MONEY AUG/SEP 2014 ISSUE 26

BUSINESS | LIFESTYLE | DESIGN

THE FINANCE ISSUE ISSUE 26 AUGUST/SEPTEMBER 2014

EXCLUSIVE INTERVIEW: PROF. JOE BANNISTER

INTELLECTUAL PROPERTY

BANKING

FINANCIAL SERVICES

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WELCOME The world is in constant flux. Human needs and social aspirations change, governments rise and fall, and economies adapt to the varying circumstances.

In Malta, an economy based on foreign military presence made way to a manufacturing-based model. In turn, the rise of the East and its strength in manufacturing necessitated another change, and Malta slowly but surely built an economy based on services and knowledge.

Proof of the proverbial pudding is in the eating: while other European economies are on their knees, Malta has largely stormed the various crises and is doing better than bigger, stronger counterparts.

One sector which is enjoying year on year growth is the financial services sector, which contributes around 15 per cent of the GDP. What are the ingredients to this success?

In this issue of Money, we interview Malta Financial Services Authority Chairman Prof. Joe Bannister, who explains how this success is based on a strong regulatory framework, an English-speaking human resource, education and training, as well as constant consultation between the regulator and companies operating in this sector.

8 SUSTAINING MALTA’S SUCCESS IN FINANCIAL SERVICES

Our use of English as the language of business, good quality human resources and a can-do approach are some of the reasons behind Malta’s successful financial services sector, MFSA Chairman Prof. Joe Bannister tells Veronica Stivala.

10 CAUSE FOR CONCERN

Malta’s economic growth is still below its potential, says Shadow Finance Minister Tonio Fenech.

Marketing is also an important part of Malta’s strong financial services sector. Chartered marketer George Larry Zammit discusses how five main elements should drive Malta’s financial services brand: affinity, visibility, differentiation, integrity and longevity.

Intellectual property is also an important sector in a knowledge-based economy. Dr Richard Bernard explains how Malta’s legislation and incentivised royalty-routing boosts Malta’s credentials as an intellectual property holding jurisdiction.

The memorandum of understanding recently signed between China and Malta made the news. One of the thrusts of this memorandum is the potential to boost Chinese tourism to Malta. Victor Paul Borg, who has researched and written extensively about travel and lifestyle in south and east Asia, explores this possibility.

In this issue, we also focus on Singapore, travel in style to Sicily and invest in some beautiful gifts.

Read on and enjoy.

Editor Anthony P. Bernard anthony@moneymag.me Consulting Editor Stanley Borg stanley@moneymag.me Design Roderick Peresso www.peresso.com Printing Print It Distribution Mailbox Direct Marketing Group

Incentivised royalty-routing via Malta boosts the island’s credentials as an intellectual property holding jurisdiction, says Dr Richard Bernard.

35 BRIDGING THE GAP

With No Agents Please, Chris Grech aims to bring buyers closer to property owners.

38 THE FAST-FORWARD FINANCIER

They don’t just know today’s market: they feel tomorrow’s culture. Sean Patrick Sullivan meets the fastforward financier and the ideas, events, opinions shaping their outlook for Q4 and beyond.

40 STRICTLY COME SINGAPORE

Singapore is the most expensive city in the world. It’s also one of the strictest.

Can it afford it, Money asks.

12 THE WHIFF OF CHINESE TOURISTS

Will Malta ever manage to attract Chinese tourists, asks Victor Paul Borg.

15 THE NEED FOR CHANGE

The local accountancy profession needs to catch up with Malta’s economic needs, says Reuben Buttigieg.

42 ICONIC IMAGINATION

19 REACHING OUT

52 AUTUMN APPAREL

Mobile phones can deliver convenient and affordable financial services to the underserved. Money charts the growth of mobile money.

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31 THE CREATION OF NEW KNOWLEDGE

London Design Festival calls and Money answers.

Money welcomes the new season with a show of delectable gifts.

24 FINANCIAL BULLETIN

Alibaba prepares for the largest IPO in history, the US increases its competitiveness and Germany enjoys a productive boost. Money reports.

28 IN REPUTATION WE TRUST

Affinity, visibility, differentiation, integrity and longevity: these qualities should drive Malta’s financial services brand, says George Larry Zammit.

54 COAST GUARD

Mona Farrugia finds that Taormina is a height for sore eyes.

58 THE BLUESMAN’S BLOG

The American character can be kind yet so cruel, says The Bluesman.

Money is published by BE Communications Ltd, No. 81, Howard Street, Sliema, Malta SLM 1754 All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in Money are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The editor is not responsible for material submitted for consideration.

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Money / Issue 26 - 7

Interview INTERVIEW

SUSTAINING MALTA’S SUCCESS IN FINANCIAL SERVICES Our use of English as the language of business, good quality human resources and a can-do approach are some of the reasons behind Malta’s successful financial services sector, MFSA Chairman Prof. Joe Bannister tells Veronica Stivala.

T

he secret to Malta’s economic success has been said to lie in its diversified economy which encompasses tourism, manufacturing, financial services and other sectors. Furthermore, Malta’s economic performance is driven by net exports which have been boosted mainly by tourism, financial services, and cultural and recreational services.

Indeed, financial services are experiencing a continued success and they stand as a key contributor to Malta’s economic well-being.

What, according to the Malta Financial Services Authority Chairman Prof. Joe Bannister, are the main reasons for their success?

Prof. Bannister notes how the world of financial services has changed dramatically since the financial crisis of 2008. New regulations are continuously being introduced and the MFSA has a policy of training companies on the new regulations and meeting companies on a regular basis.

“This policy of accessibility of the regulator is very much appreciated by companies and has been the hallmark of our success. Companies – both those seeking a licence and those already licensed – appreciate this direct contact with the regulator.

Companies also appreciate that the regulator regime is robust and that they find the regulator pro-active in their discussions,” he comments.

Prof. Bannister adds other reasons that contribute to the success of financial services. These include consensus in parliament on financial services legislation, the interpretation in the Courts of the English text of the legislation, use of the English language for business, good quality human resources and a can-do approach from everybody.

Financial services contribute around 15 per cent of the GDP, which is quite a substantial amount. How can this be sustained?

8 - Money / Issue 26

Prof. Bannister underlines how direct intermediation (a market-based transaction usually through a market intermediary such as a broker) is around 8.5 per cent. However, there is also a significant amount of indirect intermediation the MFSA believes could be as high as eight to 10 per cent.

This activity is coming from treasury companies, law firms, accountants and corporate service providers. Prof. Bannister attributes the sustainability of this activity to the fact that the economy is becoming more of a service type economy and more people are taking up employment in this sector. In turn, this can be expanded further by increasing the mobilisation of human resources in this sector.

This means that working closely with schools is of paramount importance. Prof. Bannister notes how the MFSA holds an annual meeting with guidance teachers so they can be briefed on developments in the sector and can therefore help their students on what a carrier in the financial implies.

“Furthermore,” he adds, “the sector can benefit from more female participation. This sector has a lot of flexibility in the working hours particularly where fund administration and similar activities are concerned.”

Speaking about the workforce, one must ask: do we have the right people with the right specialisation to add to our financial services offering?

“COMPANIES – BOTH THOSE SEEKING A LICENCE AND THOSE ALREADY LICENSED – APPRECIATE THIS DIRECT CONTACT WITH THE REGULATOR.”

“Malta had no failures particularly in the banking system as a result of the 2008 financial crisis.

Naturally we must continue to be vigilant.”

To conclude, I ask whether there is a fear of over-regulation in the financial sector, particularly from the EU. Prof. Bannister notes that the fear of overregulation is a worldwide rather than simply an EU issue.

“Most of the regulation introduced arises from the decisions of the G20. The issue is how to manage regulation and but also to review regulation from time to time to remove any ‘gold-plating’,” he says.

The MFSA has a programme of innovation through regulation. Part of this programme is to meet teams of practitioners on a regular basis to clean up old regulation and introduce new structures so that companies can operate more efficiently. As an example, Prof.

Bannister cites the protected cell company, one highly successful structure for the insurance companies.

Malta is the only Member State to have this structure that will shortly be extended to securitisation vehicles later on this year.

Essentially yes, answers Prof. Bannister.

Elaborating on his reply, he notes how the University of Malta and the various training centres particularly MCAST are carrying out training for lawyers, accountants, economists, business managers, accounting technicians and other professionals for the financial services sector.

“The MFSA has set up the Education Consultative Council to coordinate the training activities of the various training institutes in terms of the skills required by financial services companies. A skills survey is carried out from time to time to determine the future skills requirements of companies. The process for a new survey has just been initiated. There is always the case where companies require a specific specialisation and for these instances Government had launched the Highly Qualified Persons Programme.”

But what about the future? What is being done to ensure a continued success rate as well as to avoid any great failures?

Prof. Bannister answers assuredly, while not forgetting the importance of careful monitoring.

Money / Issue 26 - 9

Interview INTERVIEW

CAUSE FOR C NCERN

Malta’s economic growth is still below its potential, says Shadow Finance Minister Tonio Fenech.

What are your views on Malta’s MOU with China and what tangible action needs to be taken in order for this to be a successful agreement?

inactive. Production and exports over the past 12 months have been consistently falling and some manufacturing concerns are facing difficulties.

The MOU signed with China cannot be described as a significant breakthrough. If the document is analysed well, it is a desired expression of goodwill between two governments to collaborate for the mutual best interest.

On the other hand, financial services, tourism and online gaming are doing well and, compounded with the increased public sector spending, are offsetting the losses in the other sectors.

The MOU constantly refers to other agreements signed by the previous administration and the need for further collaboration. A case in point in the area of financial services where the MOU merely refers to two agreements signed in the previous administration between the regulators in the sector, intended to increase cooperation and open up possibilities for the creation of new opportunities particularly in the funds industry.

Government’s role at this level is to facilitate and open avenues for the private sector to take up.

Therefore tangible results can only be obtained if publicly funded support agencies like Malta Enterprise and Finance Malta assist in providing the platforms for businesses to avail of opportunities.

What do you think must be Government’s priorities for a stable and growing economy?

The economy may appear to be doing well in the statistical headline figures. However when one looks closely at the results being obtained, the situation on the ground is very different.

Taking the growth figures, considering that the world economy is out of the crisis and the prospects are positive, growth is still below potential. Growth has only been fuelled by public sector wages – in the long run, this is not a sustainable growth path.

What are your views on the 5.5 per cent increase in government spending this year?

“IN THE FINANCIAL SERVICES SECTOR, MAINTAINING THE STATUS QUO IS NOT ENOUGH.”

This is also the case with employment. The jobs being generated, and the seemingly low unemployment rates experienced in the past three months, as unemployment was previously on the rise, came about through the nearly 2,000 increase in public sector employment. In itself, this cannot be deemed productive.

Retail has been consistently down and this has not only been consistently reflected by published NSO figures but is what local businesses at large are saying. This is partly due to the fact that wage compensation in the past 12 months has seen a record low increase of €100 per annum, compared to the average €500 per annum of the past five years.

What Malta needs is growth employment in the private sector and not the public sector which is financed through putting more pressure on taxation.

On the production front, the situation is becoming concerning and the worst thing is that Government is becoming complacent and

10 - Money / Issue 26

Government increase in expenditure is concerning not in itself, but for where it is being spent. If the spend was in productive investment then this in the long run is positive as long as it is within the envelope of affordability. But here the increase in spend is nearly exclusively going towards expenditure of a recurrent nature, that is, social transfers and particularly wages due to increase in public sector employment. In the long run, this can become unsustainable, requiring Government to increase taxation as it did in last year’s budget without any pomp.

Financial services have witnessed continued success this year. What do you think Government needs to do to ensure this success rate?

The Opposition has committed itself to continue maintaining a bipartisan approach to the financial services sector and therefore my comments should not be deemed as being critical of Government’s actions but a positive contribution towards sustaining the growth in this sector.

In the financial services sector, maintaining the status quo is not enough. Policy makers need to continue proposing changes and innovations to our legislative framework in order to continue attracting new business to Malta.

In the funds sector particularly, an issue will crop up in 2017 if we do not manage to attract custodian banks in Malta to support our growing industry.

Also, with the introduction of the new banking union regulations, we need to be attentive that we do not lose our competitiveness by being overzealous in the application of certain provisions like how we limit the exposure on public funds of the deposit guarantee scheme applicable to banks. An open dialogue is very important between Government, Opposition, the regulator and stakeholders to ensure this sector’s continued success.

Money / Issue 26 - 11

Interview CHINA

THE WHIFF OF CHINESE TOURISTS Will Malta ever manage to attract Chinese tourists, asks Victor Paul Borg.

A

s someone who has explored the travelscape of China and Asia extensively, and also dabbled in China’s tourist industry as a tour designer and consultant, I have been following with interest the Maltese Government’s nascent efforts to lure more Chinese tourists to Malta.

The fostering of Chinese tourism to Malta seems to be one of the major sectors in the Government’s wide-ranging strategy to tap economic opportunities offered by China.

Understandably, it’s an aspiration based on the premise that Malta is not presently getting its commensurate share of the growing volume of Chinese tourists abroad. But while the premise is correct, the expectation – that a sizable increase

12 - Money / Issue 26

in Chinese visiting Malta is acquirable with some effort – may be rather optimistic.

means that all of Europe only gets a modest share of Chinese tourism.

In order to elaborate on my prognosis, let me start by numbers and patterns of international Chinese tourism. The headline number is certainly encouraging – for the number of Chinese travelling abroad is likely to exceed 100 million this year – but the statistics include travel to Hong Kong and Macao, regions of China that are administered autonomously, and which are the favoured destinations for Chinese travelling “abroad”. The other leading destinations are all in Asia – particularly popular places are South Korea, Thailand, Singapore, and Malaysia – and Chinese tourists on long-haul trips are divided between Australia, North America, and Europe. This

Another instructive pattern is that at least two-thirds of Chinese tourists travel abroad in package tours. And when it comes to travel in Europe, an even higher proportion travel in tour groups. There are three main reason for the preponderance to travel to Europe in package tours: it is much easier to get a Schengen visa (or visa for non-Schengen country) as a member of a package tour than as an independent visitor; many Chinese people are averse to travel independently due to the language barrier (the inability to speak English); and it is cheaper to travel in package tours than independently. By

Victor Paul Borg has written extensively about travel and lifestyle in south and east Asia. He has also undertaken the odd tourism consultancy job.

contrast, a higher proportion of Chinese travel independently to Asian destinations thanks to the ease of procuring a visa, lower costs, shorter distances, and greater cultural similarities.

Moreover, the vast majority of Chinese visitors to Europe are first-time visitors, and only a small proportion of Chinese tourists will visit Europe repeatedly. Let’s not forget that Europe and China are far apart, and being far makes the journey expensive – it costs around €1,000 for a return flight, visa fee, and travel insurance – and Europe is even more expensive from the Chinese viewpoint given that the cost of living in China is substantially lower. These circumstances compel many Chinese people keen to visit Europe to save up for a bumper holiday in Europe.

And in a bumper holiday, as well as a first-time visit to Europe, Chinese travellers would understandably want to visit the leading cities and eminent tourist attractions, and many also take the opportunity to shop for European luxury brands. The main reason for shopping in Europe is because European luxury goods in Europe are significantly cheaper than the same goods imported and sold within China; another enticement for shopping in Europe are the sales discounts in European shops – the concept of seasonal sales discounts is new and sparse in China – during European sales the – where clothes and shoes would be, compared to China, remarkably cheap. So tour operators respond to Chinese travellers’ preferences and circumstances by organising whirlwind tours of the main tourist attractions and leading cities in continental Europe, the kind of places that also doubly offer the greatest shopping opportunities (clothes and luxury brands in London for instance, or perfume and cosmetics in Paris).

On the other hand, all these patterns play against Malta because the luxury brand shops in Malta are limited in scope and stocks, and Malta is not a tourist highlight within Europe or the Mediterranean. Within Europe as a whole, Malta is a second-tier destination (that even lacks eminent or attractive shopping opportunities), and this gives me cause to believe that Chinese tour operators are likely to continue to ignore Malta in their itineraries for now.

At some point in the future, once a critical mass of Chinese tourists would have visited the main continental highlights, and once tour operators start diversifying their itineraries, then Malta may well begin to feature more in itineraries. But we are still some way away from that, and it is thus premature to expect a significant number of Chinese tourists to start visiting Malta any time in the next few years.

Separately, or concurrently, there has also been some talk about the possibility of attracting Chinese tourists to undertake cruises originating from Malta. The idea is that Chinese tourists will travel

“ALL OF EUROPE ONLY GETS A MODEST SHARE OF CHINESE TOURISM.” to Malta to join a Mediterranean cruise starting and finishing in Malta – and it’s in this sense that the government is talking about having direct flights between Malta and China. Prime Minister Joseph Muscat said as such in an interview with the Chinese newspaper China Daily, when he said that the idea for direct flights could initially take the form of charter flights for cruise passengers.

While this is an idea that has some traction – Mediterranean cruises are indeed something that could capture the imagination of Chinese tourists – I think it’s too ambitious to imagine planeloads of Chinese flying directly to Malta to take a cruise. It would take considerable effort for a tour operator to be able to organise cruise packages in volumes large enough to fill a plane, and I can’t imagine any Chinese tour operator expending such effort on something arising out of Malta.

We need to be realistic about Malta’s place in the region: Malta is a peripheral country in Europe and it’s not famous enough in a romantic, classical way. Let’s face it: most Chinese people only have a vague idea of Malta, if they have any idea at all, and I can’t imagine Chinese tourists flocking to Malta to take cruises in substantial numbers in the next few years. (I have spent a cumulative amount of time amounting to years in south and East Asia, and it’s so frustrating having to explain where Malta is that I usually say I am from Italy.)

I may be proven wrong, and the idea of Chinese groups flying to Malta for cruises may take off, but my feeling is that within China (and Asia in a wider way) Malta’s best bet would be to position itself as a destination that can offer boutique, personalised experiences. I think this is something that could capture the imagination of wealthy Chinese people who want more personalised experiences. With this in mind, two years ago I spoke with one of the

leading luxury outbound tour operators in China who organises highly personalised tours for wealthy Chinese. I suggested organising Mediterranean yachting tours for wealthy Chinese, yachting trips that would start and finish in Malta, simply because Malta’s location in the centre of the Mediterranean makes it the most convenient point of departure. But my idea didn’t enthuse her, mostly because yachting is a relatively new activity in China, and the Chinese who have been taking to yachting are still fully engrossed with yachting around the region – and perhaps it will be some time before they start thinking about yachting at the other side of the world.

Overall, then, many disadvantages are stacked against Malta, and the prevalent pattern of Chinese tourists in Europe is also unfavourable to Malta, so I think it will be some time before Chinese tourism to Malta picks any sense of momentum relevant to Malta’s size and attractiveness.

But that doesn’t mean we should sit on our hands: it means we need to anticipate the changes in patterns of Chinese tourism in the medium or long term, and gear up to exploit arising opportunities.

China changes at a dizzying pace and Chinese tourism patterns are also evolving and changing rapidly. And with this in mind, instead of trying to make Malta as a stop in a package tour in Europe or getting caught up so much with cruise tourism (which is also after all a kind of mass low-yielding tourism), I believe it will pay off more handsomely in the medium- or long-term to position Malta as a quality destination for the Chinese people who will travel independently, the kind of travellers who will grow in number in the following years. At the moment, independent Chinese travellers in Europe are a new phenomenon, a new trend, but as China continues to prosper and more Chinese become fluent in English and more Chinese travellers undertake their second or subsequent trips to Europe, then Malta stands to attract more of these new types of Chinese tourists. And the time is now to start reaching out to these travellers.

Money / Issue 26 - 13

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Reuben Buttigieg is Managing Director of Erremme Business Advisors, Founding President of the Malta Institute of Management Accountants and President of the Malta Institute of Management.

ACCOUNInterview TANCY

THE NEED FOR

CHANGE

The local accountancy profession needs to catch up with Malta’s economic needs, says Reuben Buttigieg.

T

he accountancy profession in Malta had a significant boost from 1994 to 2004, a 10year period during which Malta experienced substantial legislative changes and reporting requirements became more stringent than ever before. This led to an automatic boost in the profession and people who had never approached an accountant had to do so. As a consequence, the profession followed the market needs and focused on the reporting aspect, while maybe giving less importance to other aspects of accountancy.

As happens very often everyone got carried away with this need Malta had at the time.

However, to a certain extent there was no forward looking approach from most stakeholders including the regulator, education institutions

and the profession itself. Indeed, this immediate requirement for statutory reporting led many to believe that the sole scope of accountants is purely that. In actual fact, the accountant profession offers much more.

Malta’s needs have evolved in line with the growth of its economy and now its necessities could be similar to those of larger economies. However, the profession did not work to evolve in line with these needs and the educational institutions seem to not recognise these needs.

It is widely acknowledged that the most recent financial crisis was triggered among other issues by shortcomings in corporate governance that have become very familiar in the last decades. Businesses

that outwardly looked healthy turned out to be relying on business models that were flawed. The responsibility of ensuring the ongoing sustainability of company profitability lay with their boards, yet these singularly failed to spot that the long-term had been sacrificed to short-term profit.

If boards had been equipped with management information that gave them a clear picture, then this could have been avoided or at least mitigated as the board members would have understood the businesses that they were overseeing were making money in a manner that was not sustainable.

This gives scope to an area of the profession that for too many years in Malta has been ignored – in fact, the current Accountancy Profession Act

Money / Issue 26 - 15

does not give openings to such a profession.

Management accountants are exceptionally well placed to support boards so that they can arrive at informed judgements. An analysis of the wider arms of the board and the broad aims of management accountants shows them to be closely aligned. Moreover, individual management accountants have the expertise and skills to perform other vital roles and create sustainable success, such as implementing and identifying key performance indicators across the organisation and cash management.

The aims of management accountants in organisations are closely aligned with the aims of the board of directors. The board is expected to lead the long-term success of an organisation. It does this through the strategic direction of the organisation and overseeing the implementation of strategy. To ensure that strategy is effectively implemented, the objectives of the board need to be linked to the business, thereby enabling the right decisions about activities and resource allocation to be made. It is the aim of management accountants to ensure that these links are made.

The task and activities that the management accountant undertakes to fulfil can be summarised as supporting and driving decisions, and management performance.

The decision support role entails a strong commitment to understand how the different parts of the business come together to create value and the financial implications of different decisions. Indeed, they help to ground the board’s decisions in operational and financial reality.

In addition they provide the means by which organisational goals are shared across the different parts of the business and ensure that appropriate resources are provided on time.

This also includes the provision of adequate finance to specific needs and indeed the dealing with banks, venture capitalists, business angels as well as other forms of funding such as EU funding programmes. Such analysis would give more peace of mind to the funding organisations.

One may argue that all this applies to larger enterprises and that most of these already have management accountants, although not recognised within Maltese legislation. However, from the outreach programme done by the Malta Institute of Management reaching more than 800 micro enterprises, it is clear that small and micro enterprises also require such information. Worse still, there are some 300 qualified persons that as the law is today may be treated as criminals, only because they specialise in an area that is not recognised within our legislation.

This scenario gave foundation to a chapter within the Malta Institute of Management named the

16 - Money / Issue 26

Malta Institute of Management Accountants. The aim of this chapter is to promote management accountancy, to educate and inform practitioners in these specialised areas, and to lobby towards a fair legislative framework that encourages students to take this route.

“YOU NEED TO INVEST IN THE APPROPRIATE HUMAN CAPITAL AND IN THEIR TRAINING.�

Money / Issue 26 - 17

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Interview MOBILE

REACHING OUT Mobile phones can deliver convenient and affordable financial services to the underserved. Money charts the growth of mobile money.

A

ccess to banks and financial services is something that we take for granted. To deposit money, we just walk into a bank or use an ATM machine. We can manage our finances while sitting at our desk, thanks to online and mobile banking. And if we want to invest our money, we simply call our financial advisor and schedule a meeting.

And yet, financial services are not as straightforward in developing countries. In fact, statistics show that in developing countries, around 2.5bn people do not have access to banks and financial institutions: instead, they have to rely on cash and informal financial services that are, at best, inconvenient and unsafe.

services to the underserved. Apart from converting cash to and from electronic value, users can use mobile money to make payments as well as to avail of other financial services such as credit, savings and insurance.

For the past years, mobile money has been proposed as the best solution to expand the financial services network around the world: the solution makes use of the ubiquitous mobile phone. In fact, out of the 2.5bn people who are unbanked, over one billion have access to a mobile phone.

Mobile money is a tried and tested solution.

Launched in 2007, M-Pesa, operated by Safaricom in Kenya, has a significant market share and by 2011 already had 17 million subscribers. The service was also launched in Tanzania, where M-Pesa is used by five million people. It has also expanded to South Africa, India, Afghanistan and Eastern Europe.

Moreover, mobile money doesn’t require any bricks and mortar infrastructure as it makes use of the distribution networks that mobile operators already have. Also, mobile operators have much more airtime distribution than banks and enjoy brand recognition even in remote areas.

This means that mobile phones can be used to deliver convenient and affordable financial

Other deployments from mobile operators such as Orange, Tigo, Telenor and MTN are also growing rapidly. At the end of 2013, mobile money was available in 84 countries.

The majority of services – a total of 219 – are available in Sub-Saharan Africa. The focus now is to ensure that mobile money achieves sustainable growth.

The Groupe Speciale Mobile Association, which represents the interests of mobile operators worldwide, tracks the development of mobile money through its Mobile Money for the Unbanked programme. Through engagement with mobile money providers, GSMA identifies and shares data and best practices while supporting mobile money services to reach scale. Supported by The Bill and Melinda Gates Foundation, the MMU programme also helps extend the digital ecosystem, enhances capacity among mobile operators to engage with regulators, and builds industry intelligence.

Every year, MMU publishes its State of the Industry report, which contains key findings and insights on the growth of mobile money. The 2013 report has been extended to include not only mobile money, but also mobile insurance, credit and savings.

The 2013 report shows that the number of active mobile money accounts is growing fast.

Money / Issue 26 - 19

INSPIRING CONFIDENCE Creditinfo, a leading service provider of credit information and risk management solutions worldwide, has launched a new brand identity.

“Our new brand identity illustrates Creditinfo’s growth and transformation over the last couple of years,” said Simon Camilleri, CEO of Creditinfo Malta. “Just as our company has evolved, so too must our brand to reflect the impact of our innovation and the value that our products and services bring to our ever increasing customer base.

“The new Creditinfo logo is the primary element of our identity: it is modern and bold.

The symbol “I” stands for information. Just like the Creditinfo name, the new logo will be internationally recognised as a symbol for inspiring confidence. Creditinfo Malta has also updated its online web portal. The new look mirrors our brand: professional and straightforward. The layout is designed to help any person find information about us or our products and services effortlessly.

“Our new branding reflects our innovative approach and thinking. We are unafraid to venture out of our comfort zone and introduce new ideas. At the same time, this will ensure consistency and professionalism throughout each of our 16 offices worldwide.

“Each company within the Creditinfo Group benefits from shared global experiences, knowledge and practices, and this will be reflected in one single brand image. All Creditinfo offices globally will transition to the new branding in the coming months.

In addition, Creditinfo Malta has also updated its online credit reports. As part of an ongoing process to provide the latest and most efficient data and risk awareness products to the Maltese market place, the new enhancements will further enable businesses and individuals to trade safely and securely both home and abroad.

“The display of the online financial reports module will change as we increase the number of financial entries. These changes may not be evident for every company, as this depends on the type of financial statements prepared and filed. The financial content will now be more descriptive so that customers will have a clearer picture of the status of the company they are reviewing.

Online reports will also include the availability of information such as undecided claims.”

20 - Money / Issue 26

As of June 2013, there were over 60m active mobile money accounts around the world. The network is also expanding: now, 52 markets have two or more mobile money services while 24 markets have three services or more. Such is the growth that at the end of 2013, nine markets had registered more mobile money accounts than bank accounts.

Mobile money services are no longer limited to converting cash to and from electronic value.

The digital financial ecosystem now has a varied product offering, including airtime top-up and P2P transfer – which remain the most adopted products – as well as credit and insurance. The

adoption of new products has been mostly successful in countries which have a solid distribution network and where a large, active customer base is already established.

As GSMA Director General Anne Bouverot said during the launch of MMU’s 2013 report, “Mobile money represents the biggest opportunity to increase financial inclusion in emerging markets.”

Indeed, mobile money extends the reach of traditional financial institutions and services: a critical growth which works in favour of global commerce, finance and opportunities.

COUNTING MOBILE MONEY

53%

Mobile money has passed the threshold of 200 mobile money deployments globally.

1/3

Most deployments are in Sub-Saharan Africa, with 53% of all live deployments and one third of those planned.

9 With 19 planned mobile money launches, Latin America has the second largest number of planned deployments.

3 2012 2014

Nine mobile money services have more than 1m active users (compared to 3 services in 2012).

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

Money / Issue 26 - 21

22 - Money / Issue 26

BANKING Interview

VALUE FOR YOUR MONEY Our goal is to empower customers to save and make their money work harder, says Ron Huggett, Chief Executive Officer, FCM Bank.

You have a vast experience working in banks abroad. How do Maltese banks and their clients differ from those abroad?

The Maltese banks are very international in their outlook and as such are similar to those in other developed countries. That said, their performance during the recent banking crisis was far superior to those from many other countries and this is testament to both the quality of the banks and the banking supervision here in Malta.

From my short time in Malta I have found the Maltese clients to have a culture and tradition of saving and they look for value for money. It is in this space that we at FCM Bank feel we have something to offer.

You were involved in RBS’s takeover of NatWest: many say that heralded a new age of fierce competition between banks. Is that still the case in today’s scenario?

I was very much involved in the RBS takeover of NatWest although mostly on the financing side. You are right: there was then and there still is a lot of competition between banks both here in Malta and overseas and I consider this healthy for the industry as well as being beneficial to our clients.

In Malta, the post-war generations were renowned savers. Have the Maltese become bigger spenders in the past two decades?

From my discussions with my colleagues and fellow local directors I certainly get the impression that the Maltese are much bigger spenders now. I think that a wider variety of products and brands and the availability of online shopping have played their part in bringing this about. Also the growth in the economy and better employment opportunities have provided a platform to give people the confidence to spend.

FCM is a Maltese bank. Does this identity enhance the trust level your clients have in you?

We are a Maltese bank and proud of that fact. One of the reasons for establishing a bank in Malta was the trust and security associated with being a Maltese bank. In fact, we have recently refreshed our logo and added an icon inspired by the Maltese watchtowers located along the coastline. As the tower reflects strength and security, it mirrors the FCM approach to savings.

You are primarily a savings bank – how do your products differ from those offered by other banks?

Our products are similar to those offered by other banks, only we believe better. They are better because we offer very competitive interest rates to savers and simple and straightforward products that are easy to understand. We also welcome all customers, by offering a cup of tea or coffee and take time to listen to our customers to find out what they want. Our goal is to empower customers to save and make their money work harder.

When it comes to saving, what advice do you give your clients?

That’s a more difficult one. We take time to listen to our customers to try and offer what is best for them. For instance, a customer might want to take advantage of the higher rates offered for fixing deposits for a longer time but may also be a little concerned that they may need some of the money during the fixed period. We might therefore suggest that they stagger their deposit, or instance, putting some in the one-year term and some in the two-year term. In this way a customer will get the higher rates on some of their money and know that some will always be available within a maximum of one year.

Why should people save rather than, for instance, invest in stocks or shares?

Investing in stocks and shares is another form of savings, but by placing money on deposit a customer is guaranteed to get back their full balance as well as, with FCM Bank, receiving a competitive interest rate. Customers should invest in different products, depending on their risk appetite and wealth. Don’t keep all your eggs in one basket. I would always recommend clients to diversify their portfolio by spreading their savings.

What enables you to offer market-leading rates?

We do not have the high fixed overheads that many of our competitors have to cope with. For instance, we have no branch network and we don’t have a vast array of complicated products. What we do have are straightforward, simple products with an efficient IT system which allows us to offer competitive interest rates to personal savers. All these factors allow FCM to pass on these savings to our customers.

How would you rate your growth in the two years that you have been operating in Malta?

Although we received our banking licence from the MFSA in 2010, we did not open our doors to customers until May 2012, so we have only really been in business for a little over two years. That said, we are very pleased with our growth in customer numbers and accounts: we recently celebrated signing up our 1,000th customer and having over €25m deposits. We have also built up a team here in St Julian’s of local dedicated, hardworking young people who are really helping us to attract new business. We have built a website that works equally well on either a computer, tablet or mobile phone and innovating the local banking sector with the first fully responsive bank website in Malta.

Personally, have you adapted to the Maltese lifestyle?

I am still getting used to the change in weather and the high temperatures the Maltese islands offer compared to the UK. I love the relaxed friendly environment and having the opportunity to try such a wide variety of restaurants along the sea front. The local fish is delicious.

How can Malta further enhance its finance and banking sectors?

Malta already does a lot to enhance its finance and banking sectors, although I feel that more can be done to improve the retail customer experience. I feel the retail customer does not always get value for money and here at FCM Bank we are determined to change this.

Money / Issue 26 - 23

NEWS Interview

FINANCIAL BULLETIN

Alibaba prepares for the largest IPO in history, the US increases its competitiveness and Germany enjoys a productive boost. Money reports.

OPEN SESAME

C

hinese company Alibaba Group is seeking to raise up to $24.3bn in its upcoming and long-awaited IPO. If it succeeds in doing so, the amount would be the most raised by a company in a stock market debut and would eclipse the $16bn Facebook raised back in 2012.

Alibaba Group Holding Ltd. is expected to price its initial public offering on Thursday, September 18, with shares expected to begin trading in New York on Friday, September 19, under the ticker ‘Baba’.

The company’s management are busy doing roadshows around the world, meeting money managers and other investors interested in investing in Alibaba’s IPO. Alibaba’s management are hoping to sell up to 123m

24 - Money / Issue 26

shares for $60 to $66 apiece. Even at $60 per share, Alibaba’s IPO would come close to matching the record set by the Agricultural Bank of China.

The rest of the shares will be offered by the company’s early investors, which also include Yahoo Inc., which has a 22 per cent stake.

If Yahoo sells 121.7 of its shares, it is set to make from $7.3bn to $8bn. Yahoo has said that it intends to distribute at least one half of its take from the Alibaba IPO to its own shareholders. After the IPO sale, Yahoo will still own around 400m Alibaba shares, which translate into a 16 per cent stake.

Alibaba first started off 15 years ago as a small company launched by former schoolteacher Jack Ma in his apartment.

In these past years, Alibaba has grown to become an e-commerce bazaar, boosted by the Chinese economy’s growth. Apart from Alibaba, the company’s network of sites also includes Taobao, Tmall and AliExpress.

Alibaba has around 280m active buyers who visit the site at least once a month on their smartphone and mobile device. In its last fiscal year ending March 31, Alibaba earned $3.7bn, which means that the Chinese company is more profitable than eBay Inc. and Amazon.

Thanks to Alibaba’s IPO, Yahoo’s core business has also risen in value – it is now valued at $11bn. This is a massive boost for Yahoo, whose value was until recently described by some analysts as zero.

Alibaba is still enjoying significant growth. The company’s revenue in its latest quarter ending in June was up by 46 per cent from last year while its earnings were boosted by 60 per cent.

ALL PLAY IS WORKING Lego Movie has increased the fortunes of Danish toy maker Lego as the company has seen a strong increase in the sales of products linked to the movie. This increase in sales has boosted Lego’s net profits by 12 per cent while revenue has increased by 11 per cent. Lego has also said that consumer sales grew by double digits in Europe, the Americas and Asia.

Lego chief financial officer John Goodwin was reported as saying that, “We are thrilled by the reception of the Lego Movie products that provided a significant boost to our sales during the first half of 2014.”

IN THIRD PLACE According to a recent ranking by the World Economic Forum, the US ranks third in global competitiveness. The American economy, which amounts to $15.7 trillion, trails behind Switzerland and Singapore. This is also the sixth year in a row that Switzerland tops the list.

This means that the US has moved up the ranks – in 2013, the US economy was the fifth most competitive global economy. Analysts say that the rise is being fuelled by improvements in America’s institutional framework, a more positive view of the nation’s

innovation and business sophistication, and an excellent university system that collaborates with the private sector in research and development.

The ranking – which measures the competitiveness of 144 nations – is based on 12 categories, including education, infrastructure, institutions, market efficiency, technology and innovation.

In the same ranking, Greece was ranked as the world’s least competitive economy. Other European countries that were hit hard in the euro crisis – including Slovenia, Cyprus, Italy and the Slovak Republic – also scored poorly.

Lego Movie products were launched in early 2014.

Sales are expected to continue developing with the launch of the Lego Movie on DVD. Lego is controlled by Kjeld Kirk Kristiansen, who is the grandson of Lego’s founder and also the richest man in Denmark. According to Forbes, the 67-year-old has a net worth of $10.2bn.

In 2013, Lego moved ahead of Hasbro to become the second largest toy company by sales.

PRODUCTION BOOST The German Economy Ministry has confirmed that Germany’s industrial production was up by 1.9 per cent in July. This increase follows a boost in manufacturing and construction output and is a big improvement on June, during which industrial production rose by just 0.4 per cent.

However, overall the economy shrank by 0.2 per cent in the second quarter of 2014. Germany is the largest national economy in Europe, the fourth largest by nominal GDP in the world and fifth by GDP. However, it is also feeling the pinch of the euro crisis. In an effort to avoid further stagnation in Europe, the European Central Bank has just announced a cut in interest rates and launched a programme to buy private sector debt in an effort to stimulate lending.

Money / Issue 26 - 25

Animal Print Shift Dress €54

MERCHANTS STREET, VALLETTA 26 - Money / Issue 26 T. 2123 3221

mandcomalta

PROMO Interview

GIVING VISIBILITY NCPE’s online directory to tap professional women.

The directory is a service for all those who are looking for a qualified and experienced female professional. This could be a very useful tool for the employer to find a fully qualified professional to appoint on a decision-making board or committee. The online directory will give the possibilities to locate a professional woman in the relevant field by saving both time and money as this service is free of charge.

The directory can be a powerful networking tool for women to identify and find other professionals in Malta and Gozo. It is accessible to the general public and can be used by every company, business and enterprise.

Who is eligible to apply?

A

report issued by the European Commission in March 2014 brings to light the underrepresentation of women in senior positions in the EU and confirms that Malta, at just 2.1 per cent, sits at the lower ranks in percentages of women occupying decision making positions among the Member States.

The European Commissioner for Justice, Fundamental Rights and Citizenship, Ms Viviane Reding, called on Member States to set themselves a target to voluntarily increase the number of women on boards. These voluntary initiatives include governance codes, charters, training, mentoring and databases promoting female candidates.

In order to address the present situation of gender imbalance on boards, the National Commission for the Promotion of Equality embarked on a project entitled Gender Balance in Decision-Making, which is co-financed by the European Social Fund. The aims are to increase the number of women in decisionmaking positions and to empower and enable women to take up top level positions. In this context an online Directory of Professional Women is being developed as one way to reach such targets.

Since the directory is aimed at professionals, women with the following criteria will be eligible to register as users on the directory: have five years experience in a decision-making/ management position and/or have 10 years specialised expertise in a particular field/s.

What is the Directory of Professional Women?

This directory shall be an online database with profiles of professional women from various fields and backgrounds. It will include information about the qualifications, experience, skills and areas of interest. The main aim of the directory is to enhance the opportunities of women to assume decisionmaking positions. Moreover, the directory aims to highlight the women’s achievements in the various fields of specialisation and occupations as well. This initiative shall also strengthen gender equality in both public and private sectors. The directory is being developed in line with government policy.

Those interested to be included in the Directory of Professional Women are invited to register their interest and send their contact details together with the area/s of expertise to NCPE by sending an email on equality@gov.mt or by contacting the NCPE offices on 2590 3862.

Who can benefit from the directory?

This directory shall empower and give more opportunities to women to be appointed to senior positions in the public and private sectors or to assume decision-making positions in the labour market and elsewhere. In addition, the directory can also provide a window for women to contribute and participate in politics.

only

2.1% are women in maltese

senior positions in the eu Money / Issue 26 - 27

Interview MARKETING

IN REPUTATION WE TRUST Affinity, visibility, differentiation, integrity and longevity: these qualities should drive Malta’s financial services brand, says George Larry Zammit.

M

alta has maintained its trajectory as one of the world’s financial centres of excellence.

Reputation and integrity remain core to ensure brand Malta is synonymous with trust.

Marketing for financial services is not your typical cup of tea. It needs a different approach than, for instance, consumer packaged goods and services as it is a highly competitive industry which is strictly regulated and quite conservative in how it operates.

Financial products and services are perishable intangibles where the consumer makes contact with a non-existent sensory experience. Therefore in most cases branding takes centre stage to strengthen and project the financial provider’s credentials. Trust and reputation are essential to maintain a sustainable flow of transactions between provider and user.

But what are the main features of a successful financial brand? Trust and reputation are vague statements which are more the sum of the whole.

It takes much more than moving advertising and sweet talk to secure the user’s trust. On the other hand reputation cannot be bought. It is a culmination of consistent endeavours that ripple positively from one user to another.

Recent research by the Leo Burnett Group identified five drivers which make a successful brand. Even though the research was based on a wide selection of mainstream FMCG products, still there are considerable similarities in the marketing efforts of the big players of the financial services industry.

The first driver is affinity. This is measured by the level of the user’s trust in the brand. How

28 - Money / Issue 26

positive is the emotional connection with the brand? What is the user’s level of sympathy and loyalty to the brand provider?

Brands build affinity through a positive user experience. The better and more genuine the experience is, the higher the user’s affinity towards the brand. Strong affinity is a key indicator of positive consumer trust in the brand. Trust leads to brand loyalty and commitment by consumers.

An example in Malta is HSBC, which last summer jeopardised the trust of its customers by charging a monthly fee for online banking to small business users. This summer HSBC launched free mobile banking for its customers as a positive move to strengthen the affinity and trust of its current and potential new clients.

A second driver is visibility. How knowledgeable are potential users of the brand? What is the level of awareness in the brand and what it represents?

Is the brand really visible in the right places at the right time to the right customers?

Visibility is about the brand being everywhere both in physical location and mental recall. The brand needs to stand out to ensure that the user’s cognitive is triggered to the brand once the need arrives. Top of mind, tip of tongue.

A local example is when Banif Bank introduced itself to the Maltese market. HSBC and Bank of Valletta were and remain the top two local banks in Malta with APS Bank as a third consideration. With constant visibility through a strong campaign based on ‘the power of believing’, Banif Bank stepped out of the shadows and consolidated its position as a formidable banking option for consumers.

George Larry Zammit is a chartered marketer who invigorates businesses through his consultancy Tiki-Taka Marketing – www.tiki-taka.com.mt

“DIFFERENTIATION IS SERIOUSLY BECOMING THE KEY CHALLENGE FOR FINANCIAL SERVICES BRANDS.” Our third driver is differentiation. What is different about the brand and its customer proposition when compared to its competitors? What is the personality of the brand? Which segment of the market is the brand positioning for? Are there new channels to be considered where consumers discover and consume the brand?

The fourth driver is integrity. What is the perceived level of honesty and transparency associated with the brand? How sound is the integrity of the brand? Can integrity be compromised by unforeseen circumstances? Is the brand personality in sync with the company culture and attitude of its people?

Differentiation is seriously becoming the key challenge for financial services brands.

Considering that financial services are regulated, it is quite difficult to differentiate the product itself. Therefore the brand must seek to differentiate itself by developing a unique personality while maintaining the best service quality and constantly improving convenience.

Integrity is a critical driver. Brand integrity comes by walking the talk, not only by saying the right things, but also by doing the right things. This is where user trust and confidence develops. No brand wants to stumble from hero to zero.

Financial services brands create a unique personality to strengthen the relationship with the consumer. The objective of the personality is to create a brand that consumers find attractive.

A brand that matters. A brand which is engaging, imaginative, and even fun.

Extreme examples of brand personality creation are Aleksandr Orlov the meerkat and Churchill the bulldog: these have become British icons of car and home insurance. Both characters create a humorous brand personality which attracts and appeals to the interest of the target market. In the case of Malta many providers choose to use symbols from the Knight of Malta as it represents cavalry, fortitude and hospitality.

Another way to differentiate the brand is by being accessible and convenient by developing alternative channels of contact. Online financial providers are dramatically on the rise. More than a third of American consumers do their banking through their mobile phone. Global brands such as PayPal, Google Wallet and Apple Pay have revolutionised payments and money transfers.

Digital is certainly the way forward.

We are fortunate that Malta has the needed integrity as a centre of financial services. Malta didn’t suffer bailouts like our Mediterranean neighbours Greece and Cyprus. Malta has not been associated with dodgy investments similar to ones offered in Argentina.

The fifth and last driver is longevity. Is the brand made to last? What is the brand’s trajectory? How durable is the brand proposition? Can the brand endure the test of time? Is the brand backed by a solid and consistent vision?

Since the determination of the Knights of Malta through the Great Siege to the audacity of Malta as a British colony during World War I and II, Malta has accrued years of commitment and resilience.

Brand Malta now continues to project its longevity as a committed member of the European Union and adopter of the Euro currency.

Serving at the axis of the Mediterranean and with further interest and networking with investors from Asia, America and Africa, brand Malta continues to strengthen its competence as a global financial services hub in the Mediterranean region. May reputation and integrity remain key to the strategic advantage of the financial industry in Malta.

REDUCE THE COST OF YOUR CAR INSURANCE Young adults looking to insure their first car will probably get turned off due to high premiums. However, there are ways to bring down the cost of car insurance in the first years on the road.

Think about the security of your car to help reduce the premium. Things to consider include where the car is kept overnight and security devices such as alarm and immobilisers. Take your stereo and valuables with you when you lock your car.

Do not modify your car as this can mean a higher car insurance bill. Also, think about the level of cover you need. Comprehensive car cover is normally the most expensive type while third-party cover is the most basic. Assess how often you plan to drive, what you can afford to cover, and what type of superficial car damage you might be prepared to live with.

However, don’t assume third party is the cheapest insurance for young drivers.

Compare quotes with different levels of cover and don’t search for cheap car insurance for the price alone. You still need to assess what type of cover you need. Sacrificing quality of cover over the price could end up costing you more in the long term.

Telematics car insurance is the new payhow-you-drive insurance that rewards safe driving. A device is fitted on your car to record how the car is driven. Factors like speed and cornering are measured to give you a score which will lead to a reduced premium if you drive safely. Thus, responsible young drivers pay a premium based on their driving record, rather than the record of all young drivers.

Boosh is a new scheme introduced by GasanMamo Insurance which gives those in the 18 to 24 age bracket an instant 65% discount on their car insurance and the independence and freedom of having their car insured in their own names while earning their own no claims discount from day one.

For more information visit www.boosh.com. mt or one of GasanMamo’s branches across Malta and Gozo.

Money / Issue 26 - 29

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30 - Money / Issue 26

TO ADVERTISE CALL 2134 2155 OR SKIPPER @BECOMMUNICATIONS.COM |

SKIPPERMAG

Interview IDEAS

Dr Richard Bernard is a Partner at GM & Associates – Advocates and is primarily responsible for the firm’s financial services and corporate and commercial law practice. Should you wish to contact the author, call on (+356) 2123 5341, send an e-mail to info@gmassociates.com.mt or visit GM & Associates – Advocates’ website at www.gmassociates.com.mt

THE CREATION OF NEW KNOWLEDGE

Incentivised royalty-routing via Malta boosts the island’s credentials as an intellectual property holding jurisdiction, says Dr Richard Bernard. alta has maintained its trajectory as one of the world’s financial centres of excellence.

Reputation and integrity remain core to ensure brand Malta is synonymous with trust.

M

seek the creation of new knowledge. Moreover, the exemption aims to encourage individual researchers to exploit intellectual property through the licensing of patented knowledge.

Consistent with the Maltese legislator’s ongoing drive to bolster the island’s profile as an intellectual property holding jurisdiction and to motivate further investment in research and development by enterprises while encouraging and supporting the exploitation of intellectual property, Malta’s income tax legislation provides for an outright exemption on royalty income derived from eligible patents, in respect of qualifying inventions.

In terms of the incentive, all individuals and undertakings that own the rights to patented intellectual property and are receiving income in the form of royalties (or other similar income therefrom), through a licensing agreement or similar instrument, from the exploitation of knowledge protected under a qualifying patent in terms of the Exemption on Royalties Derived from Patents Rules, may be eligible to have any such income exempt from tax to the extent that certain conditions subsist.

As such, Maltese law provides for attractive tax-efficient royalty-routing structures whereby taxpayers are afforded the unique possibility to secure a tax neutral position within the European Union on qualifying royalties coupled with the ability to effect outbound payments and dividends free of withholding taxes regardless of the recipient’s country of residence.

The scope of the incentive is clearly to protect intellectual capital and ensure that those members of society that can contribute to future development are motivated to support and

The first is that, in the case where the owner of the patent is an individual, such individual must have been engaged in carrying out, solely or together with other person/s, the research, planning, processing, experimenting, testing, devising, designing, developing or other similar activity leading to the invention which is the subject of the qualifying patent. At any rate, the licence must be granted to an enterprise for using the patent in a productive economic activity, such as manufacturing, software development and data processing.

Money / Issue 26 - 31

“THE ROYALTY EXEMPTION FOR INCOME DERIVED FROM PATENTS IS COMPLEMENTED

BY VARIOUS OTHER ASPECTS OF MALTA’S TAX SYSTEM.” new knowledge of the underlying foundations of phenomena and observable facts, without any direct practical application or use in view.

‘Industrial Research’ is planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or for bringing about a significant improvement in existing products, processes or services.

Accordingly, Industrial Research comprises the creation of components of complex systems, which is necessary for the industrial research, notably for generic technology validation, to the exclusion of prototypes as covered by experimental development.

Another condition is that the tax exemption applies regardless of the place where the patent is registered and of where any relevant research and development resulting in the qualifying patent may have been carried out and may be availed of where there is an active trade of licensing of several patents as well as in the case of passive receipt of royalties from patents.

Moreover, the distribution of dividends from any such exempt profits of a company is also exempt from tax in the hands of its shareholders, which exemption also extends to subsequent distributions to higher-tier shareholders to the extent that the exempt profits are distributed by way of dividends.

A patent granted in Malta or overseas is considered as eligible as long as the same invention is considered patentable under Maltese Law in terms of the Patents and Designs Act or is the result of Fundamental Research, Industrial Research or Experimental Development, which terms are defined as follows.

‘Fundamental Research’ refers to experimental or theoretical work undertaken primarily to acquire

32 - Money / Issue 26

‘Experimental Development’ entails the acquiring, combining, shaping and using of existing scientific, technological, business and other relevant knowledge and skills for the purpose of producing plans and arrangements or designs for new, altered or improved products, processes or services.

Malta Enterprise and the Inland Revenue Department administer the incentive.

Application procedures to benefit from this incentive are relatively uncomplicated and broadly comprise the submission of a statutory application form and prescribed supporting documentation to Malta Enterprise, whereby the applicant is required to declare and confirm, inter alia, that: income shall be generated under market conditions and at arm’s length when related undertakings are involved; the licensor of the patent is using the licensed knowledge in a productive economic activity; and the patented knowledge or invention qualifies as such in terms of applicable rules.

A separate application will be required for each licensing agreement or similar agreement notwithstanding the fact that a previous approval has been granted to the relative patent holder.

To the extent that Malta Enterprise is able to corroborate that the applicant, the patent and

the licensing agreement are aligned with the applicable rules, an Entitlement Certificate (valid for a period of up to three years) will be issued in favour of the applicant specifically stipulating that any royalty payments received by the patent holder from the relative licensee are to be treated in terms of the incentive.

The royalty exemption for income derived from patents is complemented by various other aspects of Malta’s tax system which allow for the tax efficient structuring of intellectual property holding and licensing activities through Malta. These include: no withholding taxes on outbound dividends, interest or royalties paid from Malta; potential mitigation of source country withholding taxes on royalties paid to Malta under the EC Interest and Royalties Directive or one of Malta’s 60+ tax treaties; an optional step-up in the base cost of assets from historic cost to fair market value for persons transferring their residence to Malta, as well as for companies formed by way of an EU cross-border merger; possible exemption from capital gains derived from a disposal of intellectual property in intragroup transfers and upon the migration out of Malta of Maltese intellectual property companies.

Since its introduction into the Maltese legislative framework, the tax exemption pertinent to qualifying royalty income has proven to be especially relevant within the iGaming, software development and e-commerce sectors, but appears to have been most prolific in the pharmaceutical industry, particularly in the light of the Roche-Bolar Exemption (implemented in 2002), which allows firms to experiment on patented drugs before the patent expires such that they will then be ready to market immediately upon the expiration of the patent, allowing an efficiency which is unavailable to manufacturers in countries that do not apply the said RocheBolar exemption.

These incentives, coupled with a sound legal and regulatory framework, and various additional tax and non-tax considerations, clearly reinforce Malta’s position as a key jurisdiction for the channelling of royalties and for enterprises looking to undertake research and development activities, with a potentially leading role to play in this sector.

This article contains general information only and neither GM & Associates – Advocates nor any of its affiliate/s, partner/s and/or associate/s is/ are, by means of this publication, rendering professional legal advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult with your professional advisors.

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Money / Issue 26 - 33

YOU ARE NOT A TREE

IF YOU DON’T LIKE WHERE YOU ARE, CHANGE IT.

t: +356 2123 4010

e: info@konnekt.com

w: konnekt.com

34 - Money / Issue 26Centre, Entrance C, Level 2, Triq taz-Zwejt, San Gwann, SGN 3000, Malta.

Capital Business

INTERVIEW Interview

BRIDGING THE GA P You are essentially a man of finance. How did you side-track into real estate and what fuelled your interest?

I built www.noagentsplease.com.mt out of frustration. I was recently looking to buy property and I realised how difficult it is to reach the owner. I looked around me and noticed that I was not the only one struggling with this so I pounced on the opportunity.

My career path will always be in finance – I just saw a need everyone was ignoring so I went for it.

They say that property is the safest investment.

Is this still the case today?

I think that property is a safe investment for a number of reasons. Its price does not fluctuate like stocks do because property is not traded on an exchange. Risk is a function of volatility and this lack of volatility creates a sense of security in people’s minds. Secondly, the inherent risk of owning property is low. It is difficult to steal immovable property, it is very cheap to insure it and it is always in demand because shelter is a basic need.

Property is not only safe but is also attractive. The value of the stock market is a function of GDP and this principle also applies to property. The value of property is largely determined by the capacity of people to borrow and as an economy develops, salaries increase and so does borrowing capacity.

To my mind, property owners have the best of both worlds. Property is similar to a bond because it pays a relatively constant cash flow if rented out

With No Agents Please, Chris Grech aims to bring buyers closer to property owners.

and its value rises largely in line with the stock market without the volatility of the stock market.

In financial terms, I would describe property as a bond with an equity derivative embedded in it.

In addition, banks lend more freely to investors who buy property than those who invest in the stock market. It’s a no brainer.

What is your take on the local property market?

I think that there is a lot of vacant property in Malta. Policy makers tried to solve the issue but did not address the root of the problem. Most vacant properties are not on the market because selling property is expensive. Owners generally give up around 18 per cent of their wealth when they sell their property: a final withholding tax of 12 per cent and the estate agent commission, which typically amounts to five per cent plus VAT. Property owners are more likely to part from their asset if the exit costs are marginal.

Government should consider reforming the property tax system with this in mind. A possible option would be to tax owners as the value of their property accretes in value, naturally with some exemptions such as the

increase in value of one’s main residence.

The beauty of this system allows owners to sell or swap their property with no transaction costs.

Lower exit fees do not only decrease vacant properties but they also increase volumes. Higher volumes mean more buyers and sellers, which makes it easier for a property to be sold.

What would you say are currently the hottest property types and locations in Malta?

Over the past years many foreigners moved to Malta to work and this increased the demand for rental properties in central areas. Indeed, demand for this type of property currently exceeds the available supply. Excess demand eventually brings with it excess supply and this is a worldwide phenomenon.

Locally, excess demand for rental properties has encouraged many developers to supply more rentable properties. I’m quite certain that many developers will, together, add more rental properties than required. This means that while rentable properties are currently hot, they will not be hot forever.

The permanent hot properties are the unique ones: a property with a great view or a shop in a busy street. Demand for unique properties is always higher than the available supply.

No Agents Please: what inspired you to set it up and what niche does it address?

Frustration inspired www.noagentsplease.com.mt.

Money / Issue 26 - 35

I looked around me and I saw people struggle really hard to reach property owners. I’ve seen it all: buyers walking miles hunting for properties to buyers guessing the location of a property from photos on estate agent websites. I even met someone who posted a note in all the letter boxes in Valletta saying that he was looking for properties in Valletta directly from the owner.

Estate agents disconnect buyers from sellers by – probably inadvertently – flooding most advertising channels with their listings. Buyers quickly realise that they end up contacting agents through the classified or Maltapark listings and so they walk into an agent office instead. The goal of the website is to create a channel exclusively reserved to owners. Agents who list are kicked out by the buyers themselves.

We also built an engine that matches buyers with owners automatically. Buyers provide us with the details of the property they are after. The system automatically notifies the buyer once a property that ticks all their boxes is listed.

As a business model, how does No Agents Please work?

We have no offices, no employees and very few overheads. Our mission is to create a low-cost bridge between buyers and sellers. We save on a lot of costs, which we happily want to pass to owners and buyers.

Instead of charging a commission or ‘senserija’ on the sale of the property, we only charge owners a one-year listing fee of €30. We are also waiving this fee for now. We will charge the €30 listing fee after the first 1,000 properties are listed – in other words, who lists now pays absolutely nothing.

What interest levels have you attracted with No Agents Please?

We are really encouraged with the response we

36 - Money / Issue 26

“IN FINANCIAL TERMS, I WOULD DESCRIBE PROPERTY AS A BOND WITH AN EQUITY DERIVATIVE EMBEDDED IN IT.” received so far. We constantly are told “This was long overdue – finally someone created this.”

The numbers also look good. In our first three months, 500 properties were listed. Traffic to the website is not bad at all either: over the past 30 days, 10,000 users visited www.noagentsplease.com.mt.

Chris Grech is a co-founder of www.blackdigits. com.mt, a financial website which allows users to analyse the financial statements of local listed companies. Data is available for free. Chris has also recently launched www. noagentsplease.com.mt, which directly links buyers and tenants with property owners.

DDI I 5 5 SCSC00%% OOUU NNT T ST

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14 14

OO O ON N FF FF ER ERI I VA N V N IT LI AILT D I DI I U UA A N NL L TI TI L 3 LC3 C 1 1H H O OA A CT CTR R O OG G BE BE R RES ES 20 20 30%

HIGH HIGH INCOME INCOME BOND FUND EURO BOND FUND EURO

30% 24%

6%* 6%*

24% 18%

Last 6 months Dividend Yield (Annualised) Last 6 months Dividend Yield (Annualised)

18% 12% 12% 6% 6% 0% 0%

September 2011

January 2013

June 2014

September 2011

January 2013

June 2014

29.12%** 29.12%**

Total return since launch Sept 2011 Total return since launch Sept 2011

* The most recent distribution as a percent of the NAV expressed on an annualised basis ** Total Return since launch September 2011on an annualised basis * The most recent distribution as a percent of the NAV expressed ** Total Return since launch September 2011

Call on 25 688 688 to book an appointment with one of our Investment Advisors Call on 25 688 688 to book an appointment with one of our Investment Advisors 5th Floor, Valletta Buildings, South Street, Valletta Warner Complex, Victory Street, Qormi 5th Floor, Valletta Buildings, South Street, Valletta Email: info@cc.com.mt or Call: 25Qormi 688 688 Warner Complex, Victory Street,

Email: info@cc.com.mt or Call: 25 688 688

www.cc.com.mt www.cc.com.mt CALAMATTA CUSCHIERI & CO. LTD (CC) IS LICENCED BY THE MFSA. THE HIGH INCOME BOND FUND EURO IS A SUB-FUND OF CALAMATTA FUNDSBY SICAV PLC (CCFS IS AUTHORISED THE CALAMATTA CUSCHIERI & CO. LTDCUSCHIERI (CC) IS LICENCED THE MFSA. THE PLC) HIGHAND INCOME BOND FUNDBYEURO MFSA. PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE IS A SUB-FUND OF CALAMATTA CUSCHIERI FUNDS SICAV PLC (CCFS PLC) AND IS AUTHORISED BY THE PERFORMANCE. THE VALUE OF THE INVESTMENT MAY RISE AS WELL AS FALL. SHOULD BASED MFSA. PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOTINVESTMENT A GUARANTEE FOR FUTURE ON THE CCFS PLC PROSPECTUS, WHICH MAY BE OBTAINED FROM CC OFFICES. ISSUED BY CC. PERFORMANCE. THE VALUE OF THE INVESTMENT MAY RISE AS WELL AS FALL. INVESTMENT SHOULD BASED ON THE CCFS PLC PROSPECTUS, WHICH MAY BE OBTAINED FROM CC OFFICES. ISSUED BY CC. Money / Issue 26 - 37

Interview NUMBERS

THE FASTFORWARD FINANCIER They don’t just know today’s market: they feel tomorrow’s culture. Sean Patrick Sullivan meets the fast-forward financiers and the ideas, events, opinions shaping their outlook for Q4 and beyond.

ATLAS OF CıTıES EDıTED BY

PAUL KNOX

The Atlas Of Cities, edited by Paul Knox and published by Princeton University Press, should be considered essential reading by today’s global executive. To purchase: www.amazon.co.uk.

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hey’ve recently graduated from Oxford, Rotman, Wharton, where-have-you. (At least for the most part. Some, inspired by PayPal co-founder Peter Thiel, have little to no higher education at all.) They’re a new generation of socially progressive – but no less profit-driven – executives and investors.

For these fast-forward financiers, the only postcrisis posture worth taking is one of innovation, heroism, and optimism. Or is it opportunism? Or is it a sign of old age to believe that there’s still any difference?

Immersed in electronic communication from youth, fast-forward financiers aren’t satisfied to merely know today’s market. They long to feel tomorrow’s culture. Here are some of their current obsessions along with a few more that may be next.

38 - Money / Issue 26

THE CORPORATION BECOMES THE CONSUMER Last month, American fast-food chain Burger King announced plans to acquire Canadian caffeine peddler Tim Hortons, creating the world’s third-largest quick-serve food-service company. American commentary revealed feelings of abandonment and accusations of tax inversion. Canadians, meanwhile, panicked over the colonisation of a brand that – for better or worse – helps define their national identity.

(The logo for Timmys, as its known, is a popular tattoo amongst superfans.) Meanwhile, Timmy’s 1992-to-2006 ownership by another American burger franchise – Wendy’s – seems to have been mercifully forgotten.

3G Capital, Burger King’s owner, is a Brazilian investment firm with a reputation for efficiency and profitability though not much else. (Only one

board member has any substantial experience in food and agriculture).

Insiders have remarked that however, the deal may have been structured for legal or public-relations purposes, 3G’s mission is to expand internationally into more direct competition with Yum Brands, owner of KFC, Taco Bell, and Pizza Hut. Pragmatically forming and breaking bonds, seemingly beyond governmental control, 3G has shed light on the financial sector’s growing impatience with the American corporate-tax code which, unlike any other in the world, taxes total profits, not just those earned on its own soil. Maltese fast-forward financiers may want to consider what can be done to attract major global brands inland.

Based in Canada’s greater Toronto area, Sean Patrick Sullivan is Money’s North American correspondent. As a creative director and strategic advisor, his client list includes Sony, Evian, L’Oreal, Coca Cola, and Louis Vuitton, among others.

THE TIME HAS COME FOR MINICOME The recent Swiss vote failed, but the time for minicome (a portmanteau for “minimum” and “income”, also known as “unconditional basic income”) seems to have arrived.

The minicome movement seeks to eliminate all social-welfare programmes by disbursing funds (usually a sustenance level) directly and equally to all citizens, from birth to death. According to both left- and right-wing supporters, many welfare systems are so expensive to administer

that minicome would require no new taxes and in fact might reduce government spending.

In the 1970s, the government of Manitoba, Canada, experimented with minicome, to stellar results.

Freed from both worry and shame, poor residents didn’t sit at home and collect cheques. They went back to school, started home-based businesses, and entered high risk, high reward fields. Crime plummeted, while health indices improved. A final report was never published, until sociology professor

Evelyn Forget (what a fitting surname) conducted an unsolicited follow-up in 2011. Glowingly positive and released during the height of Occupy Wall Street, it sparked North America’s new minicome movement.

As real wages plummet and consumer spending softens, fast-forward financiers might be well served to support minicome, especially if it’s attached to a negative income tax. After all, nothing increases consumer spending like giving consumers money to spend.

TAKING FRIDAYS OFF, FOREVER Like minicome, the four-day work week was initially proposed by activists – in this case to the end of better work-life balance – then cheered on by policy makers and industry titans once its productivity-boosting benefits were quantified.

Supported by Richard Branson, Forbes magazine, and the world’s second-richest man Carlos Slim, four-day work weeks take many forms. Some companies keep everyone on the same Mondaythrough-Thursday schedule, with or without actual reductions in total hours worked. Others go the

opposite direction and remain open seven days a week, with either fixed or dynamic individual employee scheduling. What remains consistent is a desire to reduce illness and absence, while keeping employees happier, therefore more loyal, therefore more productive.

For the fast-forward financier resistant to the idea of an abbreviated work week, it may be helpful to note that many creative and intellectual professionals – artists, writers, stylists, designers, professors – report achieving

EXECUTIVES ARE PEOPLE TOO If Steve Jobs was the messiah of Generation X – praised, worshipped, fetishised, admired – then Satya Nadella may become a similar, if less flashy, icon for populist, pro-business, high-energy millennials. As the new-ish CEO of Microsoft, he helmed the launch of the stupendously wellreviewed Surface Pro 3 while loaning a more nimble, youthful, visionary face to the technology giant.

Committed to the concept of devices and services as boosters and enablers of human productivity,

Nadella has perplexed – or perhaps problematised – old guard IT professionals. Many dismiss his vision of a world beyond “consumer versus enterprise” as impractical if not delusional.

Confusion and judgement is likely to turn into revelation and delight. For Nadella’s vision of a unified Microsoft experience across devices, contexts, and platforms is perfectly attuned to the rhythm of the fast-forward financier – actively redefining boundaries between home, work, and play.

NO SHRUGGING OFF THIS ATLAS Much like Mae West, when Princeton University Press is good, it’s very good, but, when it’s bad, it’s better.

Its latest publication, Atlas Of Cities, edited by Paul Knox with a foreword by Richard Florida, proves this with aplomb. Rule-breaking, boundary-crossing, and defiantly designed for cross-over appeal, it’s a colourful, infographic-infused, altogether gorgeous coffee-table book that can be read in a straight line or section by section. The overall effect is a compelling, seductive readability – a tactile glamour and intimacy – that single-handedly affirms print’s differences from (and advantages over) digital as an involving, immersive, long-form interface.

With Atlas, Knox presents a new type of text book, offering an interdisciplinary crash

course in transportation, manufacturing, political economy, and cultural capital. Each chapter or module covers a certain type of city – imperial, intelligent, industrial, et cetera – with primary and secondary real-world examples. Elaborately researched overviews – some historical, others conceptual/theoretical – give way to visualisations of urban growth and transformation, enabling readers to understand how cities work and also why, sometimes, they don’t.

For Maltese readers, Atlas may prompt the following question: given its high density, compact size, strategic location, and multicultural heritage, why isn’t the entire country operating (or at least

peak performance by working very long hours, often late into the evening, for three or four days at a time, monastically, without interruption nor distraction, followed by three or four days for rest, relaxation, and personal affairs. It’s often assumed that these fields (and the people in them) are somehow different from those in executive and management roles.

However, as “work hard, play hard” becomes a generational mantra, it seems as though creatives aren’t any different in their workplace needs, simply more prone to early adoption.

“AS REAL WAGES PLUMMET AND CONSUMER SPENDING SOFTENS, FAST-FORWARD FINANCIERS MIGHT BE WELL SERVED TO SUPPORT MINICOME, ESPECIALLY IF IT’S ATTACHED TO A NEGATIVE INCOME TAX.” positioning itself) as a city-state? Nation-states, after all, are starting to feel so 20th-century.

More generally, fast-forward financiers are likely to enjoy Atlas for its worldliness, the way it punches the provincial out of readers, to convey the city as the height of human expression: our capacity for creativity, governance, productivity, and ultimately transformation.

Money / Issue 26 - 39

COUNTRY Interview PROFILE

STRICTLY COME SINGAPORE

Singapore is the most expensive city in the world. It’s also one of the strictest. Can it afford it, Money asks.

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it by half a century. The highrises are futuristic, the lights are brilliant and the Marina Bay Street Circuit, which hosted the first Formula 1 night race, looks like a video game that has come to life.

houses six indoor and outdoor gardens.

It’s the same with Singapore. It shouldn’t be there: but it is.

It’s the same with Singapore: there is no other place like it in the world. It’s what you get when you take a modern Asian city and fast-forward

Singapore’s latest project is to transform itself into the garden city of the future. Skyscraper developers are now required to top their buildings with sky parks that are accessible to the public. The Marina Bay Sands resort, for instance, has transformed its roof into a pleasure garden complete with mature palms and a magical infinity pool. Across town, the Park Royal on the Pickering hotel looks like a modern jungle, with palms, jungle climbers and tree ferns shading the interior. Even Changi airport

here’s a theme park on Pasir Panjang Road in Singapore which is, well, a bit unusual. Called Haw Par Villa, the theme park was built in 1937 with the aim of giving visitors an education in morality within the context of Buddhist, Taoist and Confucian folklore. The exhibits range from horror to gore: there are human crabs, limbless rats and an exhibit called the Ten Courts of Hell. No wonder, then, that Haw Par Villa markets itself as being “like no other place in the world”.

40 - Money / Issue 26

The most common reaction to these gardens of the future is that they shouldn’t be there: but they are.

All the odds are against the island state of Singapore. It’s half the size of London and has no natural resources. And just a few decades ago, it was an undeveloped country with a GDP per capita of less than US$320. Its separation from Malaysia on August 9, 1965 was followed by severe unemployment and a housing crisis.

According to the Economist Intelligence Unit, Singapore is the world’s most expensive city in the world in 2014.

3M PEOPLE GDP

US$300BN Singapore is the 15th largest trading partner of the US.

433m2 Singapore occupies just 433 square miles and has a labor force of 3m people. However, it produces a GDP that exceeds US$300bn annually.

5.4M The population of Singapore is 5.4m.

By 2030, immigrants will make up nearly 50% of Singapore’s population.

2.6 %

3.5 %

Singapore’s GDP growth in 2014 is forecast at 3.5%, compared with 2.6% in 2013.

There are currently over 3,000 multinational corporations operating in Singapore.

2013 2014

“THE CITY STATE OF SINGAPORE BOASTS ONE OF THE HIGHEST PERCENTAGES OF RESIDENT MILLIONAIRES AND ITS GDP PER CAPITA HAS RISEN TO US$60,000.”

Yet Singapore persevered. It embarked on a huge modernisation programme, established a strong manufacturing industry, built large public housing estates and invested all it could in public education. By the 1990s, Singapore had become one of the world’s richest nations, with strong trading links and a highly developed free market economy.

Nowadays, the city state of Singapore boasts one of the highest percentages of resident millionaires and its GDP per capita has risen to US$60,000. It is a leader in global commerce: the Port of Singapore is the world’s busiest transhipment port, surpassing Hong Kong and Rotterdam. In terms of total cargo tonnage handled, it is the world’s second busiest, behind Shanghai.

Tourism is also booming. Singapore attracts over 10m visitors every year, who travel to Singapore to enjoy the city’s zoo, nature reserve, casino resorts, food and the overall experience of living the future.

No wonder, then, that Singapore’s people enjoy one of the world’s highest standards of living.

However, all this comes at a cost. While very effective, Singapore’s strict regulations and a system of punishments for acts deemed to be anti-social are debatable. These range from encouraging citizens to speak good English to capital punishment, which is applied mostly for drugs trafficking offences.

Singapore is obsessed with order and vandals can be flogged – first time male offenders can get three cane lashes for vandalism. In 2012, artist Samantha Lo was arrested for sticking messages on traffic signal buttons. In the latest defence of Singapore’s puritan image, the National Library Board ordered all 26 state-run public libraries to destroy all copies of a book about a male penguin couple. The book, And Tango Makes Three, is written by Justin Richardson, Peter Parnell and Henry Cole, and tells the story of two male penguins raising a baby chick.

Despite witnessing its largest ever gay rights rally just months ago, Singapore still considers gay sex to be a criminal offence.

Protests, which in Singapore are largely unheard of, are becoming more regular. Last year, a fierce riot broke out after an Indian worker died in a road accident. The riot, the first in Singapore since 1969, raised questions about migrants’ working conditions. In Singapore, migrant workers have no minimum wage and often suffer poor working conditions, while union representation is extremely limited.

There are other tensions underneath Singapore’s apparent social harmony. Just last June, the city state witnessed a protest against government’s management of the pension fund.

Will Singapore’s government insist on its strict stance or will it relax its hold on personal liberty?

And if it does, will its economy suffer?

Money / Issue 26 - 41

Interview DESIGN

ICONIC IMAGINATION

London Design Festival calls and Money answers.

T Photos by London Design Festival, www.londondesignfestival.com

he London Design Festival has established a reputation as one of the largest and most dynamic design events in the world. This year, the festival is in its 12th year and aims to celebrate and promote London as the design capital of the world, and as the gateway to the international creative community.

Over 300 events and installations will be on offer across the capital, from a stimulating programme at the V&A to a major installation within Trafalgar Square. Also, over 250 partners will participate in the nine-day festival.

A major part of the London Design Festival’s programme is the presentation of Landmark Projects in iconic London locations. These installations not only demonstrate the imaginative capacity of designers but also present the potential breadth of design ideas to a diverse audience. This year, the festival has commissioned a major project in Trafalgar

42 - Money / Issue 26

ANOTHER SUCCESSFUL PROJECT Square in collaboration with Airbnb and at its hub venue, the Victoria and Albert Museum, the festival will present a captivating installation in the Raphael Gallery designed by Barber & Osgerby alongside a programme of fascinating site-specific projects.

Airbnb is the world’s largest community marketplace for people to list, discover and book online accommodation within people’s own homes. Now Airbnb is collaborating with the London Design Festival for this year’s Landmark Project in Trafalgar Square.

Four highly acclaimed designers have been invited to dream up their interpretation of a room within a home that you would not want to leave, offering a new vision of a domestic space. These rooms will be created as four separate structures in Trafalgar Square, all identical on the outside, with each ‘house’ interior reflecting the individuality and personality of the different designers, just as each Airbnb listing is distinctive and individual. To reflect this variety, designers Jasper Morrrison, Patternity, Raw Edges and Studioilse have each been given a structure within the Square which they can fill, design, decorate or imagine in any way they want.

Each of these creations will be open to view by visitors to the Square from Thursday, 18 September until Monday 22 September. Visitors peering inside the individual structures will view a different story told in each interior.

The festival will also continue its unique collaboration with the world’s leading museum of art and design. As the central hub location for the London Design Festival for the sixth year, the V&A will again house a broad range of commissioned activity which will be spread throughout the Museum and include installations, events, talks and workshops.

The unique collaboration between the V&A and the London Design Festival began in 2009 and has offered a packed programme of lunchtime lectures, gallery talks, hands-on workshops and provocative debates every year. Each day of talks at the V&A will be themed, helping visitors and participants to make the most of their time and interests during the festival.

Sir Terence Conran, the London Design Festival and the American Hardwood Export Council (AHEC) have invited 10 design legends along with 10 emerging talents, to design and make something they have always wanted, but never been able to find. Such an open brief guarantees an extraordinary spread of design but the challenge will be to produce

Toly Malta, which offers a state-of-the-art facility for the production of high quality packaging for many prestigious brands within the international beauty industry, entrusted DEX Workspaces with the entire refurbishment of two 2,000 square metre floors that form part of the new management block.

each project in a single material – American hardwood, in a celebration of the versatility of timber and the enormous variety that can be achieved with one material.

The project will be a collaborative fusion of design experience, young talent and craftsmanship. The Wish List pairs up established designers including John Pawson, Amanda Levete, Zaha Hadid and Allen Jones with a young designer they admire. The design teams will develop their ideas and the pieces will be crafted and produced during the summer at the Benchmark studio and factory in Kintbury, West Berkshire. The finished work will be shown in the Architecture Landing at the Victoria and Albert Museum during the London Design Festival.

The festival will also see the award of the London Design Medal, which is one of British design’s most coveted awards and winners from a wide range of design disciplines are chosen by an illustrious selection board of established designers and previous winners.

The winners are chosen for their exceptional contribution to their design field. Headline supported by Panerai, this year there will be four categories: Panerai London Design Medal, Coutts Lifetime Achievement Medal, Perrier Jouët Design Entrepreneur Medal and the Swarovski Emerging Talent Medal. The winners will be announced on September 16 at a special awards dinner.

Working closely with the team of architects and designers selected by Toly Malta, namely QP Management and Carlo Schembri Design Studio, DEX offered a range of customised and standard industrial office furniture and seating in order to best bring to life the team’s vision, while including cost-effective solutions in the vast options provided. DEX also provided the metal shelving and archiving on the premises. Black, white, red and grey tones, synonymous to Toly’s brand colours, were selected for communal areas. Timeless white and walnut finishes were preferred for office and boardroom furniture.

DEX’s partners of choices for this project included Newform Ufficio by AranWorld for custom office furniture, Quinti Sedute Srl for office seating, and Austrian market leader in office furniture, Bene AG for the reception area seating. The project was successfully completed within the stipulated timeframe, including the delivery and installation of customised desks. This was only possible through close collaboration between the DEX-appointed team coordinated by a highly experienced project manager. The completion of this project marks another successful accomplishment for DEX Workspaces, Vivendo Group’s specialised commercial furnishing company. DEX have also been involved in several other commercial projects including the refurbishment of Bettson, Lufthansa, PTL and the APS Head office, adding further testimony to their efficiency in the refurbishment of corporate and commercial buildings.

Money / Issue 26 - 43

Interview SPOTS

THE MONEY COLLECTION Money’s favourites for this season.

LUGGAGE FOR THE CREATIVE SOUL A TRIBUTE TO ARTISTIC CRAFTS The iconic case of the Roger Dubuis Excalibur 45 collection shows all the strength and appeal of the Excalibur identity codes. At the same time it provides a new presentation for the major complications.

STATEMENT PIECE

Many luggage can look original, but only a few also come with a 10-year worldwide warranty.

The Samsonite Malta store has just received a small quantity of the Cosmolite Disney Limited Edition luggage line specially created to mark the launch of Disney by Samsonite.

Every guy will simply feel his best in this MEXX blazer with leather-look panels at the lapel. Fully lined to easily function as an office blazer, this design is a nice statement piece to finish off your look. Wear this with anything from denim to dress pants for a modern take on dressing well. Give your blazer a twin personality – head straight for a clean, dark denim. Add a smart, no fuss shirt, top off with your blazer and voila! The blazer is available from Fall Collection 2014 in MEXX stores in Bay Street, Pjazza Tigne – The Point and Mosta.

The Excalibur Double Skeleton Tourbillon in pink gold is fitted with a skeletonised double tourbillon of outstanding quality and original design. By reducing the plates and bridges to their absolute minimum, Roger Dubuis has created a spacious yet highly technical mechanism: the RD01SQ movement. No detail of any component escapes the rule of the Poinçon de Genève, which institutes irreproachable aesthetic quality and finishing taken to the extreme.

Gioielleria Zampa is at 12, Republic Street, Valletta and Portomaso, Hilton Malta. For more information call on tel: 2122 0194.

The last decades have shown that creativity is the new currency and this luggage is a definite must for the creative soul. Constructed with the revolutionary Curv material exclusive to Samsonite in the luggage arena, this inimitable collection boasts the same innovation, technology and standards synonymous with the Cosmolite Samsonite main collection.

Available in hand, medium spinner and large spinner sizes, prices start at €325 and come Samsonite’s unparalleled aftersales service. The store is located at the Malta International Airport and is open Monday to Sunday from 8am till 8pm. To book your limited edition Samsonite, call on 2202 1401 or e-mail samsonitemalta@ vfgmalta.com. Free parking for customers.

TAILOR-MADE SOLUTION Banif Bank (Malta) plc customers can now benefit from a special offer on car loans. With a discounted rate starting from five per cent p.a. and a term that may be extended to a maximum of eight years, Banif promises to offer a tailor-made financial solution for those seeking to buy a new or second-hand car.

The Car Loan Special Offer from Banif Bank allows customers to finance 100 per cent of the cost of the vehicle, should this not exceed €30,000. The extended eight-year term ensures that the repayments are spread out over a longer period of time resulting in lower monthly payments. The loan may incorporate an insurance cover so that the customer is able to retain his, and his family’s current lifestyle in the

44 - Money / Issue 26

unfortunate event of an unforeseen circumstance such as redundancy, partial or total disablement or death.

“Banif reviews its product portfolio regularly, to make sure it keeps up with customer trends and needs,” said Caroline Gauci, from the Business Development Unit of Banif Bank (Malta) plc.

“Whether you are looking into buying your first car, or upgrading to one which offers you a more luxurious drive, we believe that the Car Loan Special Offer offers a comprehensive package to suit all our clients’ requirements.”

For more information visit www.banif.com.mt, contact Customer Care on 2260 1000 or visit any Banif branch.

SCANDINAVIAN STYLE BOSS takes a journey to the Nordic capitals and filters the DNA of the Nordic style: it’s about a meticulous dress code without trying too hard.

BOSS Menswear presents a collection full of restrained yet easy pieces: a double-breasted boxy jacket, pinstripe suits in graphite-grey wool combined to brown turtleneck sweaters, navy blue abstract paisley prints on a velvet tuxedo jacket.

There is a work-wear feel to many looks: buttondown shirts and knit ties are paired with long cardigan-jackets, casual navy blue khakis and massive leather boots. We see cuffed narrow slim pants, an ice blue leather jacket with a clean,

architectural structure worn with a winter classic like the thick cable knit sweater. BOSS colours are inspired by the polar circle landscapes, from light chalkstone grey to dark ocean-blue and deep purple. Accessories have a laid back functionality: bags are spacious and shoes are modest.

The BOSS Fall/Winter collection is now available at the BOSS Stores Malta in St Julian’s and the Departures Lounge, Malta International Airport.

The St Julian’s store is open Monday to Saturday from 10am till 8pm. For more information or appointment call on 2202 1000 e-mail BOSS_Store_Malta@vfgmalta.com.

BAG THIS Messenger bags were originally designed to carry various documents and packages bound for multiple locations, but they are also the perfect size for laptops, schoolbooks and other everyday items. Designer messenger bags also make modern replacements for the traditional briefcase. Whether you’re a young professional in need of sturdy leather messenger bags or a high-school student looking for a stylish alternative to a traditional backpack, messenger bags will work for you. This MEXX large messenger bag also works well if you’re the type who doesn’t like to leave the house without a couple of your favourite books, a travel mug, your computer, headphones and snacks. Available from MEXX stores in Bay Street, Pjazza Tigne – The Point and Mosta.

HANDSOME STYLE Although it’s still hot outside, you may already be thinking about a change of wardrobe. While a trench coat is often the right topcoat, the quilted jacket is also a popular companion for the outdoors during winter. No matter whether you are in the city running errands, or going to the office, quilted jackets are nearly always appropriate. With the herringbone pattern and buckled closure on the collar, this MEXX coat will keep you looking sophisticated around town. Check out a few stylish quilted jackets at MEXX stores in Bay Street, Pjazza Tigne – The Point and Mosta.

UNVEILING A NEW DIMENSION BOSS Ma Vie Pour Femme is the new fragrance for women from BOSS Parfums. Following the successful launch of BOSS Nuit Pour Femme and BOSS Jour Pour Femme, BOSS Ma Vie Pour Femme completes the trio and reveals a new dimension to the BOSS woman. Inspired by an element of the BOSS woman’s life that until now has gone unnoticed, BOSS Ma Vie Pour Femme draws on the pleasure she feels when she chooses to step out of her day to day routine and enjoy a moment for herself. Receive your free BOSS tote bag when purchasing EDP 75ml or Boss make-up roll pouch when purchasing EDP 50ml. For local trade enquiries call VJ Salomone Marketing on 8007 2387. Ask in store for more details. Offer valid from authorised outlets until stocks last.

Money / Issue 26 - 45

PHOTOGRAPHY

Nicky Scicluna

STYLING

Kira Drury

MODEL

Emmanuel

Autumn Afternoons Summer has been and gone, and it’s now time to start updating your wardrobe with these new season essentials.

// Tom Tailor at Square Deal stripe jumper, €39.95 // Esprit print denim shirt, €49.99 // // Esprit blue trousers, €49.99 // Carpisa bag, €59.90 // Shoes, model’s own //

// Tom Tailor checked shirt, €35.95 // Tom Tailor at Square Deal red trousers, €59.95 // // G-Star at District Jacket, €255.00 //

// Tommy Hilfiger Denim print T-shirt, €64.90 // // Tommy Hilfiger Denim jeans, €109.00 // Shoes, model’s own //

// Mexx knit jumper, €65.00 // Esprit white shirt, €45.99 // // Tommy Hilfiger Denim beige chinos, €99.90 //

// Tommy Hilfiger Denim jumper, €109.00 // // French Connection at District stripe shirt, €20.10 // // Tom Tailor at Square Deal jeans, €69.95 //

50 - Money / Issue 26

// Armani Jeans Denim jacket, €240.00 // Tommy Hilfiger Denim stripe T-shirt, €49.90 // // Armani Jeans black jeans, €150.00 // Ecco at King Shoe Shop ankle boot, €154.90 //

Interview GIFTS

AUT UMN APP AREL

THE ESSENCE OF JAMES BOND 007 For half a century, James Bond has captured the world’s collective imagination with his masculinity, charm, and elegance. He is the ultimate male icon who flawlessly combines irresistible sophistication with uncompromising masculinity. In the James Bond 007 fragrance these characteristics collide in the most dangerous of ways, culminating in a robust signature scent which embodies sophistication and masculinity. Buy James Bond 007 Edt 125ml and pay for Edt 75ml. For local trade enquiries call VJ Salomone Marketing on 8007 2387. Ask in store for more details.

Offer valid from authorised outlets until stocks last.

Money welcomes the new season with a show of delectable gifts.

THE NEW FACE OF THE LEGEND Created in 1952, the Breitling Navitimer is not only the doyenne of all mechanical chronographs produced worldwide. With its technical and functional style, this unique instrument has asserted itself as one of the great 20th century watchmaking classics.

Breitling offers this legendary model in a 1,000-piece limited series distinguished by a bronze-coloured dial. A transparent caseback provides a chance to admire the Manufacture Breitling Caliber 01, a high-performance selfwinding chronograph entirely developed and produced within the Breitling Chronométrie workshops and chronometer-certified by the Swiss Official Chronometer Testing Institute.

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TIE ME UP, TIE ME DOWN Legendary writer and filmmaker Jean Cocteau once described Charvet’s shop as “where the rainbow finds ideas”.

This swirl-patterned silk-jacquard tie is testament to that statement.

LISTEN TO THIS AKG’s new open-back headphones combine precise sonic engineering with premium fit and finish. The AKG K812 are equipped with special hinges that ensure the perfect fit while the 53mm drivers bring exceptional clarity to any music you play.

LOVE YOUR WALK These metal-embellished leather derby shoes by Lanvin add a naughty twist to a classic. With metal rings and screw studding, these Derbies have a powerful presence wherever you walk.

SHE’S A MODEL Perfect to the last detail, this Kiade 82 Riva Aquarama model in mahogany and chromeplated brass will make you yearn for the sea.

PACK YOUR BAG Crafted in the US from heavy, tightly woven twill, this leather-trimmed backpack by Filson is durable and has been treated for a water-repellent finish.

PICTURE PERFECT The Lomography Belair instant camera is your versatile partner for taking photos on the road. Comes with automatic exposure, long and multiple exposure capability, hot-shoe flash compatibility and interchangeable lenses.

Money / Issue 26 - 53

Interview TRAVEL

COAST GUARD

Mona Farrugia finds that Taormina is a height for sore eyes.

T

aormina loves life as much as the rest of Sicily. Yes whereas in some parts of Sicily, abandonment reigns supreme, the hotels are ugly and barren, the agriturismi fake and only there to siphon off EU funding, and the factories and mega-shops boarded up, Taormina is always beautiful, always manicured, and a muse today as it was for DH Lawrence and Truman Capote.

Except, sadly, for one thing: its proximity makes it extremely popular with Maltese on a grand gita of Sicily.

Being one and a half hours by car from Pozzallo, Taormina is easily accessible (a total of three

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Food and travel writer Mona Farrugia runs Angelica in Valletta. www.angelicamalta.com

SEASIDE QUEEN

HOTEL VILLA CARLOTTA, TAORMINA

In the spirit of ‘let’s find the most expensive place’ I stumbled across the Hotel Villa Carlotta online. It is situated on the way up the hill, overlooking the sea and the beautiful vista, facing the smoking Etna volcano.

Surprisingly, it was not even that expensive – there are other, larger, more American tourist-oriented hotels which fit that bill – and yet the attention to detail is spot on.

“TAORMINA IS ALWAYS BEAUTIFUL, ALWAYS MANICURED, AND A MUSE TODAY AS IT WAS FOR DH LAWRENCE AND TRUMAN CAPOTE.” hours after leaving Malta and you’re safely ensconced in your hotel room). The beaches are beautiful, though sometimes packed, its views a dramatic introduction to a classic, and the Etna a constant reminder. All of this, though, means that you have as much chance of hearing Maltese voices in the squares and on the promenades as you have when you are in Gozo.

“Look at that dog, poor thing,” I told my husband, in Maltese. It is important, when abroad, to speak Maltese so that nobody else understands what you are saying.

“Johnny!” she screamed across the square. And I knew, even from that first “Johnny”, that she was Maltese. The conversation that followed proved me right.

There are few nationalities in the world that do not go abroad to get away from the rest of their compatriots. We are not one of them. Me especially. The moment I hear a Maltese voice on an airport bus in Dubai airport, after I’ve travelled for hours to get away, I want to cry. Because we are so small and territorial, we are always trying to escape each other.

Taormina is also on the Maltese group trail but then again, these days, so is Ragusa Ibla, so you need to. First of all, never talk in public in any language – our accent is recognisable by other Maltese everywhere. Second, wear hats and sunglasses, although possibly not together in winter.

I thought that going to Taormina in June was a bright idea which only I had hit upon. But of course, there were others. We were having an aperitivo at an overpriced, under-serviced belvedere bar one bright afternoon when a woman with Jersey hair, diamante-studded jeans (they still exist?), heels and huge diamonds walked over with her tiny lap-dog. The dog was dressed – I kid you not – exactly in her image, complete with diamante bangs. And denim.

And third, book yourself into the most expensive, most exclusive hotel you can find. The Maltese tend to be stingy when abroad, always looking for affordable rooms (by which they mean really, ridiculously cheap), central so they don’t walk too much and preferably without having to share a toilet with others, so there is much more of a chance of avoiding them that way. If you do hear other Maltese voices over breakfast, you can rest assured they are trying to avoid you too.

Most Maltese go to Sicily with their own car, and parking in Taormina is no fun. At the Carlotta, the valet quickly whisked off our bulky SUV to the parking area across the road. He also took care of our luggage so that all we needed to do was, well, arrive.

The room – not even one of the top-billed ones – was fabulous. Antique furniture, lush Egyptian cotton bedding, my favourite Ortigia amenities (Ortigia, just in case you have never come across them, are the loveliest range of bath products to come out of Sicily.

They are available in five-star boutique hotels and in their London outlet near Sloane Square) and a tiny balcony overlooking the amazing views and the pool.

In fact, the Carlotta is an example of how all boutique hotels should be. Sicily has, sadly, too many agriturismi and most of them should not even be licensed to receive guests – this one puts paid to the notion that our sister island cannot do high class.

Service is top-notch. The receptionists (and owner) speak perfect English, as well they should, considering the amount of Australian and American tourists they cater for. Restaurants are recommended by quality, rather than kickback amounts to the concierge.

What will keep me returning, though, is the breakfast. Hotels are about sleeping, bathrooms and the one meal you normally consume there, are they not? And in Italy and elsewhere you can always tell whether something fits the bill according to whether they bother having bubbles for breakfast. Prosecco, freshly cooked eggs, real butter cornetti and again, that gorgeous view, all consumed in the open air, make for such a beautiful, relaxing holiday.

The Villa Carlotta people have now also opened their private villa over the beach and this can be rented, lock, stock, and three bedrooms, for use by a couple or a family who really want privacy. Or not to see anybody from their own country.

www.hotelvillacarlottataormina.com

Money / Issue 26 - 55

Interview GOLF

A GREEN SUMMER

The winning team

The Royal Malta Golf Club plays the Captain’s League.

T

he golfing season at the Royal Malta Golf Club would not be complete without the inclusion of the most popular group competition. The Captain’s League, a staple in the calendar since 1986, is a team event whereby the last seven captains of the RMGC choose their strongest players and challenge for the trophy over seven rounds played once a month from December until June.

“Throughout the years, Nexia BT has established a corporate strategy in sponsoring sports competitions based on the belief that sport is more than an enjoyable part time activity. It is a very good reason for people to get together outside of the office and to encourage some healthy competition. It also gives the chance to stress the importance of achieving physical and mental well-being through sport,” said Nexia BT managing partner Brian Tonna.

This season came with new opportunities and this prestigious competition received valued support from Nexia BT, a leading audit tax and advisory firm.

This year’s competition has been one of the most thrilling for many years and has been one of the more keenly competitive. After six rounds, two teams were on equal scoring, that of David

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Debono and Ken Micallef. Saturday June 21 was the final day and saw Ken Micallef’s team just win by the narrowest of margins, 884 stapleford points to 882. As well as a team winner there is an individual winner and this went to JJ Micallef with 184 stapleford points and the runner up was Lew Collins with 178 points.

A presentation lunch was held on June 28 at the RMGC Terrace Restaurant. Karl Cini, Nexia BT tax and international partner, was there to present prizes together with Nadia Gatt Gafa, Nexia BT marketing representative, who was present throughout the seven rounds of the competition.

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/ Issue 26 - 577793 Contact: David Flak / E: dflak@oulala.com / M:Money +356 9971

The Bluesman is a Maltese sound engineer working in New York.

Interview NEW YORK

THE BLUESMAN’S BLOG The American character can be kind yet so cruel, says The Bluesman.

A

few weeks ago, the younger of my two daughters had to put her dog-friend, Sincere, to sleep. Sin had been her faithful companion for 15 years, a venerable age for a canine. At the vet’s they lay on a blanket for an hour until my daughter was sure her pet had fallen asleep and then left, leaving the vet to complete the task. Gentle and humane: anything else (short of the Old Yeller ending) would be illegal.

Arizona could learn a thing or two. Without going into pros, cons and morals, I, along with most of the nation, was wondering how and why it took Arizona two hours to kill a prisoner by lethal injection.

It’s not like they didn’t have a couple of bungles in other States to warn them of the inefficiency of the homemade cocktail of drugs unknown ‘compounders’ are cobbling together. This time the unfortunate experimentee was left gasping and gulping for the better part of two hours.

In a country straying from the rest of the field of First World nations and electing to put people to death, coming fifth out of the top five behind China, Iran, Iraq and Saudi Arabia, one somehow expects that these participating States in the good old USA manifest the efficiency claimed in all other fields. Another indicator that the justice system has failed is holding one quarter of the world’s total imprisoned out of a civil population representing five per cent of the world.

In 2011 there were an estimated 14,600 murders in the US, between four and five per 100,000 people. The closest developed country was the UK with 1.2. This doesn’t make a very good case for capital punishment being the claimed deterrent – in fact the murder rate is higher in States with a death row than those without by about 25 per cent. But the point I’m making, as Jeeves would quote to Bertie Wooster from Macbeth’s soliloquy: “If it were done, when ‘tis done, then, ‘twere well it were done quickly”.

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It seems to be an unfortunate fact through history that people officially considered non-persons in this country are treated quite atrociously. We’ve had women dunked, pricked and burned for being witches in Salem and the slaughter of American Indian tribes. Slaves were whipped and mutilated, then after Abolition, free black men lynched.

During the Civil War, captured rebel soldiers were subject to cruel corporal punishment and left unequipped against the cold during the bitter winters up North. After Pearl Harbour, the Pacific Coast was designated an exclusion zone to all Japanese Americans, and men women and children (62 per cent of them citizens) were taken to internment camps. Most recently President Obama commented on the CIA report acknowledging that torture was used after 9/11.

So is the American character changing for the better? It’s a strange dichotomy that, on the one hand, Americans do tend to be charitable and kind but on the other, behind the impersonal facade of officialdom, there’s this impression that once a person or group of persons is tarred as ‘persona non ... whatever’, all bets are off. The current case is the reaction to an influx of thousands of unaccompanied children fleeing South American gang violence. The administration considers this an asylum situation. In fact G W Bush had a law passed laying down the rights of unaccompanied minors crossing the border seeking to join relatives already in the country. This applied to those already here before 2007 but the smuggling gangs neglect to inform their desperate clients and so feed a frenzy putting thousands of dollars in the smugglers’ pockets. A large swathe of the population, mostly in the Border States, wants them treated as economic immigrants and sent back on arrival as opposed to allowing them a hearing. Buses carrying these kids to various locations have been road-blocked by vitriolic crowds egged on by the rhetoric of the Rightwing Tea Partiers doing all they can to hinder and derail anything the President proposes. In one incident, the busload of kids they stopped were actually American citizens on a YMCA camping trip.

The other side of this coin is the municipalities that have offered to take in some of these displaced minors. In fairness, I suppose, to

the politicians sitting on the fence there are mid-term elections coming up in November.

The Tea Party is seeking to unseat moderates and replace them with their ilk so many of these candidates are waiting until the election is over before coming out with a position.

Cowardly of course, but such is the paralysis that has gripped this do-nothing Republican-led Congress which in its vehement hatred of the President, has pledged to oppose any action proposed by this White House whether they think it’s a good thing or not.

The latest debacle was the attempt at a vote on Obama’s request for $2.7bn to fund border patrol. In a vain attempt to be seen as having done something before they took off for a month’s break, they worked over the weekend and chipped away until the amount was down to $0.6bn but never brought it to a vote. Senator Ted Cruz, who doesn’t have any business interfering in Congress, called a meeting of the GOP representatives, laid on some beer and pizza and declared that nobody should be voting on anything the President puts forward. Apparently these members of Congress are a bunch of frat boys and sorority girls and Government runs on a six-pack and a couple of slices.

Money / Issue 26 - 59

Big Bang Unico.

UNICO column-wheel chronograph.

In-house Hublot movement.

72-hour power reserve. King Gold case, an exclusive red gold alloy developed

by Hublot. Ceramic bezel. Interchangeable strap by a unique attachment.

60 - Money / Issue 26

www.hublot.com •

twitter.com/hublot •

facebook.com/hublot