MONEY DEC 2017 ISSUE 46

BUSINESS

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LIFESTYLE

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DESIGN

THE DESIGN ISSUE ISSUE 46

INTERVIEW

CATHERINE TABONE Valletta 2018

OPINION

PERFECT STORM Manuel Delia

COVER STORY

ENROUTE TO GROWTH

Emmanouil Kalamaras

INTERVIEW

PAINTING CULTURE GREEN

Veronica Stivala

N O W

O P E N

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M E G A

O U T L E T

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Gorg Borg Olivier Street, St Julian’s t. 2137 8520

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WELCOME

MONEY THE DESIGN ISSUE

That is not to say that nothing has changed in the past

Entrepreneurship is thriving and people are willing to

century. What is different is the pace at which new

follow their dreams. And if the banks have limited appetite

technologies and approaches are adapted. A New York

for those with no track record, there are hundreds of

Times reporter once calculated that it took literally decades

crowdfunders who love to feel that they can own a little

for half of households to install a telephone, whereas it took

part of the future.

less than five years for half of households to get a mobile phone.

And if working from home on a laptop does not give you a high-street presence, social media gives an audience far

Sceptical households were not at all convinced by electricity

larger and far more tuned in.

and a study by the Massachusetts Institute of Technology showed that it took a whole 30 years for electricity to be

And success is no longer the only acceptable outcome:

installed in 10 per cent of households, but less than five

projects may fail but that no longer automatically labels

years for tablets to reach that milestone.

their supporters as failures.

In this new landscape, the pressure to do things differently,

Never has there been a greater time to have

to stand out from the crowd, is higher than ever. And even

an idea…

Creativity is defined as ‘the use of imagination or original

getting there is not a destination but a point along the

ideas to create something’, but perhaps we sometimes do

way. If in the past it took so much longer for new-fangled

not fully appreciate how extensive that ‘something’ can be.

gadgets to be adopted, then now it takes only a moment of

And what it really represents is even more interesting when

complacency to be overtaken by something slightly edgier.

you consider how much of that creativity is nowadays called ‘disruptive’ as it turns the existing market on its head.

Thankfully, the Maltese are good at this – or at least they

Cover Credits

are now. In the past, teenagers were herded into traditional Of course, buzz words give the impression that this is

careers, from the professions, to the dockyards to the civil

all something new. The reality is that driverless cars will

service, where stability was far more prized than risk.

disrupt the car powered by fossil fuel in just as dramatic a

Now, the economy is booming and there is a tremendous

way as fossil-fuelled cars disrupted the horse and cart.

uplifting sense that anything is possible.

(18)

And just as horses were initially replaced by men waving

COVER STORY

flags as they escorted the first cars past gaping pedestrians,

Enroute to Growth

so the first driverless cars will go through a phase of adjustment.

Interview with Emmanouil Kalamaras

Contents (6)

INTERVIEW

Painting Culture Green

(10)

Veronica Stivala

(26)

SURVEY

Looking backwards to get ahead

INTERVIEW

Catherine Tabone

(12)

Valletta 2018

(30)

FINANCE

What's in Scicluna's bag?

EY explains

PROJECT

Construction works through the roof

(14)

Gold Lion Construction

(34)

MAN OF THE HOUR

Charting the right course

DESIGN

It all started with a cup

(20)

Te fit-Tazza

(50)

Meet Igor Rytov

PHOTOGRAPHY

Man for All Seasons

OPINION

Perfect Storm

Manuel Delia

(56)

Tonio Lombardi

LAST WORD

Sex & Drugs & Rock'n'Roll The Bluesman

Simon Barberi Credits Editor: Anthony P. Bernard anthony@moneymag.me

Design: Bloom bloomcreative.com.mt

Printing: Print It printit.com.mt

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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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PAINTING CULTURE GREEN The environmental challenges we are facing have never been greater or more complex.

What role should the creative industries be playing and what is being done in Malta, asks Veronica Stivala.

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“Now is no time to back down. Now is the time to step up and forge ahead."

The environmental challenges the world faces have never been greater or more complex.

And never before have we lived in such an uncertain political climate. Speaking about the biggest environmental challenges of 2017, Mark Tercek, CEO and president of the Nature Conservancy made these poignant statements.

“Now is no time to back down. Now is the time to step up and forge ahead,” he asserted.

What emerged from the Nature Conservancy’s analysis was a set of key challenges facing people and nature that we must address to achieve that vision, namely to address climate change once and for all, to increase food production and to help cities grow sustainably.

To one degree or another, everyone one of us has a role to play in what is essentially saving the very planet we live in, for ourselves, and for our children. The question of what role the creative industries have to play in this is an intriguing, perhaps even contradictory one.

Should art have a use, should it be used for propaganda?

Veronica is a freelance writer and editor. She won the IGM Award for her work on Ethical and Positive Disability in 2016.

Curators and historians Maja and Reuben Fowkes, who deal in their work with ecology, memory, and translocal exchange, argue against this: “We do not envisage art to have utility. As soon as art is seen in this way, it is connected to the art market and we’re back into the capitalist, market-driven, growth model of production. If the utility of art is understood as a vehicle for advocating social changes or raising environmental consciousness we come to the problem of art as propaganda, which can also be counterproductive, as it undermines the subversive potential of artistic autonomy.”

So, they say, “artists genuinely interested in sustainability will increasingly have to define themselves in relation to the problem of greenwash within society and also in the

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art scene, a phenomenon which is on the increase as the system seeks to appropriate the ecological critique for its own purposes”.

Examples of artists who have interesting projects in this respect include Austrian artist Oliver Ressler, such as his film What would it mean to win? (2008), Heath Bunting from Bristol’s work in genetic art, sport art and general autonomous attitude who connects with sustainability in many ways, and Hungarian artist Beata Veszely’s work on horse archery and exploration of the figure of the artist in the landscape, which says a lot about the social and psychological dimensions of sustainability.

And what is being done by artists in Malta?

While I did find some projects, sadly it was difficult to find too many, clearly a sign that more needs to be done. Next year, Malta will welcome Solar Cinema Malta, a solar-powered mobile cinema, and last October, Ethico, an ethical, fair-trade shop opened. I spoke to the people behind these initiatives to learn more about their work, as well as to hear their views on the way forward to a very timely issue.

> Let the sunshine in.

Next year, Malta will welcome Solar Cinema Malta, a solar powered mobile cinema that brings unseen films to unusual places. The Valletta 2018 project will see this portable cinema, powered entirely by solar energy, pop up on beaches, squares and other public areas. The objective of this project is to raise awareness and stress the importance of switching to renewable energies.

Between May and October 2018, there will be 24 outdoor screenings and stopmotionworkshops for children. Screenings will be in collaboration with major festivals, but also with local communities, taking film to places where people normally don’t have access.

“We will be bringing film to the people,

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reaching out to an inclusive and broad audience of all ages across the islands,” explained Cathleen Tanti, festival programmer and producer.

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While the aims are indeed optimistic, one has to admit that sadly Malta is not exactly known to be environmentally conscious. The organisers believe that a feeling of awareness can blossom if one feels inspired – rather than being preached to. This is why we believe in the power of film, notes Tanti.

“Film can be inspiring and tell amazing stories. The fact that the Solar Cinema is running on solar energy is in itself and ‘inspiring example’ of how solar energy can work. Sunlight is literally converted into projector light which makes it possible to screen a film on the big screen.”

The project has already visited Malta in 2012, which has since seen an increase of solar panels on roofs. “For us this means a big improvement!” comments an enthusiastic Tanti.

Speaking about their projects in further detail she notes how they hope to evoke discussions and like to talk with our audiences about how solar energy is working for us.

“We have a collection of inspiring nonmoralistic short ‘green’ films embedded in our programme and we are hoping to team up with entities that are environmentally conscious.

(1) Ethico: In-store

“The Valletta 2018 project will see this portable cinema, powered entirely by solar energy, pop up on beaches, squares and other public areas."

(2) Ethico

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“Our children’s stopmotion workshops are based on making animations with recyclable materials and so in a fun way we hope to embed a little awareness. We believe in ‘less is more’ and promote our screenings as ‘picnic’ film events. People bring their own chairs, picnics, and clean up their own mess.”

All screenings are free.

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(3) Solar Cinema Malta: Coming May 2018!

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“We cannot fix the problems with the same minds that created them. We need fresh ideas."

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(4) Just Trade: Jewellery

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> Money can grow on trees Social entrepreneur Mark Gilson believes in transforming problems into sustainable social start-ups, thereby making money while doing something good and helping to meet the Sustainable Development Goals.

He has facilitated a number of such start-ups, such as Ethico. In October 2017, this new ethical, fair-trade accessories shop opened in Valletta. Gilson explains: “We connected the person who had the idea with Albert Debono, who has had experience in running a fairtrade shop successfully for four years now.

Through his contacts with BAFTS (British Association for Fair Trade Shops) and a project from SKOP (the local platform for development NGOs), they went to London to meet the designers. While there, they chose brands that would fit their ideals and values.

Two examples of these are Just Trade jewellery and Paper High.”

Just Trade jewellery are London-based jewellery designers who send their designs and training to projects in Peru, India and Ecuador.

Paper High produces bags with local artisans from India, Sri Lanka and Nepal, using upcycled leather from garment industries.

Ethico, through its values and decision to retail fair-trade brands, is helping to reach a number of goals as it takes into consideration the social, economic and environmental side of sustainability.

> The way forward

(5) Paper High: Leather Goods

Speaking about the way forward, Gilson admits Malta has a long way to go in order to become significantly more sustainable.

However, he says, the most important thing at this stage is to continue raising awareness

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on the importance of sustainability practices and to keep in mind that every small step counts.

He stresses that “everybody can contribute to a more sustainable Malta, be it creative or not”. Gilson encourages local companies to look at their business model and consider how it has an impact on the environment.

“They can start by identifying and defining aspects of their business activity that are potentially having a negative impact. With the use of tools like lifecycle analysis, they can then act on these, making them more sustainable. In many cases this can produce long-term economic advantages,” he comments.

Speaking for media and creative companies, he notes that “we can help by producing content to raise awareness on sustainability issues and good practice. We can carefully select our suppliers based on their sustainability policies, such as minimising excess printing and waste, using recycled material, choosing sustainable venues/ buildings and sourcing locally where possible.”

There are many ways to become more sustainable and these are just a few classic examples.

Gilson is keen to give more voice and credit to the younger generations and their creative ideas. A good example is Boyan Slat who, at age 16, came up with a solution to clean our oceans of plastic. This has grown into a major project called The Ocean Cleanup.

His closing remark serves as an apt conclusion to this article, and a pressing prelude for the way forward: “We cannot fix the problems with the same minds that created them. We need fresh ideas.” (M)

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Raising the cultural bar.

— Valletta will be under the spotlight in 2018 as the European Capital of Culture.

Catherine Tabone, the executive director of the Valletta 2018 Foundation, shares her excitement with Giselle Borg Olivier.

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What investments are being made for the programme to create long-lasting value for the artistic community?

The Valletta 2018 Foundation has always been fully committed to providing opportunities and spaces that enable our creatives to express themselves to the fullest, even beyond 2018.

Legacy is not just a buzz word but a guiding principle for us. Building knowledge, capacity, infrastructure and internationalisation were vital ingredients of our strategy for 2018 and for the future.

The cultural programme is, in fact, designed to have a significant and long-lasting effect on Valletta’s cultural vibrancy. It aims to strengthen networks, open up possibilities for new collaborations, encourage new work to flourish, and raise the capacity and ambition of the cultural sector.

A staggering €40 million has been invested in the run up to the event to prepare our creatives to meet the European Capital of Culture challenge and equip them for the years ahead.

Giselle is a freelance writer, proofreader and social media marketer who lives on Instagram and cappuccino. Runs Content for Success.

Will the programme be limited to 2018 or is the intention for it to be extended?

Valletta 2018 has invested strongly in a programme that sees the involvement of around 1,000 local and international artists, curators, artist collectives, performers, workshop leaders, writers, designers, musicians and film-makers.

While a number of international artists are collaborating with locals throughout the 2018 programme, Maltese artists are travelling to our twin European Capital of Culture Leeuwarden in the Netherlands as well as other cities in Cyprus, Poland, Greece and Japan.

The 2018 programme is based on a direct investment of €10 million in the cultural sector. At the centre of the 2018 programme

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Catherine Tabone

“ With over 400 events in store, the European Capital of Culture year holds something for everybody" are several infrastructure projects designed to evolve and expand well beyond next year; among these are MUŻA, the Valletta Design Cluster, Is-Suq tal-Belt and Strait Street. It's the year 2028; what remains from Valletta 2018?

Our vision has always been to act as a catalyst and provide opportunities for economic and cultural transformation. A huge effort was undertaken by the foundation to analyse and understand the needs of our society and of the Valletta community. The realm of human ‘experience’ has always been our priority.

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"A huge effort was undertaken by the foundation to analyse and understand the needs of our society and of the Valletta community."

Social justice and economic growth need to go hand in hand. The terms ‘quality of life’, ‘well-being’, ‘urban renaissance’, ‘liveability’ became central concepts which animated our discourse and helped us shape our policies.

We have worked with purpose and hope to improve the socio-cultural development of everyone.

People require cities to be more connected, accessible, vibrant, safe, clean, sustainable and resilient. We believe that our city needs to be re-imagined in a way to make active, engaging street-life inevitable. We always felt that we must do everything to encourage connections which urge people to congregate, co-operate and work for the common good.

The foundation, under the chairmanship of Jason Micallef, has worked hard to prepare Valletta for success in the 21st century. In 2028, I hope we would have helped transform our magnificent capital into a more equitable, welcoming and lively city. What is Valletta 2018 going to offer that stands out from the usual cultural programme that Malta offers?

2018 is a great opportunity for us all, as a nation, to celebrate our identity, our rich heritage and our future aspirations. We want to share our story with the world. This title has added vigour to the government’s will to give culture the importance it merits; culture is what makes a country richer and stronger – it is our strongest resource.

The foundation has worked hard to ensure that the arts are not accessible solely to the few

but that they are democratised and inclusive, giving everybody the possibility to develop their creativity and to expand their horizons.

We have, therefore, created a strong cultural program that invites people to become cocreators and active participants. Was the programme designed with locals in mind, or is it geared towards attracting an international audience?

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opportunities. One of the former was to engage with a programme that was already set and defined before my arrival. With the assistance of a highly-competent and committed team, however, weaknesses are regularly transformed into points of strength and achievements.

The publication of our muchanticipated Cultural Programme last September can certainly be classified

Our programme encourages participation and co-creation at a grass roots level, wherein creatives, cultural practitioners, residents and visitors can engage with important issues in diverse and accessible ways. It is a contemporary take on the traditional Maltese ‘festa’ that hopes to unlock everyone’s imagination!

as one of my proudest moments in

preparation for Valletta 2018. (M)

With over 400 events in store, the European Capital of Culture year holds something for everybody: from participatory events and initiatives, festivals in the city, community workshops, interactive exhibitions, platforms designed to support creative production and debate, extra-curricular programmes and cultural initiatives for young people, community workshops, creative residencies within the Euro-Mediterranean region, and a whole spectrum of innovative events based in film, music, theatre and opera, lectures and panels hosting some of the world’s foremost thinkers and much more. What has been your proudest moment to date? And your lowest point?

As the foundation’s executive director, I have the opportunity to be at the helm of the organisation with the most exciting remit in Malta! The European Capital of Culture experience is remarkable, and I am glad my work can contribute directly towards making Valletta and Malta take centre stage in 2018.

Throughout my tenure at the foundation, I have encountered both challenges and

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Construction works through the roof ?

Gold Lion Construction were faced with head-scratching problems at its latest project in Xemxija.

Malta is currently going through a major property development phase and due to the increased number of construction projects taking place on the island, challenging tasks can surface. Architects and engineers are known for being solution-oriented so a unique construction site is the ultimate test of their skills.

Currently there is a property development project in Xemxija, lead by Gold Lion Construction, which started in May. It turned out to be unique from the day construction works started. How did a piling machine end up on the roof? There is a solution to every challenge.

The project is being built on clay which wasn’t solid enough to construct a seven-floor building safely. Therefore, piling needed to be drilled 19 metres into the ground to create a more solid foundation for the property.

Due to the site conditions, a piling machine had to be lifted to the roof of the building to place the piles via the rooftop to ensure that the available space was efficiently utilised while keeping safety as a priority.

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Well-organised teamwork was required to implement the plans: Vassallo Group carried out the design and installation of the support structure, Terracore Ltd took responsibility for the piling works and the entire process was monitored by Perit Ivan Muscat.

Construction works will be completed in summer 2018 and this Gold Lion property development project will have seven floors with five units of two-bedroom properties.

All of the units will enjoy amazing sea views and balconies or terraces. According to the plans, on the top level there will be a stunning duplex penthouse with two bedrooms and two bathrooms plus a large sea-facing terrace, an additional three other two-bedroom apartments on each floor and a duplex maisonette with a backyard and balcony with sea view.

Xemxija is quickly becoming a popular holiday resort among many tourists visiting Malta as it is situated only a few minutes between the popular beaches of Mellieha and Bugibba. The finished properties will be a fabulous rental investment opportunity as well, due to

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the location and the professional available packages Gold Lion Holding can offer to buyers. (M)

Find more information about this project at www.glmalta.com Call Patrik Tarcza on +35679350177 or e-mail at patrik.tarcza@glmalta.com for further details.

㄀㄀㌀Ⰰ 倀愀漀氀愀 刀漀愀搀Ⰰ 吀愀爀砀椀攀渀Ⰰ 吀堀一 ㄀㠀 㜀Ⰰ 䴀愀氀琀愀 ⬀㌀㔀㘀 ㈀㄀ 㘀㘀㄀ ㈀㜀㌀ 椀渀昀漀䀀攀爀爀攀洀洀攀⸀挀漀洀⸀洀琀

DESIGN

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It started with a cup of tea — Well, not a cup really but a glass.

Instantly recognisable as Malta, it inspired Craig Macdonald and Andrew Farrugia to think about the elements of Malta. They explained to MONEY how that grew into Te fit-Tazza.

(1) P. (Ir-Riviera 14) MONEY

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“The concept was to create minimalist illustrations

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that would look good in the home while presenting our beautiful islands in a light that accentuated both island life and the islands’ aesthetics.”

(2) Founders: (L) Andrew Farrugia and (R) Craig Macdonald

 When you started out, what did you have in mind?

The concept was to create minimalist illustrations that would look good in the home while presenting our beautiful islands in a light that accentuated both island life and the islands’ aesthetics.  It took you over a year to get from concept to prints. Why? When starting out the project, a lot of time was spent on deciding the subject matter, refining the style and sourcing our partners.

Refining the style was a large part of the process; we really wanted to launch with two collections that would catch the eye, due to their simplicity but also for the emotions that they evoked in the viewer.

Because we didn’t really have a set of rules or guidelines, a lot of the time was spent understanding how different subjects require different styles, which approach worked for different subjects, and which details could afford to be omitted while still retaining the integrity and visual qualities of the subject.  All of a sudden, you are everywhere:

on the temporary hoarding at the airport, on website, in magazines. What is the secret of your success?

is only available from our online shop, doing pop-up shows and exhibitions is a great way to meet and interact with our community.

We value the way we do things at Te fit-Tazza and every step of the way we stay true to our process. This seems to be well received by our community, which in return values our work and motivates us to keep going.

 There are so many iconic images of Malta. How do you decide which to work with?

 What were the biggest obstacles: Finance? Suppliers? Retail distribution?

Finding the right people to work with is always tricky. We looked for people who have a passion for their craft. This is reflected through the quality of our printing, packaging and framing, all steps of the process that are in the hands of the best people we could source, both locally and internationally.

 You have taken part in various exhibitions and pop-up shows. How do you find the time, especially since this is not yet a full-time endeavour?

Both Andrew and myself work freelance; this allows us to make time for the things we are passionate about, Te fit-Tazza being a major passion at the moment. As we do not currently have a physical shop and our work

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When starting a new collection, we start off by deciding what the purpose of the work is going to be. This way we ensure that whatever we discuss is always orbiting around one single message. This was most apparent in the Clubs Series as it is such a particular subject.

Once we have decided on a message, it is mostly about the significance of certain subjects with relation to that message... be it a personal memory, a collective memory or simply an item or place that is typically Maltese.

The aesthetic quality of the subjects is also a major part of the process as while some subjects have an amazing back story, they just aren’t that visually enticing.

You seem to be going towards groups of images, like the Clubs Series.

What is next? ( CONTINUED )

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We have just released our “Colours of Malta” collection. The collection contains seven prints of iconic places in Malta that we associate with the natural colour palette of our Maltese islands.

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Be it the sunset at Riviera or the crystal clear sea of the Blue Lagoon,we aimed to show each place in its best light or colour.

Our next release is our “Series 2” collection: although it is ready and being printed, we will not reveal too much about its contents, but we will let you in on the fact that we will be launching it at our exhibition at Splendid in Strait Street, Valletta on December 11.  Are you planning to use the images on different products, like T-shirts etc?

The last two years have been an interesting adventure and an important learning experience. As Te fit-Tazza evolves, new opportunities will come along. We will make sure to follow our internal process and move forward with what feels right for the brand.

 Where do you see yourselves in five years?

This year we were very lucky to have had the opportunity to work with some amazing creatives. We want to continue discovering new opportunities for Te fit-Tazza to create new products.The thing that makes us tick is creating work and products that are meaningful. This is something that both of us feel very strongly about.

(3) Wied id-Dis

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(4) Ta' Cenc

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(5) Il-Qampiena

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Looking back at the new prints we released this year and the amazing creatives we had to the opportunity to work with, we can safely say the next couple of years look as exciting as the first ones. (M) (6) Il-Gardjola

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(7) Ic-Cittadella

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Enroute to growth AST Group p.l.c. has opted for Prospects MTF, a market regulated as an MTF and operated by the Malta Stock Exchange, to finance its growth.

MONEY finds out more.

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The AST Group is planning to expand its animal feed operations and to do so, it requires financing. Although various sources of funding are available, its Chief Executive Officer Emmanouil Kalamaras, has opted for Prospects MTF, a market regulated as an MTF and operated by the Malta Stock Exchange which is specifically aimed at small and medium enterprises who wish to raise less than €5 million.

The AST Group is issuing a €2 million bond in order to acquire a multipurpose vessel which will serve as the group’s fully-owned distribution channel. Such set up will allow the AST Group to vertically integrate its animal feed operations into the logistics sector and provide value-added services to its clients.

The AST Group was founded in 2011 by Emmanouil Kalamaras, the Group’s Chief Executive Officer whereby it commenced trading in animal feed products to different European markets. Under his leadership, the

AST Group is raising finance for the acquisition of a similar vessel.

Emmanouil Kalamaras

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AST Group registered year-on- year growth and now has branches in Greece, Cyprus, Hungary, Spain, France and as well as Malta.

Mr. Kalamaras first came to Malta in 2013 and immediately saw Malta’s potential at the centre of the AST Group’s geographical range of markets and potential logistics hub for his operation.

“I realised that Malta would be the ideal logistics centre for the storage of animal feed products and for their distribution to markets around the Mediterranean and in mainland Europe.”

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"As an EU member state, Malta is the ideal logistics centre for the storage of animal feed products given that it is strategically positioned in relatively close proximity to the key existing markets and to other markets where the company intends to expand in the near future across the Mediterranean region and mainland Europe,” said Mr Kalamaras.

Prior to founding the AST Group, Mr. Kalamaras spent over 10 years as president and manager of a shipping company, which handled a fleet of bulkers, reefers and multipurpose vessels. He is now heavily involved in the day-to-day operations of the AST Group.

As the holding company of AST Group, AST Group p.l.c. holds a 100% shareholding in AST Shipping Limited, Damask Shipping Management Company Limited and Damask Investment Limited. AST Group p.l.c. is managed by a board of three non-executive directors, consisting of Mr. Giuseppe Muscat who was appointed as non-executive director and chairman, while Mr. William Wait and Dr. Luca Vella were appointed as independent non-executive directors.

The principal animal feed products which are traded by the AST Group are roasted guar meal korma, fish meal, Distiller’s Dried Grains and Soluble (DDGS) and HiPro Sunflower meal, sourced from suppliers in India, Morocco, Hungary and Bulgaria respectively.

To date, the AST Group has distributed the animal feed either by land in containers or by sea through chartering of third party vessels.

The volume of stock held by the AST Group is minimal, given that sourcing only takes place after a contracted sales order. AST Group now aims to complement the animal feed operation by setting up a shipping operation and logistics centre in Malta for the storage of animal feed products and distribution into markets around the Mediterranean and in mainland Europe. The logistics centre will be

situated close to the Malta Freeport Terminals, from where it will use its Maltese licence to operate as a feed store and to import animal feed in accordance with European regulation.

The warehouse will serve as a transhipment hub for re-export to other European and Mediterranean markets. Such set up will allow the AST Group to branch out into numerous growth areas, particularly in relation to fish meal given that it is a seasonal product traded mostly in the summer months. As a result it requires high levels of inventory to ensure the continuity of supply and to expand the sales pipeline.

I N T E RV I EW

Apart from its strategic location and strong transshipment ecosystem, there were a number of other factors which made it the ideal choice, he said, including its probusiness approach, the different options for raising capital, and its established list of support professionals, from lawyers to corporate service providers.

“And of course, it has a reputable shipping registry – very useful when you are buying a ship,” he smiled. (M)

The acquisition of the vessel was the natural step after this as it will further contribute towards vertical integration of the AST group’s operations and create a robust supply chain.

“We already had a well-established sourcing team which ensured that we were buying supplies at competitive pricing, and we had strong sales teams in the offices in our target markets. Clearly the best way to build up those two ends of the business was to focus on the link between the two, firstly with warehousing in an EU jurisdiction close to our main markets, and then by have our own vessel on which to rely,” Mr. Kalamaras told MONEY. “This business plan will lead to an increase in volumes of animal feed sold and improving occupancy levels on the multipurpose vessel to be acquired, as well as enhancing the group’s overall performance through higher margins.

“The Group envisages that the animal feed business will be further developed by introducing new products, cross-selling of its existing product lines, as well as expanding its distribution services from its hub in Malta into new territories throughout Europe,” he revealed.

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OPINION

MONEY THE DESIGN ISSUE

Perfect Storm “The ‘there’s nothing to

— Manuel Delia argues that burying our head in the sand could turn out to be very dangerous indeed.

see here, move along ’ line of government struck a note of callousness, emotional bankruptcy and the eminently reasonable suspicion that a sinister cover up was underway.”

Just last April 23, the Malta Employers’ Association succinctly described the state of the country as a “national crisis”. It referred to published evidence of corruption at the very top of government in Malta and the complete inaction of the state’s institution when confronted by it.

Manuel worked for several years in Maltese politics including as press secretary to then prime minister Eddie Fenech Adami and chief of staff for senior government ministers in PN administrations.

He is a graduate of the London School Economics and currently works in the software industry.

The state of affairs was deemed intolerable by the employers both on grounds of principle and on grounds of consequence, particularly on economic activity – about which employers know a thing or two.

Seven days after that statement the prime minister called a general election answering a question that was not being asked. The issue was not government stability. There was no governability crisis in early 2017.

The government enjoyed an unassailable parliamentary majority and there clearly were no handcuffs being clicked around the wrists of the powerful.

The ‘national crisis’ was a product of the failure of institutions that are not hired and fired by an election. Calling an election was in itself evidence of the grossness of the wilful misunderstanding that all power and all responsibility reside with elections.

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The legislature is chosen periodically by popular will. But Malta is not just a democracy. It is also a republic. We have rules that go beyond the choice of who governs.

There are rules that limit the governors in order to protect the governed, even if they belong to a minority of one. We call them fundamental human rights because they are irreducable even if only a single person is concerned.

The simple reality is that here we are, nine months after that dramatic statement by the community of Maltese employers and apart from their vociferousness, nothing has changed.

The evidence published last April remains unverified and uninvestigated. Those on whom evidence of wrongdoing was published remain firmly in office and, if anything, their smugness has got worse, not better. The police and the prosecutor remain just as aloof as they’ve ever been.

And the risk of economic consequence remains just as stark...

THE DESIGN ISSUE MONEY

The assassination of Daphne Caruana Galizia in mid-October has, apart from grief and horrific loss, caused the world’s attention on the goings on in Malta to be amplified and precipitated. A journalist is bombed in a western democracy. Expect her colleagues from the entire world to fly in and find out why.

They had two answers. One was the answer the Malta Employers’ Association had given already last April. A moral, ethical, institutional and political crisis is occurring in Malta and no one with the power to change that fact seems inclined to even try. When the rest of the world sees political resignations over trivia, the present breakdown is treated with contempt and disdain by a political class supremely confident in its own survival.

The alternative answer came from just those supremely confident members of the political class. Starting with the prime minister, the official story was that this place is great and it’s all business as usual. A loyal Maltese audience enthusiastically followed the government’s instructions and turned the page, drugged by the picture postcard image of a paradise in the best of times.

But the world-wide press did not buy that all too readily. On the contrary the ‘there’s nothing to see here, move along’ line of government struck a note of callousness, emotional bankruptcy and the eminently reasonable suspicion that a sinister cover up was underway.

“Criminals will not need politicians in their pockets to bypass emaciated, shrivelled and ineffective institutions reduced to a ghostly image of their former selves. ” They went back home and reported on Malta in the middle of a journalistic perfect storm compounded by the publication of the Paradise Papers by the ICIJ. Compared with the dens of fiscal iniquity like the Bahamas or the Cook Islands, Malta is objectively a centre of service provision for legitimate business activities. No doubt other countries with revenue pressures deeper than ours resent the flow of revenue from their economies to ours. No doubt it can be argued this is unfair and it is clear that this will have to be re-examined over time.

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OPINION

But Malta’s laws do not allow for tax evaders to hide their money. Malta’s laws do not make this country a pirate bay for arms traffickers, slavers, funders of terrorism, criminal organisations and evil dictatorships to hide their money. That keeps coming up in theoretical reviews of the state of play in Malta.

But scratch that surface and you realise that laws on paper do not slam the jail gates on those who break them; you realise that the concentrated power in the hands of corrupt politicians allows them to prevent the enforcement of the law to serve their ends.

In that context, criminals with politicians and bureaucrats in their pay are allowed to penetrate the cover of the country’s financial system and layer their illicit gains to hide it from the view of law enforcement agencies of countries the money is being stolen from.

What’s just as bad is that criminals who follow will not need politicians in their pockets to bypass emaciated, shrivelled and ineffective institutions reduced to a ghostly image of their former selves. ( C O NTINUED )

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OPINION

MONEY THE DESIGN ISSUE

The pursuit of more and more and more gaming activity in Malta has opened the door to the laundering of millions of euro from the organised clans of Calabria, Campania and Sicily. That has cast a shadow over the entire gaming industry.

It has forced regulators all over Europe to start rethinking their licensing regimes to prevent contamination from Malta’s porous quarantine system. It has forced gaming business owners to start rethinking their expansion strategies and finding new balances between their business ambitions and efficiently meeting their compliance requirements.

taking blood money from, no one is made to assume responsibility.

The pursuit of more and more and more financial services clients has left the doors of money laundering and tax evasion largely unchecked, unsupervised and, when uncovered through the work of the press, let off with a gentle warning.

This is the perfect storm we are rolling in.

Waves are crashing about us. And in the meantime the captain and the senior crew are blissfully drinking to each other’s health in their mess, confident that they are riding on an unsinkable ship chugging along on auto-pilot.

Considering the flowing billions that move around us and through us: it is only logical to believe we barely know the tip of the iceberg.

We still don’t know who passports are being sold to. But we do know the law empowers government to grant passports to criminals and terrorists if it wants to. It is written there so that if we do ever find out who we’ve been

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As intermediaries report a dwindling flow in the pipeline of crisp white clients, the pressures to keep up the invoicing flow that sustains such a large and well-paid employee base is already forcing mid-scale agents to be less zealous when conducting due diligence.

As they do this, every payment made out of Malta is treated with prima facie suspicion, subjected to extra checks by overseas regulations indifferent to time sensitivities of the flow of business.

Nothing has changed since the beginning of 2017. And yet, all around us, it seems like nothing will be the same again. (M)

Manuel Delia is an independent blogger writing on manueldelia.com

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PROVIDING A

Safe working environment

IS OUR BUSINESS

#BeYourOwnHero Firetech Limited, 99 Mill Street, Qormi, Malta, QRM 3100

e info@firetech.com.mt w firetech.com.mt t +3562278 5200

Turning new regulations into added value — In his capacity as an independent non-executive director of MeDirect, formerly Mediterranean Bank, John Zarb chairs the Internal Audit Committee.

He explains to Sandy Calleja Portelli how the bank views the challenges associated with regulation as aids to business growth.

As the recently appointed chairman of MeDirect’s Internal Audit Committee, John Zarb is bringing his extensive experience as an auditor and consultant to bear “on the other side of the fence” as his committee is responsible for the oversight of the bank’s internal controls and liaising with the bank’s auditors.

Since being categorised as a systemically important bank by the ECB, MeDirect has come under the direct supervision of a Joint Supervisory Team (JST), a fact which the bank’s management team views as being a ‘challenging benefit’.

“After the financial crisis of 2008, especially given that many banks required financial assistance overseas, politicians across Europe realised that this could never be allowed to happen again. In order to safeguard the interests of depositors who are ultimately trusting banks with their wealth, the ECB has introduced a plethora of new bank regulations including the requirement that banks considered to be systemically important fall under the direct supervision of the ECB, in addition to being regulated by the local banking authorities.

PROMO

THE DESIGN ISSUE MONEY

“Although MeDirect is the third largest bank in Malta, we’re a relatively small bank in the international market in which we operate and the added regulatory requirements stemming from falling under ECB supervision gives rise to an extraordinary amount of supervisory effort coming our way. Ultimately, the vast majority of information we are required to provide to the regulator is also useful to the bank and rather than viewing regulation as a burden, we choose to focus on how the production of that information can be useful to us.

“Ultimately the information requested is about our own business, how we have stress-tested our business model, and how we’ve planned for various contingencies. So in all cases we are looking closely into our own processes - which we would have done anyway, but the fact that our controls are also regulated by the JST signifies a certain added seriousness in the scrutiny which this bank is subject to. Since MeDirect also owns an online bank in Belgium, MeDirect Belgium, the JST includes regulators from the MFSA, the National Bank of Belgium and the ECB and while this does not mean that regulation would be any weaker without the involvement of the ECB, the ECB’s involvement lends an extra level of credibility to the rigour of the supervision which the bank is subject to.”

“One of the side benefits of ECB supervision is the inclusion of the two national regulators we work with as it ensures that we avoid duplication of regulatory requirements.

We are acutely conscious of our responsibilities with regards to MeDirect in Belgium, which is an entity in its own right with its own board and audit committee.

When managing the affairs of the bank in Malta we keep our responsibilities to our Belgian subsidiary firmly in mind, ensuring we are covering our subsidiary in Belgium as thoroughly as we are covering our own operations in Malta .

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“The vast majority of information we are required to provide to the regulator is also useful to the bank and rather than viewing regulation as a burden, we choose to focus on how the production of that information can be useful to us"

(Above) Mr. John Zarb “In order to ensure we comply with our regulatory responsibilities in both Belgium and Malta, we have aligned many of our functions, including our internal audit processes, and the two banks work very closely together.

We have commonality on our boards with our chairman and managing directors also sitting on the board of MeDirect Belgium which ensures that there is a great deal of communication and collaboration between the two banks leading to increased strength and synergy.” (M)

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S U RV EY

MONEY THE DESIGN ISSUE

LOOKING BACKWARDS TO GET AHEAD EY’s annual Attractiveness Survey is a chance to establish where Malta stands, and offers a unique opportunity to pick up historic trends, which set the agenda for tomorrow. Simon Barberi explains what this year’s survey – and the conference at which they were presented – taught us.

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S U RV EY

THE DESIGN ISSUE MONEY

“Disruptive innovation is as old as the wheel and mankind has always benefitted from the adoption of technology.”

Artificial intelligence (AI), automation, the Internet of Things (IoT) and blockchain — these are some of the disruptive technologies changing the world as we know it. They are reducing market friction and inefficiencies, driving huge productivity gains and building in added layers of trust and accountability.

During EY’s annual attractiveness event, entitled “Thinking without the box”, the topechelons of the Maltese public and private sectors, together with a host of international investors, gathered under one roof to discuss the future of Malta in the digital age.

Simon is director EU Advisory Services at EY Malta.

Malta’s economy has gone from strength to strength in recent years. But this in no way means that the island can start resting on its laurels. The disruptions now looming on the horizon – blockchain-based contracts, driverless cars, medical algorithms and more – will strain existing paradigms even further.

None of this should be seen as a threat to Malta’s economy. In fact, there’s already a lot happening that should point to myriad opportunities opening up.

EY’s day-long event, which featured over 80 speakers and had 900 participants, touched on all this and more. By creating a forum for blue sky thinking and discussion, many attendees tried to generate answers to long-standing issues here in Malta. Here are some of the key takeaways from the day:

1. Technology can help us do more with less.

solve complex problems that may not have been solvable through human intervention alone; and to enable companies, big and small, to increase efficiencies and reduce costs across back- and front-office operations and in functions such as finance, HR, supply chain, IT, and sales and marketing through automating simple, high-volume, low-value tasks. This was a key focal point of the conference, showcased in a presentation led

by Keith Strier, EY’s global digital tech and Americas AI leader.

Malta is currently facing a growing HR challenge. The economy will need almost 12,500 new workers next year but 2,000 vacancies will not be filled, meaning that the economy could be losing €60 million, head of JobsPlus Clyde Caruana warned.

Although there is a worldwide concern that robots will destroy jobs, artificial intelligence may actually be a blessing for Malta. With labour in short supply, these new technologies may enable workers’ throughput and output to be increased, allowing companies to expand even if they can’t find all the workers they need. While some job roles may become redundant over the next 10 years, other new value-added roles will be created instead of them.

Malta therefore needs to start thinking about how life-long training can be introduced to re-skill some of its workforce for tomorrow’s needs. The education sector needs to start preparing now, as traditional education offerings could fail to meet tomorrow’s business requirements. New jobs will require better soft skills, and a high-level of problem solving, critical thinking, creativity and databased decision-making skills.

2. Business leaders and

Intelligent Automation is the combination of artificial intelligence and automation. Its impact is wide-ranging – to create new types of products such as autonomous vehicles; ISSUE (46)

policy-makers are embracing disruption but need to act fast.

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S U RV EY

MONEY THE DESIGN ISSUE

Data is widely regarded as the ‘new oil’.

Nevertheless, current studies demonstrate that today companies only use 15-20% of the data at their disposal. This fact highlighted the vast untapped potential, a potential which emerging disruptive technologies such as advanced data analytics should finally unlock.

Companies need to learn to embrace disruption fast and take a forward-looking approach when considering alliances and acquisitions. Blockbuster's CEO once passed up a chance to buy Netflix (a DVD mailing business at the time) for only $50 million back in 2000. It is now worth over $60 billion.

3. More experimentation is needed The event theme said it all – thinking without the box – highlighting how we so often allow the status-quo to box us in and conceal different ways of looking at things. Innovation requires us to step outside the comfort zone, whether it’s tackling the seemingly never- ending traffic issue, upgrading our infrastructure or adopting cutting-edge technology on a nation-wide scale. One thing is clear: the solutions will not be run of the mill.

When EY’s global blockchain leader Paul Brody asked participants to vote on whether they were experimenting with technology even in their own private lives, relatively few hands went up. The message was clear: experimentation needs to be ingrained into the public’s psyche in order to permeate the businesses we lead.

There was also general consensus that Malta should focus on niche areas in which it can shine. Being a small country, Malta can focus its resources and develop valueadding industries, while in FinTech and other specialised fields it can be a test-bed for new disruptive technologies. Only by truly specialising can we become leaders on a global scale.

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4. Projecting the right image Business leaders on a panel emphasised that Malta’s reputation was key to attracting business and sustaining it in the long-term.

They acknowledged that while it can take decades to build a strong reputation, it can be lost in an instant. Malta’s tourism image has been successful as proven by the numbers of visitors that come to Malta, but more needed to be done from a business perspective. Efforts need to be increased to brand Malta as a futuristic, forwardlooking destination with one eye always on innovation.

5. Malta must bolster its strengths and tackle its weaknesses

The starting-point for all the discussions was EY’s Attractiveness Survey 2017, a benchmark survey of what Malta’s doing right and what needs to improve. Current foreign investors provided their thoughts on a range of topics, and it is certainly advice that should be heeded. ( C O NTINUED )

Malta must also strive to ensure that it does not lose the identity already cultivated. The natural beauty and charm of the island must be safeguarded.

78%

61%

54%

(2017)

Up 8% (2016) Malta's Current Attractiveness

Malta's Future Attractiveness

Effects on business since Brexit Referendum

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Expansion plans over the next year.

12%

Improved

83%

Stayed the same

5%

Deteriorated

S U RV EY

THE DESIGN ISSUE MONEY

“The economy will need almost 12,500 new workers next year but 2,000 vacancies will not be filled.”

The key message that emanated from the results is that overall optimism about the future remains strong. The flip-side of Malta’s thriving economy is that the country must undertake further measures to increase the availability of specialised skills, and build a strong pipeline for the future. On the regulatory front, the country needs to strike the right balance to facilitate innovation. Malta’s biggest investment weaknesses remain research and development, transport and logistics.

Ronald Attard, EY Malta’s managing partner, highlighted that Malta might need to move away from measuring success by numbers and focus on quality – a balanced score card approach that does not just measure GDP growth, employment, number of jobs and number of tourists. Given the capacity constraints the island faces, do we need to target 3 million tourists or are we better off with 2.5 million quality ones? The same goes for the quality and sustainability of business.

Malta should focus on delivering a best-inclass product.

Significance of technological developments on companies' business Workforce

75%

Business Model

71%

Need for capital investment

50%

Supply Chain

43%

Need for mergers, aqcuisitions and

27%

strategic partnerships & alliances

Events like EY’s aim to gather top minds together not only to lay out the state of play but also to outline the way forward. Following 2016’s concrete ideas about FinTech, blockchain, and logistics, EY also launched the following set of recommendations based on their study: moving to a cashless economy; making teaching not only attractive but also viable; incentivising robotics take-up; and adopting a more holistic view on the way we measure our performance as a country. (M)

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FINANCE

What was in Scicluna’s Bag? — Haven’t had a chance to work your way through the Budget’s 87 pages? Fear not. EY has done the work for you.

MONEY THE DESIGN ISSUE

The Budget Speech for 2018, delivered by the Minister of Finance Edward Scicluna on October 5, 2017, outlined the government’s plan for Malta for 2018 and onwards. Below are the direct and indirect tax measures expected to be introduced in Malta tax law.

Measures affecting businesses Notional Interest Deduction The Notional Interest Deduction Rules (NID rules), published a few days before the Budget speech, provide for a tax deduction available to undertakings for deemed interest on the undertaking’s risk capital at the end of the accounting period in the year preceding the year of assessment. The NID is determined by multiplying the risk capital, that is, the total equity disclosed in the undertaking’s financial statements, by a reference rate. NID is optional and may not exceed 90% of the undertaking’s chargeable income for the year, with any excess being carried forward indefinitely. When an undertaking claims through an NID: • the shareholders/partners of the undertaking are deemed to have received an amount of interest income equal to the NID claimed; and • the undertaking must allocate an amount equal to 110% of the NID claimed to its final tax account.

Several anti-abuse provisions apply.  Aids to micro-enterprises and start-ups MicroInvest and Business START Schemes are to be updated. Changes to MicroInvest will ensure that enterprises may claim assistance of up to €50,000 if based in Malta and €70,000 if either based in Gozo or predominantly owned by women. Self-employed women may also benefit from the €70,000 incentive.

Enterprises employing fewer than 50 people on a full-time basis will also be entitled to avail themselves of the said scheme. Extension of small undertakings threshold The VAT Article 11 small undertakings services registration threshold is to be increased from €14,000 to €20,000.

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Electronic submission of social security forms and VAT returns The facility to submit social security forms and VAT returns electronically will be extended to cater for companies and enterprises employing 10 people or more. Introduction of VAT grouping Entities having an independent legal personality and a Maltese fixed establishment with common financial, economic and organisation relationship and regulated to operate in the financial and gaming sectors will have the opportunity to register as a single taxable person for the purposes of VAT. This will ensure that intra-group supplies will fall outside the scope of VAT.

Measures affecting individuals  Tax refunds for persons earning less than €60,000 Individuals whose income is less than €60,000 per annum will benefit from a reduction in tax, with individuals whose income falls within the tax-free bracket also benefitting from the provision. The reduction in tax shall be in the form of a cheque refund as follows:

Single Computation Income (€)

Refund Amount (€)

0 - 15,000

60

15,001 - 30,000

50

30,001 - 59,999

40

FINANCE

THE DESIGN ISSUE MONEY

Married Computation Income (€)

Refund Amount (€)

0 - 20,000

68

20,001 - 40,000

56

40,001 - 59,999

44

Parent Computation Income (€)

Refund Amount (€)

0 - 15,000

64

15,001 - 30,000

52

30,001 - 59,999

40

Increase in pension threshold not subject to tax All pensioners will benefit from an increase of €2 per week in their pensions, and additionally, pensioners whose pension income is not more than €13,200 will not be subject to tax.  Aids to micro-enterprises and start-ups Individuals below the age of 40 years who obtain: • a Masters degree will not pay tax on their income up to €60,000 for a year; whilst • a Ph.D will not pay tax on their income up to €60,000 for two years In both cases the tax benefit is available if the individual continues working in Malta for a period of three-year post finalisation of his course.

time basis. This scheme is not available to those individuals who already benefit from any other study related scheme such as the Get Qualified scheme. First-time buyers scheme The tax scheme for first-time buyers originally introduced in 2014 will be extended for another year.

Other policy measures Combating fiscal evasion As part of the government’s drive to combat fiscal evasion and unjust competition, penalties for tax offences will be increased. Extension of Individual Investor Programme The Individual Investment Programme will be extended for another year.

Second-time buyers scheme Individuals, termed “second-time buyers”, who sell their residential home, being their sole owned immovable property, and acquire another (“second home”) shall receive a refund of a maximum of €3,000 of the duty on documents paid on the acquisition of the second home.

Where the individual is a disabled person, the maximum refund is increased to €5,000. The second-time buyers refund will also, subject to a number of conditions, apply to the parents of a disabled person when the disabled person resides therewith.  Reduced rate of duty on documents on acquisitions of immovable properties The reduced rates of duty on documents will be extended for another year: • from 5% to 2.5%, available on the acquisition of immovable property situated in an Urban Conservation Area; and • from 5% to 2% available on the acquisition of immovable property in Gozo;  VAT schemes related to bicycles

Blockchain strategy The government will be setting up a task force to evaluate proposal relating to the implementation of a national blockchain strategy. This shall complement investments in a Blockchain Lab and training programmes for civil servants to become acquainted with the use of such technology. The government will also be setting up a Blockchain Hub to assist and provide the necessary support to start-ups using this technology. Investing in Gozo Additional incentives for the creation of jobs with the private sector in Gozo whereby private entities will benefit from a 30% refund of the average wage of an employee up to €6,000 for each employee who is offered a contract of at least three years. Investing on cleaner means of transport Certain persons investing in green cars will not be liable to pay vehicle licence tax on such vehicles for the first five years. In case of commercial companies, the benefit cannot exceed €200,000.

Furthermore, private companies installing bicycleracks will continue to benefit from grants for another year. (M)

The VAT rate for hiring of bicycles is to be reduced form the standard rate of 18% to the reduced rate of 7% and the VAT refund scheme associated with the acquisition of bicycles and pedelec bicycles will be extended for another year and will also be open for companies which offer such bicycles for hire.

EY is a global leader in assurance, tax, transaction and

 VAT refund on car registration tax

outstanding leaders who team to deliver on our promises

During 2018, VAT will be refunded to those who registered their vehicle in 2007.

in building a better working world for our people, for our

advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop to all of our stakeholders. In so doing, we play a critical role clients and for our communities.

This benefit will be provided in full to those individuals who attend full-time courses and pro-rata for those attending a course on a part-

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bloom@bloomcreative.com.mt The design studio behind Money, FM and Skipper Magazines

bloomcreative.com.mt

We build remarkable brands.

THE DESIGN ISSUE MONEY

P RO M O

TechnoGym oversees Chic Physique’s move to Hilltop Gardens Chic Physique's long-standing partnership with TechnoGym came into its own when it was preparing to move to its new premises at Naxxar's Hilltop Gardens residential complex.

The move was the ideal opportunity to upgrade the equipment as well as to add the latest technology. TechnoGym's team oversaw the entire operation of relocating, installing and upgrading the equipment in a neat and timely fashion.

The choice of location is apt considering that Chic Physique's philosophy revolves around mental and emotional wellness over and above the physical. Hilltop's ultramodern yet soothing environment is well aligned with this, allowing the fitness centre's designated 500 sq.m. to take full advantage of the abundant natural lighting and attractive surroundings.

The space has been segmented into Pure Strength, Easyline, ARKE, Omnia, group cycling as well as a cardio area. The layout was designed with functionality in mind, one that allows for structure and personalisation in the patrons' training regimens, based on years of experience in the business.

Stefano Borg, manager at TechnoGym, oversaw the whole transition from the previous premises. He admits that the main challenge was the time constraint as the fitness centre was already operative when they were moving the equipment. This meant they had to do so without disrupting ongoing

“Chic Physique's philosophy revolves around mental and emotional wellness over and above the physical."

training sessions - and to do it quickly.

Alan Curry, chief instructor at Chic Physique, expressed his satisfaction with both the relocation services offered by the TechnoGym team and in the quality of the equipment.

His confidence in these machines has been built up across a career spanning 20-plus years, during which he's worked with this brand extensively. The move, Curry says, mixed a lot of new into the old formula as the Kinesis machine has been upgraded and the entire Pure Strength section has been replaced. However, he adds that Skillmill is the real show-stealer. It's a slick piece of engineering that doesn't only look the part: it allows the user to regulate speed without tweaking any manual controls.

TechnoGym is part of the Vivendo Group portfolio of brands, specialising in the design and development of cutting-edge gym equipment for professional and home use.

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As a top wellness brand in the world, TechnoGym helps people achieve better physical and mental health in their daily lives through its range of high-end machines and gym management software, providing an all-in-one solution that can be customised for consumers and professional operators. (M) P. ( 3 3 ) M O N E Y

MAN OF THE HOUR

MONEY THE DESIGN ISSUE

Charting the right course Man of the hour is a series of interviews in association with Edwards, Lowell Ltd featuring high profile industry leaders.

There is no prize money for the winners of most yacht-racing events. Sailors compete for relatively humble reasons – whether it be passion for the sport of sailing, the camaraderie that comes from teamwork, or the opportunity to pit oneself against the challenges presented by the wind, weather and sea.

For those who win there is the prospect of recognition from their peers, featuring in the event annals and receiving a well-deserved trophy, often one with many years of history and an allure beyond its physical value. At an event partnered by Rolex, the reward for excellence is even more distinct, a specially engraved timepiece.

The Rolex Middle Sea Race was founded in 1968. Over its near 50-year existence it has established a worthy reputation as one of sailing’s classic offshore races. Attracting competitors from as far afield as New Zealand, Australia, the United States, South Africa and South America, the contest is open to boats from 30 feet to 100 feet. Crews need to meet rigorous qualification regulations and boats need to satisfy onerous measurement and

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safety requirements. It is not a race for the faint of heart. The Mediterranean in October can be a fearsome environment.

This year, 104 yachts started. Only 35 finished following a brutal 48-hour period with winds in excess of 40 knots and waves reaching five metres. The toll on boats, equipment and individuals was relentless. All competing yachts are given a time correction factor so they may race equally.

The 38th edition of the Rolex Middle Sea Race was won by one of the smallest boats in the fleet. The 35-foot Bogatyr overcame the weather, the sea state and much larger competitors to secure Russia its first-ever offshore race victory.

Igor Rytov, the skipper and owner, is truly the Man of the Hour. Tell us about your sailing experience.

I started sailing when I was a child, but then stopped for many years. We started again four years ago. This was my fourth offshore race: two Rolex Fastnet Races in 2015 and 2017 and two Middle Sea Races - in 2016 and this year.

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What can you tell us about your boat?

This was the third race with this boat. When I took part in the first Rolex Fastnet, the winner was a French JPK design. I really liked it so I went to the shipyard and ordered the same boat! It was finally launched in August 2016. Initially, we just wanted to achieve good results in our class. Last year, when we debuted at the Rolex Middle Sea Race, we were leading our class at Stromboli before being overtaken by an experienced French crew (Bogatyr ended up second in class). The conditions were tough this year, were you worried at any point?

Each boat has its preferred conditions. Our design was made for downwind sailing.

According to the forecast, we knew there would be a storm, a Mistral, so the first half was going to be uncomfortable and upwind, but the remainder would be good. My crew includes a number of professionals yachtsmen who know what to expect. They are very skilled, although mainly at inshore events. We did not ever worry about the boat,

THE DESIGN ISSUE MONEY

since it is quite new. That said, we had never previously experienced such tough conditions. Did you consider the possibility of retirement?

The race was extremely hard and sometimes the situation was frightening, but we did not think about retirement. We did not have any serious breakdowns, like other participants who broke masts, tore sails and broke fittings. What was the worst moment?

On the second night, near Stromboli, the Mistral was extremely tiring. It’s so hard at night when you cannot see properly. You look behind and it seems like a house is rolling towards you. Some of my crew said that it would be last offshore race for them! It was so difficult when we were struck by a wave or gust. We completely understand why so many boats had breakages and why some crew were injured. Describe the best moments…

We had a good start, and we were the first in our class all the way to Messina, but we did not feel confident. We were not sure that we could hold this position to the end. Although, at the same time, we realised that there was potential, there was a chance. The main task was to take care of the sails on the way from Trapani (NW Sicily) to Lampedusa.

Our overall position changed on this leg. But at Lampedusa we managed to get an internet connection and could see on the race tracker there was only one boat near us.

We discussed our strategy and decided to maintain a good speed and rest a bit rather than push too much and tire too quickly.

When we reached Malta, I saw our position in the fleet again and told the team that we should do everything possible and impossible!

Over the last three hours we tried to squeeze the maximum from the boat. At one point we hit 18 knots, and got a lot of pleasure from this.

MAN OF THE HOUR

“Four crew members fell overboard, but fortunately everyone was strapped in to the boat." Did you learn any lessons?

The importance of safety during the race.

Safety arrangements are critical and must be respected. It is always necessary to put on a life jacket and use the harness and strop to connect to the boat. We had an incident at night when the wind really built up and we were knocked over. Four crew members fell overboard, but fortunately everyone was strapped in to the boat. This helped to prevent a tragedy. How does this race compare to the Rolex Fastnet?

I am not sure there are many differences.

The main thing is the weather: August in the UK and October in Med are very different.

In the UK, you need to have special clothes to cope with the cold weather and any storm conditions will add to the cold temperature.

The Med is more comfortable even in a storm.

Captain: Igor Rytov

What are your next goals in offshore yacht racing?

Definitely another Rolex Middle Sea Race. (M)

Prize: Rolex Yachtmaster

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MARKETING

MONEY THE DESIGN ISSUE

Digging the digital sphere — Kristel Jo Bishop came back from the Web Summit in Lisbon brimming with ideas and inspiration.

“A curious and inquisitive mind – one that is determined to outdo its own past success and find new formulas to generate excitement for the audience it serves – remains the most significant talent."

Kristel is Project Manager at Keen Ltd. She has been working in eBbusiness and digital projects for the past 17 years.

She has lectured on behalf of different Universities and other institutions in topics related to Digital Marketing Strategies.

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We’re all trying to marvel our clients with our products, services, and content! Standing out in a densely populated world requires something original and outstanding.

Scrambling for ideas, especially original ones has taken a new dimension, especially when thinkers keep in mind monetising the expression and rising to hero status on the global stage is at stake.

This ‘feeling’ was omnipresent at the Web Summit, which was held during the second week of November in Lisbon. The summit, dubbed as the home of technology has become an annual appointment for many who work in the different facets of technology. Away from the glamour and magical allure of mingling with world-class speakers, the rising start-ups, the big names and brands, the Web Summit is always a thought-provoking event. Here are some take-home inspirational ideas.

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(1) The age of emotional AI – captivating agents of knowledge to bring the authentic emotional feeling

After AI, it’s time for emotional AI. Through emotional AI, firms can add emotional intelligence to their services, products and experiences. While talk of this can bring to mind a lot of sci-fi, it is a reality, allowing innovation via the use of emotions, biometrics, sensor technology and data analysis that use artificial intelligence to provide insights.

Companies which specialise in this technology manage to capture body data such as heart rate, breathing rate, voice analysis, along with environmental audio and video (including 360 video) to create more emotional content and bring sensations to the crowd.

THE DESIGN ISSUE MONEY

Custom-built mobile apps that rope in social participation and engagements are used in campaigns that try to bring the message closer to the people.

(2) Augmented & Virtual Reality – stepping into imagination

Immersive experience brings more excitement and more engagement. This is why bigger brands have been making use of this technology. Allowing the customer to experience something that might be offlimits in the world or out of reach for certain segments can draw the crowds to the brand and put it in pole position.

In this sense, VR can also be an educational experience bridging the gap between what is possible in the real physical world and what exists only in fantasy. The bigger VR ventures can be prohibitive in terms of cost but true innovation is about finding cost-effective ways to use it. Augmented-reality maps and navigation give a glimpse of the future of navigation, travel and city life in 3D based on location-based AR. The use of Google Cardboard for 3D VR immersive scenes for the Gozo Citadel App is one such example of how VR was roped in a local project.

(3) Content handling – elevating the art of storytelling to strategic levels

No matter how far one wanders, it’s like all roads lead to ‘content’. Putting pen to paper is the easier part of the job. Drumming up the content to solicit attention, generate an interest and ultimately motivate to a possible lead is highly focused on content and can be an excruciating exercise involving various disciplines. Composition of different types of assets (stories, smart graphic, cinemographs, videos, audio sources) requires different skills.

to outdo its own past success and find new formulas to generate excitement for the audience it serves – remains the most significant talent. All this has to be done while remaining loyal to the brand and providing reliable content. Like a surfer riding the crest of the wave, the content has to emerge from the fathoms to narrate a striking story!

While driven by creativity and fuelled by diversity, effective processes and the voice of the audience, one needs to keep in mind that audio-visual content takes the lead, especially for the daily information digest in our fastpaced environment. Veracity and digital trust become key to building and retaining a loyal community which engages and contributes to the digital spread across platforms and unfold tremendous opportunities by empowering and encouraging your followers to contribute.

(4) Faster than fast … and agile

Success hinges on the time it takes to achieve it. The ecosystem in which we operate today dictates a fast tempo that has propelled us to take decisions in short time-frames. Many projects move at full speed making use of agile methodology to support diversity and rapid improvement. Products are rolled out to the markets quicker, along the way gathering data and conducting ongoing marketing research for the next wave of improvements and options.

MARKETING

(5) Leverage the creative community or crowd

Social media has given rise to consumer tribes and communities that manifest their consumption patterns. The firms that understand this phenomenon and know how to harness it are the ones that display distinctive creative streaks. The crowd has to be moved onto the brand stage, where the value is generated both for the brand and for the individual experience. It is easier for the influx of ideas (even wild ones!) that originate from far-flung consumers to reach the corporate boardroom with the possibility of being actualised. This is when co-creation of value occurs, when the consumer becomes the ‘prosumer’ and advertising turns into valued information for user needs. Stand out with authentic content, utilise amplifiers and experiment with formats and platforms: first persuade, then promote. ( CONTINUED )

Smart and swift decision making and merging innovation with operations allow your business to thrive. Don’t underestimate the importance of having the right rowers in the boat: the culture code is the essence of your business as your mission can transform with either passion or stress and eventually creates a viral loop for employees.

There is no doubt that a curious and inquisitive mind – one that is determined

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MARKETING

MONEY THE DESIGN ISSUE

(6) Social media in disruption

The essence of disruption is changing the status quo. The challenge is not in catching up with what’s happening in social media but in predicting, embracing and creating the waves of change. The focal point is that ‘nothing is the same for long’ and thus one of the main competencies in social media is remaining relevant to your communities while harnessing the vantage point that one is so close to the customer.

Leading brands in the social world focus on creating stories that the market can appreciate and instigate the audience to generate own stories. This is pivotal for building relationships with customers that are often the loyal advocates for the brand itself. Companies should focus on creating ingenious ways of stimulating activity with their audiences. Get inspired on how your brand is perceived, explore what’s trending and find out what it can become in the future.

user’s movement, one can geo-target with minute precision. This is leading to smarter retargeting and attribution.

While geo-targeting can provide a lot of added value in various spheres, it is interesting to know that we are stepping into an age when marketers will be able to discern even the floor on which the smart mobile is within a shopping mall. From there, it will be very easy to speak directly with the customer and provide real-time, up-to-date, and relevant offers. Monetise your traffic and craft your direct path to reach your audience. Call it advertising – call it promotion – it all originates from an effective sender-receiver concept, which we call communication.

“Being creative also means staying away from hiring your double to avoid propagating the same ideas and believing in play."

Connecting with a global market means that the firm is represented in real time in those hours when the market is online (which does not necessarily coincide with when one is at the office). While personalised and 1:1 engagement is deemed as the holy grail of relationship marketing, big volume cannot be handled by human operators. Time to bring in the never-tired, always ‘on’, always ‘happy’, always ‘ready-to- serve’ chat bot.

Finally, the creative enterprise is not hampered or daunted by the volume of data but is solidly entrenched in the statistics that data-scientists mine. This data needs to be in an easy-to-understand format, thus ensuring that insights can be elicited in realtime leading to nimble implementations.

Today’s economic wave clearly rests on a creativity. At the Web Summit it sure felt so.

Organisations whose business models are based on the constant crafting and realisation of creative, user-centric ideas needs are becoming the norm, not the exception.

After a big dose of inspiration, it’s the hour of serious playtime. (M)

(7) Much smarter advertising

Working within the parameters that social media platforms allow, planning social media ads has taken on a new dimension where an effort to be relevant starts with simple targeting. An ad that is relevant is appreciated and welcomed by the viewer.

Coupled with ‘location’, ads are now taken to a higher echelon where depending on the

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Taking inspiration and whipping up marvellous ideas does not happen in a vacuum. It takes a business that is open to diversity and one that embraces the ethos of change. Easier said than done, being creative also means staying away from hiring your double to avoid propagating the same ideas and believing in play. In a way, the anatomy of a creative organisation is similar to that of a research lab, where the team works together in the hope of making the next great discovery.

Imagination is not stifled but celebrated and ideas are quickly brought to life or at least tested.

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THE POINT, SLIEMA REPUBLIC STREET, VALLETTA BAY STREET, ST JULIAN’S

THE DESIGN ISSUE MONEY

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INTERNATIONAL Company Credit Reports

Creditinfo Malta provides you with means of getting to know your current or potential clients or suppliers, enabling you to trade with confidence.

An international credit report can give you very good insight on your foreign suppliers or clients helping you trade safely abroad.

We offer in-depth Due Diligence Reports on companies worldwide, providing all the information you need to know to make a sound decision and manage credit risk more effectively.

Reports will include (depending on country):

Before sending or receiving payment make sure you know who you are dealing with.

• • • • • • • •

Registration details Address Financials Ratios Capital structure Company ownership Subsidiaries Defaulting debts etc.

199, Eucharistic Congress Road, Mosta MST 9036 - 2131 2344 info@creditinfo.com.mt - www.creditinfo.com.mt

P RO M O

THE DESIGN ISSUE MONEY

And the Winner is...

— The first Videoslots Awards night for game providers was a fitting end for the high-octane SiGMA 2017..

Leading online casino operator Videoslots. com hosted the inaugural Videoslots Awards on November 24, with leading names from across the industry in attendance on the closing night of SiGMA 2017.

The ceremony, held at the supplier’s offices in Pieta, was hosted by Maltese television personality Peter Carbonaro and newly appointed CPO Daniel Hansen and saw the industry's best suppliers and games recognised.

Big winners on the night included Yggdrasil and Play’n GO, which were awarded Best Innovation and Provider of the Year respectively. Bonanza, Big Time Gaming’s popular slot, won the Game of the Year title, as voted for by Casinomeister’s members, as well as Video Slot of the Year.

“We wanted to celebrate the fantastic contribution suppliers make to the sector, and we saw an awards night as the ideal way to recognise their hard work.

“We wanted to celebrate the fantastic contribution suppliers make to the sector.”

“I’d like to personally congratulate all the winners, in

The full list of winners at

particular NetEnt who

this year’s Videoslots

took home the Golden V for

Awards:

providing our players with enjoyable and innovative titles in recent years.” (M)

Rising Star: Pragmatic Play Low Volatility Game: Frog Grog, Thunderkick Medium Volatility Game: Viking Runecraft, Play’n GO High Volatility Game: Sakura Fortune: Quickspin

The last category to be announced on the night, the Golden V, was awarded to the provider who shared Videoslots’ ambition to service players with a unique and innovative casino experience in recent years: NetEnt.

Account Manager of the Year: Tatiana Barrenechea, NYX Best Innovation: Yggdrasil Game of the Year (voted by Casinomiester members):

The shortlists and winners were compiled by a judging panel including Videoslots’ senior executives and various other leading figures in the slots industry.

Bonanza, Big Time Gaming Best Mobile Game of the Year: Flame Busters, Thunderkick Provider of the Year: Play’n GO The Video Slot of the Year: Bonanza,

Alexander Stevendahl, CEO at Videoslots.com, said: “It was great to see so many prominent names in the slots and casino industry in attendance for our first of hopefully many Videoslots Awards."

Big Time Gaming Golden V: NetEnt

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C O U N T RY

MONEY THE DESIGN ISSUE

P RO F I L E

All that glitters — Almost 18 months after the historic Brexit vote, the UK is bracing itself for a future outside the EU, and all that this represents.

MONEY analyses how the country has fared since the referendum and what lies ahead.

“But not all the news is bad.

The unemployment rate has actually fallen to a 42-year-low of 4.3 per cent."

Of course, this also makes exports more competitive, but the figures paint a gloomy picture, with the trade deficit proving very resistant to change.

Looking ahead in the short-term, Brexit’s most obvious repercussions will be on the UK’s finances, the labour market and trade.

Nevertheless, manufacturers, which account for around 10 per cent of the economy, believe that it will eventually make a difference and this sector remains the most optimistic according to business sentiment surveys.

Saving its net contribution of €10 billion a year is a plus, but the sword is double-edged.

For example, two-thirds of agricultural food exports go to the EU, and farmers have no idea whether the government will be able to negotiate tariff-free access once the UK is out of the single market.

Unfortunately, this optimism has not been shared by other sectors.

Even the darkest clouds have a silver lining, and so it will be with Brexit. Take the EU itself: the loss of the UK’s €10 billion annual contribution has forced it to look at its financing model, which could – at least in theory – result in a much improved version.

For the UK, the impact has to be broken down into three aspects: the current state of affairs, buffeted by uncertainty and doom-and- gloom scenarios, the short-term adjustment period following Brexit, and the long-term outcome once the teething problems and growing pains have brought the UK to a new dynamic adolescence.

One of the most immediate effects of the Brexit vote was the sharp drop in the value of the pound, which lost almost a quarter of its value against the euro. This made imports – from fuel to food – more expensive for the British and has been pushed inflation up month after month.

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Take the services sector, which employs 85 per cent of the British workforce, and which represented £89 billion to the EU in 2015.

The sector is not covered by many trade agreements and losing access to the EU single market will have an impact on staff mobility, data access and numerous other aspects. And for the financial services sector, the loss of passporting rights to other EU member states will mean a considerable rethink, which could actually be worse than originally thought: London managed to remain influential even though it was outside the eurozone, but the ECB and other member states have no need to allow these concessions after Brexit.

But not all the news is bad. The unemployment rate has actually fallen to a 42-year-low of 4.3 per cent, although the tightening of the job market has yet to affect wages. Analysts say that although people are finding jobs, these tend to be ‘gigs’ with no guarantees for the future, as companies hedge their bets against future uncertainty.

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And some 90 per cent of seasonal labour comes from the EU, according to the Financial Times. UK farmers also get 55 per cent of their income from the EU’s Common Agricultural Policy, so the savings from the EU Budget will not affect all sectors equally.

Mark Carney, the Bank of England governor, has already warned that a sharp drop in the number of EU migrants working in the UK would drive up wages, as the labour supply shrinks. The latest figures say there are currently 2.1 million European immigrants working in the UK. The type of trade deal negotiated will make a tremendous difference. One survey predicts that the UK will lose £4.5 billion a year of its £133 billion exports if there is no new trade agreement with the EU. Another looked at the economy as a whole and estimated that it will lose £75 billion, as the loss of access to the single market also affect imported primary goods and materials.

THE DESIGN ISSUE MONEY

C O U N T RY P RO F I L E

Future investment in the UK would also be hit without the single market. On a per capita basis, the UK stock of FDI is around three times that in other major European economies and 50 per cent larger than in the US. Investors would look carefully at higher wages, shortage of labour and higher trade costs and tariffs before embarking on new projects. By how much could it fall? One analysis said FDI would decrease by 22 per cent.

Of course, the UK will also be able to get advantages from being out of the single market. For a start, it will be able to negotiate bilateral trade deals with countries like China, India, Australia and the US, and certainly much quicker than the EU would be able to.

Solving the migrant labour shortage will be much more tricky as this was one of the clear messages of the Brexit vote: reducing EU labour only to replace it with third country labour is hardly likely to be acceptable to voters. And even though individual member states might secretly be quite happy to be flexible with everything from labour to migration, the official stance being taken by Brussels is much more hard line — and the ability to reach bilateral agreements restricted by membership.

But enough negativity. The UK is a strong economy, with deep roots of innovation, a vibrant culture and a well-established infrastructure. There are few, if any, surveys which forecast positive outcomes in the shortterm.

But with time the market will adjust to the new reality, new deals will be forged, the labour market will re-balance and the economy will start to creep back up — even though it may look very different to the current one, just as the current one looks nothing like that of the 1970s.

“Even though individual member states might secretly be quite happy to be flexible with everything from labour to migration, the official stance being taken by Brussels is much more hard line."

Yes, the negotiating period seems interminable and the immediate losses will hurt. But as long as that pain is turned into a positive soul-searching exercise to build on the good and to force long-postponed decisions on the bad, then it really will not matter what was once written on the side of that bus… (M)

Country report statistics

Unemployment: 42-year-low of

4.3% The Service Sector: Employs

85% of the British work force. which represented

£89Bn to the EU in 2015

90% of seasonal labour comes from the EU,

2.1mil EU immigrants working in the UK.

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brings cool back to the kitchen with engaging content, edgy design and a lifestyle air.

DECEMBER EDITION OUT NOW Distributed exclusively from Park Towers Supermarkets and from selected outlets.

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Pitching in Together — Malta is blessed with so much talent in the field of design and creativity.

P RO M O

“While it’s very trendy to say you’re a datadriven agency, numbers mean nothing without human context.”

Hangar explains to MONEY why it stands out from the crowd.  This issue of Money magazine is about design and creativity. The term “creative agency” gets thrown around a lot. What does it actually mean?

Put simply, a creative agency is a partner that works closely with you to increase revenue. But Hangar does more than this. We don’t simply create logos or e-commerce websites; we aren’t “Yes” people we’re “Why?” people. At Hangar, we build products and services with humans at their heart, and then connect the right audiences to those products and services. We work closely with our clients to solve their business challenges, in turn sustainably increasing revenue.  With so many “creative agencies” in Malta, why should anyone take note of Hangar?

Great things grow from strong roots. We are obsessed with building strong foundations, from how we work to the work we produce. Since Hangar started in 2012, everything we’ve done has been “from the ground up.” If something is worth doing, it’s worth doing right.

We’ve never accepted commissions on advertising sales. We don’t have account executives; our clients always work directly with Hangar’s partners, because we believe they deserve expertise, not upselling. We’ll never sell a template as original work. Our websites, films and graphic designs are designed to solve our partner’s unique challenges.

Contrary to what you might think, this doesn’t mean paying more for custom work; it means always getting exactly (never less than) what you pay for. Likewise, we craft marketing campaigns on strong research-driven foundations. For example, one of our partners is a financial accountant who takes a fine tooth comb to pricing analysis: a critically important, but woefully overlooked, part of marketing.

Every brand must have a purpose, and ours is to make businesses more human. Building stronger brands and marketing strategies depends on data, and we excel at finding and tracking this. However, while it’s very trendy to say you’re a data-driven agency, numbers mean nothing without human context. The skill to interpret the stories hidden in a spreadsheet is key to building products people want to use, and promotional campaigns that exceed their intended goals. We’re proud to say this skill is part of our DNA. Our brand purpose also extends to making our agency more human. Our team (which scales up to 15 strong) chooses how and where they work.

This is surely an atypical way of working, but we think we’re onto something. This year, it seemed that every business in Malta was faced with serious recruitment challenges. We’ve never had any, and our work is better for it.  When is a “creative agency” successful?

Growth is great, but sustainable growth is better.

We’re very selective about the projects and clients we work with. We won’t accept a quick paycheck to promote a product or brand that’s not ready for promotion, because we can only achieve great results on a strong foundation. We’ve carved our niche by becoming embedded in organisations. We don’t have clients, we have partners, and we know we’ve done our job well when we’re invited to their staff parties or team building events. Their trust means more to us than everyone in Malta knowing our name (though if we achieve both, all the better).

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Over the past five years, Hangar has grown nearly tenfold by building a business that produces tangible results that our clients (and contributors) feel good about. If our purpose is to make businesses more human, what could be more successful than this?  Why “Hangar”?

We liked the idea of a name that represents a collective effort, since we’ve always been about collaboration (with four partners, you have to be!) A hangar is a place where engineers and designers meet and achieve a high level of precision.

It’s a place where big things happen, ambitions are high, and it takes skill and craftsmanship to survive. That’s Hangar.

Hangar is a creative agency that specialises in brand strategy, marketing strategy, design, film and content production from the ground up. Learn more at hangar.co or @hangaragency. (M)

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D I G I TA L

MONEY THE DESIGN ISSUE

Power in numbers — Richard Muscat Azzopardi admits that he has become an enthusiastic convert to the principle of networking.

One of the things I seemed to underestimate most before my time at Switch was the power of being in an international network. I’d always seen these as a way to network socially with people who are in a similar position.

While this might be fun, there is no real business value to this other than the potential of growing your business.

However, if you’re networking with your peers — growing your business is always going to be hard internally.

Over the past few years, however, I’ve really seen that the value of being in an international network of peers is a fantastic way to learn as much as you can about your industry and about business in general.

Richard is the CEO of Switch — Digital & Brand, a marketing agency that forms part of ICOM, the world’s largest network of independent agencies.

You can get in touch on

richard@switch.com.mt

Before I delve deeper, however, I’ll give some context. First of all — what am I talking about? Switch is the only Maltese agency that forms part of ICOM (www.icomagencies. com) — the world’s largest network of independent agencies. This network covers most of the world’s markets and includes some of the largest independent agencies from the territories represented.

The network offers incredible benefits; we get to ask people for help when we’re stuck creatively, we get to use resources from other agencies when we’re out of our element with a particular subject, we also have the opportunity to pitch for cross-border business together, and we can send employees on exchanges.

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“If we learn how to break down problems into smaller parts, some parts might solve themselves, and others will seem far simpler to solve than others.”

One of the most powerful parts of the network, however, is the meetings element of it. Twice a year we’re invited to meetings - one global and one regional. At these meetings, we have three days during which everyone pitches in as much as they can about a particular subject to help everyone else improve in that area.

In October, we were invited to the European regional meeting in Budapest, and I headed over together with a colleague of mine for three days that would probably help us improve our business (and that of our clients) immeasurably. The theme of the meeting was creativity, and while this might seem obvious for a meeting of (mostly) creative agencies, the approach to it was fantastic.

We learnt a lot about how creativity can help agencies like ours, but some lessons can be applied to most businesses. Even if you might think creativity might not apply to your particular area of work, I’m sure you can glean a lesson or two from what we learnt.

THE DESIGN ISSUE MONEY

Applying creative processes to innovation One of the most powerful workshops of the meeting was set up by Ravid Kuperberg, one of the partners and trainers at Mindscapes, who are creativity trainers based in Israel.

Ravid and his team believe that you can crack creativity by making it process-driven. They help brands all over the world increase their products and revenue through the application of creativity.

From a very practical perspective, he gave us three ways of looking at problems differently, no matter what their nature is:  Ideas are modular: His theory is that when we look at a problem in its entirety it might seem far too complex.

If we learn how to break down problems into smaller parts, some parts might solve themselves, and others will seem far simpler to solve than others. Once you’re done, putting all the solutions together will give you a much better solution than if you tried to solve the problem as a whole.  Think inside the box: When you try to think outside the box you’re actually making life much harder for yourself and your team. Instead, try being creative with the box itself. Study the parameters that are set by the problem in front of you and use these in ways that are unexpected.

D I G I TA L

 Break objects into sub-parts: When looking for new ways of coming up with new ideas (new business, HR issues etc) be sure to break down anything you can into to the smallest units possible. Don’t look at a car as a car — look at every bit of it that you can study and try to figure out ways with everything. Everything matters.

Someone once said that if you improve 1% day you’ve improved by 100% in under 70 days (assuming that you can keep the improvements in place). So look at small incremental improvements, not big ticket ones that can be disheartening.  Applying creativity to grow

your business.  And in the end...

The other part that really stuck with me is how we tend to look at our business in a very linear way. If we look at all the components in our business instead, we find that we have the skills, the resources and the capacity to run businesses that might not be as related to our core business.

This allows for exponential growth because it removes the traditional limitations of business development. Artificial Group, the host agency of the meeting in Budapest, experimented with this and found that they had all the resources in-house to successfully launch a new brand of beer. True, they did not have a brewer in-house and had to outsource, but most brands outsource manufacturing anyway nowadays, so that didn’t make much of a difference.

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The bottom line is that there are many lessons to be learnt here. First of all network for all you’re worth. The more people you meet and discuss with, the more you can learn and the more you gain. Apply creativity and creative processes in every aspect of your life — it’s not just something that a design studio should be concerned with. Creative thinking can help us solve problems that seem to have no logical solutions. (M)

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DESIGN

MONEY THE DESIGN ISSUE

Something old, something new.

— Creativity is not only about creating something new - but it is also about seeing new life for old things. Maxine Borg has made this her passion.  You are an architect by trade. What made you move into this new field?

I don't see this as a new field, more of a growth or extension of my existing one.

In my day-to day job I mostly focus on interiors and the design of spaces; with this project I am creating items that fit within those spaces.

When dealing with custom pieces I always see the environment they are going to be placed in so that the design of each one is created with the overall design in mind.

Maxine Borg

I always had a love of old furniture, sometimes not the traditional antique pieces you would expect. Many times they are pieces that others want to throw away but I see potential in them. As I started to collect pieces, I took a special interest in chairs and created my first set for my own home. I realised this was something I loved doing and I guess it has grown from there.  Your juxtaposition of old and new is not only quirky but quite rebellious. Are your clients easy to persuade?

Most clients that approach me already know my style so there isn't much persuading

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involved! I don't think it's about persuading a client to like something I create; they need to love it and want to have it within their space.

If a client wanted something different, we would work together to create something we both love.  You talk about ‘re-purposing unloved buildings’ and ‘giving new life to piece to furniture’… Is this just nostalgia?

I believe that if something created in the past - be it architecture or a piece of furniture can be modified in a way that it is functional for today’s life style and can be made useful, that is the best scenario, for all involved.

Today we see too many things as disposable; there is so much waste that anything looking a little worn out or not up to date is immediately deemed as ‘old’ and gets thrown away. I try to change these ideas and create pieces so that they can be used in our day-to-day lives.

Whereas before a certain style of chair would only be seen in Nanna’s formal sitting room covered in plastic, that just isn’t the case in our homes today. I want people to have a cozy corner to sit and read a book or have breakfast in themorning… But why can’t that be done using Nanna’s sitting room furniture that has been given a new look?

 Where do you get the old pieces of furniture from?

So much just gets thrown away! TOO much gets thrown away and unfortunately these people don’t have my number!! I have become - as my father refers to me - a sort of hoarder ‘reggettiera’ of furniture, taking after him to a certain extent. Most of my pieces are sourced from people all over the island just wanting to update the style of their space or, like I said above, getting rid of Nanna’s old salott! When I show many of them what I do with the furniture, they are often impressed and think twice before parting with the piece.  Does modern furniture hold any appeal for you?

Honestly, for me personally, the short answer to your questions is ‘no’.

chair they are buying is a copy of an original design originally from the mid 20th century.

The modern furniture you are talking about is referred to as contemporary, and to me that holds no appeal. (M)

“Today we see too many things as disposable; there is so much waste that anything looking a little worn out or not up to date is immediately deemed as ‘old’ and gets thrown away.”

The long answer, on the other hand, is ‘yes’.

Modern furniture to me is mid-century modern designs built between the 1940s and 1960s, a typical example of this is G-Plan designed furniture some of which was locally built and very much mass produced. Many pieces from this era have been replicated and are still produced and very popular today.

Many people wouldn’t even realise that the

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Man For All Seasons — Tonio Lombardi has made a name for himself in so many areas of photography, it is hard to know which he prefers. He spoke to MONEY about what inspires him.

 Which adjectives would you use to describe your work?

Elegant, emotional, tongue in cheek sometimes.  You seem to love details, whether you are photographing weddings, interiors, fashion shoots or food…

Wedding photography is all about details. The dress, the flowers, the little things the couple take so much time preparing before their wedding day.

Food photography is detail in itself, when you zoom in close into something like food, you discover a whole new world ready to be explored. I believe that attention to detail sets your work as a photographer apart.

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 What are the three elements that make a fashion shoot successful?

The right model, combined with the right styling, in the right location, using the right lighting. That's four, but I think they are all equally important in a fashion shoot.  Food photography is notoriously difficult. What are the tricks of the trade?

Food photography is difficult because to yield good results, it involves good styling and good lighting. You don't need super equipment to do food photography: a nice window light will do sometimes. However, there are certain techniques which need to be mastered.

Furthermore, it's about taking ages to set up the shot, bringing in the dish when that is done and shooting in a few seconds, to keep the food looking as fresh and mouth-watering as possible!

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 Weddings are so personal. How do you capture the intimacy?

Choosing the right photographer for your wedding is of fundamental importance, not just for the photos you get after the big day but also to make sure the experience on the day is as memorable as possible. Different photographers see different things and approach events like weddings in different ways.

It is very important that the couple relates to the photographer’s work; it must feel right for them. It is also very important to relate with the photographer's personality. I personally like to capture things from a distance, anticipating and waiting for the right moment to hit the shutter button. When it comes to couple shots, I tend to keep things light, informal and allow the intimacy to evolve for as long as the schedule permits. You have to find the right amount of interaction with the couple. I find that this yields the most natural looking photos when shooting a wedding.

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 How many photos do you take before you get the right image?

Sometimes I get it right on the first shot, sometimes it takes hundreds of photos to manage to build the image you are after. It's a combination of vision, planning, technique and sometimes, sheer luck, being in the right place at the right time. Even though I do plan most of my work well ahead, I always allow room for spontaneity; many times it will lead to serendipity and that is the best part of the job! (M)

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L I F E ST Y L E

MONEY THE DESIGN ISSUE

THE GIFT OF GIVING

BEATS STUDIO3

CHOPARD

Wireless headphones

Mille Milgia

Everything will be wireless in the future, and Beats are all too aware.

Their Studio3 Wireless headphones are sleek, comfortable and won't have you tied up in knots.

MONEY unwraps the new year in style.

The sporty and sophisticated new Chopard Mille Miglia Classic Chronograph model with a vintage touch appears in His and Hers versions.

The dial of the former is black or silver with large luminescent numerals, while the latter is in silver colour or crafted from white mother-of- pearl studded with diamonds.

Available in 42 mm and 39 mm versions.

Exclusively available from Edwards, Lowell Co Ltd, T: +356 2138 4503, http://www.elcol.com

BURBERRY Shirt The Burberry tartan has seen many reinventions and rebirths over the years and this spotted rendition is one of the latest to come from the British powerhouse. Wear it untucked with slim black jeans or layered under a slightly-cropped knitted jumper and peacoat.

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TED BAKER Travel Bag Ted Baker travel bag A holdall with the appeal of a suitcase, Ted Baker's Romea bag comes equipped with wheels and an extendable handle, so you can travel easily in style.

GUCCI

POLAROID POP

Loafers

Camera

Almost every fashionconscious A-lister has been seen sporting a pair of Gucci’s cool loafer-slippers this season - so you’re probably already coveting a pair too.

To celebrate their 80th anniversary, Polaroid have produced the Pop – a 21st Century update that offers all the excitement of instant colour printing (3.5 x 4.25 inch prints with border, natch) with the ease of a 20-megapixel digital camera.

LITTLEBITS Droid Inventor Kit For the first time ever, kids can create their own custom Droid and bring it to life, using littleBits electronic blocks technology and the free Droid Inventor app.

B&O Beoplay E8 Apple, Jabra, Sony, Jaybird, Bose, and now Bang & Olufsen have all joined the race to build miniature 'buds that sit in your ears without cables, and each one wants to be the pair in your pocket.

B&O Play's Beoplay E8 takes a fashion-forward approach, but these pint-sized earphones also sound incredibly good for their size.

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Sex & Drugs & Rock’n’ Roll

“So place your hardearned peanuts in my tin And thank the Creator you're not in the state I'm in, So long have I been languished on the shelf I must give all proceedings to myself ” Sex & Drugs & Rock’n’Roll was a 1977 hit

by Ian Dury & The Blockheads. Dury died in 2000 aged 57 of colorectal cancer.

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

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- Ian Dury

His songs contained witty lyrics (probably wittier than his audience then would have ‘gotten’) and could be described as pub-punk rock. He was also an artist and an actor.

Having been smitten with polio as a child, he advocated for the dignity of handicapped (as was the term then) persons in homes.

It was the 1950s when he found himself working to recover as much of his mobility as he could and the NHS was still young with as yet underdeveloped facilities. He spoke of the need for work they could perform beyond simple handicraft projects, and the loneliness in their humdrum lives, especially the weekends, as he said in an interview, when most of the staff were not on duty.

The Dury legacy continues through one of his sons, Baxter, who is also a singer/songwriter.

Rock ’n’ roll was always good, despite killjoys in churches and government, apparently scared to death by the sheer enjoyment people derived from this music, doing their best to suppress it. Drugs, some bad but probably some of them not, and some good but actually bad. Sex, always good right?

Propagation of the species and all that, yet slammed by those same killjoys also scared to death it seems. But definitely good when shared between consenting adults and therein lies the, er, rub. Suddenly a nasty aspect of this primal interaction, hitherto ignored and hidden, has come out into the open.

In 1981, he wrote a song in critique of what he perceived as the patronising attitude of organised charities towards disabled persons, Spasticus Autisticus, identifying himself as disabled, which he was after all, in the manner of a scene from the movie, Spartacus.

Banned by the BBC of course, as had been Rhythm Stick, it did get used at the 2012 Paralympics. (Cue memories of crowded trains and stations, special queues and people in the self-important pink - or was it magnolia? - jackets and shoulder bags who were ushers etcetera.)

It might be said that a recorded conversation between a tall man with a big head and a short man with a small spine unleashed an awareness in most folk and slowly a determination to no longer sweep atrocious behavior under the rug. The callous and flip comments of the grabber-in-chief shocked many people but many still chose to employ him - only to see the stuff under the rug creeping (descriptive) out a year later to manifest itself in shocking incident after shocking incident recounted by victims who, encouraged by one revelation after another have decided to come forward themselves.

Moguls, judges, whatever…

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The undercurrent communality is power, real or as perceived by the victim. A ‘because I can with impunity’ feeling in the aggressor. A fear of further retaliation, shame, misplaced guilt, in the victim, male or female, muting their cries for help or of outrage. Sometimes you know that you know that you know (as they like to say in the Southern parts of the country) that a person is one fingernail away from a grope. Sometimes it’s a hunch but I just knew/knew/knew that allegations would eventually pop up about a certain wearer of one of the most unflattering cowboy hats I’ve seen. And they did. A movie mogul? Casting couches were expected, to some degree, but never to this level, no matter how wellnourished some potted plants might have been. A comedian? After Cosby, not surprised.

Just goes to show you never know what’s going on in closets or who’s coming out of one. It’s a rape culture, ’tis said, through most of nature.

Lions do it, swans do it, gerbils not only do it but will snack on stray extremities as well.

That’s what abusers do to your psyche. Destroy your self-esteem and then you.

Throughout time. The male of the species is programmed to conquer - an instinct that has been, needs to be, sublimated when living in society. I remember reading and translating the account of ‘The Rape of the Sabine Women’ in Latin class. Yes, rape was used as a translation from the Latin of ‘take’ and Livy says that Romulus offered them free choice and promised civic and property rights to women; they were still taken and married off.

I feel a lot of blame needs to be laid squarely at the foot of religion although for some reason it is still thought bad manners to criticise religious beliefs and practices no matter how cruel and evil. In a 2006 Patheos article, Adam Lee expounds how every major world religion is unrelentingly patriarchal, the Abrahamic trio in particular.

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examples from Buddhism (rules for nuns) and Hinduism (suttee). Small wonder then that the myth of the Amazon women arose. Living in what is now, ironically, Islamic Turkey this society was comprised solely of women warriors. Dedicated enough to cauterise the right breast in pre-pubescent girls so nothing would interfere with wielding sword or spear and pragmatic enough to undertake an annual visit to nearby tribesmen to replenish wombs.

Myth though this is considered, I feel there must have been a truth that this was based on. In fact, given the number of matriarchal societies still in existence in the world, ranging from the far reaches of China, through India, Indonesia, Ghana, Costa Rica to New Guinea, I would say the chances are very good that the Amazonian myth was, in fact, a fact. Now the hens are coming home to roost as it were and as this becomes the discussion permeating the news, it will no doubt lead back to what started the pushback a year ago. The list of accusers is at 15 I believe, and some are represented by the fierce advocate of the seeming powerless, Gloria Allred, good enough reason for the guilty to shudder. (M)

“The callous and flip comments of the grabber-inchief shocked many people but many still chose to employ him.”

“I have yet to find a single major religion that bucks this trend,” he states and he goes on, “the supposedly more enlightened Eastern religions are not much better” and gives

The Abduction of the Sabine Women,

by Nicolas Poussin, (1634–1635)

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M A R K ET R E P O RT

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The year that was, the year to be.

As is this column’s tradition towards the last publication of the year, we shall look at the investment scenarios for 2018.

First of all, though, let us always keep in mind these are forecasts based on expectations and possibilities, which can be affected by a significant number of permutations.

This time last year, the world was in panic mode, to put it mildly: Brexit, Trump, Chinese slowdown, terrorism and looming risky elections in France and the Netherlands. We feared the worst.

Despite these fears, the world economy performed rather well. According to recent data by the International Monetary Fund, global economic performance has strengthened throughout this year, with global growth forecasted to increase to 3.6% in 2017 and 3.7% in 2018. Major international organisations have also issued upward revisions in recent weeks for the eurozone, Japan, emerging Asia, emerging Europe, and Russia, which have more than made up for the downward revisions for the United States and the United Kingdom.

If we look, however, at a broader picture that is less focused on this specific year, reality bites. The global economy is currently undergoing a full decade of long slow growth environment and the current environment still does not feel conducive to stronger growth. Politically, 2018 will not lack challenges; most notably a number of geopolitical flashpoints (Iraq, Iran, Korea, China, Japan), Russia-West relations, the War against Islamic State, elections in Latin America and Italy (with another populist scourge looming), the kind of Brexit that should start to materialise, as well as political crisis in the US. Overall, the performance of European bonds and stocks has been relatively tranquil, due mostly to

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the strengthening of the euro. Over the second and third quarter of 2017, the euro appreciated almost 11% against the US dollar. In an investment context, this is important since a significant proportion of companies listed in Europe derive their earnings from overseas markets, especially the United States.

The fact that the positive performance of European markets happened despite such appreciation is even more significant. Such a performance should broadly augur well for the upcoming year.

have also collapsed, mostly on matters related to migration and climate change. It is highly unlikely that Merkel would rely on a minority government, being a staunch believer of stability. Fresh elections would be held in spring and according to current polls, would return a similar result. Many traditional CDU-CSU voters switched allegiance to Alternative for Germany, particularly in a show of disapproval against Merkel’s liberal stance on immigration and her open borders policies.

Brexit questions

This issue will affect key European decisions such as Brexit, Russian sanctions, issues affecting Greece as well as French President Macron’s proposals on strengthening the euro. Merkel is probably one of the best politicians around to rise to the occasion, and has in the past been known to shuffle the cards in order to get what she wanted. Surely though, the current political quagmire will test her leadership

Needless to say, the market’s biggest spotlight will be on the implementation of Brexit. The OECD expects that the impact of Britain’s withdrawal from the EU will be felt immediately, with an increase in UK unemployment to 5.3%, from the current 4.3%.

In a recent analysis, the OECD noted that higher uncertainty could hamper domestic and foreign investment more than projected, but swift progress in negotiations and an outcome that retains strong trade linkages with the European Union would lead to better outcomes than projected.

Fear of the pending breakup is increasing expectations of negative, long-term effects. More than 70% of top CFOs interviewed by Deloitte expect slower business and recruitment. This negative sentiment increased recently as negotiations seem to have hit a wall, as officials haggle over a long list of issues. Central to the financial services industry is the issue of passporting rights, the structure which allows banks to sell their products and services around the 28 member states of the European Union. These lingering doubts may cause market volatility, as investors try to anticipate and respond to these negotiations. A specific area of concern is the real estate sector, with the risk that companies will decide to relocate certain operations.

In turn, this could affect property-investing funds.

However, such investment products are already looking at non-UK options to diversify their portfolios further.

German worries For many years a beacon of stability, trouble may be brewing in Europe’s strongest and most industrious nation, Germany. Despite Angela Merkel’s fourth electoral victory, her efforts to form a fourth-term government appear to be failing. The centre-left SPD have insisted on their preference to remain in Opposition, sensing that joining a coalition again will give them little opportunity to sweep the polls come next election following their massive defeat last time round. Talks with the Free Democrats

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skills to the limit. (M)

“The global economy is currently undergoing a full decade of long slow growth environment and the current environment still does not feel conducive to stronger growth."

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