in their personal<br />
career at Videoslots.com.<br />
Managers are continually trained on<br />
leadership skills by an external company<br />
using the company’s values to develop<br />
themselves, as well as to perform better<br />
and achieve more for the organisation.<br />
Most recently, two of the casino’s senior<br />
members were chosen as the winners<br />
of iGaming Idol in Malta. They picked up<br />
awards for ‘Product Idol of the Year’ and<br />
‘Customer Service Idol of the Year’.<br />
Amongst the most generous employer<br />
branding initiatives here are some of the<br />
most prominent ones; a generous annual<br />
fitness al<strong>low</strong>ance; ‘My Plan’ development<br />
program; flexible working hours’ scheme;<br />
f<strong>res</strong>h fruit daily; weekly get together over<br />
a fully-fledged breakfast; monthly team<br />
events, social parties, days out, and other<br />
activities; VIP tickets to cultural events,<br />
festivals, and football matches; travel car<br />
al<strong>low</strong>ance; transport for shift workers; and<br />
last but not least an annual company trip<br />
(this year featured an all-inclusive 5*****<br />
trip to the colourful city of Barcelona).<br />
When walking through the<br />
front door at Videoslots.com<br />
the instant feeling one gets is<br />
purely colourful and fun<br />
My visit narrative says it all, there is<br />
merely anything else I can add. Would I<br />
recommend this organisation? Absolutely<br />
YES! Videoslots.com is a true employer<br />
branding example. TOP! <strong>MBR</strong><br />
Thomas Mahoney (MBA) is an Employer Branding Specialist & Project Director<br />
at the Malta Gaming Authority.<br />
C<br />
M<br />
Y<br />
CM<br />
MY<br />
CY<br />
CMY<br />
K<br />
IKLIN FULLY DETACHED BUNGALOW<br />
€1,800,000 PP16117<br />
Located in a highly sought after area Spread over 1150sqm of<br />
land Dining/sitting room Spacious kitchen leading to outdoor<br />
area Pool with a large BBQ area Three bedrooms Three<br />
bathrooms An interconnecting three car garage Underlying,<br />
fully equipped, three bedroom flat-let Surrounding garden<br />
BORMLA<br />
PALAZZINO<br />
€550,000 PP20142<br />
Baroque style, semi-converted 17th Century Palazzino Ideal as<br />
a Boutique Hotel Central courtyard, Sala Nobile, barrel vaulted<br />
high ceilings, birth room, rain water cellar Airspace Can be<br />
developed further<br />
ST.JULIAN’S FULLY DETACHED VILLA<br />
€3,500 MONTHLY LFDV38296<br />
Furnished, fully detached villa Open plan kitchen / living /<br />
dining Pool with decking area Three/four bedrooms<br />
Three bathrooms Fully equipped flat-let<br />
SALES<br />
48, Erin Serracino Inglott Street, Iklin, Malta<br />
(+356) 2258 4000 (+356) 9999 9983<br />
FOR SALE<br />
TO LET<br />
SLIEMA<br />
APARTMENT<br />
€1,550,000 PP19781<br />
Forms part of the p<strong>res</strong>tigious Tigne Point development An<br />
internal are of 177sqm Entrance hall Fully equipped Kitchen<br />
including Siemens appliances Living/dining area leading to a<br />
spacious front terrace with open sea views Two bedrooms Two<br />
bathrooms (one en suite) 2 parking spaces Highly finished<br />
including parquet/marble flooring, intelligent lighting, motorized blinds<br />
VALLETTA<br />
CORNER APARTMENT<br />
€300,000 SAPT38316<br />
Meters away from the heart of Valletta Brand new <br />
73sqm Corner apartment Fully finished Served with<br />
lift<br />
ST.JULIAN’S<br />
APARTMENT<br />
€1,450 MONTHLY PP18834<br />
Five minutes away from St. Julian’s promenade Brand new,<br />
highly finished Fully furnished Spacious kitchen / living /<br />
dining area leading to a front balcony with distant sea views <br />
Three bedrooms Two bathrooms Optional garage<br />
LETTINGS<br />
65, St George's Road, Spinola Bay, St Julian’s, Malta<br />
(+356) 2258 4010 (+356) 9999 9983<br />
FOR SALE<br />
TO LET<br />
50<br />
info@benestates.com<br />
benestates.com
Malta Business Review<br />
ECONOMY<br />
BUSINESS APPOINTMENT<br />
Malta Business Review<br />
An Economy<br />
Mediterrania Capital Partners appoints<br />
Senior Director for Sub-Saharan Africa<br />
that is facing a<br />
number of threats<br />
I<br />
n its staff concluding Statement on Malta published on 16 December 2016, the International<br />
Monetary Fund (IMF) gave its assessment on the Maltese economy. Similar to the assessment<br />
given by the Central Bank earlier on this month, the IMF’s report speaks of an economy that<br />
is growing but also of an economy that is facing a number of threats.<br />
The IMF in particular makes reference to:<br />
• the possible negative effects of Brexit on the Maltese economy;<br />
• the economic and financial risks arising out of the rapid increase in property over the<br />
past months;<br />
• the need for more <strong>res</strong>ponsible and sustainable public spending;<br />
• the delay in Air Malta’s <strong>res</strong>tructuring;<br />
• Enemalta’s elevated government-guaranteed debt;<br />
• the need to incentivise long-term savings and for further measu<strong>res</strong> to align the<br />
effective retirement age with life expectancy;<br />
• challenges being faced by the local banking sector;<br />
• the need to bolster further the <strong>res</strong>ilience of the private sector;<br />
• the need for ongoing vigilance of the financial sector particularly in view of the<br />
demand for the Individual Investment Programme (IIP) and of the importance played<br />
by the financial services sector and gaming sector to the local economy.<br />
None of these points were made by the<br />
DOI which was, again, selective in its report,<br />
seeking to hide from the public the full picture<br />
of what is being stated by the IMF.<br />
These points were raised by the Nationalist<br />
Party over the past months. Our economy<br />
could very well be skating ahead but one<br />
needs to constantly check on the thickness<br />
of the ice beneath our feet. It is clear from<br />
both the IMF and Central Bank’s reports that<br />
there are cracks in the system which need<br />
to be add<strong>res</strong>sed while there is still time. Left<br />
unchecked, these cracks could lead to very<br />
serious consequences and threaten the<br />
sustainability of our economy.<br />
The Nationalist Party is again calling on<br />
government to take heed of these challenges<br />
and of the challenges highlighted by the<br />
Central Bank of Malta rather than focusing<br />
solely on the selective economic indicators.<br />
The Nationalist Party furthermore refers to<br />
its policy papers, in particular to the two prebudget<br />
documents, to the policy paper An<br />
Economy for the People and the Policy for<br />
Retailers, containing hundreds of proposals<br />
that can help boost the country’s economic<br />
performance even further.<br />
The Nationalist Party reiterates the need for a<br />
stronger focus on small economic activities, in<br />
particular to start-ups and innovation-driven<br />
enterprises. The future of our economy<br />
cannot be sustained merely on the back<br />
of consumption trends but needs to be<br />
based on substance and a strong local SME<br />
environment. <strong>MBR</strong><br />
Creditline: From PR signed by Mario de Marco,<br />
Deputy Leader of Parliamentary Affairs &<br />
Shadow Minister for Finance, PN; Claudio Grech,<br />
Shadow Minister for the Economy, PN.; PN Media<br />
INSIST PN<br />
OFFICIALS<br />
Strategies to<br />
combat the dangers,<br />
drive productivity<br />
enhancements, and<br />
build p<strong>res</strong>ent and future<br />
prosperity.<br />
31 <strong>January</strong> <strong>2017</strong>, Malta/Barcelona.<br />
Mediterrania Capital Partners, the<br />
regional Private Equity firm focusing on<br />
growth investments for companies in<br />
North African and Sub-Saharan countries,<br />
announces the appointment of Mr Pacôme<br />
Zahabi as Senior Director for Sub-Saharan<br />
Africa, based in Abidjan.<br />
With 20 years of professional experience in<br />
the finance industry in Africa, Mr Zahabi is<br />
<strong>res</strong>ponsible for identifying new investment<br />
opportunities and driving financial and<br />
risk analysis of potential projects. He is<br />
also in charge of the legal processes and<br />
negotiations related to new investments,<br />
for the monitoring of Mediterrania Capital<br />
Partners’ portfolio companies in the region<br />
as well as for the exit strategies.<br />
“We are delighted with the appointment of<br />
Mr Pacôme Zahabi to lead our operations<br />
in Sub-Saharan Africa. Mr Zahabi’s strong<br />
financial background and deep experience<br />
in a wide range of industries and markets<br />
are an enormous asset for Mediterrania<br />
Capital Partners, and make him the ideal<br />
candidate to drive our expansion plans in<br />
the region”, said Albert Alsina, CEO and<br />
Mr Pacôme Zahabi, Senior Director for the Sub-Saharan region, Mediterrannia Capital Partners<br />
Managing Partner of Mediterrania Capital<br />
Partners.<br />
Prior to joining Mediterrania Capital<br />
Partners, Mr Zahabi collaborated with<br />
La TULIPE Group, an Independent<br />
Advisory and Investment Banking Firm<br />
which offers financial services to Private<br />
and Corporate Sector Organisations,<br />
Institutional Investors, Family Offices, and<br />
Governments. Mr Zahabi also worked<br />
at NSIA Participants, SA, where he was<br />
Group Head Investments, and spent three<br />
years at UBA Group in different positions<br />
related to Credit Analysis, Global Investor<br />
and Securities Services, and Business<br />
Development. Mr Zahabi also worked at<br />
the Central Depository & Settlement Bank<br />
(DC/BR) as Head Operations and Business<br />
Development for Ivory Coast and West<br />
Africa; and at the Bourse Régionale des<br />
Valeurs Mobilè<strong>res</strong> (BRVM) for Ivory Coast<br />
and West Africa, as CFO.<br />
Mr Zahabi is a graduate from ESLSCA,<br />
Paris, France; and holds a Master’s Degree<br />
in Audit and Consulting from ESCP-AP from<br />
Paris, France. He speaks English, French<br />
and Spanish. <strong>MBR</strong><br />
About Mediterrania<br />
Capital Partners<br />
Mediterrania Capital Partners (www.<br />
mcapitalp.com) is a dedicated Private Equity<br />
firm focusing on growth investments in<br />
SMEs and mid-cap companies in Africa.<br />
The company started its operations in 2008<br />
under “Fons Mediterrania Capital” and since<br />
2013 is an independent General Partner<br />
Structure. With offices in Abidjan, Algiers,<br />
Barcelona, Casablanca, Tunis, and Malta,<br />
Mediterrania Capital Partners takes an<br />
intensely proactive, hands-on approach to<br />
implementing its growth strategy by leading<br />
the governance of the companies and driving<br />
the key internal value creation process.<br />
The partners of Mediterrania Capital have<br />
extensive experience in managing companies<br />
spanning commercial experience, strategy<br />
formulation, finance, and operations.<br />
Consistent with its strategy, Mediterrania<br />
Capital Partners continues to search for<br />
SMEs with an equity value of €25 million<br />
to €400 million and expansion strategies<br />
into North African and Sub-Saharan African<br />
markets. Mediterrania Capital Partners is<br />
a regulated financial investment manager<br />
licensed by the Malta Financial Services<br />
Authority (MFSA). Mediterrania Capital II is<br />
also an MFSA regulated Private Equity Fund.<br />
For more information, please contact<br />
communications@mcapitalp.com.<br />
Website: www.mcapitalp.com YouTube<br />
channel: www.youtube.com/channel/UCmBxa-<br />
EDilIWakYJr1_J6SQ LinkedIn: www.linkedin.<br />
com/company/mediterrania-capital-partners<br />
52 53<br />
www.maltabusinessreview.net
Malta Business Review<br />
MALTA GOVERNMENT SECURITIES<br />
EU TOP STORY<br />
Malta Business Review<br />
Malta Government Securities<br />
<strong>2017</strong> Indicative Calendar<br />
Securities with maturity of more than one year<br />
Maximum amount of issuance<br />
The Treasury announces that the issuance<br />
of Malta Government Securities with<br />
maturity of more than one year for the<br />
financial year <strong>2017</strong> has been set not to<br />
exceed € 600 million.<br />
Purpose of issuance<br />
It is planned that the funds raised from the<br />
borrowing programme shall be applied to<br />
finance the Central Government borrowing<br />
requirements for <strong>2017</strong> including:<br />
• The redemption of five (5) MGS issues<br />
amounting to €371,824,689 which are<br />
due to mature as hereunder<br />
20th August<br />
<strong>2017</strong> € 71,963,700<br />
3.75% MGS<br />
<strong>2017</strong> (IV)<br />
• Financing of Central Government<br />
deficit estimated at €128.3 million; and<br />
• Effecting changes in the Central<br />
Government debt portfolio, as and<br />
when required, in line with the<br />
Government’s debt management<br />
policies.<br />
Types of issuance<br />
The issuance programme will be covered<br />
by the issue of three different types of<br />
securities:<br />
• The conventional fixed rate MGS;<br />
• The Floating Rate MGS (FR Bond)<br />
linked to the six month Euribor; and<br />
• Malta Government Savings Bonds<br />
The conventional fixed rate Malta<br />
Government Stock shall be the Treasury’s<br />
primary financial instrument by which to<br />
fund the central government borrowing<br />
requirements during the year <strong>2017</strong>.<br />
Maturity and terms of issuance of<br />
Malta Government Stocks<br />
The maturity structure of the <strong>2017</strong> MGS<br />
issues will be a mix of short and medium<br />
to long term MGS. The exact maturity and<br />
details on whether the offer will be for a<br />
new stock or a re-opening of an existing<br />
MGS will be announced one (1) to two<br />
(2) weeks prior to the opening of each<br />
issuance.<br />
The terms and conditions of MGS issues<br />
will be published in the Government<br />
Gazette prior to the actual date of each<br />
issue.<br />
Collective Action Clauses (CACs) in newly<br />
issued Malta Government Stocks<br />
In accordance with paragraph 3 of<br />
Article 12 of the modified version of<br />
The Treaty establishing the European<br />
Stability Mechanism (ESM), all new MGSs<br />
issued on or after 1st <strong>January</strong> 2013 will<br />
incorporate the Model Collective Action<br />
Clauses (CACs).<br />
Treasury Bills<br />
Antonio Tajani<br />
elected p<strong>res</strong>ident:<br />
“I will be a<br />
spokesman for the<br />
whole Parliament”<br />
Antonio Tajani was elected p<strong>res</strong>ident<br />
of the European Parliament on 17<br />
<strong>January</strong>, succeeding Martin Schulz.<br />
Tajani, an Italian member of the<br />
centre-right European People’s Party<br />
(EPP) group and vice-p<strong>res</strong>ident of<br />
the Parliament, received 351 votes in<br />
the fourth and final round of voting,<br />
compared to 282 votes for Gianni<br />
Pittella, the Italian leader of the S&D<br />
group. His term in office will end in<br />
2019, when the next elections for the<br />
European Parliament will be held.<br />
The election took four rounds of voting<br />
over 12 hours. At the p<strong>res</strong>s conference<br />
fol<strong>low</strong>ing the election, Tajani said: “This<br />
was a long day of democracy."<br />
The new p<strong>res</strong>ident also thanked his<br />
predecessor Martin Schulz for the work<br />
he did as well as the MEPs who voted<br />
for the other candidates, telling them he<br />
would be a "p<strong>res</strong>ident for everybody".<br />
Tajani said he would seek to ensure that<br />
Parliament would be strong and have its<br />
views heard by the Council, rep<strong>res</strong>enting<br />
national governments in the EU. He also<br />
said he dedicated his election to the<br />
victims of last year's earthquakes in Italy.<br />
The election on 17 <strong>January</strong> started at<br />
9.00 CET with speeches given by the<br />
candidates and concluded 12 hours<br />
later with the announcement of Tajani<br />
becoming p<strong>res</strong>ident. In addition to Pitella,<br />
the other candidates were Helga Stevens<br />
(ECR, Belgium), Jean Lamberts (Greens,<br />
UK), Eleonora Forenza (GUE/NGL, Italy)<br />
and Laurentiu Rebega (ENF, Romania).<br />
Guy Verhofstadt, the Belgian leader of<br />
ALDE, was also a candidate, but withdrew<br />
before the first in favour of Tajani. Tajani<br />
received the most votes in every round<br />
and the final round was only between<br />
him and Pittella. <strong>MBR</strong><br />
Tajani served in the Italian army and worked as a journalist before entering politics<br />
with Forza Italia. He was first elected to the European Parliament in 1994 and served<br />
as a spokesperson for Italian prime minister Silvio Berlusconi, the leader of Forza<br />
Italia, in 1994-95. He became the commissioner in charge of transport in 2008 and<br />
take over <strong>res</strong>ponsibility for the industry and entrepreneurship portfolio in 2010.<br />
Tajani, who holds a law degree and is married with two children, was re-elected as<br />
MEP in 1999, 2004 and 2014. Fol<strong>low</strong>ing his latest re-election he was elected vicep<strong>res</strong>ident<br />
of the European Parliament. He is the Parliament’s 30th p<strong>res</strong>ident and the<br />
15th since the first Parliament elections in 1979.<br />
Avoid unnecessary legal costs when chasing your debts<br />
5th<br />
September<br />
<strong>2017</strong><br />
FRN MGS<br />
<strong>2017</strong>(V)<br />
€25,000,000<br />
Alongside the conventional fixed rate<br />
MGS, the Treasury is expected to offer a<br />
limited amount of the Floating Rate MGS<br />
linked to the six-month Euribor via the<br />
auction system for institutional investors<br />
as well as a limited amount of Malta<br />
Government Savings Bonds for pensioners.<br />
Frequency of issuance<br />
• Auctions will continue to be held on<br />
a weekly basis, typically on Tuesday<br />
of the auction week.<br />
• The maturity structure of issues<br />
will include a mix of 28-day, 91-<br />
day, 182-day, <strong>27</strong>3-day and 364-day<br />
Treasury bills.<br />
Creditinfo P<strong>res</strong>sure Letters<br />
An alternative method of collecting money owed to you<br />
that is both Inexpensive and Effective<br />
6th<br />
November<br />
<strong>2017</strong><br />
4.25% MGS<br />
<strong>2017</strong> (III)<br />
€263,853,300<br />
Ex-Church Property Stock redeemable<br />
between 1st <strong>January</strong> <strong>2017</strong> and 31st<br />
December <strong>2017</strong><br />
7% MGS <strong>2017</strong> (I) € 668,998<br />
7% MGS <strong>2017</strong> (II) € 10,338,691;<br />
The Treasury intends to fund the financing<br />
requirements for <strong>2017</strong> over four (4) to five<br />
(5) issues. The first MGS issue is expected<br />
to be launched in February <strong>2017</strong>. The<br />
issuance of the Malta Government<br />
Savings Bonds is expected to be launched<br />
in the second half of <strong>2017</strong>. As part of its<br />
issuance strategy, the Treasury will need<br />
to retain the flexibility and capability to<br />
adapt quickly to changing market and<br />
other conditions and, where necessary,<br />
review and readjust the amount that will<br />
be allocated for each issue as well as the<br />
intervals of issuances.<br />
• The issuance is expected to focus on<br />
the 91-day and 182-day tenor.<br />
• An issuance calendar of Treasury<br />
Bills showing the tenor, the auction<br />
date and the issue (settlement) date<br />
will be published in the Government<br />
Gazette on a monthly basis for the<br />
next month.<br />
• The Treasury Bills Prospectus may<br />
be viewed under the Treasury Bills<br />
section on the Treasury’s website at<br />
www.treasury.gov.mt. <strong>MBR</strong><br />
Source: Ministry of Finance/DOI<br />
Close to €500,000 of<br />
debt paid back in 2016 alone<br />
2131 2344 - info@creditinfo.com.mt - www.creditinfo.com.mt<br />
Over 45,000 letters sent on behalf of<br />
companies and individuals.<br />
54 www.maltabusinessreview.net 55
Malta Business Review<br />
COMPANY PROFILE FITCH RATINGS<br />
Malta Business Review<br />
A Business<br />
IMPERATIVE<br />
By David Demicoli<br />
CasaSoft Ltd. is a team of highly creative<br />
designers, talented developers and<br />
strategic thinkers full of passion and<br />
innovation. CasaSoft’s aim is to help<br />
businesses expand digitally and online, by<br />
striving to deliver projects of exceptional<br />
quality. We build outstanding projects<br />
which are extremely user-friendly, highly<br />
functional and which deliver <strong>res</strong>ults.<br />
CasaSoft started off in Mark’s bedroom,<br />
the founder, who was fol<strong>low</strong>ing his<br />
dream of showing local businesses how<br />
to properly devise a digital strategy.<br />
Today, CasaSoft has moved to new offices<br />
and expanded its team to eight highly<br />
talented individuals.<br />
For CasaSoft, delivering high-quality<br />
services, providing innovative solutions,<br />
and sustaining the optimum customer<br />
satisfaction, was a vision set from the<br />
very early beginning. It realised from<br />
the early beginning that this was what<br />
customers were looking for. This has led<br />
to CasaSoft’s growth from an organisation<br />
which was securing a few local clients,<br />
to a leading organisation which is now<br />
providing solutions to a wide portfolio<br />
of high-profile, local and international<br />
clients.<br />
In September 2016, CasaSoft was<br />
selected as the National Champion in the<br />
European Business Awards, competing in<br />
the category for the ‘Award for Customer<br />
Focus’, which recognises organisations<br />
that have enhanced their prospects and<br />
profitability by putting the customer at<br />
the heart of their business. The EBA is<br />
Europe's largest business competition<br />
set up to celebrate business excellence<br />
and practice in the European business<br />
community. The second stage of this<br />
competition opened on <strong>January</strong> 9th <strong>2017</strong>,<br />
whereby the general public can vote for<br />
their most preferred company. You can<br />
support CasaSoft by watching their video<br />
and voting for them on the EBA website<br />
(www.businessawardseurope.com/vote/<br />
detail-new/malta/19095). Your support<br />
is greatly appreciated!<br />
In November 2016, CasaSoft also won the<br />
Malta’s Best in Business Award as the Best<br />
Online Web and Design Agency, for the 2nd<br />
consecutive year. This award is awarded to<br />
the best company providing the best digital<br />
landscape, designing great experiences for<br />
customers along the way.<br />
These are not CasaSoft’s first awards.<br />
Amongst the various awards, some of the<br />
other p<strong>res</strong>tigious awards were the two<br />
international Design Firms Awards in 2015<br />
and 2011 and The Best Flash Website Award<br />
in the Digital Arts 2009 Awards.<br />
CasaSoft invests strongly in the quality of<br />
service that it provides to its clients. This is<br />
reflected in their 100% money back guarantee<br />
which was launched in recent years. CasaSoft<br />
involves its valued clients throughout the<br />
entire project so as to be certain that it is<br />
shaped and developed with them, designing<br />
until clients are far more than happy, ensuring<br />
an outcome which meets and exceeds their<br />
requirements. CasaSoft provides its clients<br />
with a long-term strategy with a profitable<br />
return on investment.<br />
CasaSoft’s aim is to help businesses expand<br />
digitally - whether it is with design and<br />
branding, web design, web development,<br />
software development, web applications,<br />
and even marketing and strategy. They build<br />
outstanding projects which are extremely<br />
user-friendly, highly functional and which<br />
deliver <strong>res</strong>ults. This is all done with impeccable<br />
attention to detail which <strong>res</strong>ults in satisfied<br />
customers and exceptional solutions. Most<br />
of CasaSoft’s clients reach to them directly,<br />
either because they fall in love with their work<br />
or else because they are recommended by<br />
previous clients. This speaks volumes on how<br />
highly regarded CasaSoft is by its past and<br />
current customers. <strong>MBR</strong><br />
FIMBank welcomes<br />
Fitch Ratings upgrade<br />
Fitch Ratings has upgraded Malta-based<br />
FIMBank's Long-Term <strong>Issue</strong>r Default Rating<br />
(IDR) to 'BB', from 'BB-', and its Support<br />
Rating to '3' from '5'. In its report, the rating<br />
agency also confirms the outlook for the<br />
Bank as being ‘Stable’. The agency’s report<br />
highlights the fact that the upgrade takes<br />
into account the demonstrated record<br />
of capital and funding support provided<br />
to FIMBank by Kuwaiti-based Burgan<br />
Bank, and its sister bank, Bahrain-based<br />
United Gulf Bank, as well as the increased<br />
management and operational integration<br />
of FIMBank with Burgan Bank.<br />
Commenting on the news of FIMBank’s<br />
upgrade by Fitch Ratings, Group CEO<br />
Murali Subramanian explained that “Strong<br />
and demonstrated parental support as<br />
required, for the funding and capitalisation<br />
of FIMBank, is the main reason Fitch have<br />
cited for this ratings upgrade. While we<br />
welcome this decision, we believe the best<br />
is yet to come. We have unrelenting focus<br />
on delivering the kind of performance<br />
which is expected to prog<strong>res</strong>sively render<br />
ever stronger returns to our shareholders.<br />
It vindicates our strategy based on a series<br />
of organisational <strong>res</strong>tructuring, operational<br />
review, and cost control measu<strong>res</strong>, which<br />
we have been implementing over the past<br />
18months”. He added that “As a <strong>res</strong>ult of this<br />
strategy, 2016 has been a turnaround year<br />
for the Group, and this is also reflected in<br />
the improved profitability of our operations.<br />
Moreover, legacy misadventu<strong>res</strong> of prior<br />
years are being dealt with firmly, and will be<br />
fully behind us in <strong>2017</strong>”.<br />
Noting the dynamic process of<br />
transformation being undertaken at<br />
FIMBank, and its anticipated positive<br />
effect on the Bank’s profitability, the Fitch<br />
Ratings report concludes by stating that “a<br />
successful <strong>res</strong>tructuring of FIMBank and a<br />
strong recovery in its financial metrics could<br />
<strong>res</strong>ult in FIMBank's VR being upgraded”.<br />
For more information about <strong>MBR</strong> FIMBank plc,<br />
visit www.fimbank.com<br />
CasaSoft Team at BiB Awards 2016<br />
56 57<br />
www.maltabusinessreview.net
Malta Business Review<br />
FINANCE & ECONOMY<br />
CSR/MALTESE LANGUAGE<br />
Malta Business Review<br />
Finance Minister meets European Banking Federation<br />
Minister for Finance Edward Scicluna<br />
met with a delegation from the European<br />
Banking Federation, during which he<br />
expounded on the priorities of the <strong>2017</strong><br />
Maltese P<strong>res</strong>idency of the Council of the<br />
European Union.<br />
The meeting focused on the Capital<br />
Markets Union, insolvency law, the need<br />
for educational programs to empower the<br />
public, risk reduction measu<strong>res</strong>, taxation,<br />
and solidarity among member states.<br />
Furthermore, Minister Scicluna st<strong>res</strong>sed<br />
that Malta has the ability to assess the EU’s<br />
problems and challenges from a vantage<br />
point which is different from other member<br />
states, due to its size and geographical<br />
position. He indicated that due recognition<br />
should be given to the needs of the<br />
Maghreb Region and the f<strong>low</strong> of economic<br />
migrants from North Africa to the EU.<br />
The European Banking Federation<br />
delegation was led by Chief Executive<br />
Wim Mijs, Head of Public Affairs Enrique<br />
Velázquez and Head of Banking Supervision<br />
Gonzalo Gasós.<br />
Accompanying the Minister at the meeting<br />
were Deputy Governor Central Bank<br />
Alfred Mifsud, Permanent Secretary Alfred<br />
Camilleri, Chief of Staff Tania Brown, and<br />
Head of the P<strong>res</strong>idency Unit Matthew<br />
Buttigieg. <strong>MBR</strong><br />
Sources: Ministry of Finance/DOI<br />
Photo: DOI - Jason Borg<br />
FIMBANK CSR<br />
CLIPS ON MALTESE<br />
LANGUAGE DESTINED<br />
FOR SCHOOLS<br />
The Nationalist Party<br />
calls on Government to<br />
act on the challenges<br />
flagged by the Central<br />
Bank of Malta<br />
In its economic forecast published<br />
recently, the Central Bank of Malta revised<br />
downward its GDP growth projections<br />
stating that “the most significant revision<br />
arising in 2016. The downward revision<br />
is mainly driven by the less upbeat<br />
assessment for exports, taking into account<br />
the negative surprise in goods exports<br />
in the first half of the year and a less<br />
optimistic outlook for foreign demand”.<br />
Besides projecting a deceleration in GDP<br />
growth, the Central Bank is also predicting<br />
a slight increase in unemployment in<br />
<strong>2017</strong>-2019.<br />
The Central Bank report also highlights the<br />
risks associated with sustaining economic<br />
growth with one-off measu<strong>res</strong>, as revenues<br />
from the IIP programme are expected to<br />
be halved over the coming three years.<br />
This report sheds light on the economic<br />
and financial impact of a forecasted<br />
decrease in government revenue <strong>res</strong>ulting<br />
from this drop. To mitigate for this drop<br />
in revenue, the Central Bank is expecting<br />
government to place a <strong>res</strong>train on public<br />
sector expenditure. The Central Bank is in<br />
this context considering the new public<br />
sector collective agreement as a possible<br />
risk to maintaining fiscal projections on<br />
target.<br />
The Central Bank has also confirmed<br />
that disposable income, - that is people's<br />
available cash at hand - is drastically going<br />
down as a <strong>res</strong>ult of this s<strong>low</strong>down in<br />
economic activity.<br />
Despite's Governments efforts at labeling<br />
this issue as a perception, the CBM is<br />
projecting a further drop of 37% over two<br />
years, which is worrying in the context of<br />
an inflationary rate which is rearing its ugly<br />
head again.<br />
The Nationalist Party notes that all in all,<br />
this report tallies with and vindicates the<br />
Nationalist Party’s view on a number of<br />
fronts namely, that while on the whole the<br />
economy is performing well:<br />
• the manufacturing sector continues<br />
to face challenges and is losing<br />
its competitive edge, a fact<br />
that government is refusing to<br />
acknowledge;<br />
• Government failed to create any new<br />
economic activity bar the selling of<br />
citizenship programme;<br />
• economic growth in the past years<br />
was fuelled mainly by one-off events<br />
and that in the absence of such events<br />
GDP growth is going to take a knock;<br />
• the fast rate of growth in government’s<br />
recurrent expenditure over the past<br />
three years is unsustainable; and that,<br />
• the real income of Maltese families<br />
is being eroded by inflation. The<br />
Maltese economy is working for some<br />
but less so for many others who are<br />
struggling to make ends meet.<br />
The Nationalist Party is calling on<br />
government to recognise and act on these<br />
challenges. The Nationalist Party over<br />
the course of this administration did not<br />
limiting itself to highlighting economic<br />
concerns but came out with concrete<br />
proposals and alternatives. The Nationalist<br />
Party is again inviting government to give<br />
due consideration to these proposals in<br />
the inte<strong>res</strong>t of all but not least of those<br />
families who are not benefiting from<br />
economic growth and those businesses,<br />
particularly manufacturing concerns and<br />
small and medium sized businesses, who<br />
are seeing their competitive edge being<br />
eroded. <strong>MBR</strong><br />
Creditline: PN Media Information Office<br />
Minister for Education and Employment, the Hon. Evarist Bartolo at FIMBank’s head office in St. Julian’s<br />
Schoolchildren attending<br />
government, church and<br />
independent schools will<br />
soon have access to a series<br />
of video clips which trace the meaning of<br />
specific words in Maltese, and which focus<br />
on the origin and meaning of Maltese<br />
proverbs. These educational clips, produced<br />
by FIMBank plc as part of its Corporate<br />
Social Responsibility programme, will be<br />
distributed to all primary and secondary<br />
schools in Malta. This initiative was<br />
announced by FIMBank Group Chairman Dr<br />
John C. Grech, during a recent visit by the<br />
Minister for Education and Employment,<br />
the Hon. Evarist Bartolo at FIMBank’s head<br />
office in St. Julian’s.<br />
In 2015, FIMBank plc had partnered with<br />
Public Broadcasting Services Ltd (PBS) in<br />
an initiative which saw the broadcast of a<br />
series of 30-second video-spots, focusing on<br />
Malta’s linguistic heritage. The series of 100<br />
clips, entitled ‘Kelma Kuljum’ (or ‘A Word<br />
Everyday’), includes both Maltese words<br />
used colloquially, as well as others which are<br />
being utilised less frequently. Meanwhile,<br />
earlier this year, as a continuation of this<br />
project and as part of its CSR programme,<br />
FIMBank launched a new series of video<br />
clips which focus on Maltese proverbs and<br />
their meanings, entitled ‘X’jghid il-Malti?’<br />
(‘Maltese sayings’). The new series has<br />
been featured extensively on PBS and the<br />
Bank’s social media channels.<br />
Commenting on this initiative, FIMBank<br />
Chairman Dr John C. Grech stated that “As a<br />
Malta-based institution we feel we owe it to<br />
the people of Malta to help raise awareness<br />
of our Islands’ rich cultural heritage. This<br />
consideration has always been a mainstay<br />
of our Corporate Social Responsibility<br />
programme. The Maltese language is<br />
recognised as being an essential part of<br />
our DNA. Its uniqueness, derived from<br />
its eclectic mix of Semitic and Romance<br />
influences, is appreciated and endorsed<br />
by linguists worldwide. We are proud to<br />
be in a position to highlight its beauty and<br />
relevance.”<br />
The Hon. Evarist Bartolo stated that he is<br />
"grateful that FIMBank is investing in the<br />
teaching of the Maltese language in our<br />
schools. Such support helps us to reach<br />
more kids in learning their language in an<br />
inte<strong>res</strong>ting way. We need more different<br />
programmes to reach more kids as am<br />
not satisfied that nearly half of our fifth<br />
formers are not passing their SEC exam in<br />
Maltese. We need different programmes<br />
and different methods of assessment in<br />
Maltese to reach more students."<br />
Jason Zammit, FIMBank’s Head of<br />
Marketing and Administration, said that<br />
the video spots had proven to be quite<br />
popular with Maltese viewers. He added<br />
that “very positive and encouraging<br />
feedback had been received after the spots<br />
from both campaigns were posted on<br />
Facebook and YouTube, where they were<br />
shared extensively by users. Getting people<br />
engaged and talking about our linguistic<br />
wealth is precisely the main objective of our<br />
project. This helped us to better understand<br />
the potential of this tool for the benefit of<br />
schoolchildren and their teachers.” <strong>MBR</strong><br />
For more information about FIMBank plc, visit<br />
www.fimbank.com.<br />
For further information please contact:<br />
Jason Zammit, Head of Marketing & Administration,<br />
FIMBank plc<br />
58 59<br />
www.maltabusinessreview.net
Malta Business Review<br />
AVIATION NEWS<br />
DEBATE: BLOGS<br />
Malta Business Review<br />
CUSTOMER<br />
e x p e r i e n c e i n v e s t m e n t s<br />
Emirates was named World’s Best Airline<br />
2016 at the Skytrax World Airline Awards,<br />
and in the past year, the airline continued<br />
to work hard to deliver memorable<br />
experiences for its customers.<br />
Emirates continued to strengthen its inflight<br />
entertainment (IFE) offering. With the<br />
airline now operating an all-Airbus A380 and<br />
Boeing 777 fleet, this means customers on<br />
all Emirates flights can access on-demand<br />
entertainment with up to 2,600 channels of<br />
movies, music, TV shows, games and more,<br />
to choose from.<br />
Reflecting the increasingly connected<br />
digital lifestyle, over 8.8 million Emirates<br />
passengers connected to Wi-Fi on board<br />
in 2016. In addition, more than 400,000<br />
phone calls were made in-flight, and 1.7<br />
million sms messages were transmitted by<br />
passengers.<br />
For its premium passengers, Emirates rolled<br />
out a range of enhancements onboard<br />
with luxury in mind. New additions in First<br />
Class included the world’s first moisturising<br />
lounge wear designed for an airline,<br />
keeping skin hydrated during the flight. New<br />
blankets were introduced including plush<br />
faux sheep-skin blankets for First Class and<br />
soft duvets for Business Class passengers.<br />
Emirates also partnered with VOYA luxury<br />
spa products for its passengers to enjoy<br />
in its signature shower spa, dedicated<br />
lounge bathrooms and First and Business<br />
Class washrooms. In addition, Emirates<br />
and luxury Italian brand Bvlgari redesigned<br />
the airline’s exclusive amenity kit bags by<br />
giving them a sleek, modern look. So far<br />
in 2016, 2.75 million First and Business<br />
Class amenity kits have been distributed on<br />
Emirates flights.<br />
Building on the strength of its loyalty<br />
programmes, the airline’s frequent flyer<br />
programme Emirates Skywards marked<br />
a milestone of 16 million members by<br />
launching Cash+Miles. The innovative<br />
flight redemption programme al<strong>low</strong>ed<br />
members to redeem a combination of cash<br />
and Skywards Miles on any Emirates flight,<br />
reducing the cost of tickets and making any<br />
seat available for members. The airline also<br />
revamped its corporate loyalty programme,<br />
Emirates Business Rewards, delivering a<br />
more competitive and easier redemption<br />
process for flights as well as upgrades at any<br />
time for businesses.<br />
BRAND<br />
A P P E A L<br />
Emirates topped The Brand Finance<br />
Global 500 report as the world’s most<br />
valuable airline brand in 2016, with the<br />
airline’s brand value growing more than<br />
17% to US$ 7.7 billion. Throughout 2016,<br />
Emirates continued to use sports, musical<br />
and cultural events as a platform to engage<br />
with its customers and fans.<br />
In October, Emirates returned with<br />
Hollywood act<strong>res</strong>s, director and producer<br />
Jennifer Aniston for another fun global<br />
advertising campaign that showcased the<br />
iconic Emirates A380.<br />
In November, Emirates teamed up with<br />
Dubai Miracle Garden to construct the<br />
world’s largest floral installation through<br />
a life-size version of the Emirates A380,<br />
covered in more than 500,000 f<strong>res</strong>h<br />
f<strong>low</strong>ers and living plants.<br />
Emirates operates daily scheduled<br />
flights between Malta and Dubai on a<br />
Boeing 777-300 aircraft. Emirates flies<br />
twice weekly to Malta, on Mondays and<br />
Wednesdays, via Larnaca in Cyprus, and<br />
on Sundays, Tuesdays, Thursdays, Fridays<br />
and Saturdays the airline operates the<br />
Dubai - Malta route on a circular routing<br />
via Tunis in Tunisia. Emirates unveiled<br />
plans to re-route its daily service between<br />
Dubai and Malta via Larnaca, Cyprus, from<br />
1st February <strong>2017</strong>. <strong>MBR</strong><br />
How and<br />
why your<br />
customers<br />
engage<br />
with<br />
bloggers?<br />
By George Carol<br />
I’m sure all marketers out there<br />
know the terms “opinion leaders,”<br />
“influencers” and know about<br />
“turning customers into brand advocates.”<br />
But, I am not sure if all marketers<br />
acknowledge how much influential<br />
fashion, travel and other bloggers have<br />
become over their target audience.<br />
Something to seriously think about.<br />
It’s all about their influence, their trust and<br />
– their reach!<br />
According to reliable sources and<br />
statistics, 5-10 percent of social media<br />
users are <strong>res</strong>ponsible for 60 to 80 per<br />
cent of influence. Especially in beauty and<br />
fashion industry, customers tend to fol<strong>low</strong><br />
number of bloggers at once to see what is<br />
trending. The most popular blogs with the<br />
highest number of fol<strong>low</strong>ers work as socalled<br />
hubs in the blogosphere and have<br />
the highest influence on their fol<strong>low</strong>ers.<br />
The influencing power of bloggers lies in<br />
the engagement with consumers. They<br />
trigger conversations and are credible<br />
because they are normal people just like<br />
us with families and real lives. They aren’t<br />
top models, but the woman or daddynext-door<br />
types that are trustworthy. And,<br />
the similarity between reader and blogger<br />
makes a big impact on the final purchase<br />
decision. Got it?<br />
A good, professional fashion blogger also<br />
adds value and expertise because he or<br />
she discovers, evaluates, compa<strong>res</strong> and<br />
introduces products to a wide audience.<br />
And the blogger also helps to explain how<br />
the products can be used to achieve a<br />
particular look. The real bloggers, not the<br />
wanna-be-ones, who buy fake likes and<br />
fol<strong>low</strong>ers are the ones you want to be<br />
watching out for going forward.<br />
Fashion & Travel Blogger Grazielle Camilleri<br />
Fashion<br />
blogger turned<br />
journalist?<br />
A shining example of a fantastic blogger<br />
that made her hobby into a profession is<br />
Grazielle Camilleri, a Maltese blogger with<br />
more than 20,000 fol<strong>low</strong>ers on Facebook<br />
and another 20,000 Fol<strong>low</strong>ers on<br />
Instagram. She recently won Malta’s Best<br />
in Business Award for Best Start Up in 2016.<br />
In December 2015, she published her first<br />
blog and a year later she is going strong,<br />
spreading the message to her strong-target<br />
audiences that are hungry for information<br />
and f<strong>res</strong>h content with beautiful imagery<br />
and excellent writing skills. Check her out<br />
at www.graziellecamilleri.com<br />
So, do I market online or via bloggers?<br />
My reply to you is to find a pleasant balance<br />
to do both. One works best alongside the<br />
other. You will reach your various target<br />
markets this way. Some of your customers<br />
are constantly on their iphones while<br />
others prefer their traditional hardback<br />
magazine coffee to read with their cup of<br />
tea in the garden at tea time!<br />
Stay tuned for more marketing tips!<br />
<strong>MBR</strong><br />
60 61<br />
www.maltabusinessreview.net
Malta Business Review<br />
COMPANY LAW<br />
AVIATION & POLITICAL EVENTS<br />
Malta Business Review<br />
ANNUAL COMPANY LAW<br />
CONFERENCE’S SUCCESS BODES<br />
WELL FOR FORTHCOMING<br />
CONFERENCE<br />
Almost 200 lawyers and other<br />
professionals working in the commercial<br />
law field convened at the latest Annual<br />
Company Law Conference, which once<br />
again proved a significant success.<br />
This annual event is organised by the<br />
Department of Commercial Law within<br />
the University of Malta in collaboration<br />
with the Malta Law Academy, and the<br />
Chamber of Advocates.<br />
The Conference, chaired by Dr David Fabri,<br />
Head of the Department of Commercial<br />
Law within University’s Faculty of Laws,<br />
add<strong>res</strong>sed the most recent regulatory<br />
developments in the field of Company<br />
Law. Other leading speakers from the<br />
Department of Commercial law discussed<br />
topics such as the provisions relating to<br />
squeeze-out of minority shareholders,<br />
practical applications of article 402(3)<br />
(g) of the Companies Act, duties and<br />
<strong>res</strong>ponsibilities of Company Directors,<br />
developments in EU Company Law, and<br />
a review of recent company law court<br />
decisions and interpretations.<br />
In his opening add<strong>res</strong>s, Minister for Finance,<br />
Prof Edward Scicluna explained that 3,800<br />
new companies have been registered<br />
by September 2016, bringing the total<br />
number of registered companies up to<br />
around 50,000. The Minister also noted<br />
how over 1,000 companies were involved<br />
in local mergers during the last five years,<br />
with another 55 Maltese companies being<br />
involved in cross-border mergers.<br />
EDITOR’S<br />
Note<br />
By James Vella Clark<br />
“This reflects the vibrant landscape within<br />
which local limited liability companies,<br />
entrepreneurs and investors are operating<br />
and confirms the importance for local<br />
practitioners to keep up with the everevolving<br />
body of corporate law emanating<br />
from the EU. It is in this light that the EU<br />
seeks to enhance effective administration<br />
of cross-border insolvency proceedings and<br />
to establish common framework for the<br />
benefit of all stakeholders,” said the Minister.<br />
In his closing add<strong>res</strong>s, Dr George Hyzler,<br />
P<strong>res</strong>ident of the Chamber of Advocates,<br />
noted with satisfaction how the Annual<br />
Company Law Conference is acting as a<br />
vital forum for Malta’s legal professionals<br />
to discuss and adjourn themselves with<br />
the latest legal developments.<br />
“Our profession is a very vibrant one<br />
where the application of the law<br />
is constantly being challenged and<br />
reinterpretation reflects the changing<br />
environment in which we operate.<br />
The Annual Company Law conference<br />
serves as a solid point of reference for<br />
commercial lawyers to convene and<br />
keep themselves updated with the latest<br />
developments,” said Dr Hyzler.<br />
The next joint event will be the Annual<br />
Consumer Law Conference which will be<br />
held on 15th March <strong>2017</strong> at the Chamber<br />
of Advocates to coincide with World<br />
Consumers Day. <strong>MBR</strong><br />
As from this month, CORPORATE IDENTITIES has been appointed to handle<br />
the Chamber of Advocates public relations and public affairs. Therefore, should<br />
you require any input from the Chamber, you can contact Corporate Identities,<br />
James Vella Clark, to assist you in your queries.<br />
THE BUREAU OF<br />
AIR ACCIDENT<br />
INVESTIGATION<br />
SIGNS MOU<br />
WITH AAIB, UK<br />
The Maltese Bureau of Air Accident<br />
Investigation (BAAI), established under<br />
Maltese law for the investigation of<br />
air accidents and incidents, has signed a<br />
Memorandum of Understanding with the<br />
Air Accidents Investigation Branch (AAIB),<br />
Department for Transport, United Kingdom.<br />
The purpose of this MOU is for both<br />
countries to cooperate in relation to aircraft<br />
accident and incident investigations, sharing<br />
experience and expertise in investigation<br />
techniques in various specialist fields,<br />
equipment and <strong>res</strong>earch. Such cooperation<br />
shall enhance aviation safety in Malta and<br />
the United Kingdom.<br />
The BAAI will benefit from the opportunity<br />
to gain hands-on experience, with observer<br />
status at accident sites and subsequent offscene<br />
investigative activities.<br />
The parties have also agreed to exchange<br />
views on the latest development in<br />
European and International standards and<br />
share experiences on developing legislation<br />
in the territory of each participant that<br />
governs aircraft accident and incident<br />
investigation.<br />
BAAI Chief Investigator Captain Frank<br />
Zammit said, “After various discussions I am<br />
pleased to have signed this agreement as<br />
it is another means to increase the BAAI’s<br />
knowledge and expertise in aviation safety.”<br />
The UK Air Accidents Investigation Branch<br />
acting Deputy Chief Inspector of Air<br />
Accidents said “the UK AAIB is pleased<br />
to be able provide assistance to Malta<br />
through this agreement, it is beneficial that<br />
EPP Cong<strong>res</strong>s in Malta will<br />
be held at a crucial time<br />
for Europe<br />
Speech by Partit Nazzjonalista Leader Simon Busuttil during the EPP Summit<br />
being held in Brussels<br />
“I am very proud that our European<br />
People’s Party chose Malta for its <strong>2017</strong><br />
Cong<strong>res</strong>s which will be held on the 29th<br />
and 30th March <strong>2017</strong>. I look forward to<br />
welcoming you on our island of eventful<br />
history and beckoning future,” stated a<br />
beaming Simon Busuttil during a recent<br />
P<strong>res</strong>s Conference.<br />
“During the same days, the EPP Group<br />
will be holding its Study Days at a venue<br />
which is at a walking distance from the<br />
Cong<strong>res</strong>s’ venue. This Cong<strong>res</strong>s is being<br />
held during Malta’s P<strong>res</strong>idency of the EU,<br />
during a crucial year for Maltese politics,<br />
as the general election will be within<br />
the 12 months fol<strong>low</strong>ing the Cong<strong>res</strong>s<br />
and at a time when the EU is at a cross<br />
roads. It is thus why I urge you to attend<br />
this Cong<strong>res</strong>s whilst seeing that your<br />
parties are rep<strong>res</strong>ented with the number<br />
of delegates that have been recently<br />
States are able to increase their knowledge<br />
and expertise in aviation safety through<br />
accident and serious incident investigation<br />
using the experience of other established<br />
Safety Investigation Authorities”.<br />
Minister for Tourism Dr Edward Zammit<br />
Lewis stated that, “this MOU is another step<br />
in the right direction for Malta to continue<br />
investing in expertise with a country like the<br />
United Kingdom which has deep expertise<br />
in the aviation industry.” He stated that<br />
this MOU complies with Malta’s vision in<br />
strengthening safety and security within<br />
the Aviation industry. <strong>MBR</strong><br />
Source: Ministry of Tourism/DOI<br />
approved during the last EPP Political<br />
Assembly,” said Dr Busuttil, adding on<br />
that, “The comprehensive theme of the<br />
Cong<strong>res</strong>s will be the future of Europe.<br />
Because politics is about people. It is<br />
time we put our heads together to pave<br />
a bright future for our fel<strong>low</strong> Europeans,<br />
especially after the Brexit vote.”<br />
The Cong<strong>res</strong>s will also be discussing<br />
migration which is a challenge for both<br />
Malta itself and the Mediterranean<br />
region. Preparations for the Cong<strong>res</strong>s<br />
are well underway. Delegations led by<br />
the EPP Assistant Secretary General have<br />
been visiting Malta during the last year<br />
and most of the spade work has been<br />
carried out. “At Partit Nazzjonalista we<br />
are working very hard for this largest<br />
event of its kind ever to take place on<br />
our island,” concluded Dr Busuttil. <strong>MBR</strong><br />
62 63<br />
www.maltabusinessreview.net
Malta Business Review<br />
ENVIRONMENT<br />
CULTURE<br />
Malta Business Review<br />
DR JOSÉ HERRERA PRESENTS<br />
MALTA’S PRESIDENCY PRIORITIES<br />
AT THE EU ENVIRONMENT<br />
COUNCIL MEETING IN BRUSSELS<br />
Minister for Sustainable Development, the Environment and Climate Change José Herrera with<br />
Slovak P<strong>res</strong>ident Donald Tusk. Photo: Ray Attard<br />
Minister for Sustainable<br />
Development, the Environment<br />
and Climate Change José<br />
Herrera p<strong>res</strong>ented Malta’s P<strong>res</strong>idency<br />
priorities at the Council of the European<br />
Union on environment in Brussels. Dr<br />
Herrera said that Malta would like to<br />
focus on initiatives that will promote a<br />
competitive, <strong>res</strong>ource-efficient and <strong>low</strong>carbon<br />
economy within the framework<br />
of the 2030 Sustainable Development<br />
Agenda.<br />
on the revision of the Emissions Trading<br />
Scheme as well as advance discussions<br />
on the Commission Proposals for sectors<br />
not covered by the Emissions Trading<br />
Scheme: namely, the Effort Sharing<br />
Regulation and the Land Use, Land Use<br />
Change and Fo<strong>res</strong>try Regulation.<br />
Dr Herrera said that Malta, together<br />
with its counterparts, will also give<br />
due attention to the EU’s fol<strong>low</strong>-up on<br />
emissions from aviation, fol<strong>low</strong>ing the<br />
International Civil Aviation Organisation<br />
General Assembly, and will further<br />
advance the Circular Economy agenda by<br />
making substantial prog<strong>res</strong>s in negotiating<br />
proposals to amend six waste directives.<br />
Additionally, the Maltese P<strong>res</strong>idency<br />
plans on prog<strong>res</strong>sing on a number of<br />
other open as well as new files, including<br />
the amendment to the scope of the<br />
Restriction of Hazardous Substances<br />
Directive, the recast of the Persistent<br />
Organic Pollutants Regulation, the Fitness<br />
Check of the Birds and Habitats Directives,<br />
and the Environmental Implementation<br />
Review.<br />
Minister Herrera also announced that<br />
Malta will be hosting a union for the<br />
Mediterranean Ministerial Meeting<br />
in April, where we hope to see the<br />
adoption of a Water Strategy for the<br />
Mediterranean in Valletta along with an<br />
Informal Ministerial Meeting in April,<br />
where climate change adaptation, marine<br />
litter and water re-use will be discussed.<br />
The Parliamentary Secretary for the EU<br />
P<strong>res</strong>idency <strong>2017</strong> and EU Funds Dr Ian Borg<br />
launches the official cultural programme of<br />
the <strong>2017</strong> Maltese P<strong>res</strong>idency of the Council of<br />
the EU, themed rEUnion. Dr Borg said that in<br />
a p<strong>res</strong>ent reality where political un<strong>res</strong>t looms<br />
over the continent and the <strong>res</strong>t of the world,<br />
the spirit of reunion taken up by this culture<br />
programme is a much needed breath of f<strong>res</strong>h<br />
air. Culture is a single thread in different hues;<br />
uniting people from all walks of life, across<br />
nations, genders, age groups and class, in one<br />
melting pot of diversity and togetherness.<br />
“The citizen is right at the centre of the <strong>2017</strong><br />
Maltese EU P<strong>res</strong>idency, and this is reflected<br />
in the multidisciplinary nature of its varied<br />
culture programme, with over 90 different<br />
events set to take place across the Maltese<br />
Islands, in the central hub of Brussels,<br />
Luxembourg and Strasbourg, and across the<br />
globe,” commented Dr Ian Borg.<br />
During his add<strong>res</strong>s, Dr Borg announced that<br />
More than 1,100 artists and 29 Cities<br />
across the globe<br />
the Official Opening Ceremony of the <strong>2017</strong><br />
Maltese EU P<strong>res</strong>idency is scheduled for<br />
the 11th <strong>January</strong> and will take place at the<br />
Mediterranean Conference Centre. ‘BAHR’<br />
will be performed by the Malta Philharmonic<br />
Orchestra under the direction of Mro. Brian<br />
Schembri, who will accompany national dance<br />
ensemble ŻfinMalta in their interpretation of<br />
Albert Garzia’s original music score composed<br />
for the occasion.<br />
The Malta Philharmonic Orchestra, under<br />
Mro. Brian Schembri’s direction, will also<br />
be accompanying world-renowned Maltese<br />
tenor Joseph Calleja, in the concert set to<br />
herald in the <strong>2017</strong> Maltese EU P<strong>res</strong>idency on<br />
16th <strong>January</strong> at the BOZAR Centre for Fine Arts<br />
in Brussels. The concert will feature classical<br />
masterpieces written by great composers,<br />
including three Maltese greats, Charles<br />
Camilleri, Carlo Diacono and Joseph Vella.<br />
The culture programme will then take flight,<br />
with events coming from several different<br />
disciplines populating each of the six months<br />
from <strong>January</strong> to June <strong>2017</strong>. Photography,<br />
painting, architecture, digital arts, music,<br />
singing, dance, theatre, fashion and history<br />
are among the different disciplines which<br />
make up this colourful cultural programme,<br />
which will feature both well-established<br />
and up-and-coming artists, both local and<br />
We are Quality<br />
international.<br />
In the spirit of rEUnion, Dr Borg explained<br />
that the <strong>2017</strong> Maltese EU P<strong>res</strong>idency culture<br />
programme encourages the participation<br />
of citizens, with several projects depending<br />
directly on the citizen’s involvement.<br />
Apart from featuring the citizen as well as<br />
the artist in a variety of spaces, the <strong>2017</strong><br />
Maltese EU P<strong>res</strong>idency culture programme<br />
also featu<strong>res</strong> the Maltese Islands and different<br />
aspects which make up their geographical,<br />
historical, anthropological and social realities.<br />
Among the most inte<strong>res</strong>ting events centred<br />
on the Maltese Islands, is the three-month<br />
exhibition ‘Malta – Land of Sea’, curated by<br />
Sandro Debono at the BOZAR Centre for Fine<br />
arts.<br />
In his concluding remarks, Parliamentary<br />
Secretary Borg thanked Arts Council Malta<br />
and the Valletta 2018 Foundation for their<br />
collaboration and in putting together this<br />
varied culture programme. The full culture<br />
programme can be found on the official<br />
culture website for the <strong>2017</strong> Maltese<br />
P<strong>res</strong>idency of the Council of the European<br />
Union: reunion.org.mt. <strong>MBR</strong><br />
Creditline: THE PARLIAMENTARY SECRETARIAT<br />
FOR THE EU PRESIDENCY <strong>2017</strong> AND EU FUNDS<br />
In the area of climate change, the<br />
Maltese P<strong>res</strong>idency will continue to build<br />
on the momentum achieved by the Paris<br />
Agreement, and will focus on the UNFCCC<br />
negotiations fol<strong>low</strong>ing the recent COP22<br />
in Marrakech.<br />
The Maltese P<strong>res</strong>idency of the Council<br />
of the European Union will also seek to<br />
make concrete and substantial prog<strong>res</strong>s<br />
The Minister for Sustainable Development,<br />
the Environment and Climate Change<br />
thanked the Slovak P<strong>res</strong>idency for its hard<br />
work and collaboration with Malta as the<br />
incoming P<strong>res</strong>idency. <strong>MBR</strong><br />
Video link: https://goo.gl/swAFWl<br />
Creditline: THE MINISTRY FOR SUSTAINABLE<br />
DEVELOPMENT, THE ENVIRONMENT AND<br />
CLIMATE CHANGE<br />
PROFESSIONAL WATERPROOFING MATERIALS & RESIN FLOORINGS<br />
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64 65<br />
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Malta Business Review<br />
NEWSMAKERS<br />
PHOTO: DOI - Omar Camilleri<br />
The Parliamentary Secretary for the EU<br />
P<strong>res</strong>idency <strong>2017</strong> and EU Funds Ian Borg is<br />
pleased to announce that eight projects,<br />
which include nine Maltese partners, have<br />
been approved for funding under the second<br />
call for project proposals in connection with<br />
the INTERREG EUROPE Programme.<br />
Parliamentary Secretary Ian Borg said that<br />
these projects, which shall add<strong>res</strong>s the four<br />
priority axes tackled under this programme,<br />
focus on <strong>res</strong>earch, technological<br />
development and innovation, enhancing<br />
Eight projects, involving nine Maltese partners, selected for funding under the<br />
second call for project proposals of the Interreg Europe 2014-2020 Programme<br />
the competitiveness of SMEs, a <strong>low</strong> carbon<br />
economy, protection of the environment as<br />
well as the promotion of <strong>res</strong>ource efficiency.<br />
The budget allocated to the nine partners<br />
participating in such projects which include<br />
public bodies, bodies governed by public<br />
law and also a private not-for-profit partner,<br />
amount to €1.2 million in ERDF funds.<br />
The third call for project proposals under<br />
the INTERREG EUROPE Programme is<br />
envisaged to open in March <strong>2017</strong>. This call<br />
which might be the final opportunity for<br />
prospective applicants to participate in this<br />
Programme shall also focus on the ‘classic’<br />
interregional cooperation projects similar<br />
to those funded under the first and second<br />
call for project proposals.<br />
For further information on the above<br />
mentioned call or on the INTERREG EUROPE<br />
2014-2020 Programme in general, kindly<br />
contact the Territorial Cooperation Unit<br />
within FPD either by phone on 2200 1142 or<br />
by email: fpd.meaim@gov.mt. Information is<br />
also available on the FPD’s website<br />
http://eufunds.gov.mt/ and the Programme’s<br />
website http://www.interregeurope.eu/.<br />
Parliamentary Secretary Ian Borg invites<br />
inte<strong>res</strong>ted prospective applicants to start<br />
the preparatory work required before the<br />
publication of the next call while thanking<br />
the Territorial Cooperation Unit within the<br />
FPD for their availability and help in any<br />
guidance required. <strong>MBR</strong><br />
Source: THE PARLIAMENTARY SECRETARIAT<br />
FOR THE EU PRESIDENCY <strong>2017</strong> AND EU FUNDS<br />
Emirates announces daily service from Dubai to Malta via Cyprus<br />
Cyprus is again reachable on daily basis from<br />
Malta on Emirates<br />
Emirates unveiled plans to re-route its<br />
daily service between Dubai and Malta<br />
via Larnaca, Cyprus, from 1st February<br />
<strong>2017</strong>. This means that the current five<br />
weekly flights with routing Dubai/Tunis/<br />
Malta/Dubai will be changed to Dubai/<br />
Larnaca/Malta/Larnaca/Dubai, the same<br />
as the current flight operating every<br />
Monday and Wednesday. The Malta route<br />
al<strong>low</strong>s travellers to book tickets between<br />
Malta and Cyprus.<br />
Travellers from Malta can once again enjoy<br />
daily access to Larnaca, as Cyprus is only two<br />
hours away. The daily Dubai-Larnaca-Malta<br />
service will be operated by a state-of-the-art<br />
Boeing 777-300ER aircraft in a three-class<br />
configuration, with eight Private Suites in<br />
First Class, 42 lie flat seats in Business Class,<br />
and 310 spacious seats in Economy Class.<br />
As with all Emirates flights, passengers also<br />
enjoy generous baggage al<strong>low</strong>ances: 50 kilos<br />
in First Class, 40 kilos in Business Class, and<br />
up to 35 kilos in Economy Class.<br />
Starting 1 February <strong>2017</strong>, EK 109 will depart<br />
Dubai at 0750hrs, arriving in Larnaca at<br />
1020hrs. It will then depart Larnaca at<br />
1150hrs, arriving in Malta at 1325hrs. The<br />
return flight, EK 110, will leave Malta at<br />
1455hrs, arriving in Larnaca at 1815hrs. It will<br />
Cyprus Tourism Organisation<br />
then depart Larnaca at 1930hrs, and land in<br />
Dubai at 0125hrs the next day. The timings<br />
are ideal for onward connections from Dubai<br />
to Australia, the Middle East, Asia, Africa and<br />
North and South America. Businesses and<br />
traders will also benefit from the aircraft’s<br />
belly-hold to carry cargo on the Boeing 777-<br />
300ER aircraft by Emirates SkyCargo offering<br />
23 tonnes of capacity per flight. <strong>MBR</strong><br />
Further information and flight schedules are<br />
available from: www.emirates.com/mt<br />
Corruption index: Malta loses 10 places to 47, worst place ever, PN reacts<br />
Malta has lost 10 places in one year on the<br />
Corruption Perceptions Index, falling to its worst<br />
ever 47th placing since it started to be monitored<br />
by Transparency International in 2004.<br />
The latest figu<strong>res</strong> were published last night, with<br />
Malta dropping from the 37th place in 2015<br />
to the 47th in 2016. Malta has figured among<br />
the list of countries vetted by Transparency<br />
International since 2004, when it appeared<br />
in the 25th place, which it kept in 2005 and<br />
remains its best placing. Since then, besides the<br />
28th place obtained in 2006, Malta has been<br />
yo-yoing between the 33rd place in 2007 and<br />
the 47th placing in 2016, its worst placing ever.<br />
In 2008, Malta was 36th, in 2009 45th, in 2010<br />
37th, in 2011 39th, in 2012 43rd, in 2013 45th, in<br />
2014 43rd, in 2015 37th and, now, in 2016, 47th.<br />
All through 2016, Malta was in the international<br />
limelight for the wrong reasons after Minister<br />
Konrad Mizzi was the only serving minister in an EU<br />
country to be named in the Panama Papers scandal.<br />
In reaction, the Nationalist Party made reference<br />
to the story as revealed by The Malta Independent<br />
this morning, saying that this confirmed that the<br />
government led by Joseph Muscat is the most<br />
corrupt in history. The position Malta obtained, at<br />
number 47, is the worst ever, and relates to 2016<br />
which was a year in which the Panama Papers<br />
scandal involving Konrad Mizzi and Keith Schembri<br />
erupted. This classification is a bad advert for Malta,<br />
and it is worse because potential investors look at<br />
such classifications seriously. This is worrying for<br />
Malta's economy, the PN said. More than ever<br />
before, the country needs different politics which<br />
raise standards, and it is only the Nationalist Party<br />
under Simon Busuttil that can guarantee this, the<br />
PN said. From all the promises made by Muscat,<br />
the only one that was achieved that Malta is first in<br />
Europe - in corruption, the PN said. <strong>MBR</strong><br />
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