MBR ISSUE 44
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COVER STORY INTERVIEW<br />
Making Investments Easy<br />
Interview with Sergey Vasin, Chief<br />
Operating Officer of Blackmoon, a<br />
Blockchain FinTech company p.06<br />
INTERVIEW OF THE MONTH<br />
Driving Change<br />
Exclusive Interview with Marlene Mizzi,<br />
MEP p.12<br />
ONE-ON-ONE<br />
Adding Value to Business<br />
<strong>MBR</strong> Exclusive with Sue Duke, global<br />
head of public policy, LinkedIn p.18<br />
GAMING INTERVIEW<br />
Ahead of the Curve<br />
Exclusive interview with CEO and Founder<br />
of Betconstruct Vigen Badalyan p.36<br />
MALTA BUSINESS REVIEW<br />
<strong>ISSUE</strong> <strong>44</strong> | 2018<br />
Newspaper Post
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Together we thrive
your perfect atmosphere<br />
Malta Business Review<br />
CONTENTS<br />
Issue <strong>44</strong><br />
COVER STORY INTERVIEW<br />
06 MAKING INVESTMENTS EASY<br />
Interview with Sergey Vasin, Chief Operating Officer of<br />
Blackmoon, a Blockchain FinTech company<br />
6<br />
30<br />
34<br />
AN AI COMMUNITY<br />
ROUNDTABLE REPORT | USING AI TO SERVE<br />
CITIZENS: A ROADMAP FOR FRANCE<br />
An ongoing conversation about artificial intelligence<br />
and the key governance and innovation issues facing<br />
policymakers, scientists, innovators, industries and<br />
academics, powered by our founding partner Accenture.<br />
SPECIAL REPORT<br />
HSBC BANK MALTA SUSTAINS DIVIDEND,<br />
SHIFTS FOCUS TO GROWTH<br />
Annual Bank Report presented by HSBC<br />
TALKING POINT<br />
10 DON’T BE A BOSS BE A LEADER<br />
As the saying goes, people don't leave bad jobs, they leave<br />
bad bosses- so tells us Brigette Hyacinth<br />
12<br />
18<br />
12<br />
18<br />
22<br />
INTERVIEW OF THE MONTH<br />
DRIVING CHANGE<br />
Exclusive Interview with Marlene Mizzi, MEP, with the<br />
group of the Progressive Alliance of Socialists and<br />
Democrats in the European Parliament<br />
ONE-ON-ONE<br />
ADDING VALUE TO BUSINESS<br />
<strong>MBR</strong> Exclusive with Sue Duke, global head of public policy,<br />
LinkedIn<br />
EUROPE START-UP STUDY<br />
EUROPEAN START-UP STUDY: MALTA'S<br />
CONSTRUCTION INDUSTRY GREW BY 89%<br />
FROM 2016-2017<br />
Yvonne Bernhardt provides our readers with an interesting<br />
study on the construction industry<br />
MANAGEMENT PERSPECTIVES<br />
26 THE MOST IMPORTANT WAY TO INCREASE<br />
YOUR POTENTIAL<br />
Deepak Chopra MD, FACP, founder of The Chopra<br />
Foundation and co-founder of The Chopra Centre<br />
for Wellbeing, world-renowned pioneer in integrative<br />
medicine and personal transformation, with his first<br />
contribution to <strong>MBR</strong><br />
OUR GOLDEN PARTNERS<br />
40<br />
46<br />
46<br />
26<br />
AHEAD OF THE CURVE<br />
36 GAMING INTERVIEW<br />
Exclusive interview with CEO and Founder of<br />
Betconstruct Vigen Badalyan<br />
FEATURES & STORIES<br />
VENTURE CAPITAL FIRMS, INCUBATORS OF<br />
DISRUPTIVE IDEAS<br />
Ninad Tipnis Ninad, an architect from the Academy<br />
of Architecture, Mumbai and the founder of JTCPL<br />
Designs gives us his distinguished insights<br />
TOP TRENDS IN CORPORATE BANKING:<br />
2018–2019 EDITION<br />
Patricia Hines brings us CELENT’s latest edition of top<br />
trends in corporate banking<br />
RUSSIA’S BLOODY WORLD CUP<br />
Minky Worden bravely details us with an account on<br />
Russia’s many rights abuses during the FIFA World<br />
Cup<br />
36<br />
52<br />
WHY ARE SOME PEOPLE SELFISH?<br />
Josh Davies describes a minority of people, known as<br />
“Machiavellians,” who pay no regard to these social<br />
norms in society<br />
4
COVER STORY<br />
Making Investments Easy<br />
Interview with Sergey Vasin, Chief<br />
Operating Officer of Blackmoon, a<br />
Blockchain FinTech company p.06<br />
Newspaper Post<br />
INTERVIEW OF THE MONTH<br />
Driving Change<br />
Exclusive Interview with Marlene Mizzi,<br />
MEP p.12<br />
ONE-ON-ONE<br />
Adding Value to Business<br />
<strong>MBR</strong> Exclusive with Sue Duke, global<br />
head of public policy, LinkedIn p.18<br />
GAMING INTERVIEW<br />
Ahead of the Curve<br />
Exclusive interview with CEO and Founder<br />
of Betconstruct Vigen Badalyan p.36<br />
MALTA<br />
BUSINESS REVIEW<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 />
<strong>MBR</strong> Design<br />
ADVERTISING<br />
Call: 9940 6743 or 9926 0163/4/6;<br />
Email: margaret@mbrpublications.net<br />
or admin@mbrpublications.net<br />
CONTRIBUTORS<br />
Yvonne Bernhardt; Antoine Bonello; George<br />
Carol; Deepak Chopra; Jean Paul Demajo;<br />
Patricia Hines; Brigette Hyacinth; Ninad Tipnis;<br />
Minky Wordin<br />
SPECIAL THANKS<br />
DOI; European Parliament Information Office in<br />
Malta; European Parliament, Directorate- General<br />
for Communication/Press Office; European<br />
Research Council; FIMBank; HSBC; LinkedIn;<br />
Edwards Lowell & Co.; MORGEN EUROPA; OPR;<br />
POLITICO SPRL; Politico Global Policy Lab; PTV<br />
Group; Taylor & Francis Group.<br />
PRINT PRODUCTION<br />
Velprint<br />
QUOTE OF THE MONTH<br />
“Once you start ignoring your enemies they will<br />
be disappointed because they will no longer<br />
have the power to make you angry or miserable.”<br />
Emanuel Vella, Ex-Snr. Inspector Police Corps,<br />
Malta<br />
Disclaimer<br />
All rights reserved. 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 expressed 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 />
MALTA BUSINESS REVIEW<br />
<strong>ISSUE</strong> <strong>44</strong> | 2018<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 />
Power is an important quality that a leader must possess.<br />
Power or the way the leaders behave emanate from the<br />
principles on which organizations are crafted. Hence, the<br />
power that is exercised is the other side of the coin. Due to<br />
the system’s tenets, individuals are influenced and have some<br />
kind of “shape” in their performance and leadership style. It is<br />
through this kind of power that individuals impose influence<br />
over others. However, some tend to misuse this power in<br />
various ways.<br />
In the past we have been taught that leadership is position, so<br />
as leaders we go for position, but when we are in the esteemed position, we realize that it does<br />
not follow that everyone follows us. We do not lead through structure, through influence.<br />
Positional leaders only influence positional followers, whereas, real leaders influence<br />
everyone. From this one can understand that having a position does not mean influencing<br />
others. Position does not make the leader, but the leader make the position if he influences<br />
others willingly and enthusiastically. For an effective leadership, power is influencing people<br />
to commit to the vision and mission of an organization. It is not having position of certain<br />
level and exerting force over others. It is precisely this factor which is lacking in the Opposition<br />
leadership at the moment, so if a leader is not performing up to the required standard, the<br />
team will obviously not give out their best as well; for a leader to be genuinely competent,<br />
he needs to demonstrate both professional and leadership competencies, having the ability<br />
or skill to listen, understand, evaluate, monitor, interact, accept, tolerate, guide, decide<br />
impartially, act rationally, and adapt to change.<br />
Humility is one of the key effective leadership qualities. Though leaders have the maximum<br />
responsibility, and though they are the ones who work harder than anyone else in the group,<br />
a leader needs to be down-to-earth. He should not think of himself as someone special; he<br />
should understand that he is just a leader and not the owner of his people. Only if the leader<br />
is humble, people will approach him. It is the duty of a leader to motivate his people, and only<br />
if a leader is humble will he be able to guide and support his group members. A leader must<br />
define his strategies, be able to provide a structure, have a heart and soul to accomplish an<br />
objective and directs the organization in a way that makes it more cohesive and coherent.<br />
In general, leadership is about relationships. Above all, it is about working with and guiding<br />
people in new directions; it is about integrity and trust; achieving the most positive interaction<br />
between leaders and followers.<br />
The current situation shows that without effective leadership and good governance at all<br />
levels, it is arguably virtually impossible for the Opposition to achieve and to sustain effective<br />
administration, to achieve goals, to sustain quality and deliver first-rate services, including<br />
being capable to answer any journalist’s questions in the true spirit of democracy and<br />
freedom of expression, and not act condescendingly, or to the contrary.<br />
The other important quality of effective leadership is openness. In exercising leadership,<br />
openness fosters integrity and dedication of the leader to achieve the targeted goal. By<br />
dedication, it is to mean that the leader spends all of his time to accomplish the targeted<br />
objective being a model for others. Through openness, there is free flow of information<br />
among leaders and followers, including the public at large. Because, the leaders are there to<br />
serve the public at large.<br />
Martin Vella<br />
Editor-in-Chief<br />
Malta Business Review’s editorial opinions are decided by its Editor, and besides reflecting the Editor’s<br />
opinion, are written to represent a fair and impartial representation of facts, events and provide a correct<br />
analysis of local and international news.<br />
Agents for:<br />
www.maltabusinessreview.net<br />
5
Malta Business Review<br />
COVER STORY INTERVIEW<br />
MAKING INVESTMENTS EASY<br />
By Martin Vella<br />
Sergey Vasin<br />
Exclusive interview with Sergey Vasin, Chief Operating Officer of<br />
Blackmoon, a Blockchain FinTech company, and the creators of<br />
the only operational blockchain investment platform, who are<br />
expanding into Malta.<br />
<strong>MBR</strong>: I want to kick off first<br />
with Blockchain Fintech, since<br />
you have just announced<br />
your expansion into Malta.<br />
What are the big trends for<br />
you in this space and what is<br />
significant about your choice<br />
to position your growth<br />
strategies in Malta?<br />
SV: We selected Malta after rigorous research of<br />
the proposed regulations in a number of European<br />
countries. The Maltese regulator really impressed<br />
us with their proactive approach. We had a very<br />
positive preliminary meeting, where the MFSA<br />
representatives asked very deep questions about<br />
our business model and value propositions. It went<br />
extremely well and we decided to choose Malta as a<br />
go-to jurisdiction.<br />
Blackmoon understands that the blockchain<br />
technology could bring its promise of enhanced<br />
liquidity, transparency and price discovery only in<br />
close collaboration with the regulators like the MFSA.<br />
I believe that the promise of blockchain technology is<br />
the biggest trend in the financial space. It is the first<br />
time in history that the financial system could switch<br />
from competitive mode to the sharing of common<br />
resources. Blockchain provides the technology, as a<br />
shared database, to scale and distribute the required<br />
standardizations for industry associations. This will<br />
enable financial institutions to become inclusive and<br />
offer their clients products issued by other sellers.<br />
<strong>MBR</strong>: Can you tell us about<br />
your role and what is<br />
Blackmoon?<br />
SV: Blackmoon’s mission is to make innovative<br />
investments easily tradable for all.<br />
<strong>MBR</strong>: I have been with<br />
Blackmoon since 2014. As<br />
COO, I’m responsible for the<br />
operational activity of the<br />
company with a focus on<br />
developing new products and<br />
the platform functionality.<br />
These products and platform<br />
functionalities allow investors<br />
to access investment<br />
opportunities that were<br />
previously inaccessible: from<br />
real estate lending hedge<br />
funds to algorithmic trading<br />
in cryptocurrencies.<br />
SV: Our platform unlocks liquidity for these<br />
investments. The tradability in the secondary<br />
market improves price discovery, transparency and<br />
mitigates the overall risk in the financial system.<br />
With compliance at our heart, we strive to offer<br />
our services to a wider range of investors. For<br />
asset managers, Blackmoon is a turnkey solution<br />
to increase their assets under management with a<br />
reliable distribution channel like our platform.<br />
<strong>MBR</strong>: What are the major<br />
features and services<br />
provided by Blackmoon?<br />
SV: There are three pillars of Blackmoon as a fintech<br />
group: Issuer, Technology Provider and Sales Channel.<br />
As an Issuer, we issue our own investment products.<br />
As a Technological Provider, we apply blockchain<br />
technology and provide tokenization infrastructure<br />
for third-party issuers. Finally, as a Sales Channel,<br />
we distribute products to verified investors and<br />
provide secondary liquidity on issued instruments.<br />
Our strategy is to develop an end-to-end platform<br />
for innovative financial instruments that makes<br />
investments easy, accessible and liquid to all.<br />
<strong>MBR</strong>: Can you describe what<br />
is the technology behind<br />
Blackmoon?<br />
"I believe that the<br />
promise of blockchain<br />
technology is the biggest<br />
trend in the financial<br />
space<br />
SV: Blackmoon as a technology provider uses the<br />
blockchain technology to manage tokenization<br />
infrastructure for the issuers. This infrastructure<br />
enables value transfer between participants while<br />
keeping the ecosystem open. That means that a Token<br />
issued in one place can travel across whitelisted sales<br />
channels. The technology is easy to use, customizable<br />
and failure-resistant due to the distributed ledger.<br />
The lifecycle of the token includes creation,<br />
distributed custody, and clearing, verification, trade,<br />
and redemption. This technological layer creates<br />
unparalleled opportunities to get access to a wider<br />
user base via multiple Brokers or other sales channels.<br />
Blackmoon provides a turn-key solution as it includes<br />
not only technological but a legal framework for that.<br />
<strong>MBR</strong>: With the MiFid II<br />
license, what promise to the<br />
investors to build a legally<br />
compliant framework for<br />
its services does Blackmoon<br />
fulfil?<br />
SV: We understand the importance of regulation.<br />
That’s why we already apply strict KYC and AML<br />
procedures. The Category 3 Investment Services<br />
Licence issued by the Malta Financial Services<br />
Authority (MFSA) that we applied for (and made<br />
significant progress with) will enable Blackmoon as<br />
a distribution channel to offer our products to the<br />
broader audience of the investors.<br />
<strong>MBR</strong>: How does Blackmoon<br />
intend to add further plans<br />
to strengthen its regulatory<br />
stance?<br />
SV: Blackmoon’s further regulatory milestones are<br />
entering the MFSA Virtual Financial Assets (VFA)<br />
sandbox and applying for a licence as soon as the<br />
regulation is enacted. On the other side of the ocean<br />
the Blackmoon group works on the REG D and REG<br />
S offerings to enter the US market targeting both<br />
investors and issuers respectively.<br />
6
COVER STORY INTERVIEW<br />
Malta Business Review<br />
This diligent approach and proactive cooperation<br />
with the regulatory bodies is the only way to build a<br />
scalable and reliable company.<br />
<strong>MBR</strong>: What can you tell our<br />
readers about the release of<br />
Blackmoon’s Prime Meridian<br />
Capital token (BMxPMR),<br />
announced last week, how<br />
does it work and how can we<br />
invest in it?<br />
SV: The release of this token is an important milestone<br />
for us. With this seventh asset on our platform,<br />
we provide investors with the opportunity to get<br />
access to the performance of the leading US hedge<br />
fund managers with $700 million in assets under<br />
management. To get access to this opportunity,<br />
investors should pass KYC. This includes not only the<br />
identity check but an appropriateness test as well.<br />
Once verified, a potential investor gets access to<br />
the dedicated interface with the information on the<br />
strategy and historical performance.<br />
<strong>MBR</strong>: What is the market<br />
size of the Blockchain Fintech<br />
industry and how do you<br />
intend to capitalise on this<br />
market with the launch of<br />
your new offices in Malta?<br />
SV: Since our solutions cover the needs of the entire<br />
asset management industry, Blackmoon is in a multitrillion<br />
dollar market, as Asset Managers benefit from<br />
not having to deal with multiple investors and most<br />
importantly, from the secondary market liquidity<br />
provided by our platform. With our launch in Malta,<br />
we enable investors to onboard with Blackmoon to<br />
diversify their portfolios with innovative investment<br />
products featuring various risk and return profiles.<br />
<strong>MBR</strong>: How safe is Blackmoon,<br />
would you like to talk about<br />
your legal and security<br />
measures?<br />
SV: Our current procedures are already based on<br />
ESMA and MiFID requirements and we are looking<br />
forward to providing users with a fully licensed entry<br />
point. We perform in-house customer onboarding<br />
with PEP and Sanctions screening and perform KYC<br />
and AML in cooperation with some of the world’s<br />
most credible risk intelligence data providers.<br />
Furthermore, we do assessments on all our thirdparty<br />
suppliers to ensure their credibility and<br />
reliability.<br />
From a security standpoint, we use two-factor<br />
authentication and prompt our clients to do so, cold<br />
storages and multi-signature wallets, a unique pool<br />
of addresses and partner with the leading provider in<br />
cyber security, to name some measures.<br />
<strong>MBR</strong>: What is next on<br />
the Blackmoon roadmap<br />
and where do you see the<br />
business in two years in<br />
Malta?<br />
SV: The next big milestones on our roadmap are<br />
the public launch of the secondary market and the<br />
first completed equity offering (also known as STO)<br />
on the platform. In the meantime, Blackmoon will<br />
keep on adding new investment opportunities to the<br />
platform. In the next several years I see Blackmoon<br />
becoming the go-to solution for investors to get<br />
access to the innovative investment opportunities.<br />
Without getting into details, we can reveal that<br />
our strategy will be segregated into retail and<br />
institutional. For the retail segment, we plan to be a<br />
more support/assistant role for our clients nurturing<br />
the lasting relationship. Institutional sales have a<br />
longer cycle. We have already set up this division and<br />
have made significant progress. Blackmoon is open<br />
for cooperation with new and existing companies to<br />
make the promise of the Blockchain to investment<br />
world a reality.<br />
Editor’s Note:<br />
Mr. Sergey Vasin is an investment and operations<br />
professional with SEVEN years experience in startups,<br />
venture capital, and investment banking. As COO<br />
at Blackmoon, he is responsible for the operational<br />
activity of the company with a focus on developing<br />
new products and managing internal processes.As<br />
the investment director at Flint Capital, Mr. Vasin<br />
was responsible for the execution of the deals and<br />
operational supervision of the portfolio companies<br />
with a focus on the fintech sector. Prior to that, he<br />
had a 3-year experience in investment banking. Mr.<br />
Vasin is a CFA charter holder. He graduated from the<br />
Higher School of Economics and holds a MS degree<br />
in Quantitative Economics<br />
Risk warning:<br />
Due to the fact that cryptocurrency markets are<br />
unregulated and decentralized, the provision of our<br />
services is not governed by any specific regulatory<br />
framework or investor protection rules. Investment<br />
in cryptocurrencies carries high degree of risk and<br />
volatility and is not suitable for every investor;<br />
therefore, you should not risk the capital you cannot<br />
afford to lose. Please consult an independent<br />
professional financial or legal advisor to ensure the<br />
product meets your objectives before you decide<br />
to invest. Under no circumstances shall Blackmoon<br />
have any liability to any person or entity for (a) any<br />
loss or damage in whole or part caused by, resulting<br />
from, or relating to any transactions related to<br />
the asset tokens or (b) any direct, indirect, special,<br />
consequential or incidental damages whatsoever.<br />
Please consider our Risk Disclosure and our Terms<br />
of Use before using our products. Social media<br />
posts about Blackmoon platform are generated<br />
by members of Blackmoon community and do not<br />
contain advice, recommendations or solicitation on<br />
behalf of Blackmoon. You are not permitted to use,<br />
alter or reproduce or distribute any of Blackmoon<br />
images and/or content, including but not limited to<br />
text, graphics, video, audio, software code, interface<br />
design or logos without our prior written consent.<br />
<strong>MBR</strong><br />
All rights reserved © - Blackmoon Financial Group<br />
2018<br />
Credits: BLACKMOON FINANCIAL GROUP 2018<br />
www.maltabusinessreview.net<br />
7
Malta Business Review<br />
TRANSPORT<br />
More electric cars on EU roads by 2030<br />
by Baptiste Chatain<br />
• 40% of new cars and vans to be zero- or<br />
low-emission vehicles by 2030<br />
• Carmakers to cut their fleet-wide CO2<br />
emissions by 45%<br />
• Towards real driving emissions testing for<br />
CO2 emissions<br />
•<br />
CO2 emissions from new cars should be cut by<br />
45% by 2030 and market uptake of zero - and<br />
low- emission vehicles should accelerate, said<br />
committee MEPs on Monday.<br />
Environment Committee MEPs proposed setting a<br />
higher target for reducing EU fleet-wide emissions<br />
for new cars by 2030: 45% (compared to the EU<br />
Commission’s 30%) with an intermediate target<br />
of 20% by 2025. The draft legislation also sets<br />
similar targets for new vans.<br />
Manufacturers whose average CO2 emissions<br />
exceed these targets will pay a premium to the<br />
EU budget, to be used, inter alia, for up-skilling<br />
workers affected by changes in the automotive<br />
sector, MEPs agreed.<br />
Carmakers will also have to ensure that zero- and<br />
low- emission vehicles - ZLEVs - (which emit less<br />
than 50g co2/km) have a 40% market share of<br />
sales of new cars and vans by 2030, and 20% by<br />
2025.<br />
Real-driving emissions<br />
Within two years, the EU Commission should<br />
table plans for a real-world CO2 emissions<br />
test using a portable device, like that recently<br />
introduced for NOx. CO2 emissions must<br />
meanwhile be measured on the basis of data<br />
from the cars’ fuel consumption meters. The realdriving<br />
emissions test must be up and running<br />
from 2023, say MEPs.<br />
Social impact of decarbonisation<br />
MEPs acknowledge that a socially-acceptable and<br />
just transition towards zero-emission mobility<br />
requires changes throughout the automotive<br />
value chain, with possible negative social impacts.<br />
The EU should therefore promote skill formation<br />
and reallocation of workers in the sector,<br />
particularly in regions and communities most<br />
affected by the transition. MEPs also advocate<br />
support for European battery manufacturing.<br />
Labelling<br />
By end 2019, the EU Commission will have to<br />
propose legislation to provide consumers with<br />
accurate and comparable information on the fuel<br />
consumption, CO2 and pollutant emissions of<br />
new cars.<br />
Lifecycle emissions<br />
From 2025, carmakers will have to report the<br />
lifecycle CO2 emissions of new cars put on the<br />
market, using a common methodology.<br />
Quote<br />
Miriam Dalli (S&D, MT), rapporteur, said: “The<br />
decisive vote in the Environment Committee<br />
represents a commitment to start tackling the<br />
fight against climate change seriously.<br />
Some cities across the European Union are<br />
already banning polluting cars but policymakers<br />
need to incentivise putting cleaner vehicles on<br />
the road. Since charging infrastructure is a precondition<br />
for the successful deployment of ZLEVs,<br />
and investment needs to be increased from<br />
today’s low levels, different support instruments<br />
at both Union and Member State level need<br />
to effectively work together, mobilising and<br />
incentivising significant public and private<br />
investment.<br />
This is an opportunity to inject new life into the<br />
EU’s manufacturing sector, investing in innovation<br />
and boosting economic growth. With training,<br />
re-skilling and up-skilling of workers, the EU can<br />
provide its citizens with sustainable quality jobs. ”<br />
Next steps<br />
The full House will vote on the report during its<br />
1-4 October plenary session in Strasbourg.<br />
Background<br />
Transport is the only major sector in the EU where<br />
greenhouse gas emissions are still rising, say<br />
MEPs. In order to meet the commitments made at<br />
COP21 in 2015, the decarbonisation of the entire<br />
transport sector needs to be accelerated, on the<br />
path towards zero emissions by mid-century.<br />
At the same time, the global automotive sector<br />
is changing rapidly, in particular in electrified<br />
powertrains. If European carmakers engage late<br />
in the necessary energy transition, they risk losing<br />
their leading role, say MEPs. <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
Electric Car<br />
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Malta Business Review<br />
LEADERSHIP<br />
DON'T BE A BOSS - BE A LEADER<br />
By Brigette Hyacinth<br />
I have worked for many bosses but few leaders. Working<br />
under a bad boss can make a good job even in the best<br />
company, unbearable. As the saying goes, people don't<br />
leave bad jobs, they leave bad bosses.<br />
Brigette Hyacinth<br />
Author: The Future of Leadership: Rise of Automation, Robotics and Artificial Intelligence<br />
Here are the four types of bad bosses that<br />
make employees want to quit companies:<br />
1) “Marionette” - In an age of uncertainty,<br />
many managers are yielding to this trap of<br />
just playing it safe to preserve their position<br />
and privileges. They just follow orders. They<br />
are mere puppets and exude no loyalty to<br />
employees. It's demotivating working for a<br />
manager who does not stand up for their<br />
team. If you make a mistake they quickly turn<br />
into judge , jury and executioner. It's hard to<br />
feel passion for a job when you experience<br />
this.<br />
2) “King Kong” - Some bosses when they reach<br />
to the top immediately forget where they<br />
came from. These type of managers possess<br />
a superiority complex and like to draw the<br />
distinction between management and staff.<br />
It is dreadful to work under a manager who<br />
is more worried about pushing their weight<br />
around than building relationships. Great<br />
leaders don’t talk down to their employees.<br />
They treat everyone with respect.<br />
3) “Superman” - They think the organization<br />
revolves around them. Some start behaving<br />
like they are the owners of the company. This<br />
trap includes making all of the decisions solo,<br />
ignoring feedback you don't like and taking the<br />
credit." Letting your ego get ahead of you and<br />
thinking you know it all is a sure path to failure.<br />
Showing some humility and vulnerability<br />
allows you to strengthen relations with your<br />
team.<br />
4) “Taskmaster” - Their sole focus is on the<br />
bottom-line. They use the carrot and stick<br />
approach to motivation which clearly doesn't<br />
work. Continuously drilling employees is<br />
a sure way make them unhappy at work.<br />
Micromanagement suffocates, demoralizes<br />
and kills creativity. These managers get so<br />
caught up in the bottom line that they forget<br />
to treat people with dignity and respect. Very<br />
few bosses show empathy towards their<br />
team members and this helps improve overall<br />
morale and performance.<br />
Then there is the LEADER. A leader coaches,<br />
supports and inspires. He/she puts the interests<br />
of their team before their own. Leaders develop<br />
safe atmospheres where risk-taking and<br />
feedback is welcomed. They take care of their<br />
team. The focus is to help everyone around<br />
them succeed. They push their team to grow<br />
and become their very best. A leader never<br />
leaves any of his team members to hang out dry.<br />
When a leader is at the helm, employees feel<br />
valued and appreciated. The corporate world<br />
is littered with managers but lacks leaders.<br />
Employees long for managers who are leaders.<br />
Lauralee emailed me this: "I worked for a<br />
company in Brussels a few years ago when<br />
my brother had cancer. In that year, I had ten<br />
weeks leave visiting him and then, when he<br />
died, attending his funeral). When I asked my<br />
manager, Eric how I could repay the company<br />
for all these extra holidays, he simply replied<br />
"they weren't holidays, don't worry about it". To<br />
this day, Eric was the best manager I ever had... I<br />
would walk over hot coals for him!"<br />
Bad bosses cost the world economy an<br />
estimated $360 billion in productivity. Employee<br />
engagement is at an all-time low (32%). Usually<br />
when an employee has an issue with their<br />
company, it has to do with something regarding<br />
their manager. Companies need to take a closer<br />
look at their managers and their leadership style.<br />
"An employee's<br />
motivation is a direct<br />
result of the sum of<br />
interactions with his or<br />
her manager<br />
Employee engagement is more of a manager<br />
issue. 75% of American workers say their boss<br />
is the worst and most stressful part of their<br />
jobs. How bad are they? Bad enough for 65%<br />
of respondents to say they’d rather have a new<br />
boss over a pay raise. Can a manager become a<br />
leader? Yes, it's possible. Sometimes it just takes<br />
being human and developing your people skills.<br />
Technical skills alone do not keep employees<br />
motivated. In this Artificial Intelligence economy,<br />
the new smart is not determined by IQ but by<br />
EQ. It's about listening, relating, collaborating<br />
and connecting with your team. This takes<br />
humility, authenticity and empathy.<br />
Studies have shown that leading with vision,<br />
inspiration, and purpose, produces better<br />
bottom-line results as well as happier, more<br />
engaged employees. If we want employees<br />
to feel commitment to the organization; we<br />
need to show we respect and value them. The<br />
"human touch" makes all the difference. If you<br />
want to make a lasting positive impact - Don't be<br />
a boss, be a leader! <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
- Bob Nelson<br />
The Future of Leadership: Rise of Automation, Robotics and<br />
Artificial Intelligence<br />
This book offers the most comprehensive view of what is taking place in the world of AI and emerging technologies,<br />
and gives valuable insights that will allow you to successfully navigate the tsunami of technology that is coming our way.<br />
10
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Malta Business Review<br />
INTERVIEW OF THE MONTH<br />
DRIVING CHANGE<br />
By Martin Vella<br />
Marlene Mizzi<br />
Exclusive Interview with Marlene Mizzi, MEP, with the group<br />
of the Progressive Alliance of Socialists and Democrats in the<br />
European Parliament and first Maltese woman to be elected<br />
to the European Parliament<br />
ST: You will not contest again<br />
the European Parliament<br />
elections, scheduled for<br />
next year. What can you tell<br />
us about life as an MEP?<br />
MM: I am basically a technocrat not a<br />
politician! After entering the realm of politics<br />
ten years ago, five of which spent as an MEP,<br />
I feel it’s time to hang up my political boots!<br />
However, hand on heart I can say that I gave<br />
my elected post my all. I am satisfied that<br />
during my term of office I was entrusted with<br />
very important reports on issues which made<br />
real difference to the citizens – like the report<br />
on roaming charges, European standards,<br />
the single digital gateway, Brexit and many<br />
others. I have won awards, including the<br />
MEP of the Year Award for my work in IMCO.<br />
I represented the European Parliament<br />
in numerous missions and conferences ,<br />
including in the role of head of delegation.<br />
In the end my greatest satisfaction is that I<br />
did not let down the thousands of people<br />
who entrusted me with their vote and their<br />
voice in the European Parliament. I believe<br />
I have served my country well. But, I am<br />
neither attached of the seat of power, nor to<br />
the handsome MEP financial package and so<br />
I decided to move on to other adventures –<br />
and to leave when at the peak of my political<br />
career. However, I am still an MEP until June<br />
2019 and I intend to continue working to the<br />
very last day of my term.<br />
It has been a big change in lifestyle for me<br />
since I became an MEP for the first time in<br />
2013. Life as a Member of the European<br />
Parliament is what one makes of it. For me<br />
of it was a complete change of lifestyle living<br />
and working in different countries. But it is a<br />
wonderful adventure... It involves travelling to<br />
and from Brussels and Strasbourg, and other<br />
countries on various missions. A typical week<br />
starts by getting there on Monday, plan the<br />
week ahead, go through reports, agendas and<br />
answering emails. My days in Brussels and<br />
Strasbourg are hectic - report presentations,<br />
plenaries, shadow and committee meetings.<br />
When I’m in Malta I engage in meetings with<br />
individual constituents, local organizations,<br />
national politicians, businesses organizations,<br />
trade unions, local councils and so on. While<br />
many would assume that travelling so much<br />
may be glamorous, it quickly becomes<br />
stressful. Even so, I still love what I do and I<br />
knew what I was getting myself into... so I am<br />
only explaining, not complaining!<br />
<strong>MBR</strong>: How do you account<br />
for your ten year success to<br />
date, and what are the<br />
main highlights of these ten<br />
years?<br />
MM: These ten years have been a busy, hectic<br />
but exciting adventure for me. I entered into<br />
politics because I wanted to be part of the<br />
change the country desperately needed at<br />
the time. So I accepted Dr Muscat’s invitation<br />
to join the PL team to contest the 2009 MEP<br />
elections – when I was not elected for a<br />
whisker! The biggest highlight during these<br />
years is, therefore, being elected as an MEP<br />
replacing Prof. Edward Scicluna in the 2013<br />
by-elections. I am proud to be part of Malta’s<br />
political history as Malta's first woman to be<br />
elected to the European Parliament.<br />
As an MEP I am member of various<br />
committees – Internal Market and Consumer<br />
protection (IMCO), Vice President of the<br />
Petitions Committee(PETI ) , and substitute<br />
member in the Committee of culture,<br />
education and sport (CULT). I am also a<br />
member of various Parliamentary Intergroups<br />
including Animal Welfare, LGTBQ, Children’s<br />
Rights and others.<br />
One of the main highlights was my role within<br />
IMCO where I was part of the negotiating<br />
team which was instrumental in the signing of<br />
the legislation that abolished roaming charges<br />
across Europe. This was a historic step for<br />
EU citizens since it meant that anyone with<br />
a mobile phone line based in any of the 28<br />
European Member States can travel between<br />
EU countries and not pay extra for roaming.<br />
This year we also managed to reach an<br />
agreement with the EU Council for a new legal<br />
framework for electronic communications,<br />
where I was the S&D negotiator of the IMCO<br />
on the new EU telecoms rules. One of the<br />
main proposals will reduce the price of phone<br />
calls made from one EU member state to<br />
another one. It is on occasions like these<br />
that I realise how our work as MEPs has a<br />
real impact on improving the daily lives of all<br />
Europeans.<br />
On a personal level, it was an honour for me<br />
to win the prestigious MEP of the Year Award<br />
for my role as key negotiator on several<br />
Digital Singel Market dossiers, including on<br />
the European Standards of the 21 st Century<br />
report.<br />
This was the second time that I was nominated<br />
for the MEP of the Year Award, after that in<br />
2017 I was one of the finalists for my work on<br />
animal welfare issues.In the same year I was<br />
also named Eurogroup for Animals’ Person of<br />
the Year for standing strong for the protection<br />
and promotion of animal health and habitat<br />
across Europe.<br />
More than anything I hope that my<br />
achievements and work will be of benefit<br />
and make a difference to the citizens in their<br />
everyday life.<br />
"The Single Digital<br />
Gateway offers more<br />
user- friendly services<br />
and millions of<br />
Europeans citizens will<br />
benefit from it.<br />
12
INTERVIEW OF THE MONTH<br />
Malta Business Review<br />
<strong>MBR</strong>: What do you expect<br />
the EU to do about Malta’s<br />
immigration concerns?<br />
MM: Respecting the integrity and rights of<br />
migrants is a must and xenophobic comments<br />
and behaviour are never acceptable. As an<br />
MEP I have been following this issue closely<br />
since 2013 and I was the rapporteur on the<br />
report on the situation in the Mediterranean<br />
and the need for a holistic EU approach on<br />
migration. I always sustained that the exodus<br />
of thousands of peoples from Africa into<br />
Europe is a symptom not the cause.<br />
For a good number of years I have been<br />
stressing that to solve the migration problem<br />
we need action and no more useless<br />
words and catchy phrases in the European<br />
Parliament. Unfortunately, I have to say that<br />
concrete action is still lacking.<br />
The migration phenomenon will not be solved<br />
as long as its cause of origin is tackled from<br />
its roots – mainly, the conflicts and instability<br />
in the countries where migrants come from.<br />
A solution has to be found for the main<br />
causes which are forcing thousands of people<br />
fleeing their country. If not, we should expect<br />
the situation to get worse and not better.I<br />
strongly believe that the best way to address<br />
migration from African countries is to make<br />
sure that the people are given all necessary<br />
toolsand opportunities in their country of<br />
origin. We have to give people a future in their<br />
own country.<br />
In April I was part of the European delegation<br />
which held discussions with parliamentarians<br />
from ACP (African, Caribbean and Pacific)<br />
countries. One of the main issues was<br />
immigration and the funds, running into<br />
millions of Euros per year, which the EU<br />
contributes to these countries. During these<br />
meetings I insisted that we must ensure that<br />
"The main objective of<br />
my work as a shadows<br />
rapporteur was to<br />
address the current<br />
gaps, so that citizens will<br />
finally have the same<br />
power as the European<br />
Parliament.<br />
the development funds are being used to<br />
create investment and to create jobs. Only<br />
then we can be satisfied that the millions<br />
given to ACP countries are being used for the<br />
benefit of all the citizens rather than for the<br />
few.<br />
The EU must understand that while<br />
protecting our borders is a priority, no EU<br />
country can or should be left alone to address<br />
huge migratory pressures. We need stronger<br />
and realistic internal and external policies<br />
involving EU countries and institutions.<br />
<strong>MBR</strong>: Recently, the<br />
European Parliament’s<br />
InternalMarketCommittee<br />
(IMCO) approved with an<br />
overwhelming majority<br />
the Mizzi legislative report<br />
on creating the first ever<br />
European single digital<br />
gateway that will make<br />
it easier for citizens and<br />
businesses to do their<br />
paperwork online and to<br />
find the right administrative<br />
information they need<br />
wherever they are in the<br />
EU. How significant was this<br />
milestone for you, as well as<br />
for the general public?<br />
MM: I am proud to have successfully lead the<br />
tripartite discussions concerning the Digital<br />
Single Gateway, between the three European<br />
institutions to make this important legislation<br />
possible. After lengthy discussions, my Report<br />
on the Single Digital Gateway got the final<br />
approval from Member States and from all<br />
the political groups in the IMCO Committee.<br />
This legislation is an important milestone<br />
towards digitalization of public services in<br />
Europe.<br />
All existing administrative information of<br />
all Member States will now be combined<br />
into a single search engine. This will make<br />
it easier for citizens and businesses to<br />
find information, procedures, forms and<br />
assistance for people moving to, studying or<br />
doing business in another EU country. It will<br />
also provide access to key administrative<br />
procedures online, such as requesting a birth<br />
certificate, car registration, European Health<br />
Card, applications for study loans and grants,<br />
and permits for business activity amongst<br />
many others.<br />
The Single Digital Gateway would eliminate<br />
the need to search in different sites for crossborder<br />
information, filing endless forms, and<br />
hours waiting at long queues in public offices<br />
and the frustration of wasting long hours online,<br />
at times without getting the required<br />
information. This legislation will make a<br />
positive difference to our citizens, and this is<br />
Marlene Mizzi<br />
www.maltabusinessreview.net<br />
13
Malta Business Review<br />
INTERVIEW OF THE MONTH<br />
what gives me the greatest satisfaction in my<br />
work as a legislator and MEP.<br />
<strong>MBR</strong>: Why do you consider<br />
this as a key step and how<br />
far are we from making the<br />
digital single market a reality?<br />
MM: Digitalisation is the present and the<br />
future. The internet has great potential and<br />
offers unlimited opportunities for the future<br />
development of the single market. Obviously<br />
there are also a number of challenges<br />
that might affect consumers, workers and<br />
traditional business providers and suppliers.<br />
potential?<br />
MM: The European Citizens’ Initiative (ECI),<br />
which was introduced with the Lisbon Treaty,<br />
aims at increasing citizen’s role within the lawmaking<br />
process of the EU by enabling citizens<br />
to influence legislation. Regretfully, the<br />
instrument has failed short on expectations<br />
and after continuous callings from citizens and<br />
the European Parliament, the Commission<br />
published a new revised rules in September<br />
2017.<br />
It was indeed very satisfying to see the positive<br />
results we got on the new rules for the revision<br />
as the European Parliament and the Council<br />
to propose new initiatives and policies at<br />
European level. For me the Citizens’ Initiative<br />
is a direct appeal from the people to the EU<br />
to directly shape the political future in Europe.<br />
<strong>MBR</strong>: You served also as Vice<br />
Chair, as well as a member on<br />
the Committee on Economic<br />
and Monetary Affairs. What<br />
are your experiences from<br />
these positions?<br />
MM: I was Vice President and member of<br />
Marlene Mizzi at the EU Parliment<br />
The approval of the Report is a key step<br />
towards changing the way we think, the way<br />
we work and the way we live. The Single Digital<br />
Gateway offers more user- friendly services<br />
and millions of Europeans citizens will benefit<br />
from it – especially those who have worked<br />
or studied, or intend to do so , in other EU<br />
member states. The Single Digital Gateway will<br />
open the door towards numerous advantages<br />
and opportunites,and hopefully it will become<br />
a reality soon. The Report will be put to the<br />
final vote in plenary in September.<br />
<strong>MBR</strong>: You have campaigned<br />
in favour that citizens must<br />
be given stronger voice<br />
through European Citizens’<br />
Initiative. What was your key<br />
role in drafting and voting on<br />
this strong position that will<br />
ensure that the instrument is<br />
citizens friendly as possible<br />
and lives up to its full<br />
of the European Citizens’ Initiative (ECI) in<br />
May 2018. There was widespread consensus<br />
across all the political groups in support of my<br />
amendments aimed at improving the current<br />
rules and give voice to European citizens when<br />
organizing, participating or simply supporting<br />
a Citizens’ Initiative.<br />
I am happy that as a shadow rapporteur I had<br />
a key role to play in drafting and voting on<br />
this strong position that will ensure that the<br />
instrument is citizens friendly as possible and<br />
lives up to its full potential. This was a crucial<br />
vote in favour of giving a stronger voice to<br />
citizens where EU legislation is concerned.<br />
The Commission’s new proposal will solve<br />
several relevant problems, which currently<br />
limit the user-friendliness of the instrument.<br />
However, the proposal still fails short on some<br />
fundamental issues, which are essential to<br />
ensure the future success of the ECI.<br />
The main objective of my work as a shadows<br />
rapporteur was to address the current gaps, so<br />
that citizens will finally have the same power<br />
ECON in the last year of the previous mandate,<br />
2013-2014. As an economist this committee<br />
was right up my street but the term of office<br />
was too short to, as it was also MEP election<br />
year. However, ECON is a very important<br />
committee, but as it is very technical and its<br />
effectiveness is often underestimated. I<br />
decided to change committees for the 2014-<br />
19 mandate.<br />
<strong>MBR</strong>: You were also<br />
appointed as a rapporteur<br />
for the Brexit newsbook –<br />
which report is aimed to<br />
create a market structure<br />
that would still give vehicle<br />
manufacturers access to<br />
the European single market<br />
following the United<br />
Kingdom’s exist from the<br />
Union. Can you share your<br />
opinions about Brexit?<br />
MM: As of present many citizens are still<br />
unsure as to whether we will see the<br />
14
Malta Business Review<br />
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Malta Business Review<br />
INTERVIEW OF THE MONTH<br />
continuance of Brexit or if there will be a<br />
second referendum – although I am personally<br />
skeptical about the latter possibility. Therefore,<br />
in that context one adds that one must wait<br />
and see what the British government is intent<br />
on doing with Prime Minister Theresa May at<br />
the helm. The one thing that is certain is that<br />
MEPs who have been trusted with files related<br />
to Brexit must negotiate with the intention to<br />
benefit all EU citizens. This is inclusive of those<br />
citizens who reside, and work in the United<br />
Kingdom, therefore the approach must be<br />
well-balanced.<br />
Additionally, Brexit will set new corner stones<br />
for the European Union and its members,<br />
creating grounds of precedent which means<br />
that the European Institutions must get closer<br />
to the citizen than ever before. The work<br />
of the negotiating team will determine the<br />
fate of over four million citizens and thus it is<br />
necessary that the right balance throughout<br />
the discourse is maintained.<br />
<strong>MBR</strong>: You have been awared<br />
MEP of the Year Award in<br />
the Internal Market and<br />
Consumer Protection (IMCO)<br />
category for her work as lead<br />
IMCO Committee Rapporteur<br />
on the European Standards of<br />
the 21st Century report. How<br />
significant was this award for<br />
you and for what recognition<br />
was this prestigious award<br />
bestowed to you?<br />
MM: This is the second year running in which<br />
I was nominated for the MEP of the Year<br />
Award (the first time was for my work in the<br />
field of animal welfare). I played a leading role<br />
in the IMCO committee as key negotiator on<br />
several Digital Single Market dossiers. I helped<br />
finalizing and drafting European legislation on<br />
important issues such as net neutrality and<br />
abolishing roaming charges. I also worked<br />
on a strategic report on shaping the future<br />
of European standards and I was one of the<br />
leading MEPs who worked so that phone calls<br />
from one EU country to another cost almost<br />
the same as a domestic call.<br />
It is an honour to win this prestigious MEP<br />
of the Year award and to have one’s work<br />
acknowledged by independent judges. I was<br />
pleased, not only for me, but also for Malta.<br />
I am humbled that people have placed their<br />
faith and trust in me especially because I have<br />
been given this award for my contributions<br />
in the area of digital single market. What is<br />
particularly satisfying is that my work as an<br />
MEP leaves real impact on people’s lives and<br />
that the voice of consumers, citizens, and<br />
micro and small businesses is heard across<br />
the European spectrum and the European<br />
Parliament.<br />
We need to ensure that the digital world we<br />
live in is more fair, just and sustainable, whilst<br />
providing equal opportunities for all. This<br />
award is a responsibility that I do not take<br />
lightly, and I will continue to represent citizens,<br />
consumers and businesses across Europe with<br />
the utmost devotion and boldness.<br />
<strong>MBR</strong>: With the PN party in<br />
total disarray, where do you<br />
see Labour in a year’s time at<br />
the EP elections?<br />
MM: The worst thing the Labour Party , the<br />
government and the citizens can do is to take<br />
pleasure in the troubles of the Nationalist<br />
Party. The country needs a strong, serious and<br />
responsible opposition. I truly hope that the<br />
PN finds the courage to take bold steps and<br />
take those decisions which many not be easy<br />
– including disassociating itself from people<br />
who lack the integrity and the insight to realise<br />
the damage they have inflicted on the PN;<br />
from people who brought their own party<br />
in total disarray; from people who consider<br />
themselves bigger than the Party.<br />
In the European Parliament I experienced<br />
a different way of doing politics, whereas it<br />
is more a politics of debate rather than one<br />
of continuous confrontation. It is due time<br />
to move away from the tribal politics which<br />
"I am afraid that many<br />
PN MPs and supporters<br />
have not yet realised the<br />
gravity of the situation<br />
their party is in.<br />
unfortunately exist in our country. Still, I am<br />
afraid that many PN MPs and supporters have<br />
not yet realised the gravity of the situation<br />
their party is in, and are still digging a deeper<br />
hole and harming the PN even more. On the<br />
other hand Labour is determined to keep on<br />
working in the interest of all citizens and our<br />
country, both on national, international and<br />
European level.<br />
At the European Parliament elections people<br />
will vote for those candidates who really have<br />
their country’s interest at heart and not those<br />
who try to undermine national interest to gain<br />
political points. The electorate is no fool and<br />
knows who worked in their interest, and in the<br />
interest of our country and who collaborated<br />
with foreign MEPs to damage our reputation,<br />
hoping to bring down a democratically elected<br />
government.<br />
I do not like to make predictions, therefore I will<br />
not predict! . However, I am sure that citizens<br />
will make the right choice since it is crystal<br />
clear which party is working for a better future<br />
for its people, and which party is just hungry<br />
for power, mainly interested in playing dirty<br />
games to tarnish Malta’s reputation in Europe.<br />
Having said so, what I wish for my beloved<br />
country and for the sake of democracy, is a<br />
strong Government and a strong constructive<br />
Opposition. We have the former, we badly<br />
need the latter. <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
Marlene Mizzi<br />
16
Beyond Ordinary<br />
Charter Experiences<br />
00356 2778 2500 / charters@azureultra.com / www.azureultra.com
Malta Business Review<br />
ONE-ON-ONE<br />
ADDING VALUE TO BUSINESS<br />
<strong>MBR</strong> Exclusive with Sue Duke, global head of<br />
public policy, LinkedIn<br />
As news filters through that EU<br />
unemployment levels are at their lowest<br />
in 10 years (6.9 percent for the EU28, but<br />
8.3 percent for the eurozone), Sue Duke<br />
wonders if national labour markets even<br />
exist in 2018.<br />
Duke’s got the data of 167 million Europeans<br />
at her fingertips — in what LinkedIn’s calls<br />
its “economic graph” — to illustrate the<br />
clunkiness of old ways of thinking about<br />
and measuring our economy.<br />
Take entrepreneurship: “Everybody kind<br />
of thinks the start-up scene is the same<br />
everywhere. You know, lots of bean bags<br />
and cool young people running around in<br />
sneakers. But actually when you dive in and<br />
take a look you realize that they are very<br />
different, often very much rooted in the<br />
history and culture of the city.” There are<br />
often older entrepreneurs and innovation<br />
hubs tied to the a city’s original industry,<br />
for example: What Duke calls “historical<br />
echoes” in cities such as Manchester,<br />
which was at the centre of the Industrial<br />
Revolution.<br />
"What we are not<br />
necessarily seeing is<br />
displacement of jobs.<br />
what we are seeing<br />
is jobs evolving and<br />
adapting to take<br />
account of these new<br />
technologies<br />
Why should you care? First, Duke is<br />
helping politicians including European<br />
commissioner Elżbieta Bieńkowska,<br />
and the mayors of cities like Stockholm,<br />
reshape their policies with her data.<br />
“When we spoke to the city of Stockholm<br />
they were able to use the insights that we<br />
generated to go out to companies abroad<br />
and say, you know, if you want to set up<br />
a Centre for Digital Design, if you want to<br />
be focused on user interface, you should<br />
come here, because look how well we<br />
compare, look what we are doing in that<br />
space,” Duke said.<br />
Duke is also European and based in<br />
Europe: a rarity for senior figures in global<br />
tech companies, who tend to treat Europe<br />
as a troublesome offshoot to be governed<br />
from California.<br />
She was in Brussels pitching how low she<br />
can go in terms of labour market granularity,<br />
telling officials “what is happening on the<br />
ground concretely in their labour market:<br />
who’s moving in and out, what new jobs<br />
are emerging, what new sectors are on the<br />
rise or indeed on the decline,” she said.<br />
LinkedIn’s European Commission work<br />
focuses on the politically sensitive car<br />
sector. Often seen as vulnerable to artificial<br />
intelligence, which could replace many<br />
humans in the industry, Duke said there<br />
are surprises: “What we are not necessarily<br />
seeing is displacement of jobs. what we are<br />
Sue Duke - Global head of public policy, LinkedIn<br />
seeing is jobs evolving and adapting to take<br />
account of these new technologies.”<br />
Duke also had wise words for EU<br />
Confidential regarding pregnancy in the<br />
workplace: Pregnant women need lumbar<br />
support, so give them the best chair in the<br />
room (unlike EU Confidential, which gave<br />
Duke a nice looking, but not particularly<br />
supportive, chair).<br />
Beyond that, Duke is using her own<br />
pregnancy to broaden workplace<br />
conversations about absence. “It should<br />
be part of a broader conversation around<br />
different phases in your career,” she<br />
said. “I think that’s one of your primary<br />
responsibilities as a leader, to ensure that<br />
no matter whether you are on leave for<br />
parental reasons or because you got run<br />
over by a bus, that actually you have a team<br />
in place that has that ability to ensure that<br />
the organization and its members continue<br />
to be well served.” <strong>MBR</strong><br />
Creditline: POLITICO SPRL<br />
18
BANKING NEWS<br />
Malta Business Review<br />
FIMBank Meets<br />
Professional Stakeholders<br />
FIMBank recently hosted a meeting with<br />
professional stakeholders to discuss the Bank’s<br />
interim financial results for 2018. The meeting<br />
revolved around the key developments at<br />
FIMBank, including its interim after- tax profit<br />
of USD 6.1 million for the first six months of<br />
2018, an increase of 47 per cent on the USD<br />
4.1 million registered during the same period<br />
in 2017.<br />
During his opening speech, FIMBank Group<br />
Chairman Dr John C. Grech referred to the<br />
Rights Issue announced in March, which<br />
he referred to as a ‘significant milestone’ in<br />
the Group’s development. He stated that<br />
the raising of additional equity amounting<br />
to USD 105 million in the second quarter of<br />
2018, “was a statement of strategic intent,<br />
taking the Group’s capital strength to a<br />
superior level, and unlocking the potential<br />
for further growth.” Looking towards the<br />
future with optimism, Dr Grech reinforced<br />
that the turnaround is over, a strong indicator<br />
that FIMBank is now in growth mode, and<br />
that the results obtained recently show an<br />
acceleration of performance on the bottom<br />
line, a process that is expected to continue.<br />
FIMBank’s CEO, Murali Subramanian,<br />
elaborated on FIMBank’s strategy, explaining<br />
that this is founded on the “core pillars<br />
of client origination and delivery, product<br />
evolution, funding efficiency, and risk and<br />
governance stability.” Mr Subramanian added<br />
that “Consistent planning, hard work, and<br />
perseverance, have contributed to our stable<br />
performance and the creation of a sustainable<br />
platform for further success.”<br />
The Group’s Chief Financial Officer, Ronald<br />
Mizzi, provided a detailed overview of<br />
FIMBank’s financial results, highlighting<br />
amongst others the salient milestones and<br />
issues which marked the Group’s financial<br />
performance during the first six months of the<br />
year, whilst analysing the trends relating to the<br />
main key performance ratios. In this regard,<br />
he concluded that “the Group recorded<br />
positive results across the main key areas,<br />
with assets growing compared to last year,<br />
revenue increasing, asset quality improving,<br />
and costs being managed adequately across<br />
all businesses. This was supported by the new<br />
capital injected earlier in the year, enabling<br />
FIMBank to achieve the objectives set for<br />
2018 and beyond.” <strong>MBR</strong><br />
Creditline: FIMBank<br />
"Consistent planning,<br />
hard work, and<br />
perseverance, have<br />
contributed to our<br />
stable performance<br />
and the creation of a<br />
sustainable platform for<br />
further success.<br />
Professional Stakeholders Meeting<br />
www.maltabusinessreview.net<br />
19
Malta Business Review<br />
TRANSPORT & LOGISTICS<br />
A TRAINING ACADEMY WITH A MISSION<br />
At Express Trailers, one ideal has always stood the test of time:<br />
that the people within the organisation, are one of the main<br />
drivers for business.<br />
At Express Trailers, one ideal has always<br />
stood the test of time: that the people<br />
within the organisation, are one of the<br />
main drivers for business.<br />
“Equipment and space are investments<br />
that anyone can make. But attracting,<br />
training, and retaining the best people is<br />
a culture. We have decided to set up our<br />
new Express Trailers Training Academy<br />
with a very specific mission: to intersect<br />
theory, experience and better practice<br />
in the field of transport and logistics. We<br />
want this project to be a source and flow<br />
of knowledge and motivation for all our<br />
employees,” explains Franco Azzopardi,<br />
Chairman and CEO of Express Trailers.<br />
The Express Trailers Training Academy will<br />
be providing Express Trailers’ employees<br />
with ongoing training based on a structured<br />
and long-term plan.<br />
“The intention is driven by the way we do<br />
things at Express Trailers because we do not<br />
just hire people, but we provide them with<br />
ample opportunities for career progression<br />
based on transmitted experience and<br />
knowledge aimed at heightening their<br />
capabilities and experience. Indeed, we do<br />
not just employ people – we train them to<br />
become experts in logistics.”<br />
"Indeed, we do not just<br />
employ people – we<br />
train them to become<br />
experts in logistics.<br />
“The transport and logistics sectors are<br />
very dynamic ones which are constantly<br />
evolving. To be able to retain our expertise,<br />
our people need to remain abreast with the<br />
latest developments. In fact, through this<br />
Academy, we will be training our people<br />
in the art of logistics, be it on the road, at<br />
customer level, in operations, planning,<br />
administration and management.”<br />
Franco Azzopardi acknowledges the<br />
importance for companies like Express<br />
Trailers to harness the wealth of knowledge<br />
that exists and that is held by many of its<br />
key people.<br />
“Harnessing this knowledge and passing<br />
it on is part of good succession planning<br />
that every company needs to be looking<br />
at. Key experts in companies are always<br />
very busy and no one knows what would<br />
happen if one day, these key people decide<br />
to leave. The Express Trailers Training<br />
Academy is part of our long-term plan on<br />
making sure this knowledge keeps being<br />
passed on to the respective teams to<br />
ensure business continuity. In fact, besides<br />
the specialised training courses delivered<br />
by accredited bodies and online courses<br />
Express Trailers Training Academy<br />
20
TRANSPORT & LOGISTICS<br />
Malta Business Review<br />
Express Trailers Training Academy<br />
which the employees may follow in their<br />
own time and at their own pace, we will<br />
also be involving our mature employees,<br />
heads of departments, managers and even<br />
retirees,” added Franco Azzopardi.<br />
The first course will be an online course<br />
on International Commercial Terms and<br />
Documentation. Also known as incoterms,<br />
these are standard contract terms used in<br />
sales contracts with importing/exporting<br />
to define responsibility and liability for<br />
shipment of the goods. Other topics will<br />
include GDPR, procedures related to safety<br />
and security as well as courses on soft<br />
skills.<br />
Mr Azzopardi stressed how Express Trailers<br />
has always been a market leader especially<br />
in the way it does things.<br />
“We do not see the return on investment in<br />
monetary terms but more as a barometric<br />
reading of employee satisfaction. We only<br />
look ahead of the game. Perhaps others<br />
will follow. There are employers who are<br />
afraid of investing in their employees<br />
because these might eventually move<br />
to competition. We think differently and<br />
expect any over-spill of people trained by<br />
us moving into the industry to transmit<br />
a contagion of good practice. There is<br />
absolutely nothing wrong there. Ultimately,<br />
I know that an initiative like this will not<br />
only help us develop our current workforce<br />
but also building the next generation of<br />
employees.”<br />
“From our customers’ perspective, they<br />
will know that they are working with a<br />
company whose workforce is being trained<br />
in speaking the same language and working<br />
in the same style using the same high-tech<br />
systems and equipment, is mindful of<br />
ethics, health and safety and manners.”<br />
“Our aim has always been to be a positive<br />
experience and a strong currency on the<br />
curriculum vitae of our people, even if<br />
they ever decide to move on to other<br />
jobs. Ultimately, as leaders in the industry,<br />
we also believe it is in our interest to see<br />
the industry grow not only in terms of<br />
numbers but more holistically especially in<br />
the quality of service it offers,” he adds.<br />
The obvious question one tends to ask in<br />
the end is what kind of return one could<br />
expect from this investment and how does<br />
this initiative fit into the company’s longterm<br />
strategy.<br />
“We are very positive that our people will<br />
embrace this initiative and will help them<br />
in their self-development path. Personally,<br />
I also look at this as a differentiator that<br />
strengthens Express Trailers’ reputation as<br />
a good employer who is constantly seeking<br />
to not only hire but train its people into<br />
becoming logistics experts,” concluded<br />
Franco Azzopardi. <strong>MBR</strong><br />
Creditline: Express Trailers<br />
www.maltabusinessreview.net<br />
21
Malta Business Review<br />
EUROPEAN CONSTRUCTION INDUSTRY<br />
European Start-up study: Malta's construction<br />
industry grew by 89% from 2016-2017<br />
by Yvonne Bernhardt<br />
• With 1,955,681 start-ups registered between<br />
2013-2017, the construction sector is the<br />
third biggest industry fuelling Europe’s startup<br />
scene<br />
• Ireland is the top country for the construction<br />
industry in Europe, with a steady growth of<br />
11.18% of new businesses between 2013-17<br />
• Looking at the growth rates between 2016-<br />
2018, Malta’s construction industry is<br />
booming with a growth of over 89%<br />
Analysing the start-up industry in<br />
Europe, card processing specialists,<br />
Paymentsense, have conducted research<br />
to reveal the countries seeing significant<br />
growth in start-ups between 2013 -2017.<br />
The data has been mapped out across<br />
Europe - detailing the industry’s most<br />
prevalent in each country and the rate of<br />
growth over the last 5 years.<br />
Paymentsense have analysed 30<br />
European countries and ranked each<br />
one based on how many new businesses<br />
have been registered in a 5-year period.<br />
The business types which have been the<br />
most popular in these countries are also<br />
detailed.<br />
When looking at what type of start-ups<br />
have dominated Europe in the last few<br />
years, wholesale and retail have the<br />
largest presence with 3.7 million new<br />
businesses started up. This is surprising<br />
The type of companies that have started up in Europe between 2013-2017:<br />
to see when in recent years we have<br />
seen a retail crash with companies like<br />
Woolworths and Toys R Us go bust.<br />
With 1,955,681 start-ups registered<br />
between 2013-2017, the construction<br />
sector is the third biggest industry<br />
fuelling Europe’s start-up scene.<br />
Looking at the percentage growth of new<br />
businesses in the construction sector,<br />
Ireland tops the charts as country with<br />
the highest stable growth of 11.18%<br />
between 2013-2017, followed by Latvia<br />
and Malta. Although the UK has the<br />
highest number of newly registered<br />
businesses, its industry has only gained<br />
7.10% more companies over the course<br />
of the past 5 years.<br />
Guy Moreve, Chief Marketing Officer at<br />
Paymentsense, says:<br />
“It’s fascinating to see how Europe has<br />
changed in recent times. A number of<br />
countries are now placing more emphasis<br />
on technology which has helped create a<br />
‘golden era’ for tech start-ups.<br />
Top 10 countries fuelling the European construction industry:<br />
“In order to thrive a business in your<br />
respective country, make sure you<br />
analyse the market you’re addressing<br />
– what works best and what doesn’t;<br />
It’s also worth looking at the legal and<br />
environmental conditions in order<br />
to make sure your business idea is a<br />
success”. <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
22
HEALTHCARE<br />
Malta Business Review<br />
Anatomy Centre in Gozo to Open in September<br />
A new anatomy centre next to Gozo General<br />
Hospital in Victoria is scheduled to complete<br />
this September, as artist’s impressions of<br />
the development are released by Barts<br />
and The London School of Medicine and<br />
Dentistry, Queen Mary University of London<br />
(see Notes to Editors).<br />
Carrying a bespoke design for a modern<br />
anatomy centre, the building will be<br />
equipped with the most up-to-date facilities<br />
to support anatomy and clinical skills<br />
teaching.<br />
The unique facility will be the focus of<br />
teaching activity from September 2018, in<br />
time for Year 2 medical students to continue<br />
their anatomy studies and for the new<br />
intake of first year students. The building<br />
will also provide office accommodation<br />
for academic, technical and administrative<br />
staff.<br />
A central feature of the building is its anatomy<br />
lab where students will undertake practicals<br />
and tutors will lead demonstrations using<br />
anatomical specimens and models. The lab<br />
will include a dedicated area for learning<br />
anatomy through dissection, and will be<br />
equipped with facilities for showing clinical<br />
images, videos of surgical procedures and<br />
specialised computer imaging.<br />
The building also has a central courtyard,<br />
which will provide an outdoor space for<br />
students and staff.<br />
at Gozo General Hospital, which is due to be<br />
completed in Spring 2019.<br />
Professor Anthony Warrens, Dean for<br />
Education at Barts and The London School<br />
of Medicine and Dentistry, said: “We are<br />
delighted to see our new state-of-theart<br />
anatomy centre taking shape. These<br />
facilities combined with the high-quality<br />
educational programme which we’re<br />
already delivering, will give our students the<br />
very best start to their medical careers and<br />
help train the next generation of doctors.”<br />
Dr. Nadine Delicata, Chief Operating<br />
Officer at Steward Health Care Malta, said:<br />
“Steward Malta is honoured to have Barts<br />
onsite within the Gozo Hospital campus,<br />
and we are looking forward to contributing<br />
toward the education of medical students<br />
at Barts. Together both institutions can<br />
work to further improve the quality of care<br />
delivered to patients of Malta and Gozo.”<br />
<strong>MBR</strong><br />
Creditline: Joel Winston, Public Relations<br />
Manager – Medicine and Dentistry, Queen<br />
Mary University of London<br />
The development is part of the ongoing<br />
construction work for a new medical school<br />
Barts Anatomy Centre - Mock-up Design<br />
Barts Anatomy Centre<br />
www.maltabusinessreview.net<br />
23
Malta Business Review<br />
DENTAL HEALTHCARE<br />
I CHOOSE IMPLANTS!<br />
By Dr Jean Paul Demajo<br />
It is a fact that the majority of the population<br />
wishes to have straight teeth. It is also a<br />
fact that they want them white and natural<br />
looking. Patients never request crooked,<br />
yellow or poor-looking teeth. So straight,<br />
white and natural looking, are adjectives<br />
patients often use to describe the type of<br />
smile they wish to have. Patients also request<br />
that they receive the necessary treatment in<br />
the quickest time with the minimal number<br />
of injections and appointments. A typical<br />
scenario is a soon to be bride and mother<br />
of the bride. Unfortunately time is very<br />
often an essential part of it especially when<br />
the treatment involves braces and tooth<br />
alignment. The proposition of having a<br />
treatment plan spanning over a year or two is<br />
absurd and is quickly shot down.<br />
Intra-oral before treatment<br />
Quick fixes are often attractive but by far<br />
not the best choice, as they tend to be<br />
non-conservative in nature and destructive<br />
towards the tooth tissue. Often, upon<br />
patient’s wishes, dentists are made to<br />
propose alternative treatment plans involving<br />
elective extractions, crown building and the<br />
fixation of porcelain veneers. This may be a<br />
controversial topic, which in some countries<br />
may even have you lose your licence. Having<br />
said that, in other countries it is done<br />
following the patients requests reasoning<br />
on the lines of the teeth are theirs and they<br />
decide. Time and money are also factors,<br />
which push patients to opt for the second<br />
or third option of treatment leaving the<br />
unattractive first option out altogether.<br />
Intra-oral 3 months after implant placement<br />
Intra-Oral after fitting of implant bridge<br />
What is a must, is to inform the patients of<br />
all the treatment options that are available in<br />
dentistry discussing in detail their advantages<br />
and disadvantages. It is then up to the patient<br />
to choose their preferred option. Let us<br />
not forget that even dentists like providing<br />
their patients with straight, white goodlooking<br />
teeth. Dentists might disagree with<br />
the patients’ choice of plan but might also<br />
understand where they are coming from for<br />
time and money are not always available.<br />
Extra-Oral after treatement<br />
Case Study<br />
A middle aged lady wishes to fix her top four front teeth. She is extremely conscious of them and is always covering<br />
her mouth. As time went by, the teeth got worse. She is not interested in braces and wishes a relatively quick fix.<br />
She didn’t wish to touch any of the other teeth. Besides aesthetics her main concerns were how they would feel<br />
on her lip and whether it would have an effect on her speech. It was decided to remove the four front top teeth<br />
and place three dental implants. These implants were then restored with a porcelain bridge, straight and relatively<br />
white looking teeth. <strong>MBR</strong><br />
Ask your dentist!<br />
DR JEAN PAUL DEMAJO<br />
Dental and Implant Surgeon<br />
24
Malta Business Review<br />
www.maltabusinessreview.net<br />
25
Malta Business Review<br />
MANAGEMENT PERSPECTIVES<br />
THE MOST IMPORTANT WAY TO INCREASE<br />
YOUR POTENTIAL<br />
By Deepak Chopra<br />
Deepak Chopra MD, FACP, founder of The Chopra Founda on and co-founder of The Chopra<br />
Center for Wellbeing, is a world-renowned pioneer in integra ve medicine and personal<br />
transforma on, and is Board Cer ed in Internal Medicine, Endocrinology and Metabolism. He is a<br />
Fellow of the American College of Physicians and a member of the American Associa on of Clinical<br />
Endocrinologists. Chopra is the author of more than 85 books translated into over 43 languages,<br />
including numerous New York Times bestsellers. His latest books are The Healing Self co-authored<br />
with Rudy Tanzi, Ph.D. and Quantum Healing (Revised and Updated): Exploring the Fron ers of<br />
Mind/Body Medicine.<br />
Deepak Chopra<br />
By now many people are familiar with the term<br />
“positive psychology,” although they might not<br />
realize its significance. Medicine proceeds by<br />
diagnosing diseases and attempting to cure them,<br />
and as a branch of medicine, psychiatry and<br />
psychology focused for decades on the pathology<br />
of the mind. It took an enormous change in attitude<br />
to switch the focus to the positive potential of the<br />
mind. Positive psychology therefore addresses<br />
issues like how to be happy, to increase self-esteem,<br />
to promote well-being and so on.<br />
One can think of this shift toward human potential in<br />
much bigger terms. There are so-called paranormal<br />
or psi abilities—are they a hidden potential in us?<br />
There is the exploration of higher consciousness,<br />
investigating the possibility of waking up from the<br />
dream of pain and suffering and ultimately taking<br />
the mind to a more evolved state. If you collect<br />
all the areas of expanded human potential, which<br />
includes creativity, insight, the renunciation of<br />
violence, Yoga, meditation, and much more—there<br />
is enough to revolutionize our conception of mind.<br />
Once this happens, then we have a foundation for<br />
redefining what it means to be human.<br />
In an open society it’s hard to find someone who<br />
hasn’t dabbled in human potential, beginning<br />
with the most popular aspect, which is selfimprovement.<br />
The desire to improve yourself is<br />
an expression of the impulse to evolve, which is<br />
unstoppable in human beings. But having painted<br />
this picture, one needs to ask if the human<br />
potential movement is bearing fruit. Is it moving<br />
fast enough? Are reactionary forces pulling society<br />
in the opposite direction?<br />
There is an important personal choice, I believe,<br />
that turns dabbling into commitment. It’s the<br />
choice to envision yourself as an expression of<br />
consciousness. For most people this would be a<br />
radical step, because they see themselves in other<br />
ways. Take a moment and mentally take stock. Do<br />
you agree with the statement, “I am my body”?<br />
Do you place importance on your income, social<br />
status, possessions, and other external validations?<br />
Consider the harsh political divisions in this<br />
country—which side do you identify with?<br />
A frank selfassessment<br />
quickly<br />
indicates that each<br />
of us identifies with<br />
various tags, labels,<br />
issues, habits,<br />
and a wide range<br />
of conditioning.<br />
Let’s take a nonjudgmental<br />
perspective and<br />
neutralize words<br />
like good and bad,<br />
right and wrong,<br />
politically correct<br />
and incorrect, and<br />
so on. From a completely neutral position, anything<br />
you identify with is a product of consciousness.<br />
We have all spent our lives surrounded by these<br />
products. In effect, we are wearing virtual reality<br />
goggles through which we view the world, filtering<br />
every perception through our habits, beliefs,<br />
conditioning, likes and dislikes.<br />
The human potential movement at bottom is<br />
about one thing: getting free of virtual reality in<br />
order to experience the “real” reality. Keeping<br />
our neutral viewpoint for a moment, what is<br />
the best way to divest ourselves of the mental<br />
constructs—products of consciousness—that<br />
create pain, suffering, frustration, victimhood, and<br />
self-limitation? The answer is not to winnow out<br />
the bad stuff and accentuate the good stuff. Of<br />
course everyone wants to be good, but one quickly<br />
discovers that there’s no real agreement on what is<br />
good, and furthermore, life is inevitably a mixture<br />
of good and bad.<br />
There is a different answer for ending pain and<br />
suffering, which is to stop identifying with the<br />
products of consciousness and to start identifying<br />
with consciousness itself. Right now we are like<br />
visitors to an art museum wandering around<br />
saying “I like this one” and “I don’t like that one,”<br />
all the while never realizing that artists painted<br />
the pictures. Artists are free to paint anything they<br />
want, and questions of taste come second. The<br />
same is true of consciousness. We wander through<br />
life saying, “I like this about myself” and “I don’t like<br />
that about myself,” without seeing that these are<br />
secondary reactions. To live creatively is to know<br />
that consciousness is the common element of<br />
experience, the “stuff” from which human reality<br />
is made.<br />
When you see that you are a co-creator with<br />
every other consciousness agent in the world,<br />
you have truly entered the movement for higher<br />
consciousness, personal evolution, overcoming<br />
all the imprisoning mental constructs that create<br />
hated, prejudice, and other divisive forces, along<br />
with all the inner forces that enforce the divided self.<br />
Taken altogether, the products of consciousness,<br />
whether you look at history or just the contents of<br />
a normal person’s mind, are chaotic. They contain<br />
huge gaps, contradictions, blind spots, irrational<br />
prejudices, and impulses of anger, fear, jealousy,<br />
and self-doubt that have enormous power over us.<br />
This chaos represents the misuse of consciousness.<br />
What we call human nature isn’t natural at all but a<br />
totally artificial, jerry-built Frankenstein’s monster,<br />
a creation that has turned upon its creator. Among<br />
all the contradictions that exist in human nature,<br />
which force us to be loving one moment and hateful<br />
the next, rational but deeply irrational, proud but<br />
secretly ashamed, the ultimate contradiction is<br />
that we create the products of consciousness and<br />
then believe in them as if they exist independently<br />
of us. No aspect of human nature exists outside<br />
consciousness, and when we cannot change the<br />
things we fear, we are renouncing consciousness,<br />
the very thing that creates those fears. Once<br />
we identify with consciousness itself, we will no<br />
longer be defined by anything except the infinite<br />
possibilities that are the ground state of reality.<br />
To say “I am the field of infinite potential” is the<br />
proper definition of being human. <strong>MBR</strong><br />
CREDITLINE: www.deepakchopra.com<br />
26
AZURE ULTRA<br />
Malta Business Review<br />
A Sea Change<br />
Cars. People. Noise. Cars. People. Noise. Cars.<br />
People. Noise. Every which way you turn more<br />
crowds and clamour, less peace and quiet.<br />
When you’re coming down with a case of island<br />
fever, there’s only one way to truly escape. Step<br />
on board your own private yacht charter and<br />
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Azure Ultra specialises in bespoke Sunseeker<br />
Wherever you’re heading on your boating<br />
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Creditline: Azure Ultra<br />
yacht experiences that go beyond the ordinary.<br />
Our award-winning crew will take care of all the<br />
seafaring minutiae so you don’t have to. From<br />
designing your dream itinerary to a personal<br />
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everything is taken care of every step of the<br />
way. Your only job is to roll out a map and let the<br />
captain know where you wish to anchor.<br />
Explore Malta’s many hidden coastal gems<br />
or venture further ashore. Spirited Sicily. The<br />
alluring Aeolian islands. The seductive slopes of<br />
the Amalfi Coast. There’s a mesmerising watery<br />
world of isolated beaches and secluded coves<br />
waiting to breathe new life into you.<br />
personal needs. Select the food menus and your<br />
preferred vintage champagne. Choose whether<br />
to go for a spot of glass-bottom canoeing or<br />
snorkelling. Whatever you have in mind, just let<br />
us know and we’ll get to work. <strong>MBR</strong><br />
Contact our Charter Specialists to design your<br />
tailored yacht itinerary today. Simply call +356<br />
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for more information.<br />
Creditline: Azure Ultra<br />
Creditline: Azure Ultra<br />
www.maltabusinessreview.net<br />
27
Malta Business Review<br />
ASIA FOCUS<br />
Welcome to the Sovereign Asia Focus on The Malta Business<br />
Review keeping you up-to-date with news and views from around<br />
this burgeoning region – Hong Kong and Singapore, in particular,<br />
where we have long-established offices.<br />
Will virtual banks become the preferred<br />
local banks for SMEs?<br />
Companies and trusts have been finding<br />
it harder to set up banking services in<br />
Hong Kong as successive initiatives to<br />
address risks around money laundering<br />
and financing of terrorism activities have<br />
led to more stringent account opening<br />
procedures as banks vet potential<br />
customers.<br />
Banks worldwide now have a legal duty to<br />
implement ‘Know Your Customer’ (KYC)<br />
procedures for all clients, new and old.<br />
For corporate accounts, this will include<br />
business plans, transaction records<br />
and details of all ‘persons of significant<br />
control’. Banks face huge fines if found<br />
to have failed the relevant compliance<br />
checks.<br />
In Hong Kong, banks have been on<br />
a de-risking exercise to comply with<br />
customer due diligence requirements.<br />
This has caused difficulties in opening<br />
new accounts and has led to a flood of<br />
complaints from businesses experiencing<br />
difficulty in obtaining bank services,<br />
particularly small and medium enterprises<br />
(SMEs). This has implications for Hong<br />
Kong’s status as a business and financial<br />
hub, but help may be at hand from a new<br />
direction.<br />
Life assurance policies for the ‘returning<br />
expat’ – Australia<br />
Asia is home to a great many Australian<br />
expatriates who intend to return to (or<br />
other nationals who intend to move<br />
to) Australia after a period of working<br />
elsewhere in the region. In most cases,<br />
restructuring business assets and/or<br />
personal assets in advance, whilst still an<br />
expat, can provide substantial advantages<br />
if an individual eventually become tax<br />
resident in Australia. Life assurance<br />
policies, in particular, offer considerable<br />
benefits in respect of holding either<br />
business or personal assets.<br />
Hong Kong brings two-tier profits tax<br />
into force<br />
The new two-tiered profits tax regime,<br />
first announced by Chief Executive<br />
Carrie Lam in her Policy Address on 11th<br />
October 2017, was brought into force<br />
on 1 April 2018 by the Inland Revenue<br />
(Amendment) (No. 3) Ordinance 2018.<br />
The regime is designed to lower the tax<br />
burden for small and medium enterprises<br />
(SMEs) and will apply to both corporations<br />
and unincorporated business.<br />
Why ‘Cloud Accounting’ is good for<br />
business<br />
Founded in 2006 in New Zealand, cloud<br />
accounting specialist Xero is one of the<br />
fastest growing software as a service<br />
companies globally. Forbes identified Xero<br />
as the World’s Most Innovative Growth<br />
Company in 2014 and 2015. Here, Xero<br />
explains why online accounting software<br />
can be a wise investment if you want your<br />
business to work smarter and faster.<br />
Cloud-based accounting software helps<br />
small businesses to thrive through better<br />
tools, information and connections. It<br />
connects people with the right numbers<br />
anytime, anywhere, on any device.<br />
Working online will give you a better<br />
overview of your finances, and improve<br />
collaboration with your team.<br />
Sovereign Licensed as a Trust or<br />
Company Service Provider in Hong Kong<br />
Sovereign is pleased to announce that<br />
it is among the first Hong Kong-based<br />
firms to be formally licensed as a Trust or<br />
Company Service Provider (TCSP) under<br />
Hong Kong’s newly created TCSP licensing<br />
regime. Sovereign Trust (Hong Kong)<br />
Limited and its operating sister companies<br />
– Sovereign Fiduciaries (Hong Kong)<br />
Limited, Sovereign Fiduciaries Services<br />
Limited and Sovereign Trustees Limited –<br />
have all been granted TCSP licences. <strong>MBR</strong><br />
Courtesy: Sovereign Trust (HK) Ltd<br />
28
Malta Business Review<br />
POLITICO CONNECTED: AN AI COMMUNITY<br />
Roundtable Report | Using AI to Serve Citizens:<br />
A Roadmap for France<br />
An ongoing conversation about artificial intelligence<br />
and the key governance and innovation issues facing<br />
policymakers, scientists, innovators, industries and<br />
academics, powered by our founding partner Accenture.<br />
POLITICO hosted an invitation-only<br />
roundtable discussion, in partnership with<br />
Accenture Applied Intelligence, in Paris on<br />
June 14 to brainstorm and suggest pragmatic<br />
solutions for using artificial intelligence to<br />
serve French citizens. Here are the main<br />
takeaways:<br />
1. The battle for artificial intelligence: A<br />
battle for human intelligence<br />
Just a few years ago, the term was in the<br />
realm of science fiction. Artificial intelligence<br />
is now giving rise to transformation every day,<br />
and all the stakeholders have now realized<br />
the decisive role AI will increasingly play in<br />
the future.<br />
Data collection and management, virtual<br />
correspondents, process automation,<br />
business intelligence: AI has become a<br />
concrete reality. It is radically changing whole<br />
sectors of economic activity. It requires a<br />
reappraisal of legal concepts which previously<br />
seemed very sound. AI will — to a certain<br />
extent — exercise control over our lives. But<br />
who will exercise control over AI? Will we<br />
succeed in using it at the service of citizens?<br />
These issues have come into the limelight in<br />
France in recent months. The Villani report<br />
and an artificial intelligence plan express the<br />
government’s determination to have France<br />
play a leading role on this matter. And the<br />
European General Data Protection Regulation<br />
governing the use of personal data came into<br />
effect in May. Beyond merely the competition<br />
and regulation aspects, these issues also can<br />
lead to the emergence of new models of<br />
partnership and exemplarity.<br />
2. A transformation already underway<br />
The French higher education system has<br />
conducted pioneering research for a long<br />
time. The administration and large local<br />
and regional governments have followed<br />
a path over the past few years that has led<br />
them from using data science to real artificial<br />
intelligence tools. The state, aware of its lag<br />
and its inertia, has in the past 18 months<br />
taken measure of these issues and shown a<br />
proactive approach to reform.<br />
The impact of AI is also being felt in the<br />
private sector. As one speaker said: “Artificial<br />
intelligence is radically transforming<br />
companies. It’s a change that had not been<br />
seen in the past 30 years. It’s an absolutely<br />
unique change.”<br />
This change is admittedly not an easy one.<br />
Many people are likely to be left behind if<br />
they do not receive guidance in upgrading<br />
their skills and expertise. The various actors<br />
in the public sector, who are each working on<br />
a specific aspect of artificial intelligence, were<br />
originally skeptical at the idea of working<br />
together, or with German or European<br />
partners.<br />
However, the initiatives are starting to<br />
bear fruit and have sometimes laid the<br />
groundwork for new partnerships in which<br />
government agencies, higher education<br />
entities and local and regional governments<br />
work on projects jointly with big companies<br />
or startups. Conversely, it is sometimes the<br />
startup spirit that impregnates traditional<br />
institutions. One participant explained the<br />
path followed on many projects as follows:<br />
“We act, we progress, we demonstrate, and<br />
we encourage others to follow.”<br />
3. Multi-dimensional data<br />
The fuel of AI is data. On this, the participants<br />
pointed out the advantage of the French<br />
"Artificial intelligence is<br />
radically transforming<br />
companies. It’s a change<br />
that had not been seen<br />
in the past 30 years. It’s<br />
an absolutely unique<br />
change.<br />
system, with its highly centralized government<br />
departments. It therefore has databases of<br />
gigantic proportions, notably in the area of<br />
health, which can then be exploited.<br />
However, this data cannot always be put to<br />
use immediately. First, there is the issue of<br />
the data’s quality, format and standards. The<br />
issue is crucial for decisionmaking tools, but<br />
even more so to share information across<br />
separate databases.<br />
Now, as one participant observed, sharing<br />
is not obvious: “Data is a symbol of power.<br />
Throughout history, it has been the property<br />
of the people who held it.” In the case of<br />
government departments, it should be<br />
remembered that this data is above all the<br />
data of the state rather than of a particular<br />
department. And big companies want to keep<br />
control of data generated by autonomous<br />
vehicles.<br />
These obstacles must be overcome. However,<br />
the participants agreed in considering that a<br />
central agency in charge of data collection<br />
would present a number of problems.<br />
Data collection and management must of<br />
course protect citizens and their personal<br />
information. But GDPR also aims to facilitate<br />
the responsible reuse of data, and to make it<br />
an opportunity rather than an obstacle.<br />
Finally, social networks and cloud computing<br />
services have a considerable volume of data<br />
to monitor and supervise, which is why AI<br />
systems are proving necessary. They are still<br />
perfectible, and the use of human judgment<br />
is essential. “Artificial intelligence is not yet<br />
very familiar with subtle humor,” noted one<br />
guest, who stressed the need to defend<br />
humor and parody, which machines find hard<br />
to detect.<br />
4. The strengths of France and Europe<br />
The participants pointed to the fact that<br />
the government was a relatively latecomer<br />
on AI, but that it is prepared to devote the<br />
resources to catch up. France has a role to<br />
play, notably in Europe.<br />
As one speaker said, this is a strategic issue:<br />
“There is a European model to be designed,<br />
30
POLITICO CONNECTED: AN AI COMMUNITY<br />
Malta Business Review<br />
between on the one hand an American<br />
model, where AI policy is driven by large<br />
private players, and a Chinese model,<br />
closely controlled by the government, with<br />
a debatable approach from the ethical and<br />
democratic perspectives.”<br />
France can already highlight the quality of its<br />
higher education system and its fundamental<br />
"Theres a new obligation<br />
and a new opportunity<br />
for companies to engage<br />
with people differently.<br />
— Paul Daugherty<br />
research (including on creative AI systems),<br />
together with tax benefits. It is attracting<br />
operations set up by these large private<br />
players and also by smaller organizations.<br />
Moreover, a dynamic seems to be emerging,<br />
fueled by the investment plan and even by<br />
Brexit, to anchor startups in France and put<br />
an end to the brain drain.<br />
This is a fundamental aspect: “The battle for<br />
artificial intelligence is above all a battle for<br />
human intelligence,” noted one guest. “We<br />
won’t overcome this problem without having<br />
a research ecosystem capable of welcoming<br />
the best scientists in the world.”<br />
5. The big foreign private players: Best<br />
enemies<br />
The large foreign private players specialized<br />
in AI are not just limited to the GAFA (Google,<br />
Apple, Facebook and Amazon). They are<br />
perceived as both allies and threats. They set<br />
up research laboratories in France and share<br />
their work, and have become aware of the<br />
fight against cybercrime and illegal content.<br />
But they are buying up European startups,<br />
sometimes taking over their intellectual<br />
property in AI research. Their economic<br />
weight alone gives them huge clout and<br />
creates imbalances.<br />
The autonomous vehicle industry plans to<br />
negotiate separately with each major city and<br />
retain full ownership of data. In response,<br />
these cities have united to define a common<br />
position. Some robotics companies have<br />
pushed for their products, nurtured on AI, to<br />
obtain a legal personality, reducing their own<br />
liability in the event of an accident.<br />
In conclusion, these players are partners<br />
to be watched closely. For one speaker,<br />
the European elections of 2019 will be<br />
“the chance to transform these ethical<br />
responsibilities, which these companies<br />
fundamentally recognize, into legal and<br />
legislative responsibilities at the European<br />
level.”<br />
How will Artificial Intelligence impact your business?<br />
The past few years have brought an evolution of big data analytics, machine learning and artificial intelligence (AI) at a<br />
rapid rate. Businesses today can better use data to produce transformative results. Search Technologies, part of Accenture,<br />
summarizes some key points on the rise of AI and how these developments can impact a business.<br />
Artificial Intelligence: The next<br />
frontier in health care?<br />
On June 20, POLITICO hosted a<br />
discussion on the role of artificial<br />
intelligence in addressing the most<br />
pressing health care issues. POLITICO’s<br />
AI correspondent Janosch Delcker had<br />
an open conversation with Roberto<br />
Viola, the European Commission’s<br />
director general for communications<br />
networks, content and technology;<br />
Paul Bate from Babylon Health; Manon<br />
Benders from the University Medical<br />
Center in Utrecht; and Eleonora<br />
Harwich from Reform. <strong>MBR</strong><br />
Quick reads<br />
Germany’s falling behind on tech, and Merkel knows it | Angela Merkel met the country’s top 32 AI experts at the chancellery in July to hear<br />
how the country was doing. In spite of a good track record in AI research, their assesment was sobering, reports POLITICO's Janosch Delcker.<br />
The man who invented the self-driving car (in 1986) | Janosch Delcker tells the story of the invention of the driverless car in 1986, how it<br />
came to be all but forgotten and the lessons we can draw from it about the expectations we place on artificial intelligence now.<br />
Learning to work with robots | Molly Kinder analyzes for Foreign Policy how workers wil have to adapt to face disruption from artificial<br />
intelligence and automation.<br />
AI vs. God: Who Stays and Who Leaves? | In Forbes, Kate Levchuk examines how artificial intelligence will challenge our perception of<br />
consciousness and how that will impact religion throughout the world.<br />
Source: POLITICO SPRL<br />
www.maltabusinessreview.net<br />
31
Malta Business Review<br />
ERP SOFTWARE<br />
The complete ERP solution for a<br />
multi-brand distribution business<br />
In today’s ever-changing distribution sector,<br />
companies face many of the same challenges<br />
around marketing a portfolio of brands in a<br />
highly competitive marketplace, managing<br />
the supply chain, and maintaining tight credit<br />
control. Forward thinking companies are<br />
turning to state of the art fully-integrated<br />
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A modern ERP system for distributors provides<br />
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With accurate, real-time information<br />
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Our complete ERP solution provides mobile<br />
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Empower your field sales reps<br />
Mobile sales software provides field sales<br />
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Our solution enables them to use their own<br />
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Optimise your delivery process<br />
Getting trucks in and out of the warehouse<br />
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street faster so they can see more customers.<br />
Highly automated truck loading increases<br />
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The load can be in cases or units or a mixture<br />
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with reason codes and a signature captured<br />
to confirm the transfer from the warehouse<br />
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Improve customer satisfaction<br />
The key to growth and sustainability for a<br />
distribution business is greater customer<br />
satisfaction through speedy and effective<br />
route management, without increasing<br />
costs. Companies need a robust solution<br />
that seamlessly integrates into their backend<br />
ERP. They need to optimise resources and<br />
improve their invoice-to-cash cycle, and at<br />
the same time reduce operating costs per<br />
route.<br />
Our solution enables you to streamline your<br />
direct store delivery and maximise truck<br />
sales by using the latest technology. It will<br />
help you reduce errors, payment disputes,<br />
and the administrative costs associated<br />
with distribution, merchandising, delivery,<br />
receiving, and payment procedures.<br />
For more information on how Computime<br />
Software can empower your distribution<br />
business to increase customer satisfaction<br />
and unearth new sales opportunities for<br />
route staff, visit: www.computimesoftware.<br />
com/acumatica-erp or email: info@<br />
computimesoftware.com <strong>MBR</strong><br />
Creditline: Computime Software<br />
Credits: Computime Software<br />
32
Malta Business Review<br />
The complete ERP solution for your multi-brand distribution business<br />
Acumatica seemlessly integrates your field sales, distribution logistics, inventory management, invoicing,<br />
and payment collection – providing you with real-time access to relevant information anywhere, anytime.<br />
Boost field staff<br />
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store delivery<br />
Business Software<br />
& Integration Solutions<br />
+356 2149 0700 www.computimesoftware.com/acumatica-erp<br />
info@computimesoftware.com<br />
www.maltabusinessreview.net 33
Malta Business Review<br />
SPECIAL REPORT<br />
HSBC Bank Malta Sustains<br />
Dividend, Shifts Focus to Growth<br />
Lower H1 profitability reflects impact of risk management actions and negative interest rates<br />
The profit before tax for the six months<br />
ended 30 June 2018 of HSBC Bank Malta<br />
p.l.c. amounted to €16.2m, a decrease of<br />
€9.8m or 38% compared with the same<br />
period last year. The performance during the<br />
first six months of 2018 mainly reflected the<br />
continuing impact of low interest rates and<br />
prioritisation of risk management actions<br />
during 2017.<br />
Profit attributable to shareholders amounted<br />
to €14.3m resulting in earnings per share of<br />
4.0 cents compared with 4.7 cents in the first<br />
half of 2017. The Board proposes to maintain<br />
the current dividend pay-out ratio of 65% and<br />
recommends an interim gross dividend of 4.0<br />
cents per share (2.6 cents per share net of<br />
tax). The interim dividend will be paid on 18<br />
September 2018 to shareholders who are on<br />
the bank’s register as at 17 August 2018.<br />
All three main business lines, Retail Banking<br />
and Wealth Management, Commercial<br />
Banking, and Global Markets, continued to<br />
be profitable during the six month period<br />
under review.<br />
Andrew Beane, Director and Chief Executive<br />
Officer of HSBC Malta, said: “Our profitability<br />
in the first half of 2018 was lower than the<br />
prior year reflecting four main factors:<br />
1. The impact of essential de-risking<br />
actions taken during 2017.<br />
2. The ongoing effect of negative interest<br />
rates.<br />
3. Loan impairments arising where the<br />
sale of assets pledged as security<br />
by corporate borrowers in default<br />
for many years have been delayed<br />
by lengthy judicial processes which<br />
make the recovery of liabilities a very<br />
protracted exercise.<br />
4. From investment in regulatory and<br />
risk programmes such as GDPR and<br />
customer due diligence.”<br />
He added: “HSBC is proud of the progress<br />
we have made to achieve the highest level of<br />
financial crime compliance standards within<br />
our bank which can give confidence to our<br />
customers as they use HSBC’s services. It is<br />
essential that the financial system as a whole<br />
is able to demonstrate full and effective<br />
compliance with European Union standards.<br />
Looking to the future, the substantive<br />
elements of HSBC’s business model<br />
transformation are now complete which<br />
is enabling the bank to move into a new<br />
strategic phase characterised by a return to<br />
growth and value creation. Over time, and<br />
without increasing our risk appetite, HSBC<br />
Malta will focus on growing revenue faster<br />
than costs in order to increase our return on<br />
tangible equity and, subject to our ongoing<br />
capital management processes, sustain our<br />
signature dividend.”<br />
He continued: “The early signs of this new<br />
phase are encouraging with significant<br />
increases in our commercial banking<br />
business pipeline which has led to a<br />
stabilisation of loans and advances which<br />
we expect to steadily increase over time. We<br />
are also seeing increased volumes in parts of<br />
our retail banking and wealth management<br />
business as we re-allocate capacity into sales<br />
and service activity, including insurance<br />
"The early signs of<br />
this new phase are<br />
encouraging with<br />
significant increases in<br />
our commercial banking<br />
business pipeline<br />
sales. HSBC’s plans to deliver market leading<br />
customer service standards enabled by<br />
new digital innovations are a particular<br />
opportunity and represent a key focus for us<br />
in the second half of 2018 and beyond.<br />
I would like to thank our shareholders and<br />
customers for their ongoing confidence<br />
HSBC Operations Centre, Qormi<br />
34
SPECIAL REPORT<br />
Malta Business Review<br />
HSBC Press Conference<br />
and trust, and my colleagues for their<br />
outstanding contribution as we complete<br />
this chapter for HSBC Malta and move into<br />
a new phase.”<br />
Net interest income decreased to €54.1m<br />
or 10% compared with €60.3m in the<br />
same period in 2017 predominately due<br />
to a further decline in the average yield<br />
on the investment book due to continuing<br />
amortisation of higher yielding bonds as well<br />
as contraction of the Commercial Banking<br />
loan book relative to the prior year position.<br />
Non-interest income (fees and commissions<br />
and trading income) remained broadly in<br />
line with the same period in 2017. Following<br />
the completion of the risk management<br />
actions taken by the bank in 2017, the<br />
strategic direction taken in the first half of<br />
the year started reaping positive results,<br />
in particular increased commissions as a<br />
result of higher volume of credit facilities<br />
granted and higher income generated from<br />
guarantees and derivative transactions.<br />
Operating expenses increased to €54.9m or<br />
5% compared with €52.2m in the same period<br />
in 2017. This increase reflects continued<br />
investment in regulatory programmes,<br />
financial crime compliance and business<br />
growth. The bank continues to exercise<br />
rigorous cost control and to implement<br />
initiatives at cost base streamlining through<br />
digitalisation, outsourcing and processes<br />
optimisation. During the period under<br />
review, the bank concluded the remediation<br />
process for the MiFID (Markets in Financial<br />
Instruments Directive) complex instruments<br />
issue disclosed in the 2016 year-end results.<br />
The bank’s guidance on the costs of this<br />
programme remains unchanged.<br />
"HSBC Life Assurance<br />
(Malta) Limited reported<br />
a profit before tax of<br />
€1.8m compared to<br />
€4.4m in the same<br />
period of 2017<br />
On 1 January 2018, the bank adopted IFRS<br />
9 ‘Financial Instruments’. Adoption of this<br />
new standard reduced net assets by €8.0m,<br />
net of deferred tax of €4.3m. The bank was<br />
not required to restate comparative periods.<br />
Accordingly, all adjustments resulting from<br />
the transition apply by adjusting the opening<br />
balance sheet as at 1 January 2018.<br />
Since adoption, the bank registered a<br />
change in expected credit losses under<br />
IFRS 9 of €3.4m, €0.9m lower than the loan<br />
impairment charges under IAS 39 of €4.3m<br />
reported in the same period in 2017 with<br />
one specific impairment relating to a longdated<br />
case subject to legal proceedings<br />
representing the majority of the 2018<br />
charge. The bank continues to maintain a<br />
conservative provisioning approach. Overall<br />
asset quality remained satisfactory and total<br />
non-performing loans further declined from<br />
€168m to €155m during the first six months<br />
of 2018.<br />
The effective tax rate is 11%. This translated<br />
into a tax expense of €1.8m, €7.2m lower<br />
than €9.1m in the same period in 2017.<br />
During the period under review, the bank<br />
benefitted from a different tax treatment<br />
applied on a specific transaction.<br />
HSBC Life Assurance (Malta) Limited<br />
reported a profit before tax of €1.8m<br />
compared to €4.4m in the same period of<br />
2017. The decline was driven by positive<br />
market movements in 2017 which were not<br />
repeated in the first half of 2018. In addition,<br />
the insurance subsidiary registered a<br />
reduction in premium income, as a result of<br />
lower new single premium policies written<br />
when compared to prior year. <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
www.maltabusinessreview.net<br />
35
Malta Business Review<br />
GAMING INTERVIEW<br />
AHEAD OF THE CURVE<br />
By Martin Vella<br />
Exclusive interview with CEO and Founder of Betconstruct Vigen Badalyan<br />
BetConstruct is an award-winning developer and provider of online and land-based gaming solutions with<br />
development, sales and service centers around the globe.<br />
BetConstruct’s innovative and proven offerings include an extensive range of products and services, including<br />
Sportsbook, Sports Data Solutions, Retail Solutions, RNG & Live Dealer Casino, VR Casino, Poker, Skill Games, Fantasy<br />
Sports, Social Platform and more. The latest addition is the industry-first complete management infrastructure,<br />
SpringBME (Business Management Environment).<br />
All partners benefit from the BetConstruct Spring platform with its powerful<br />
back office tools and all-inclusive services that empower operators’ growth<br />
and help contain their costs. From stand-alone set up to turn-key and white<br />
label solutions, BetConstruct offers its partners unfettered opportunity to<br />
succeed.<br />
<strong>MBR</strong>: First of all, thank you<br />
very much for accepting this<br />
interview. I would like to<br />
ask you to shortly introduce<br />
yourself and your role to<br />
our readers. When and why<br />
you started working in this<br />
industry?<br />
VB: I started this business with my brother<br />
Vahe Badalyan and a handful of like-minded<br />
people who were ambitious and courageous<br />
enough to enter the gaming and betting<br />
industry and start a business from zero.<br />
We shared one dream which was to build a<br />
company with the potential to revolutionize<br />
the IT industry and stay on top of emerging<br />
trends.<br />
"we have the largest<br />
portfolios of gaming<br />
products casino, virtual<br />
sports and skill games,<br />
live dealer casinos,<br />
fantasy sports networks,<br />
social gaming platform<br />
and much more.<br />
<strong>MBR</strong>: The company you<br />
represent, BetConstruct,<br />
constantly innovates,<br />
presents new products and is<br />
a leader in this sector. What<br />
is the key of your success?<br />
VB: We are a fully transparent company<br />
in many senses. Everyone can go to our<br />
website and see our pricing. Everyone can<br />
go to SpringBME and try out our products,<br />
activate them and see how easy it is to start<br />
an igaming business with us. Alongside with<br />
our offerings we have third party solution<br />
available through our platform as well.<br />
Giving a freedom of choice is what defines<br />
BetConstruct’s approach. And that is exactly<br />
what make us successful.<br />
<strong>MBR</strong>: The aim of your<br />
company is to build the<br />
most advanced platform by<br />
constantly innovating and<br />
keeping up to date with the<br />
new technologies. This is a<br />
very difficult task. How can<br />
you overcome the difficulties<br />
this rapidly changing industry<br />
faces you?<br />
VB: It is a rapidly developing sphere. Finding<br />
a room for improvement and innovation is<br />
our full-time commitment. One must always<br />
be on the move to keep up the pace with the<br />
progress, let alone be ahead of the curve.<br />
And that is not an easy job. However, what<br />
remains unchanged is the considerable effort<br />
we put to fit the expectations of our partners<br />
as they demand innovation alongside safe<br />
knowledge of being taken care of. We put a<br />
considerable effort in learning our partners’<br />
demands to custom-tailor our solutions and<br />
services to meet their desirable results.<br />
<strong>MBR</strong>: Tell me about your<br />
company’s game portfolio<br />
and what is your philosophy<br />
when manufacturing a slot<br />
game?<br />
Through our platform one may find<br />
everything needed to start or expand a<br />
gaming business. All the products, tools,<br />
services. Our philosophy is to provide full<br />
expertise. Along with the very powerful and<br />
smart solutions we have the largest portfolios<br />
of gaming products casino, virtual sports and<br />
skill games, live dealer casinos, fantasy sports<br />
networks, social gaming platform and much<br />
more. What come to creating slot games,<br />
we want our solutions to disappear into<br />
experience. Our games are not just about<br />
spinning reels, but a story behind it. With<br />
SlotBuilder our casino partners can create<br />
their bespoke slots in addition to over 5,000<br />
games we provide from our own studios and<br />
over 60 other suppliers.<br />
<strong>MBR</strong>: Recently, there is a<br />
change in the gambling<br />
sector worldwide, with the<br />
most countries’ governments<br />
trying to regulate their<br />
market through their national<br />
legislation. What do you<br />
think about that? Does that<br />
affect you as a manufacturer<br />
VB: The legislative developments speeding<br />
36
GAMING INTERVIEW<br />
Malta Business Review<br />
through continents show that states prefer to<br />
accept the legality of the industry and keep the<br />
market under control. New legislative reforms<br />
will prevent dishonest operators from taking<br />
advantage of the lack of regulation, but help<br />
the enthusiasts enter the market with unique<br />
offerings and keep the industry income from<br />
going offshore.<br />
<strong>MBR</strong>: Your recently won<br />
prestigious awards in MiGEA<br />
2018, mainly Best Industry<br />
Achiever (Land Based),<br />
Best Gaming Technology<br />
Supplier and Best Online<br />
Casino Operator. What is<br />
your feedback on the event<br />
and how significant are these<br />
unprecedented accolades<br />
you have received from the<br />
judges?<br />
The recognition among the industry is a huge<br />
motivation. It fuels our excitement, pushes<br />
our competitiveness and challenges us to<br />
strive for a bigger success. And in this case we<br />
do not define success only by profitability or<br />
awards. It is also the productive cooperation<br />
with our partners and their success as well.<br />
<strong>MBR</strong>: What upcoming events<br />
is the company focusing on<br />
nowadays and how prepared<br />
is the company for these<br />
events?<br />
VB: We attend 100+ events annually.<br />
Our calendar of expos, conferences and<br />
networking events encompasses dozens of<br />
markets where we travel to offer our solutions<br />
tailored for a particular region. Apart from that,<br />
since 2017 we organize series of informative<br />
workshops. And this year is no different.<br />
BetConstruct does have several exciting<br />
announcements coming soon.<br />
"The recognition among<br />
the industry is a huge<br />
motivation. It challenges<br />
us to push the<br />
boundaries and strive<br />
for a bigger success.<br />
<strong>MBR</strong>: What do you consider<br />
to be BetConstruct’s most<br />
important achievements so<br />
far?<br />
VB: Young, aspiring, determined and forward<br />
looking people who make up a strong<br />
workforce of BetConstruct. Looking back, 10<br />
years ago we would have to invite software<br />
engineers from abroad to get the company<br />
going. Now the powerful engine behind<br />
BetConstruct solutions keeps the company<br />
prospering with the help of our strong team of<br />
specialists who eagerly share their knowledge<br />
with fresh minds helping them in their turn to<br />
become professionals and contribute to the<br />
growth of our company. <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
CEO and Founder of BetConstruct Badalyan, Vigen<br />
www.maltabusinessreview.net<br />
37
Malta Business Review<br />
eCOMMERCE<br />
DHL Express Reveals<br />
Purchasing Habits of Online Shoppers<br />
• An international express shipping option can increase e-commerce basket value by up to 70%, helping merchants<br />
boost revenue and tap new markets.<br />
• Global digital advertising campaign “Where Everything Clicks” educates businesses on how to increase their share<br />
of the trillion-dollar global e-commerce market.<br />
DHL Express, the world’s leading international<br />
express service provider, has launched “Where<br />
Everything Clicks,” a global digital campaign<br />
to grow its e-commerce business and guide<br />
web merchants as they access the booming<br />
global marketplace. DHL helps sellers navigate<br />
an increasingly international landscape, in<br />
which 70% of online buyers made a purchase<br />
from an international site in 2017, up 6%<br />
from a year earlier. DHL Express is aiming its<br />
campaign at companies ranging from startups<br />
to large enterprises, advising on how to<br />
enhance international e-commerce shipping<br />
capabilities and how to target internet-savvy<br />
buyers like millennials – 68% of whom are<br />
likely to choose a retailer based on delivery<br />
options offered.<br />
“International e-commerce is growing at a<br />
remarkable pace, and we want our customers<br />
to grab their share of the market – that<br />
means adding value to their e-commerce<br />
proposition,” states John Pearson, CEO<br />
Europe and Head of Commercial for DHL<br />
Express. “Our customers’ success is closely<br />
tied to their buyers’ satisfaction with the<br />
delivery experience and the delivery options<br />
offered. DHL has developed services that both<br />
enhance the customer experience and that<br />
support web merchants as they access new<br />
markets. Our global marketing campaign will<br />
showcase those services, from On Demand<br />
Delivery with its flexible delivery options for<br />
buyers to intelligent website analyses tailored<br />
to merchants.”<br />
Using advanced market intelligence tools, DHL<br />
can quickly identify shopping sites that receive<br />
traffic from international locations, thus<br />
flagging potential sales outside of the seller’s<br />
core market. In addition, DHL can compare<br />
website engagement metrics to those of<br />
competitors, identifying opportunities to<br />
reduce bounce rates with the addition of a<br />
cross-border express delivery option. With<br />
a checklist-based approach, DHL Express<br />
advises merchants on how to optimize their<br />
websites for international sales and how to<br />
create a competitive advantage via shipping<br />
options offered.<br />
With On Demand Delivery, buyers are<br />
notified proactively via email or SMS about a<br />
shipment’s progress. Receivers can schedule<br />
delivery for another day, arrange delivery to<br />
a nearby DHL Service Point or an alternate<br />
address, and even request that a shipment is<br />
held during vacation. DHL Express offers On<br />
Demand Delivery in over 100 countries, with<br />
about 50 more coming this year.<br />
“’Where Everything Clicks’ reveals purchasing<br />
habits of online shoppers, including always<br />
important delivery preferences, and shows<br />
merchants how to use this information<br />
to increase sales. We want to educate<br />
current customers and to convert potential<br />
international web merchants,” says Pearson.<br />
“We’re convinced that cross-border<br />
e-commerce has a huge upside that many<br />
merchants – B2C and B2B – have not yet<br />
tapped. Our aim is to support web sellers as<br />
they go global and to stand as the international<br />
express provider of choice for e-commerce.”<br />
Creditline: DHL<br />
<strong>MBR</strong><br />
38
EDITOR’S CHOICE<br />
Malta Business Review<br />
EDWARDS LOWELL OPENS MALTA’S FIRST<br />
ROLEX BOUTIQUE<br />
Valletta, August 2018 – Edwards Lowell and<br />
Rolex today announced the opening of a Rolex<br />
Boutique that is the rst of its kind in Malta.<br />
Situated in Republic Street, Valletta, the Edwards<br />
Lowell Rolex Boutique features an innovative<br />
use of Rolex’s signature aqua pattern and a<br />
handcrafted stucco wall with a depiction of<br />
Valletta.<br />
The new boutique offers professional expertise<br />
in an elegant setting, one that promotes a<br />
sense of harmony, discretion and intimacy with<br />
the brand, which has been setting standards in<br />
watchmaking for more than a century.<br />
“This is an exciting new chapter in Edwards<br />
Lowell’s distinctive history. A singular and worldclass<br />
project that aims to set new standards<br />
in Maltese retail and pave the way for future<br />
projects,” said Malcolm R. Lowell, Managing<br />
Director of Edwards Lowell.<br />
ONE<br />
BOUTIQUE, A<br />
WHOLE ROLEX<br />
WORLD<br />
Every element of the interior design features the<br />
elegant Rolex aesthetic and radiates the values<br />
of the Rolex crown. Excellence, precision and<br />
attention to detail emanate from the careful<br />
calibration of colours and patterns in the fittings<br />
and furnishings.<br />
Sensitive lighting accentuates the beauty of a<br />
wide selection of Rolex models in display cases<br />
lined with beige leather with bronze trims.<br />
A striking emerald aqua floor highlights Rolex’s<br />
rich heritage – its wave motif referencing<br />
the iconic Oyster, the world’s rst waterproof<br />
wristwatch. Used as flooring for the first time, the<br />
aqua material draws the eye across the boutique<br />
towards handcrafted stucco panels that feature<br />
a view of Valletta from the sea. The intense green<br />
used around the boutique creates accents that<br />
harmonize a refreshed colour palette. The space<br />
also mixes textures from walnut-brown wood to<br />
beige- coloured marble and leather, and includes<br />
notable marble counters with leather and wood<br />
detailing.<br />
ABOUT<br />
EDWARDS<br />
LOWELL CO.<br />
LIMITED<br />
“When a man dedicates his life to a company,<br />
both become intricately entwined. The business<br />
becomes personal, especially in the case of a<br />
family-owned business.”<br />
- Malcolm A. Lowell, Edwards Lowell Chairman<br />
Synonymous with luxury since 1925, Edwards<br />
Lowell is renowned for being a ne retailer of a<br />
curated selection of the most prestigious brands<br />
in the world. From its conception over ninety years<br />
ago, this family-run business has strived to offer its<br />
clients the world’s nest products alongside unique<br />
customer service. The Edwards Lowell Rolex<br />
Boutique is the rst Rolex Boutique on the island<br />
and is set to be valuable addition to the Edwards<br />
Lowell family.<br />
Edwards Lowell is looking forward to presenting<br />
their esteemed clients with a curated selection of<br />
ne timepieces which can be enjoyed and treasured<br />
for their unparalleled craftsmanship and ultimately<br />
be passed down from generation to generation.<br />
ABOUT<br />
ROLEX<br />
An unrivalled reputation for quality and<br />
expertise. Rolex, a Swiss watch manufacture<br />
headquartered in Geneva, is recognized the<br />
world over for its expertise and the quality of<br />
its products. Its Oyster and Cellini watches,<br />
all certi ed as Superlative Chronometers for<br />
their precision, performance and reliability, are<br />
symbols of excellence, elegance and prestige.<br />
Founded by Hans Wilsdorf in 1905, the brand<br />
pioneered the development of the wristwatch<br />
and is at the origin of numerous major<br />
watchmaking innovations, such as the Oyster,<br />
the rst waterproof wristwatch, launched in 1926,<br />
and the Perpetual rotor self-winding mechanism<br />
invented in 1931. Rolex has registered over<br />
400 patents in the course of its history. A truly<br />
integrated and independent manufacturing<br />
company, Rolex designs, develops and produces<br />
in-house all the essential components of its<br />
watches, from the casting of the gold alloys to<br />
the machining, crafting, assembly and finishing<br />
of the movement, case, dial and bracelet.<br />
Through philanthropic programmes and a broad<br />
palette of sponsorship activities, Rolex is also<br />
actively involved in supporting the arts, sports<br />
and exploration, and encourages the spirit of<br />
enterprise, as well as the conservation of natural<br />
environments. <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
Rolex Boutique, Valletta<br />
www.maltabusinessreview.net<br />
39
Malta Business Review<br />
VENTURE CAPITAL<br />
VENTURE CAPITAL FIRMS, INCUBATORS OF DISRUPTIVE IDEAS<br />
“In today’s hyperlinked world, solving problems<br />
anywhere, solves problems everywhere.” These<br />
words by renowned entrepreneur Peter H.<br />
Diamandis couldn’t have been more relatable. Some<br />
of the key businesses that drive our lives today are<br />
startups which have leveraged technology to create<br />
globally-replicable solutions. Be it an Uber or an<br />
Airbnb, disruptive ideas have scaled into universal<br />
verbs on the back of technology.<br />
As VC firms continue to fund technology-led<br />
businesses, I sometimes wonder if the data and<br />
infotech sector has reached its saturation point. But<br />
Matrix Partners India MD, Avnish Bajaj says we can<br />
only expect more innovation in the future, adding,<br />
“Things are still nascent in India when it comes to<br />
optimising the potential of the internet and mobile”.<br />
Besides, considering the market right now is fertile<br />
with ideas, this trend is only going to flourish.<br />
Apart from technology, what drives the minds<br />
behind these game-changing startups is the faith<br />
in original thinking and the power of continuous<br />
collaboration. A second home to such folks then,<br />
must reflect these values with open, inspiring spaces.<br />
It must be high on the approachable factor not only<br />
to communicate the company's 'inviting' philosophy<br />
to visitors, but also to help team members absorb<br />
the core essence of the world of venture capitalists.<br />
The role of VC professionals has now evolved<br />
into one of value-addition partners. Beyond just<br />
furnishing capital, they bring vision, belief and<br />
guidance to take entrepreneurial passion to new<br />
heights. Contemporary VC workspaces have been<br />
incorporating this ethos into their design. The<br />
tone for their team members and visitors alike<br />
is set keeping this in mind - right from the colour<br />
palette to more community spaces for ideation and<br />
collaboration.<br />
Another factor that has contributed to the new<br />
design culture at VC offices is the fact that their<br />
visitors are no longer limited to "safe sectors".<br />
The likes of lifestyle brands like Chumbak have<br />
transformed the universe of potential funded<br />
businesses. They embody the vibrancy and freshness<br />
of ideas in their spaces. This is why, a ping pong table<br />
in the reception lounge, like at the Matrix Partners'<br />
Mumbai office, is not an unusual sight. When future<br />
founders walk into a VC office, they see a reflection<br />
of how they envision their own company. Just like<br />
Matrix Partners' “Founders First” philosophy, a spirit<br />
of openness towards new entrepreneurs is integral<br />
to VC firms all over. A case in point is Sequoia<br />
Capital’s Silicon Valley office, modelled to serve as<br />
“an office that lets guests feel at home.”<br />
The second wave of changes will further cement<br />
the shift in the funded-funder relationship. VC<br />
offices will also have to mirror their visitors’ passion<br />
for groundbreaking technology if they are to invite<br />
the most disruptive business ideas. VCs have been<br />
cultivating a growing preference for funding startups<br />
that leverage augmented and virtual reality, artificial<br />
intelligence, and human experience design. When<br />
designing VC workspaces of the future, I believe the<br />
following aspects will play a key role:<br />
Courtesy: Photographix | Sebastian Zachariah<br />
• AI-enabled insights and environment<br />
• Virtual reality zones that allow visitors to<br />
showcase their business vision<br />
• Human experience design that appeals to<br />
design partners<br />
• Cues from pop culture that communicate VC<br />
professionals' inclination towards business<br />
that have changed lifestyles globally. For<br />
instance, an OTT platform entrepreneur will<br />
want to partner with a professional who is<br />
well-versed with highbrow content on Netflix<br />
and Amazon Prime Video.<br />
To sum it up, VC offices are set to go from being a<br />
second home for technology-driven entrepreneurs<br />
to becoming the home for disruptive experiences<br />
and discussions. Their workspace design will thus<br />
serve as a catalyst for developing relationships with<br />
entrepreneurs who’re redesigning our future.<br />
About Architect<br />
Ninad Tipnis<br />
Ninad is an architect by qualification from the<br />
Academy of Architecture, Mumbai and the founder<br />
of JTCPL Designs. Ninad’s enthusiasm for always<br />
delivering the best pervades through the team and<br />
his ability to thrive under pressure is an inspiration<br />
in itself. More than a creative leader he is a great<br />
motivator & a mentor to many in the field. His ideas<br />
and insights have impacted the entire industry and<br />
he has been recognized with distinguished awards<br />
by renowned design bodies. <strong>MBR</strong><br />
Courtesy: Photographix | Sebastian Zachariah<br />
• Presentation spaces that are compatible with<br />
AR / VR technology<br />
Creditline: Venture Capital<br />
40
Malta Business Review<br />
www.maltabusinessreview.net<br />
41
Malta Business Review<br />
GAMING<br />
MGA - New Gaming Act Comes Into Force<br />
Heathcliff Farrugia, MGA CEO<br />
The new Gaming Act, approved by<br />
Maltese Parliament on 8 March 2018,<br />
together with the subsidiary legislation<br />
and Authority-issued binding instruments<br />
which establish the detailed processes<br />
and procedures constituting the holistic<br />
regulatory framework for the gaming<br />
sector, came into force today 1 August<br />
2018 after undergoing the EU Technical<br />
Regulation Information System (TRIS)<br />
process, in line with European Union<br />
Directive 2015/1535.<br />
The new framework elevates the<br />
jurisdictional profile of Malta from a<br />
regulatory perspective by strengthening<br />
the MGA’s supervisory role, specifically the<br />
Authority’s compliance and enforcement<br />
"Today marks one of the<br />
most important days in<br />
the history of the MGA.<br />
Years of hard work<br />
finally come to fruition<br />
functions to better achieve its regulatory<br />
objectives. This is in line with concurrent<br />
developments relating to anti-money<br />
laundering and combating the funding of<br />
terrorism.<br />
The new regulatory framework also<br />
empowers the Authority to be more<br />
agile in its decision-making, by removing<br />
unnecessary regulatory burdens not<br />
conducive to the regulatory objectives,<br />
whilst simultaneously strengthening<br />
supervision and focusing the regulator’s<br />
efforts on areas which present a higher<br />
risk profile.<br />
Furthermore, the reform enhances<br />
consumer protection standards and<br />
responsible gaming measures, while<br />
promoting a risk-based approach towards<br />
regulation. It provides the MGA with wider<br />
powers in the fields of compliance and<br />
enforcement and establishes objectiveoriented<br />
standards to encourage<br />
innovation and development.<br />
Underlining the importance of this<br />
milestone the MGA’s Chief Executive<br />
Officer Heathcliff Farrugia stated that:<br />
"Today marks one of the most important<br />
days in the history of the MGA. Years of<br />
hard work finally come to fruition. I would<br />
like to thank all those involved in making<br />
the new regulatory framework a reality,<br />
in particular my predecessor Mr Joseph<br />
Cuschieri for the foresight to initiate<br />
this project, Parliamentary Secretary<br />
Hon. Silvio Schembri and the Maltese<br />
Government at large for their ongoing<br />
support and commitment, and especially<br />
the MGA's personnel for their relentless<br />
work in developing and implementing the<br />
new legal regime.<br />
This is the beginning of a new chapter in<br />
Maltese gaming regulation. One which<br />
builds on the foundations of the previous<br />
laws, and which empowers the Authority<br />
to further strengthen the way it regulates<br />
the industry, and to continue being a<br />
thought leader for the years the come.”<br />
Subject to the transitory provisions<br />
envisaged therein, this framework is<br />
applicable for remote gaming operators<br />
as of today 1 August 2018, whereas landbased<br />
operators shall become subject to<br />
these new laws as of 1 January 2019.<br />
All rights reserved - Copyright 2018<br />
ww.mga.org.mt<br />
<strong>MBR</strong><br />
42
CYBERCRIME<br />
Malta Business Review<br />
Acronis Hosts MEP Miriam Dalli<br />
Leading Member of the European Parliament – to Discuss Cybercrime and how<br />
more girls can be encouraged to join the IT sector<br />
LOCATION, 20 July 2018 – Acronis, a global<br />
leader in cyber protection, announced today<br />
that it hosted Dr. Miriam Dalli, a prominent<br />
Member of the European Parliament (MEP),<br />
at its office in Malta to discuss efforts to fight<br />
cybercrime and promote cyber protection in the<br />
EU and countries such as Malta.<br />
MEP Dr. Dalli has been very vocal in the<br />
European Parliament on issues relating to<br />
the protection of citizens in the cyber world.<br />
Acknowledging the extensive work that she<br />
has undertaken in the area of cyber protection,<br />
Acronis pledged to provide sufficient resources<br />
to assist her in developing policies for any of<br />
the forums in which she participates in the<br />
European Parliament.<br />
Acronis and Dr. Dalli agreed that a more<br />
concerted effort is required amongst all<br />
stakeholders and that cooperation is needed<br />
in order to develop policies and strategies to<br />
combat cybercrime. Acronis’ expertise and<br />
research have the potential to serve as a key<br />
factor in ensuring effective cyber protection<br />
across Europe.<br />
Acronis and Dr. Dalli also discussed the need to<br />
create a platform with which young ICT experts<br />
can be trained to combat cybercrime, starting<br />
with pilot projects based at Acronis’ R&D center<br />
in Malta. Acronis will provide IT experts in Malta<br />
with training, as well as access to its products,<br />
to ensure the country has the necessary<br />
capabilities to detect and defeat cybercrime.<br />
To raise awareness of the need for cyber<br />
protection, Dr. Dalli is interested in supporting<br />
the Acronis Foundation, a European nongovernment<br />
organisation (NGO) dedicated<br />
to promoting knowledge around the world<br />
by building schools and increasing access to<br />
education in developing countries.<br />
Together with MEP Dalli, Acronis and Acronis<br />
Foundation will collaborate to attract more<br />
girls and women in IT. One goal is to introduce<br />
training programmes specifically aimed at<br />
young girls. “It is important to create equal<br />
opportunities in IT for girls and women. With<br />
our joint initiative Acronis and my team will<br />
enable young aspiring talents to strive to their<br />
full potential in IT. The digital industry offers<br />
opportunities for both men and women but<br />
research shows that less girls are attracted to<br />
careers in IT,” says Dr. Miriam Dalli.<br />
"The digital industry<br />
offers opportunities for<br />
both men and women<br />
but research shows that<br />
less girls are attracted to<br />
careers in IT.<br />
“We have a common goal to make the digital<br />
world a safe place for everybody. We’re excited<br />
to discuss these important issues with MEP<br />
Miriam Dalli and believe that we can make a<br />
great contribution to the efforts of the European<br />
Parliament to define effective standards for<br />
cyber protection,” said John Zanni, President of<br />
Acronis.<br />
About Acronis<br />
Acronis sets the standard for cyber protection<br />
and hybrid cloud storage through its innovative<br />
backup, anti-ransomware, disaster recovery,<br />
storage, and enterprise file sync and share<br />
solutions. Powered by the Acronis AnyData<br />
Engine and strengthened by its artificial<br />
intelligence-based ransomware defense and<br />
blockchain-based data certification, Acronis<br />
solutions deliver easy, reliable, efficient, secure,<br />
and private cyber protection for physical, virtual,<br />
cloud, mobile workloads and applications.<br />
Founded in Singapore in 2003 and incorporated<br />
in Switzerland in 2008, Acronis is currently<br />
celebrating its 15-year anniversary as a global<br />
leader in cyber protection. Its innovative<br />
technology is driven by 100+ patents, developed<br />
by 500 engineers, and supported by more than<br />
1,000 employees worldwide. Acronis’ products<br />
are used in over 150 countries in more than 20<br />
languages, bringing complete protection for<br />
more than 5 million consumers and 500,000<br />
businesses.<br />
Acronis solutions are available worldwide<br />
through a global network of service providers,<br />
distributors, and cloud resellers. <strong>MBR</strong><br />
To find out more, visit www.acronis.com<br />
Creditline: Acronis<br />
Dr. Miriam Dalli<br />
www.maltabusinessreview.net<br />
43
Malta Business Review<br />
BANKING REPORT<br />
Top Trends in Corporate Banking:<br />
2018–2019 Edition<br />
Patricia Hines<br />
Celent’s latest edition of top trends in corporate banking explores the<br />
issues that executives at banks around the globe should be aware of.<br />
Some are just beginning to emerge, while others have been around a<br />
long time.<br />
Key Research Questions:<br />
• What trends are most<br />
profoundly affecting corporate<br />
banking today?<br />
• What are the implications for<br />
banks?<br />
• What are the next best actions<br />
for banks and their technology<br />
partners?<br />
Abstract:<br />
Our corporate banking trends track Celent’s<br />
themes of Digital and Omnichannel;<br />
Innovation and Fintech; and Legacy and<br />
Ecosystem Transformation. To help banks<br />
to navigate an evolving ecosystem, this<br />
Celent report focuses on ten trends that<br />
bankers should have on their radar.<br />
Our analysis is high-level and aims to<br />
provide a quick perspective on the salient<br />
trends affecting corporate banking over the<br />
next year. Bankers should not view these<br />
trends in a vacuum.<br />
There is substantial overlap across many<br />
of the trends in terms of drivers and<br />
outcomes. <strong>MBR</strong><br />
All rights reserved - Copyright 2018<br />
<strong>44</strong>
SOCIAL<br />
Malta Business Review<br />
GiG Hosts press conference to launch Malta Pride Week 2018,<br />
as headline sponsor<br />
Malta Pride was officially launched by the Minister<br />
for European Affairs and Equality, Helena Dalli, on<br />
Thursday 6 September. The press conference was<br />
held at GiG, the headline sponsor of Malta Pride<br />
2018. The Shadow Minister, Claudette Buttigieg,<br />
also addressed the audience together with the<br />
President of the Allied Rainbow Communities<br />
(ARC), Eamonn Gomez Jimenez, and the COO of<br />
GiG, Mikael Angman.<br />
Several local artists will be performing for the<br />
crowds at the open air concert which will be held<br />
after the parade in Valletta. In addition, the Italian<br />
Drag duo Karma B. will be entertaining the crowds<br />
with their spectacular acts. More information will<br />
be available on www.maltapride.org<br />
Quotes from GiG:<br />
"We don’t just believe that iGaming should be fair<br />
and fun for all, we believe that life should be fair<br />
and fun for all. And to demonstrate our support,<br />
today we’re teaming up with Allied Rainbow<br />
Communities (ARC) to be Malta Pride 2018’s main<br />
partner" - Mikael Ångman<br />
Mikael Ångman, Chief Operations Officer of<br />
GiG said: “We are proud to be the headline<br />
supporters of Malta Pride, an event we believe to<br />
be a highlight in Malta’s calendar! GiG’s vision is<br />
to change the iGaming industry to make it fair and<br />
fun for all. A huge part of that is to have a diverse<br />
workforce and provide an atmosphere where<br />
everyone can be the best version of themselves,<br />
no matter their background or sexual orientation.<br />
We want to encourage everyone to be able to be<br />
who they are without fear. We make insanely great<br />
tech products through the entire value chain in the<br />
iGaming industry”<br />
Quotes ARC:<br />
Clayton Mercieca, who is organising Pride as part<br />
of ARC Malta (Allied Rainbow Community) has<br />
said that witnessing a collaboration between the<br />
business and civic community is a big step forward.<br />
"We are hoping to make each year's Pride bigger<br />
and better than before," he said.<br />
"With a major employer like GiG supporting Pride,<br />
it highlights Pride as more than just the fanfare<br />
and glamour that is fun for all the family, but it<br />
also becomes an important event because there is<br />
a lot of isolation in our small islands that makes it<br />
very hard for minorities like the LGBTIQ community<br />
to integrate." – Quote from Clayton Mercieca<br />
(Organiser Malta Pride)<br />
“Malta Pride week runs from the 9th to the 16th<br />
September and consists of many events from<br />
football and volleyball tournaments to mental<br />
health and Family Networking events. And of<br />
course, on Saturday 15th of September we hold<br />
the Pride march and concert at the Heart of the<br />
Mediterranean” <strong>MBR</strong><br />
Creditline: GiG, ARC<br />
GIG Event<br />
CORINTHIA PALACE HOTEL & SPA<br />
Opens New Executive Lounge<br />
Located on the ground floor of the hotel overlooking its beautiful gardens, the Lounge is exclusive to guests staying in Corinthia Palace<br />
suites and executive rooms.<br />
Corinthia Palace Hotel & Spa recently unveiled yet<br />
another luxurious facility for its guests to enjoy – its<br />
new Executive Lounge on the Ground Floor. Located<br />
just along from the popular Caprice Lounge, the<br />
Executive Lounge was created exclusively for<br />
guests booked into the hotel’s upmarket suites and<br />
executive rooms.<br />
Designed in a style synonymous with Corinthia<br />
Palace’s renowned elegance, the Executive Lounge<br />
is open throughout the day to serve complimentary<br />
tea, coffee, alcoholic beverages, juices and snacks.<br />
On top of that, a buffet breakfast is served from<br />
7am to 11am, afternoon tea from 3.30pm till<br />
5.30pm, and sunset drinks from 6pm till 7.30pm.<br />
“We are constantly looking for ways to improve our<br />
facilities and service for our guests, and this latest<br />
addition adds appealing exclusivity and luxury for<br />
those staying in our executive rooms and suites,”<br />
says Corinthia Palace Hotel & Spa General Manager<br />
Adrian Attard. “It is an opulent space reserved<br />
exclusively for them, and we believe it adds that<br />
little something extra to their stay with us, and on<br />
the island.”<br />
Beyond serving snacks and refreshments, the<br />
Executive Lounge also offers additional business<br />
services including complimentary access to the<br />
Mdina meeting room, provided it is booked in<br />
advance. <strong>MBR</strong><br />
Creditline: Corinthia Palace Hotel & Spa<br />
For more information on the newly-launched Corinthia Palace Executive Lounge, please visit<br />
https://www.corinthia.com/en/hotels/palace-hotel-and-spa/executive-club<br />
www.maltabusinessreview.net<br />
45
Malta Business Review<br />
FINTECH<br />
Regulation of FinTech must strike a better balance between<br />
market stimulation and the security and stability of the<br />
financial and economic system<br />
By Jasmin Klötzing<br />
The EESC believes that the European Commission's Action<br />
Plan is a good basis but that additional measures are<br />
needed to tap the full potential of financial technology<br />
and to ensure certainty and protection for all market<br />
participants.<br />
The measures proposed by the European<br />
Commission concerning the development<br />
of financial technology (FinTech) within the<br />
European financial sector must be adjusted<br />
so as to balance market stimulation and the<br />
security and stability of the financial and<br />
economic system. The overall aim must be to<br />
ensure certainty and protection as well as fair<br />
and equal market conditions for all market<br />
participants. The EESC is strongly convinced<br />
that FinTech, in an appropriate legal framework,<br />
can deliver benefits to European businesses and<br />
their clients, contributing to a more competitive<br />
and innovative European financial sector.<br />
"FinTech players should be subject to the<br />
same rules as the financial sector, particularly<br />
as regards resilience, cyber security and<br />
supervision", said Petru Sorin Dandea,<br />
rapporteur for the EESC opinion on the<br />
proposals of the so-called FinTech Action Plan.<br />
"We must follow the principle of 'same risk,<br />
same rules, same supervision'", he said. In<br />
addition, the Committee is calling for rules to<br />
ensure uniform development of FinTech in the<br />
EU.<br />
Despite its reservations, the EESC supports<br />
the Commission's action plan. It believes that<br />
the plan could be instrumental as regards<br />
"National supervisors<br />
are closer to national<br />
markets and can<br />
better assess local<br />
circumstances. The<br />
Commission should thus<br />
consider allocating them<br />
a substantial supervisory<br />
role.<br />
deepening and broadening the capital markets<br />
by integrating digitisation, and that it could<br />
serve as a stimulus for small and medium-sized<br />
enterprises active in the financial sector, as it<br />
can facilitate their access to finance. The action<br />
plan could thus contribute to the completion<br />
of the capital markets union, Economic and<br />
Monetary Union and the Digital Single Market,<br />
priorities that are strongly championed by the<br />
EESC.<br />
Concerning the right to portability of personal<br />
data, the EESC believes that this must be<br />
implemented in a manner that is compatible<br />
with the new Payment Services Directive (PSD2).<br />
This would ensure that a level playing field is<br />
achieved as regards access to customer data<br />
under PSD2 and the General Data Protection<br />
Regulation (GDPR).<br />
The EESC would point out the need to clarify<br />
the responsibility of companies offering cloud<br />
services as regards protecting the personal data<br />
they host. Possible rules should be identified by<br />
the Commission.<br />
Further recommendations expressed in the<br />
Committee's opinion concern crypto-assets and<br />
the impact of innovative technologies on the<br />
labour market in the financial sector. The EESC<br />
recommends that the European Commission<br />
together with the European supervisory<br />
authorities keeps a close eye on the growth<br />
and the high degree of volatility of cryptoassets<br />
and addresses any issue concerning this<br />
matter that could threaten the security and<br />
stability of the financial and economic system.<br />
As regards the impact on the labour market,<br />
the Committee calls on the Member States to<br />
design and implement active labour market<br />
measures enabling workers who lose their jobs<br />
to take up new jobs.<br />
In line with its opinion on the FinTech<br />
Action Plan, the EESC strongly welcomes<br />
the Commission's proposals for an enabling<br />
framework for crowdfunding. It believes that<br />
artificial obstacles should not act as a brake<br />
on the new framework. It is therefore calling<br />
for even stronger proposals and additional<br />
measures. Nevertheless, the Commission<br />
proposals would be a major step forward, as<br />
they provide new opportunities and more<br />
certainty and protection for service providers,<br />
businesses and investors.<br />
With regard to stronger proposals and<br />
additional measures, Daniel Mareels,<br />
rapporteur for the EESC opinion on Crowd and<br />
peer-to-peer finance, said: "At least in the initial<br />
stages, there should be an even stronger focus<br />
on risk aspects associated with crowdfunding<br />
operations and markets in order to better<br />
identify them or mitigate them where possible<br />
and to ensure certainty and protection for all<br />
concerned parties".<br />
Market deregulation would constitute higher<br />
risks for investors and could create an uneven<br />
playing field with traditional financial service<br />
providers. Other areas of tension could be the<br />
status of providers and their services and the<br />
unclear role of national supervisory bodies.<br />
Apart from that, the coexistence of European<br />
and national regimes may give rise to<br />
confusion and uncertainty. In order to ensure<br />
clarity, additional obligations on authorities<br />
and supervisors to provide accurate, easily<br />
accessible information for all users or the<br />
obligatory use of the "EU label" for service<br />
providers could be options.<br />
In its opinion, the EESC also urges the European<br />
Commission to (better) address the issues<br />
of money laundering, terrorism financing<br />
and taxation related to crowdfunding. It<br />
questions the limited possibility for subjecting<br />
crowdfunding platforms to existing rules on<br />
money laundering and terrorism financing and<br />
the restriction to finance projects only up to an<br />
amount of EUR 1 million.<br />
Finally, the Committee encourages the<br />
introduction of provisions to regularly monitor,<br />
evaluate and measure the success of the<br />
proposed EU regime. Consultations and<br />
dialogue with all stakeholders and interested<br />
parties would be desirable. <strong>MBR</strong><br />
Creditline: EESC Press Unit<br />
46
EXECUTIVE LIFESTYLE<br />
Malta Business Review<br />
Blockchain in Action in Corporate Banking<br />
by Alenka Grealish<br />
“And they’re off” is the most succinct way to describe the status of<br />
blockchain-based initiatives in commercial banking. The race to scale<br />
production is on and will be a marathon, not a sprint.<br />
Key Research Questions:<br />
• What use cases are approaching the<br />
golden triangle of value, feasibility,<br />
and viability?<br />
• Who are the payments contenders?<br />
• Who are the trade finance<br />
contenders?<br />
Abstract:<br />
Blockchain in corporate banking is moving<br />
from experiment to live transactions,<br />
proving value and feasibility but not<br />
yet demonstrating viability (e.g., scale).<br />
Celent showcases 12 contenders in<br />
payments, trade finance, and syndicated<br />
loans.<br />
Early movers have gone from proofs<br />
of concept to pilots and production.<br />
The production launches are currently<br />
relatively small initiatives. Most initiatives<br />
are digitizing processes, that is, carrying<br />
messages or documents. Only a very few<br />
are using digital assets as a medium to<br />
exchange value. The next 18 months will be<br />
a critical period to attract service providers<br />
and end users. In parallel, blockchain<br />
and DLT platform providers are working<br />
fervently on improving scale and speed<br />
with the goal of staying one step ahead of<br />
the needs of application providers.<br />
Celent has selected 12 contenders to profile<br />
based on their progress toward winning<br />
medals in value, feasibility, and viability<br />
as well as the calibre of their people and<br />
participants.<br />
• Five in cross-border payments with<br />
the first three in production: Ripple,<br />
Stellar, IBM World Wire, JPM Interbank<br />
Information Network, and Visa B2B<br />
Connect.<br />
• Six in trade finance with the first two<br />
in production: we.trade, India Trade<br />
Connect, TradeIX, Skuchain, Voltron,<br />
and Centrifuge.<br />
• One in syndicated lending in<br />
production:Fusion LenderComm by<br />
Finastra. <strong>MBR</strong><br />
Creditline: Celent PR & Digital; Celent, a<br />
division of Oliver Wyman<br />
www.maltabusinessreview.net<br />
47
Malta Business Review<br />
THE LINESMAN<br />
Russia’s bloody World Cup<br />
by Minky Worden<br />
From Russia’s escalating crackdown on peaceful critics to its unwelcoming anti-LGBT “propaganda” law to<br />
workers dying to build shiny new stadiums, this World Cup did little to counter Russia’s many rights abuses.<br />
We have all enjoyed the football, but the<br />
human costs were high. Tunku Varadarajan and<br />
colleagues on the 2018 World Cup through the<br />
lenses of culture, politics, anthropology and the<br />
love of the Beautiful Game.<br />
The 2018 World Cup is has gone down with<br />
memorable play, but for FIFA itself, this was a<br />
preventable own goal.<br />
FIFA’s flagship tournament could have done<br />
something to relieve the worst human rights crisis<br />
in Russia since the Soviet era, but instead the<br />
football organization condoned many human rights<br />
violations, undermining its own policies. Russian<br />
President Vladimir Putin emerged as the big winner,<br />
using the games to sportswash his rule — to<br />
legitimize it by hosting a sporting mega-event.<br />
FIFA adopted a Human Rights Policy in 2017,<br />
pledging to “go beyond its responsibility to respect<br />
human rights” by taking “measures to promote<br />
the protection of human rights and positively<br />
contribute to their enjoyment,” and it instituted a<br />
new program of labour inspections at construction<br />
sites. But from Russia’s escalating crackdown on<br />
peaceful critics to its unwelcoming anti-LGBT<br />
“propaganda” law to workers dying to build shiny<br />
new stadiums, this World Cup did little to counter<br />
Russia’s many rights abuses.<br />
To deliver Russia’s World Cup, at least 21 workers<br />
died in stadium construction, according to Building<br />
Workers International. This is almost enough to<br />
field two teams. According to BWI in its June 2018<br />
report “Foul Play,” “most of these deaths were<br />
because of falls from heights or because of heavy<br />
equipment falling on workers, tragedies that could<br />
have been averted if safety and health conditions<br />
were enforced.”<br />
Beyond worker abuses, the World Cup gave one of<br />
Russia’s worst rights violators, the Chechen ruler<br />
Ramzan Kadyrov, a global platform to launder his<br />
reputation.<br />
"Beyond worker abuses,<br />
the World Cup gave one<br />
of Russia’s worst rights<br />
violators, the Chechen<br />
ruler Ramzan Kadyrov,<br />
a global platform to<br />
launder his reputation.<br />
In another low, North Korean forced labourers<br />
constructed a World Cup stadium. In an<br />
article titled “The Slaves of St Petersburg,” the<br />
investigative magazine Josimar documented that at<br />
least 110 North Koreans worked at the Zenit Arena<br />
in St. Petersburg, one of the venues for the 2018<br />
World Cup Finals. “International experts describe<br />
the workers from North Korea as both slaves and<br />
hostages. One North Korean worker was found<br />
dead in a storage container outside the stadium.”<br />
North Koreans working in Russia qualify as forced<br />
labour because the North Korean labour suppliers<br />
must send the vast majority of hard currency<br />
the workers earn back to Pyongyang (in violation<br />
of U.N. sanctions). After these revelations, FIFA<br />
President Gianni Infantino said that “North Korean<br />
workers are no longer being used” — but he did<br />
not reveal what actually happened to the workers<br />
who helped build the St. Petersburg stadium, and<br />
whether they were ever fairly compensated for<br />
their work.<br />
Consistent with these findings, Human Rights<br />
Watch documented wage-cheating, unsafe<br />
conditions and exploitation in construction of<br />
stadiums and other World Cup-related sites in<br />
our 2017 report, Red Card. At one point, our<br />
researcher was detained by police outside the<br />
Volgograd stadium, putting an end to his research<br />
on worker conditions. <strong>MBR</strong><br />
Creditline: POLITICO SPRL<br />
48
Malta Business Review<br />
www.maltabusinessreview.net<br />
49
Malta Business Review<br />
WOMEN'S RIGHTS<br />
MEPs Propose Measures to Combat<br />
Mobbing & Sexual Harassment<br />
• Up to 55% of women have been sexually harassed in the EU<br />
• Reporting should be made easier for victims<br />
• Perpetrators should face tough and dissuasive sanctions<br />
Sexual harassment victims should be helped to report<br />
cases and perpetrators should face sanctions, say<br />
Women’s Rights MEPs in a draft report adopted on<br />
Tuesday.<br />
In the context of the public debate<br />
prompted by the Weinstein scandal and<br />
the #MeToo campaign, which helped to<br />
redraw the boundaries of what constitutes<br />
sexual harassment and acceptable<br />
behaviour, Women’s Rights and Gender<br />
Equality Committee MEPs adopted a<br />
draft report (21 votes in favour, 0 against,<br />
5 abstentions) proposing measures to<br />
combat mobbing and sexual harassment<br />
in the EU.<br />
Deploring the fact that laws and the<br />
definitions in this area vary across member<br />
states, they reiterate their call on the EU<br />
Commission to propose a Directive against<br />
all forms of violence against women (VAW),<br />
including updated common definitions and<br />
legal standards that treat it as a crime.<br />
Victims should not be afraid to report a<br />
case in the workplace<br />
The draft report underlines the urgent<br />
need for member states, local authorities<br />
and trade unions to understand the<br />
barriers that women face in reporting cases<br />
of sexual harassment in the workplace<br />
and to offer them full support to report<br />
these cases safely, without fear of possible<br />
consequences.<br />
It also calls on member states to encourage<br />
workplace policies based on prevention,<br />
confidential procedures to deal with<br />
complaints, and tough and dissuasive<br />
sanctions for perpetrators.<br />
Zero tolerance of sexual harassment in<br />
politics<br />
MEPs call on all political parties to tackle<br />
sexual harassment notably by revising<br />
party rules to introduce a zero-tolerance<br />
policy and sanctions for perpetrators. They<br />
also urge national and local parliaments<br />
to fully support victims, investigate cases,<br />
maintain a confidential register of cases<br />
and ensure mandatory training for all staff<br />
and members on respect and dignity.<br />
“Virtual” public spaces: how to combat<br />
online harassment<br />
The draft report urges the EU Commission<br />
to come up with a new definition of<br />
“public space”, reflecting evolving<br />
communication technologies and the<br />
rise of ”virtual” public spaces such as<br />
social networks and websites, which have<br />
created more possibilities for harassment<br />
and violence at every level of society.<br />
MEPs call on member states to remind<br />
internet providers of their duty to protect<br />
their online customers by addressing<br />
cases of repetitive abuse or stalking and to<br />
inform the perpetrators that they cannot<br />
act with impunity.<br />
Finally, they reiterate that awarenessraising<br />
campaigns and education at every<br />
level are fundamental tools in helping to<br />
address gender-based violence in public<br />
spaces.<br />
Quote<br />
EP rapporteur Pina Picierno (S&D, IT)<br />
said: ‘‘The #MeToo movement has shown<br />
the world how big and widespread the<br />
phenomenon of sexual harassment<br />
and mobbing is, including in public and<br />
work spaces. With this report we ask<br />
the EU Commission to act at European<br />
level, starting by proposing a clear legal<br />
definition of what sexual harassment<br />
is, stressing educational strategies and<br />
tackling the dramatic phenomenon<br />
of online harassment. Failing to do so<br />
would mean ’tolerating’ mobbing and<br />
harassment and leaving women even<br />
more alone.’’<br />
Next steps<br />
The own-initiative report will be put to<br />
a vote in plenary during the September<br />
session in Strasbourg. <strong>MBR</strong><br />
Creditline: EPO<br />
50
BANKING<br />
Malta Business Review<br />
FIMBank Announces Half-Yearly<br />
profit of USD 6.1 million<br />
The FIMBank Group has announced an<br />
after-tax profit of USD 6.1 million for the<br />
first six months of 2018, an increase of 47<br />
percent on the USD 4.1 million registered<br />
during the same period in 2017. These<br />
figures emerge from the publication of the<br />
Group’s Interim Financial Statements for<br />
2018, which were approved at a meeting<br />
of its Board of Directors on the 14th August<br />
2018.<br />
"The results for the first<br />
six months of 2018 are a<br />
manifestation of<br />
FIMBank’s performing<br />
fundamentals and<br />
its realisation of a<br />
sustainable platform<br />
for further success.<br />
During the period under review, net<br />
operating results, that is operating revenues<br />
less operating costs, more than tripled,<br />
from USD 2.7 million to USD 9.8 million,<br />
as the Group improved its revenues by<br />
USD 4.4 million and reduced its costs by<br />
USD 2.7 million. This was a contribution of<br />
many factors, including increased volumes<br />
and better yields on its product offering,<br />
reduced cost of funds as the Group was<br />
more selective in its funding sources and<br />
successful implementation of measures in<br />
managing costs.<br />
Following the successful completion of the<br />
USD 105 million Rights Issue concluded in<br />
May 2018, the Group’s equity at 30th June<br />
stands at USD 274 million, with the CET1<br />
ratio at 16.7%. At the end of the reporting<br />
period, Total Consolidated Assets stood at<br />
USD 1.95 billion, an increase of 19 percent<br />
over the USD 1.64 billion reported at end-<br />
2017, while Total Consolidated Liabilities<br />
stood at USD 1.67 billion, or 14 percent<br />
more than the USD 1.47 billion reported at<br />
end 2017.<br />
Commenting on the financial results,<br />
FIMBank Group CEO Murali Subramanian<br />
stated that “The results for the first six<br />
months of 2018 are a manifestation of<br />
FIMBank’s performing fundamentals and<br />
its realisation of a sustainable platform<br />
for further success. The Group has been<br />
successful in turning its business around,<br />
generating profitability and providing a<br />
platform for growth over the last twelve<br />
quarters.” Mr Subramanian also highlighted<br />
the strong improvement in the Group’s<br />
core performance, explaining that this<br />
has occurred across the key operational<br />
pillars, covering business and revenue<br />
generation, risk management and expense<br />
management. “Notwithstanding the<br />
economic situation around the world”,<br />
stated FIMBank’s CEO, “the Group’s<br />
origination efforts have been stepped up,<br />
growing client assets and demonstrating<br />
a strong pipeline of business across the<br />
different products and geographies within<br />
which it operates. As a result, core income<br />
generation has rebounded on the back of<br />
increased volumes, improved yields, and<br />
lower cost of funds.”<br />
Mr Subramanian also attributed the<br />
Group’s positive half-yearly results to<br />
successful measures in managing costs, and<br />
to improving key cost/income ratios both<br />
in absolute and relative terms. According<br />
to the CEO, “as much as origination and<br />
business development remain a priority for<br />
the Group, the focus on asset quality and<br />
acceptable risk levels has remained critically<br />
important, resulting in improved provision<br />
coverage on delinquent loans, with recovery<br />
efforts continuing to yield expected results.”<br />
He anticipates that the approach adopted<br />
so far will continue evolving: “in the months<br />
ahead, the Group will exploit its strong<br />
expertise and improved operating culture to<br />
grow across its diversified product offering.”<br />
FIMBank Group Chairman Dr John C. Grech<br />
expressed the satisfaction of the Board with<br />
the results of the first half of 2018. He stated<br />
that “FIMBank’s positive performance,<br />
which has now extended into its third<br />
year, has a very specific provenance. It is<br />
the direct consequence of a strategic shift<br />
in focus successfully tuned to changing<br />
market conditions. Accomplished with<br />
extremely sound planning and copious<br />
amounts of hard work and perseverance<br />
by our strong management team, ably led<br />
by CEO Murali Subramanian, this successful<br />
drive has contributed to establishing the<br />
FIMBank Group as a more robust banking<br />
institution, based on business discipline,<br />
centrally-aligned operations, and effective<br />
management of enterprise risks.”<br />
Meanwhile, FIMBank’s Board of Directors<br />
will not be recommending an interim<br />
dividend for the period under review. <strong>MBR</strong><br />
For more information about FIMBank plc,<br />
please visit www.fimbank.com<br />
Creditline: FIMBank<br />
FIMBANK<br />
www.maltabusinessreview.net<br />
51
Malta Business Review<br />
DEBATE<br />
Why Are Some People Selfish?<br />
by Josh Davies<br />
Josh Davies<br />
Most of us are at least a little selfish, but some<br />
more so than others. In order to get what we<br />
want in life we tend to reward those who are<br />
good to us by being good back to them, and<br />
punish those who aren't. But there are a minority<br />
of people, known as “Machiavellians,” who pay<br />
no regard to these social norms. A new study,<br />
published in Brain and Cognition, has managed<br />
to visualize what happens in the brains of these<br />
Machiavellians when others are nice to them,<br />
and found they went into overdrive, working out<br />
how best to exploit them, suggest the authors.<br />
Named after the 16th Century Italian writer,<br />
politician and diplomat Niccolò Machiavelli,<br />
the term is used by psychologists to refer to<br />
someone who is highly manipulative, deceitful,<br />
and lacking empathy. The name derives not<br />
because Machiavelli was particularly any of<br />
those things, but because of the main character<br />
in his most famous work "The Prince" used<br />
clever tricks to hold on to power.<br />
When it comes to society, it seems that some<br />
people are hard-wired this way, exploiting others<br />
for their own gain. And scientists are able to<br />
work out where people fall on a scale from low-<br />
Machiavellian to high-Machiavellian by means of<br />
a questionnaire. Hungarian researchers from the<br />
University of Pécs used this test to divide a group<br />
of students into those with high Machiavellian<br />
tendencies in a group of students and those who<br />
displayed low tendencies, and then used an MRI<br />
scan to see what happened in their brains during a<br />
simple game of trust.<br />
The game worked like this: The participants were<br />
paired up with a partner. Individuals were then<br />
given five dollars and asked to decide how much<br />
they wanted to “invest” in their partner. The<br />
participants all thought that their partner was<br />
another student, but in actual fact they were<br />
a computer, which was programmed to either<br />
return their investment fairly (10% above or below<br />
the initial investment), or unfairly (returning only<br />
30% of the initial investment). After this first<br />
interaction the roles were then reversed, with<br />
the computer partner having to "invest" in the<br />
participant. The participants then had to decide<br />
whether to give a fair or unfair return. When the<br />
low-Machs decided how much to give back to<br />
their partners they acted according to the social<br />
norms, rewarding their partner when they had<br />
given them a “fair” return first, and punishing<br />
them when they’d received an “unfair” return.<br />
The high-Machs, however, gave everyone unfair<br />
returns, regardless of what they’d previously been<br />
given. Unsurprisingly, at the end of the game, the<br />
high-Machs ended up with the most money.<br />
But looking at the high-Machs' brain activity during<br />
the task, the researchers found that when the<br />
computer partner gave the high-Mach a fair return<br />
"Named after the 16th<br />
Century Italian writer,<br />
politician and diplomat<br />
Niccolò Machiavelli,<br />
the term is used by<br />
psychologists to refer to<br />
someone who is highly<br />
manipulative, deceitful,<br />
and lacking empathy<br />
for their initial investment, their brain activity shot<br />
up in areas involved in inhibition and creativity.<br />
The researchers suggest that this indicates they<br />
might have been inhibiting their natural instinct to<br />
reciprocate fairness, while at the same time trying<br />
to calculate how best to take advantage of their<br />
partner.<br />
So, it seems that those who are most manipulative<br />
and deceitful don’t decide to punish people<br />
because they are unfair to them, instead deciding<br />
to be unfair to them all the time, which feeds into<br />
their lack of empathy. But show them fairness or<br />
cooperation, and they start to figure out how best<br />
to exploit you. <strong>MBR</strong><br />
Creditline: Josh Davies<br />
52
EU/DIGITAL COPYRIGHT<br />
Malta Business Review<br />
Parliament adopts its position on<br />
digital copyright rules<br />
Copyright rules need updating for the digital age<br />
• Tech giants must pay for work of artists and journalists which they use<br />
• Small and micro platforms excluded from directive’s scope<br />
• Hyperlinks, “accompanied by “individual words” can be shared freely<br />
• Journalists must get a share of any copyright-related remuneration obtained<br />
by their publishing house<br />
Parliament adopted its revised negotiating<br />
position on copyright rules on Wednesday,<br />
adding safeguards to protect small firms and<br />
freedom of expression.<br />
Parliament’s position for talks with member<br />
states to hammer out a final deal was<br />
approved by 438 votes to 226, with 39<br />
abstentions. It makes some important<br />
tweaks to the June committee proposal.<br />
Tech giants to share revenue with artists<br />
and journalists<br />
Many of Parliament’s changes to the EU<br />
Commission’s original proposal aim to make<br />
certain that artists, notably musicians,<br />
performers and script authors, as well as<br />
news publishers and journalists, are paid<br />
for their work when it is used by sharing<br />
platforms such as YouTube or Facebook, and<br />
news aggregators such as Google News.<br />
After the vote, rapporteur Axel Voss (EPP, DE)<br />
said, “I am very glad that despite the very<br />
strong lobbying campaign by the internet<br />
giants, there is now a majority in the full<br />
house backing the need to protect the<br />
principle of fair pay for European creatives.<br />
There has been much heated debate around<br />
this directive and I believe that Parliament<br />
has listened carefully to the concerns raised.<br />
Thus, we have addressed concerns raised<br />
about innovation by excluding small and<br />
micro platforms or aggregators from the<br />
scope.<br />
I am convinced that once the dust has<br />
settled, the internet will be as free as it is<br />
today, creators and journalists will be earning<br />
a fairer share of the revenues generated by<br />
their works, and we will be wondering what<br />
all the fuss was about.”<br />
AP Images/European Union-EP<br />
Fair pay for artists and journalists while<br />
encouraging start-ups<br />
Parliament’s position toughens the<br />
Commission’s proposed plans to make<br />
online platforms and aggregators liable for<br />
copyright infringements. This would also<br />
apply to snippets, where only a small part<br />
of a news publisher’s text is displayed. In<br />
practice, this liability requires these parties<br />
to pay right holders for copyrighted material<br />
that they make available. Parliament’s text<br />
also specifically requires that journalists<br />
themselves, and not just their publishing<br />
houses, benefit from remuneration<br />
stemming from this liability requirement.<br />
At the same time, in an attempt to encourage<br />
start-ups and innovation, the text now<br />
exempts small and micro platforms from the<br />
directive.<br />
Protecting freedom of expression<br />
The text includes provisions to ensure<br />
that copyright law is observed online<br />
without unfairly hampering the freedom<br />
of expression that has come to define the<br />
internet.<br />
Thus, merely sharing hyperlinks to articles,<br />
together with “individual words” to describe<br />
them, will be free of copyright constraints.<br />
Any action taken by platforms to check<br />
that uploads do not breach copyright rules<br />
must be designed in such a way as to avoid<br />
catching “non-infringing works”. These<br />
platforms will moreover be required to<br />
establish rapid redress systems (operated by<br />
the platform’s staff, not algorithms) through<br />
which complaints can be lodged when an<br />
upload is wrongly taken down.<br />
Wikipedia and open source software<br />
platforms will not be affected<br />
The text also specifies that uploading to<br />
online encyclopaedias in a non-commercial<br />
way, such as Wikipedia, or open source<br />
software platforms, such as GitHub,<br />
will automatically be excluded from the<br />
requirement to comply with copyright rules.<br />
Stronger negotiating rights for authors and<br />
performers<br />
Parliament’s text also strengthens the<br />
negotiating rights of authors and performers,<br />
by enabling them to “claim” additional<br />
remuneration from the party exploiting their<br />
rights when the remuneration originally<br />
agreed is “disproportionately” low compared<br />
to the benefits derived.<br />
The text adds that these benefits should<br />
include “indirect revenues”. It would also<br />
empower authors and performers to revoke<br />
or terminate the exclusivity of an exploitation<br />
licence for their work if the party holding<br />
the exploitation rights is deemed not to be<br />
exercising this right. <strong>MBR</strong><br />
Credit: John Schranz, Press Officer/EP<br />
www.maltabusinessreview.net<br />
53
Malta Business Review<br />
BUILDING & CONSTRUCTION<br />
HELP! A Storm is Coming<br />
It is the time of the year when we experience<br />
our annual September/October rain fall. This<br />
usually comes after a dry period of intensive<br />
heat. During this time of the year we experience<br />
a drastic temperature change, shorter days and<br />
lot of traffic. In short winter is coming back. But<br />
what exactly happens to our houses in summer<br />
and why many people endure water intake at<br />
this time of the year. The truth is that we live in<br />
an island surrounded by sea and our climate is<br />
very humid and salty, this mix of heat, humidity<br />
and salt is definitely not concrete friendly. Our<br />
concrete roofs expand with the summer heat<br />
and absorbs dew and moist in the evenings.<br />
This combination of heat and salt water rusts<br />
the iron bars inside the concrete structure,<br />
subjecting it to cracks and unwanted building<br />
damages.<br />
Over 80% of building damages is the result of<br />
water intake mostly due to bad waterproofing<br />
systems, improper plumbing installations<br />
(always implement waterproofing in bathrooms<br />
prior installation of pipes and drains), rising<br />
damp and drainage system. All this sounds<br />
catastrophic and should be a matter of concern,<br />
yet in reality with proper products and good<br />
workmanship there is no reason for any alarm.<br />
All the above mentioned problems can be solved<br />
with a proper waterproofing resin membrane.<br />
A waterproofing membrane is a thin layer of<br />
water-tight material that is laid over a surface.<br />
This layer is continuous and does not allow<br />
water to pass through it. For example, on a<br />
roof or flat terrace, a waterproofing membrane<br />
could be laid above the structural slab and<br />
Application of waterproofing plaster<br />
Sealing of joints and openings of a metal structure<br />
below the finish tiles.<br />
This will ensure that<br />
water does not seep<br />
into the structural<br />
slab. The tiles and<br />
membrane must be laid<br />
over a filler material<br />
that is sloped to ensure<br />
that water flows into<br />
sumps and drains. Any water that remains as<br />
puddles over the tiles roofs is likely to seep into<br />
the slab over time, so puddles are to be avoided<br />
at all costs.<br />
The most common type of membranes used<br />
in Malta are the sheet (carpet) bitumen<br />
membranes and liquid applied membranes.<br />
The first one is mainly made from bitumen, it<br />
is non-elastic, creates heat intake and tends<br />
to open from seams when subject to concrete<br />
movements. This Old school membrane is<br />
recommended for foundations only.<br />
A good outdoor waterproofing membrane must<br />
be flexible, tear-resistant and elastic so that it<br />
can stretch when required. If the membrane<br />
is to be exposed to sun rays, then it should be<br />
UV resistant. The membrane should be flexible<br />
enough to take any shape it is laid over and be<br />
capable of turning up and over walls and other<br />
construction features.<br />
Liquid applied membranes can be sprayed,<br />
roller or brush-applied on the surface. The<br />
liquid cures when it comes in contact with air<br />
and forms a seamless, joint-free membrane.<br />
The thickness can be controlled by the number<br />
of coats applied.<br />
These are generally considered to be superior<br />
to sheet bitumen membranes as they are jointfree.<br />
However care must be taken in application<br />
and the type of material used. Avoid plastic and<br />
acrylic based membranes/compounds as they<br />
lack UV resistance and will eventually flake. The<br />
result is a fast deterioration and product failure<br />
when you need it the most. The intensive heat<br />
and high UV Rays makes life difficult for these<br />
products to lust long, maybe a winter or two. An<br />
Important factor is the environment, Bitumen<br />
based products melt at low temperatures<br />
create heat intake and are considered a hazard<br />
to the environment. They are not suitable if you<br />
have wells and are considered toxic.<br />
The membrane can tear or break if it is too thin,<br />
always make sure to apply the right thickness,<br />
minimum three coats after the application of a<br />
primer to create a good adhesion.<br />
How can we identify a good waterproofing<br />
product?<br />
• UV Stability - if the membrane is to be<br />
exposed to the sun, it must carry UV<br />
resistant mark or else it will degrade over<br />
time.<br />
• Elongation - this is the ability of the<br />
membrane to stretch. It is measured<br />
in percentages. An elongation of 150%<br />
means that the membrane can stretch<br />
to 1.5 times its length when pulled.<br />
Elongation is a must in buildings that<br />
54
BUILDING & CONSTRUCTION<br />
Malta Business Review<br />
will move, such as high-rise buildings, or<br />
buildings made with steel, which is flexible.<br />
This property will allow the membrane to<br />
stretch over cracks that may develop in the<br />
future<br />
• Tear Resistance - this is an important<br />
property, as many membranes that have<br />
good elongation also can tear easily. Take a<br />
small sample of the material in your hand,<br />
and try and tear it into two pieces. This<br />
gives a fair idea of its tear resistance. You<br />
are looking for a membrane that will not<br />
tear even if a reasonable force is exerted<br />
on it.<br />
• Chemical stability - check that the<br />
membrane is chemically inert with<br />
respect to its environment in the building.,<br />
especially outside basement walls were<br />
they are exposed to soil and rainwater.<br />
• Case Studies - ask the manufacturer or<br />
importer to give you case studies where<br />
the membrane has been used. Ideally, it<br />
should have been in place for over eight<br />
years. Check with the building owners<br />
to see if any leakage or problems have<br />
occurred.<br />
Quality materials and properly trained installers<br />
is the secret to a perfect waterproofing. The<br />
idea of one material fits all is just a fairy tale,<br />
especially when it comes to waterproofing.<br />
We know it All… and we have been doing this<br />
type of application for many years… This classic<br />
phrase is what we usually hear in the building<br />
industry by many self-thought installers. The fact<br />
that a person is doing the same thing for many<br />
years does not qualify it as the right solution.<br />
Product knowledge and how to use them<br />
correctly is the secret of an able installer.<br />
The Malta Waterproofing and Resin Flooring<br />
Association provide technical knowledge and<br />
professional formation to all Maltese installers<br />
who wish to improve their workmanship or start<br />
a carrier in the waterproofing business. The<br />
Association also assists its members by providing<br />
the services of a profession advisor when facing<br />
challenging situations or other difficulties during<br />
their works. The Association also provides its<br />
qualified members the Certified Installers Card.<br />
This is done to reassure the general public that<br />
the person has all that is required for a job carried<br />
out at its best. All this is being made possible<br />
thanks to the Resin and Membrane Centre<br />
and NAICI International Academy. For further<br />
information with regards the Malta Professional<br />
Waterproofing and Resin Flooring Association<br />
visit our website on www.maltawaterproofing.<br />
com or call us on 27477647. <strong>MBR</strong><br />
Creditline: The Resin & Membrane Centre<br />
Thermal waterproofing around the solar panels to increase their intake<br />
www.maltabusinessreview.net<br />
55
Malta Business Review<br />
SOCIETY<br />
On the Way to School<br />
Editor's Note: Since 1980, the photojournalist Reza has been undertaking a longterm<br />
reportage on the Kurdish people –in Iran, Iraq, Turkey as well as in exile. In 2013,<br />
he began an intense three-year photography project on Iraqi Kurdistan. This land<br />
so marked by the scars of the conflicts in the Middle East is nevertheless home to a<br />
modern, erudite society, with a diverse spirituality. The Kurdistan platform is a monthly<br />
newsletter whose intent is to lift the veil on a little-known people.<br />
Through the Eyes of REZA<br />
I travelled several kilometers to a remote valley<br />
to visit the only Montessori school in Kurdistan.<br />
Convinced of the pertinence of this pedagogy,<br />
founded upon the principle of autonomy in learning,<br />
I was curious to understand what had motivated its<br />
implementation in the region of Iraqi Kurdistan, an<br />
area in the midst of a struggle both for the recognition<br />
of its independence and against the encroachments<br />
of ISIS.<br />
Once again, I was moved by this people whose – to<br />
use a formula of Gandhi’s – “degree of civilization” is<br />
as elevated as their propensity to place the education<br />
of their children at the center of their preoccupations,<br />
despite all the other formidable odds they face.<br />
After having spent a long time observing life behind<br />
the walls of this school – the calm environment so<br />
inductive to learning, the laughter and whispers, and<br />
the respect for the teachers – so similar to that which<br />
I had observed among my children during my years<br />
in Paris, I set off for home with a few more notes of<br />
hope. <strong>MBR</strong><br />
Credit: REZA PHOTOGRAPHY/MAPITA<br />
All rights reserved - Copyright 2018<br />
Credit: REZA PHOTOGRAPHY/MAPITA<br />
56
JUSTICE AND CITIZENSHIP / FUNDAMENTAL RIGHTS<br />
Malta Business Review<br />
Rule of Law & Protection of Journalists:<br />
Measure to Ensure Media Freedom<br />
How to ensure media freedom and safety of investigative journalists in the EU, as a key element of rule of<br />
law, will be the focus of a parliamentary hearing on Wednesday.<br />
Members of the EP Civil Liberties<br />
Committee will concentrate in particular<br />
on the situation in Malta and Slovakia,<br />
following the murders of journalists<br />
Daphne Caruana Galizia (October 2017),<br />
and Ján Kuciak and his fiancée (March<br />
2018).<br />
The first part of the hearing, dedicated<br />
to cross-border cooperation between<br />
law enforcement authorities, with the<br />
participation of representatives of Europol,<br />
Eurojust and national authorities, will be<br />
held privately in camera.<br />
The second part will focus on the safety<br />
of journalists. MEPs will discuss the<br />
situation with reporters, academics<br />
and representatives of professional<br />
organisations such as Reporters without<br />
Borders and the Committee to Protect<br />
Journalists.<br />
Background<br />
The Civil Liberties Committee<br />
recently set up a new monitoring<br />
group on rule of law and the fight<br />
against corruption within the EU,<br />
chaired by Sophie in ‘t Veld (ALDE,<br />
NL), which will specifically address<br />
the situation in Malta and Slovakia.<br />
Following the murder of Ms<br />
Caruana Galizia, a delegation of<br />
MEPs travelled to the country to<br />
assess the state of rule of law and<br />
the implementation of European<br />
anti-money laundering legislation<br />
(AML). MEPs were also in Slovakia<br />
after the killing of Ján Kuciak and<br />
Martina Kušnírová. <strong>MBR</strong><br />
Creditline: EP Press Service<br />
Single Digital Gateway:<br />
A Time Saver for Citizens & Companies<br />
• Easier for citizens and businesses to do their<br />
paperwork online<br />
• Key administrative procedures to be fully<br />
accessible<br />
• Examples include: birth certificates, car<br />
registration, European Health Card, study loan<br />
and grant applications and business permits<br />
The single digital gateway will help citizens and<br />
firms to access information and administrative<br />
procedures online, e.g. to apply for study loans or<br />
register a car.<br />
A provisional deal struck with the Council on 24 May<br />
to set up a single digital gateway, to make it easier<br />
to find information, forms and assistance for people<br />
moving to or doing business in another EU country,<br />
but also for those staying at home, was endorsed<br />
in plenary by 539 votes to 61, with 17 abstentions.<br />
This European single entry point will be integrated in<br />
the “Your Europe” portal, available in all languages.<br />
It will provide access and links to national and EU<br />
web sites and web pages, in a user-friendly way,<br />
to enable users to exercise their rights and comply<br />
with their obligations within the single market.<br />
EU member states will be required to grant online<br />
access to the most important and frequently used<br />
procedures. In “exceptional cases justified by<br />
overriding reasons of public interest in the areas<br />
of public security, public health or the fight against<br />
fraud”, member states may ask the user to appear<br />
in person for a procedural step.<br />
The information, online procedures and assistance<br />
services provided must be of high quality and<br />
accessible to users with disabilities. A user feedback<br />
tool will also be available.<br />
Quote<br />
Marlene Mizzi (S&D, MT), who steered this<br />
legislation through Parliament, said: “Today the<br />
European Parliament has achieved an important<br />
milestone, which makes it easier for citizens to<br />
interact with public authorities. This shall be made<br />
possible through the digitalisation of public services<br />
and the completion of the digital single market.”<br />
“The new rules will make it easier for citizens and<br />
businesses to manage their paperwork online<br />
through a single digital entry point, which will<br />
provide access to administrative procedures<br />
and high quality information. Such services are<br />
paramount when people want to move, live or<br />
study in another EU country and need to request<br />
relative documentation - such as a birth certificate,<br />
proof of residence or apply for university or study<br />
financing, amongst many others. It is also very<br />
relevant for businesses that require information<br />
relating to cross-border activities and procedures.”<br />
“The new rules will also implement for the first<br />
time the “once only” principle, which essentially<br />
means that citizens will no longer have to submit<br />
the same documents over and over again to public<br />
administrations. Rather, citizens will only need to<br />
submit documentation once which will be re-used<br />
by public administrations whenever necessary.”<br />
“The single digital gateway shall provide responsive,<br />
inclusive, borderless, user-friendly digital public<br />
services to citizens and businesses at national and<br />
European level.”<br />
Background<br />
The single digital gateway proposal is part of the<br />
“compliance package”, aimed at enhancing the<br />
practical functioning of the EU single market. It<br />
builds on several existing schemes, which cover<br />
only a few fields, are not always interconnected,<br />
suffer from not being well known and are therefore<br />
underused.<br />
According to the European Commission, this<br />
legislation could help EU citizens save up to 855 000<br />
hours of their time annually and companies could<br />
save more than EUR 11 billion per year. <strong>MBR</strong><br />
Creditline: EP/Valletta Office<br />
www.maltabusinessreview.net<br />
57
Malta Business Review<br />
NEWSMAKERS<br />
A Fiscal Surplus During<br />
July of this Year<br />
Minister for Finance Edward Scicluna<br />
welcomes the latest Government Finance<br />
Data, published by the National Statistics<br />
Office (NSO), which shows during the month<br />
of July this year, the government recorded<br />
a surplus of €25 million in the Consolidated<br />
Fund. The surplus reflected an increase<br />
of €28 million in total revenue while total<br />
expenditure decreased by €10 million over<br />
July of last year.<br />
“We have been able to start the second half<br />
of this year with a monthly surplus. This<br />
augurs well for reaching the fiscal target for<br />
this year”, stated Minister Edward Scicluna.<br />
During the first seven months of this year, tax<br />
revenue continued to be robust, increasing<br />
by €181 million. The significant increase in<br />
tax revenues continued to reflect the buoyant<br />
growth recorded in employment coupled<br />
with a record low unemployment rate as<br />
well as the consistent increases in private<br />
consumption. Indeed, despite a significant<br />
decline in revenue from EU grants of €65<br />
million from the peak in revenue recorded in<br />
2017, total recurrent revenue still increased<br />
by €98 million.<br />
Expenditure on public investment projects<br />
increased by €23 million for the first seven<br />
months of this year. Similarly, recurrent<br />
expenditure also increased however, the<br />
increase was in line with MFIN projections for<br />
the period between January and July of 2018.<br />
The Ministry for Finance is also pleased to<br />
note the consistent reductions in national<br />
debt in absolute terms. Indeed, the debt<br />
decreased by €193 million year-on-year by<br />
the end of July of this year. <strong>MBR</strong><br />
Creditline: MINISTRY OF FINANCE/DOI<br />
Memorandum of<br />
Understanding between<br />
the Enemed company<br />
and Emirates National Oil<br />
Company Ltd.<br />
Malta signed a cooperation agreement<br />
between the company and Enemed national<br />
Minister Joe Mizzi during ENOC<br />
company of the United Arab Emirates oil,<br />
ENOC.<br />
This agreement sees the start of a possible<br />
closer cooperation between the two<br />
companies regarding capital projects locally<br />
and even abroad, equity participation by<br />
Maltese companies as ENOC and the opening<br />
of trading office in Malta. Although the process<br />
is still at the beginning, Enemed already started<br />
working internally to identify the team of<br />
negotiators will be led by Executive Chairman<br />
Kevin Chircop under the guidance of Minister<br />
Joe Mizzi.<br />
This agreement is part of the strategy Enemed<br />
company to further strengthen its presence<br />
and assert itself as a model company for other<br />
Minister Joe Mizzi during ENOC<br />
entities by improving the continuous operation.<br />
ENOC, with great experience to this sector, can<br />
make a valuable contribution in future projects<br />
that Enemed or future subsidiaries can have<br />
both Malta and even abroad.<br />
This MoU has been described as a major step to<br />
Enemed in its strategic plan to further expand<br />
operations and diversify the sector to continue<br />
to guarantee the best quality products for its<br />
customers. <strong>MBR</strong><br />
Courtesy: MINISTERU GĦALL-ENERĠIJA U<br />
L-IMMANIĠĠJAR TAL-ILMA<br />
Moody’s affirms ‘A3<br />
Positive’ rating for Malta<br />
The Ministry for Finance welcomes the latest<br />
credit opinion by Moody’s Investor Service<br />
that affirmed an A3 Rating for Malta with<br />
a positive outlook. Moody’s highlighted<br />
Malta’s sustained progress on public sector<br />
debt reduction and the prospects for further<br />
fiscal consolidation on the back of a buoyant<br />
economic performance. The rating agency<br />
points out that it will upgrade the rating<br />
for Malta to A2 if the improvement in fiscal<br />
strength is sustained.<br />
Moody’s notes Malta’s recent track record<br />
of strong economic growth, an elevated percapita<br />
income and very high scores in terms of<br />
global competitiveness. While its small szize<br />
and openness make it susceptible to external<br />
shocks, Malta is able to weather such storms<br />
due to the high level of competitiveness as<br />
well as elevated wealth levels.<br />
Malta’s institutional strength is deemed<br />
‘High’ by Moody’s, reflecting the country’s<br />
robust policy framework, enhancements to<br />
institutions and policymaking framework of<br />
public-sector entities.<br />
Moody’s acknowledges that Malta's fiscal<br />
consolidation efforts are bearing fruit as the<br />
fiscal surplus is expected to hover around<br />
2.5 per cent in 2018 and 2019. This, coupled<br />
with strong economic growth, will continue<br />
to contribute towards a rapid reduction<br />
of Malta’s debt-to-GDP ratio according to<br />
Moody’s.<br />
The rating agency considers Malta’s<br />
susceptibility to event risk, stemming from<br />
the banking sector primarily, as ‘low’, based<br />
on the relative size of the sector in the<br />
economy and the financial soundness of the<br />
domestically oriented institutions, amongst<br />
others.<br />
Moody’s notes that despite the tightening<br />
labour market, increased foreign workers<br />
and higher female participation in the labour<br />
market contained the wage growth.<br />
The report explains that while growth, is<br />
expected to moderate from recent highs,<br />
it notes that Malta’s economic growth will<br />
remain strong in both 2018 and 2019. <strong>MBR</strong><br />
Courtesy: MINISTRY OF FINANCE<br />
MSX Plc signs MoU with<br />
Binance<br />
PHOTO: DOI JASON BORG<br />
The subsidiary company of the Malta Stock<br />
Exchange, MSX Plc, signed a memorandum<br />
of understanding with Binance—the world’s<br />
largest cryptocurrency exchange by trading<br />
volume—at the Malta Stock Exchange<br />
premises in Valletta. The Chairman of the<br />
Malta Stock Exchange, Joseph Portelli, and<br />
the CFO of Binance, Wei Zhou, were the<br />
signatories of this MoU.<br />
PHOTO: DOI JASON BORG<br />
Prior to the signing ceremony, Minister for<br />
Finance Edward Scicluna congratulated both<br />
parties and said that the signing is an example<br />
of the Malta Stock Exchange’s intention to<br />
continue to play an active role in helping<br />
the Maltese economy to experience further<br />
growth, while expanding its operations by<br />
partnering with global companies. <strong>MBR</strong><br />
Courtesy: MINISTRY OF FINANCE<br />
58