BUSINESS
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DESIGN
THE BUSINESS EDITION ISSUE 78
Alan Cuschieri / 22 COVER STORY
MONEYBASE BUSINESS REVOLUTIONISES FINANCIAL MANAGEMENT
Mariella Camilleri / Katrina Cuschieri / Leonie Baldacchino / Giselle Borg Olivier / 18
VIEW THROUGH THE GLASS CEILING
Joseph Zammit Tabona / 14
WHEN ACTION SPEAKS LOUDER THAN WORDS
Marco Santini / Simon Debono / Steve Mercieca / 26
CHARTING NEW HORIZONS
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WELCOME
Editor’s note — As we delve into the heart of
Dayna questions Malta's stance on e-scooters
this edition, the pulse of business beats louder
and its potential to pioneer micro-mobility in
than ever. Six months have passed since the
the EU.
Malta Financial Services Advisory Council unveiled its strategy. In an exclusive interview,
The pages of this edition are also graced with
Vanessa Macdonald sits down with the council's
insights from EY Malta's attractiveness survey,
chairman, Joseph Zammit Tabona, to reveal the
offering a comprehensive look at what makes
progress and impact of this strategic move.
Malta an attractive location for foreign direct investment, along with areas earmarked for
Shifting gears, Vanessa Macdonald investigates
improvement.
a remarkable societal shift over the past two decades. According to the National Statistics
In the ever-evolving post-crisis landscape, JP
Office, the number of employed women in Malta
Fabri parallels Darwin's principles, underscoring
has soared from just over 45,000 to almost
the urgency for Malta to diversify and fortify
124,000. This seismic change begs the question:
its economy. From sectors and resilience
What factors have fueled this unprecedented
to ecosystems, public sector reform, brand
increase, and how is it reverberating throughout
development, and educational enhancements,
the hierarchical structure of our workforce?
Fabri emphasises that adaptability is critical to Malta's economic survival.
Our cover story highlights Moneybase Business,
Jordan Portelli looks closer at the delicate
a game-changing solution revolutionising
balance between achieving desirable inflation
business financial management. Moneybase
levels and preventing economic shocks.
CEO Alan Cushieri provides exclusive insights
Despite global challenges, pockets of economic
into this cutting-edge platform, offering a
resilience offer hope amid uncertainty.
glimpse into its sparked economic revolution, from streamlined access to essential services
Finally, Ed Muscat Azzopardi explores the role of
to innovative investments and unparalleled
company leadership in shaping and nurturing
security.
a brand that resonates with employees and customers. Highlighting the vital contribution
In a world knit together by globalisation, local
to sustainable growth and brand equity, he
companies are increasingly reaching beyond
underscores the significance of leadership in
borders for expansion. Lyndsey Grima explores
the intricate dance of values, behaviour, and
the journeys of three dynamic leaders who have
customer experience.
successfully steered their Maltese businesses onto the international stage. Their stories serve
As you immerse yourself in the diverse
as beacons of inspiration for those navigating
narratives of this edition, we invite you to
the complex landscape of global business
contemplate the ever-changing landscape of
expansion.
business, finance, and the economy, where innovation, resilience, and adaptability reign supreme.
Turning our attention to the streets, Dayna Camilleri Clarke delves into the contentious issue of electric scooter rentals. Unveiling contrasting views from operators and residents,
E D I T O R Anthony P. Bernard
D E S I G N Be.Communications
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responsible for errors or omissions in articles, advertising,
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material submitted for consideration.
06
ISSUE 78
MONEY
Pros in tech. Leaders in solutions.
CONTENTS
14
26
36
When action speaks louder than words
Charting new horizons
EY Malta's 19th Malta Attractiveness Survey The findings from EY Malta’s attractiveness survey—the 19th edition of an annual study conducted among existing FDI companies in Malta—were launched today, with investors providing their views on what makes Malta an attractive location to invest in or the areas for improvement.
Over six months have passed since the Malta Financial Services Advisory Council launched its strategy. Vanessa Macdonald caught up with its chairman, Joseph Zammit Tabona, to see what has happened since then.
18 View through the glass ceiling According to the National Statistics Office, just over 45,000 women were employed two decades ago. This year, there were almost 124,000. Vanessa Macdonald tried to determine what led to the staggering increase and whether the results are being felt up the hierarchy.
22
COVER STORY
Moneybase Business revolutionises financial management for businesses
Lyndsey Grima dives deep into the journeys of three dynamic leaders who have successfully steered their Maltese businesses onto the international stage.
32
Malta 2.0
The rise and fall of e-scooters in Malta Dayna Camilleri Clarke examines the reasons behind banning electric scooter rentals, the missed potential for sustainable transportation and improved last-mile connectivity, and highlights contrasting views from operators and residents. Ultimately, she questions Malta's stance on e-scooters and its potential to pioneer micro-mobility in the EU.
34 Pitch Black Competition shines at Malta Start-up Festival 2023
In this exclusive interview with MONEY, Moneybase CEO Alan Cushieri offers insights on this game-changing solution that explores the financial revolution that Moneybase Business has brought about.
40
The Malta Start-up Festival 2023 marked its third edition as a vital gathering for entrepreneurs, investors, and service providers in the island’s growing startup ecosystem. With the festival’s most notable attraction being the Pitch Black competition, Jessica Camilleri and Paul Grech shared their perspectives on its unique vocal pitch format.
JP Fabri explores the imperative of transformation in a post-crisis world. Drawing parallels to Darwin’s principles, Fabri delves into sectors, resilience, ecosystems, public sector reform, brand development, and educational enhancements, emphasising that adaptability is critical to Malta’s economic survival.
42 Navigating Malta’s business landscape Paul Rostkowski unravels asset managers’ challenges, from navigating complex regulatory frameworks to grappling with limitations in banking services and depositary options and sheds light on the anticipated impact of AIFMD II.
CONTENTS
44 Sticky inflation Jordan Portelli analyses the delicate balance between achieving desirable inflation levels and preventing economic shocks. Despite these challenges, pockets of economic resilience exist globally, offering hope amid uncertainty.
48 EU regulatory riddles unveiled Entering the European market is often a daunting prospect due to the labyrinthine structure of EU directives and regulations. Stephen Mallia delves deeper into each step of achieving compliance, providing a comprehensive roadmap for navigating EU regulatory frameworks.
52 Catalysing the AI Revolution Jake Aquilina looks into the challenges and opportunities and suggests rules for using AI in small and medium-sized businesses, giving them information that could help them have a successful digital future.
56 Is your most powerful asset in the wrong hands?
Dayna, a former newspaper editor and journalist, is a wordsmith extraordinaire. With a knack for crafting impeccable marketing text and brand manifestos, she
Lyndsey is a freelance writer and social
effortlessly balances grammar and brand
media marketeer. When she’s not typing away,
voice. Throughout her varied career, Dayna
you will find her focusing on her training at
has shaped narratives and inspired both
the gym.
colleagues and clients alike to lead global brands.
Paul is the COO for a local Alternative Investment Fund Manager (AIFM) and
Ed was born in 1977 and is, to the
recognized Fund Administrator in Malta. An
disappointment of many, still not dead.
MBA educated professional, Paul has extensive
He tells stories for a living, engages in a host
experience in asset servicing operations,
of activities that don’t involve actual physical
both locally (Malta) and internationally
activity, and likes food, film, travel,
(Luxembourg) focusing on UCITS and
and cameras.
alternative investment fund operations and administration.
Jake is a journalist and an MA English graduate who is interested in the digital shift the world is going through.
Ed Muscat Azzopardi emphasises company leadership's crucial role in shaping and nurturing a brand that resonates with employees and customers, highlighting its vital contribution to sustainable growth and brand equity.
JP is a founding partner at Seed, a multi-disciplinary advisory practice.
Stephen is a freelance product regulatory compliance expert and mechanical engineer with over 13 years of experience in the field,
Jordan is an economist and CIO /
providing practical client-focused advice.
portfolio manager for a local financial services company.
Vanessa had every intention of retiring but so far has been caught up by exciting freelance projects and voluntary work.
GOVERNANCE
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MONEY
GOVERNANCE
WHEN ACTION SPEAKS LOUDER THAN WORDS Over six months have passed since the Malta Financial Services Advisory Council launched its strategy. Vanessa Macdonald caught up with its chairman, Joseph Zammit Tabona, to see what has happened since then.
When the Malta Financial Services Advisory
complete all the action points that fall under
that would need to take each action. As a
Council launched its national strategy for
their remit, as it will otherwise be disjointed.”
strategy, it focuses on two core aspects: addressing the underlying foundations that
financial services at the end of March, many in the audience raised their eyebrows. It had
The long-term strategy, eventually unveiled
make for a solid and trusted jurisdiction while
identified 175 action points. How on earth
to the public this March, identified the main
concurrently seeking out areas of opportunity
could this be done? And, more importantly,
bottlenecks and opportunities and the entities
where Malta can build a sustainable competitive advantage. The idea is to get Malta
how long would it take?
into the top quartile rankings in key industry indicators.
Even at that early stage, there were many indicators that this was not an exercise destined to gather dust on some shelf. The Council, which the government set up in January 2021, is chaired by Joseph Zammit Tabona, whose long experience in business, diplomacy and government-run entities made him an inspired choice for the role. He immediately embarked on a sectorwide consultation that involved over 100 professionals in the sector—not only the regulators but also private providers and government entities, among others. “Because of my age, I have complete respect for the concept of time, and I want to see this materialise!” he smiled, commenting on why the approach had to be based on such a wide consultation.
We want to ensure that all aspects of these niche areas we’re creating are addressed – otherwise, the work is incomplete.
The MFSAC, at its meeting of 21st June 2023, set up a Program Management Office (PMO) to manage the process, run by Pier Massa, ably assisted by Dr Bernice Buttigieg of FinanceMalta. An overarching master plan covering some 600 action points has been developed to ensure no opportunities for change are missed or inadvertently discarded. In addition, the Council has the full support of the four financial regulators, namely: Joseph Caruana, commissioner for Malta Tax and Customs Administration (MTCA); Kenneth Farrugia, CEO of the Malta Financial Services Authority (MFSA); Alfred Zammit as the director of the Financial Intelligence Analysis Unit (FIAU); and Dr Geraldine Spiteri Lucas as the CEO of the Malta Business Registry
“We needed to get everyone aligned behind the
(MBR). Each of them has aligned their internal
strategy, and we need to keep them aligned.
strategies with that of the MFSAC and has
Everyone must be engaged in this process to
their project masterplans with extensive →
MONEY
THE BUSINESS EDITION
15
GOVERNANCE
changes that they are managing internally.
underway project, and the Companies Act’s
Beyond simply changes to legislation,
Moreover, Hon Clyde Caruana, Minister for
rewrite has also been initiated. In addition,
the process needs to consider how these
Finance & Employment and the Permanent
changes to Sustainable Finance and Real
niche areas would be developed, who
Secretary from the same Ministry has been
Estate Investment Trusts (REITs) are nearly
would be targeted, how the offers would be
actively engaged in the process – ensuring
completed and will positively impact capital
communicated and how the legislation itself
that the government allocates funds for the
markets. The recent Green Bond launch was
would be implemented and enforced.
required changes.
a solid and positive reinforcement that these
Since the launch, plenty of activity has
changes can have a material impact on the
“We want to ensure that all aspects of these
market.
niche areas we’re creating are addressed –
occurred, mainly outside the public eye. One
otherwise, the work is incomplete. So, for
of the primary objectives was to take the
Family Offices, for example, what quick wins
strategy from a high-level statement of intent
enable us to bring more business to Malta?
to an actual plan of action. Sorting through
Well, we have so many superyachts registered
and putting a structured implementation plan
in Malta, often owned by large family interests.
around the initiatives was a significant effort.
So, this is clearly an area that we should be
Given the vast scope of the strategy and
looking to expand. But there are many more –
the fact that it is long-term, the immediate
and the strategy will ensure that there is fertile
objective was to set clear priorities and
ground where these ideas can grow,” he said.
a commitment to the deliverables and Beyond that, the regulators themselves are
milestones.
undergoing significant changes to address Mr Zammit Tabona was enthusiastic about
issues around efficiency and eliminating
the last meeting on 29th September: “These
bureaucracy. The MFSA has tabled an
meetings are intense. At our June meeting,
extensive change agenda, whereas the
we had 19 presentations over 10 hours! We
MTCA is undergoing an overhaul of the tax
intended to identify which of the 175 action
administration process to make it more
plans can be completed within 18 months.
efficient and effective. Examples include
At the last meeting, we agreed on 25 priority
the launch of the MBR’s online platform
projects that, as a Council and the regulators,
this month, which directly addresses the
we intend to complete by 31st December
simplification and speed aspects highlighted
2024,” he confirmed.
in the strategy. While this was not a project developed due to the strategy, it is clearly
“That does not mean that the remaining
one that demonstrates the level of alignment
initiatives are excluded - just what we must
across the regulators with the strategy itself
focus on regarding legislation. The others
and the fact that they, too, are putting their
will continue at their own pace for the time
investments to support these objectives.
being and will be accelerated once the priority The Council keeps a respectful distance but
initiatives are completed.
monitors progress to maintain momentum and provides support and encouragement
“High on this agenda is the possibility of setting up a National Payment Hub, which Fabio Axisa is leading as chair of the Banking & Payments Working Group and myself. This takes up much of my time, but it will likely happen. We are continually discussing directly with the big six local banks to agree on a way forward with this initiative. Both the government and the Central Bank of Malta are keen that the private sector take over this initiative.” The target initiatives address significant changes in wealth management, the foundations to set up a strong Family Offices
Because of my age, I have complete respect for the concept of time, and I want to see this materialise!
throughout the process. There is also a clear warning: many of these changes rely on multiple stakeholders and, in the words of Mr Zammit Tabona: “The strategy was drafted by many of the professionals from the financial sector, and all need to do their bit to keep up the momentum. This is the sensitive part, and it’s easy to fall back to self-interest when changes are required that come close to home. So, we have to keep everyone engaged. “We all know this will be difficult – especially coordinating across many entities. Ultimately, however, I am convinced that if the profession
offering for Malta and the initiative to unlock
worked in unity, we could probably move faster
opportunities in aircraft leasing and fintech.
and that there should be sufficient work for all
Centralised Identity Management is a well-
to gain from the strategy’s success.”
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MONEY
WOMEN IN BUSINESS
VIEW THROUGH
THE GLASS CEILING According to the National Statistics Office, just over 45,000 women were employed two decades ago. This year, there were almost 124,000. Vanessa Macdonald tried to determine what led to the staggering increase and whether the results are being felt up the hierarchy.
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WOMEN IN BUSINESS
There are more women at the helm of Maltese companies than ever before. Why, you may ask? The answer is very simple: they are good at it. Mariella Camilleri, the BPW (Valletta) Malta president, was clear about what contributed to the increase. “Success! I think that especially in family-owned businesses, more female siblings are taking up senior management roles and are quite successful at it.” She explained that over the last decade, some reached the top role from within due to internal promotion. Still, others got there by opening their businesses, which are increasingly achieving success through innovation and sustainable growth. “We are seeing that publicly traded companies led by women are at times much more successful than entities in the same sector that men lead. These successes pave the way for women to be chosen as leaders in other companies, where previously the preferred candidate was or was nearly always male,” she said. Katrina Cushieri, the policy consultant at the Ministry for the Environment, Energy and Enterprise, who carefully monitors ESG factors, welcomed the trend. “I think over the past decade, we have normalised having females in the workforce, but also females in management. I don’t believe that ten Katrina Cuschieri
years ago, I would have been able to enter a boardroom or a workplace and find a substantial number of women in the room. “However, there are still several improvements that we need to make. According to our ESG data, the trend is clear: while a substantial number of women are in the workforce—some even pass the 50% mark—the number of females in management is lacking. This shows that while the concept of having women in the workforce has been well received, there is still some type of artificial barrier as to why these women don’t make it to management level or even board level at times,” she explained. On average, 43% of companies’ workforce is comprised of women, but the average number of females in management dwindles to 38% and further dwindles to 29% for females at the board level. Not all is doom and gloom, however. As the Ministry found, the quoted companies have made significant improvements within one year: a 7% increase in women in the workforce, a 6% increase in women in management, and a 5% increase at the board level. Cushieri attributes several factors to this improvement in female participation and representation, not the least of which was COVID-19, which made flexible hours much more ingrained in the workplace and accepted without negative consequences. There were also policy changes over the past decades, such as parental and flexible maternal leave and the introduction of childcare centres. “I would say it’s been a mentality change because, in the past ten Mariella Camilleri
years, most women don’t just stay at home while their husbands go to work but have a career themselves,” she said. →
MONEY
THE BUSINESS EDITION
19
WOMEN IN BUSINESS
Giselle Borg Olivier, a former JCI president and JAYE mentor who is passionate about entrepreneurship, delved even further into the point about flexible working conditions, noting that although mothers are still seen as the default primary parent, flexibility is essential for both to contribute to parenting equity. Borg Olivier is also optimistic about the future and believes that the only way is up: “By empowering women to take on decision-making roles and leadership positions, this should lead to C-suite positions too. There have been, and are, women at the C-suite level who have consistently delivered and have contributed to their company’s growth. There should definitely be more women on boards taking those important decisions!” Another positive trend is the reduction in the gender pay gap, which unfortunately remains very prevalent in several companies. “You would think that this culture is practically non-existent in Malta, but it’s quite prominent, according to our 2021 data. However, this is improving bit by bit—in fact, in just one year, it improved by over 2%,” Cuschieri said. How can we improve that number even further? Cuschieri believes it is essential to understand why more women are getting a university education without this result being reflected in the workplace. “I think it’s more of a mentality change we see than anything else— women can’t do more than they’re already doing. We have so many successful women out there who have full-time jobs, take care of their Giselle Borg Olivier
children, and are excellent multi-taskers. It’s a mentality change that is being pushed and directed towards a greater good, and I would say the figures show this mentality changing to an extent. “For example, we launched the first Green Bond on the market. As part of the Green Bond Framework, one requirement is that the board of directors had to be split equally according to gender. This meant that 50% had to be female. Pushing these green bonds (not just by women) can lead to more well-deserved and competent women at the board level!” What will push the boundaries even further? Borg Olivier pointed out the positive impact of leading by example: “At present, the younger generation recognise that leadership is not aligned to gender, and they actively see women being elected or promoted to senior roles. Representation is very important for people to believe that they too can achieve that role. “The traditional household roles of the man being the breadwinner and the woman being the homemaker are largely obsolete nowadays (within our society), and younger people are being raised in a more co-ed community where both boys and girls are being given equal opportunities to develop on a personal and professional level. This Leonie Baldacchino
allows them to explore different areas of interest without being forced into a gender structure.
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WOMEN IN BUSINESS
Chart 1 — Employment by age group and sex
Source: National Statistics Office, Labour Force Survey Q2/2023
Employed persons / Age group
Female
Male
50,000
40,000
30,000
20,000
10,000
0 15 - 24
25 - 34
35 - 44
45 - 54
55 +
“Representation is definitely a contributing factor. When the Lionesses
example, as part of a worldwide initiative, the US Embassy in Malta
won the UEFA Women’s Championship, there was a huge increase in
launched the Academy for Women Entrepreneurs to help train those
female football viewership and girls signing up for the sport. Seeing
starting their journey. The academy provides a training programme led
females succeed is empowering, especially in an area considered male
by The Malta Chamber, in which two people with the best idea pitches
territory (such as football).”
receive seed money.
Mariella Camilleri explained that, first and foremost, women need to be
It has a proven track record, operating in over 100 countries worldwide.
more assertive and take on the opportunities presented.
A 2021 evaluation of the program showed that 74% of women who complete the AWE program increase their business earnings, and 29% hire more staff.
“Women act very differently when presented with growth opportunities. Unlike most men, we think longer before applying for a position. We think thoroughly about whether we can fulfil the role; we
Women in business also have more associations than ever to provide
think longer about whether we have time for the job. We think longer
networking – such as BPW (Valletta) – and in 2018, HSBC Bank
about whether we can keep doing all the other things we need to do
launched the “Malta Businesswoman of the Year Awards” to help
while doing this new job,” she said.
promote and recognise the excellence of women who have achieved significant success in business.
“Women also tend to hold back when it comes to preparing information and making presentations to potential investors/financiers,” she
The final point should come from Prof. Leonie Baldacchino of the
added, noting that it was essential to be well-prepared and confident.
Edward de Bono Institute for Creative Thinking and Innovation. During a recent interview with fellow academic Danielle Farrugia, she
When it comes to becoming an entrepreneur, her advice was the
pointed out that the key to success was creativity – whether it was the
same advice she would give to anyone contemplating a new venture,
traditional view of entrepreneurship as opening your own business or in
whether male or female: “We must accept that we do not know it all!
the greater sense of branching out into something new.
Entrepreneurs should recognise where they excel and where they need “What is needed is creativity and 21st century skills… The world is
to bring expertise from other fields.”
changing so fast, and we must be able to change and adapt…” Camilleri’s advice: surround yourself with a support team, “whether it is a family member who offers to assist, whether taking on the
Unfortunately, creativity is seen as something that people are born
opportunities for support in our day-to-day lives or asking our partners
with as an innate talent, but the institute is working hard to promote
to contribute more to allow us to grow professionally.
the idea that these skills can be learned. A recently published academic paper – by Prof. Baldacchino and others – found a strong correlation
“Last but not least, we need to support each other. Women in higher
between studying science, technology, engineering and maths and
positions should be willing to mentor other women in reaching these
adopting creative thinking approaches.
roles while giving opportunities to bring other capable women into the Women have more support than ever before, and the increasing
Executive or C Suite level, who can provide equity in the mix.”
representation feeding up along all levels of business is certainly cause Some of this support is already being seen at a systemic level. For
MONEY
for celebration.
THE BUSINESS EDITION
21
COVER STORY
MONEYBASE BUSINESS REVOLUTIONISES FINANCIAL MANAGEMENT FOR BUSINESSES In this exclusive interview with MONEY, Moneybase CEO Alan Cushieri offers insights on this gamechanging solution that explores the financial revolution that Moneybase Business has brought about. Discover how this cutting-edge platform simplifies business financial management, providing swift access to essential services, innovative investments, and unparalleled security. Moneybase, a leading name in payments
latest embodiment of that commitment,” said
financial services industry way back in 1971.
and financial services, proudly announced
Alan Cushieri, CEO at Moneybase.
We support our clients across four branches, and we offer ISO-certified customer support
the official launch of Moneybase Business at the Finance Malta 2023 event. Moneybase
What sets Moneybase apart from other
Business is a powerful, fast, and cost-
platforms for business in the industry?
effective solution designed to streamline
Moneybase is genuinely revolutionary in
We are genuinely proud to be able to help
financial management for both local and
several ways. First, Moneybase Business
businesses manage their money easily
international businesses.
solves the long-standing issue for many
and allow them to focus on growing their
local businesses that find it hard, expensive
business.
seven days a week.
Using the same award-winning technology
and very time-consuming to open and run a
that has made Moneybase a household name,
business account and who want support from
A core function of Moneybase is the ability
Moneybase Business combines cutting-edge
a locally regulated and established firm that
for businesses to send and receive payments
innovation with expert insights to address
has real substance in Malta.
seamlessly. An advantage that Moneybase brings in this respect is that businesses can
the complex challenges business owners face We promise to open an account within just
create multiple wallets with different IBANs
48 hours of a complete application being
to suit their needs; for example, they can
“At Moneybase, we believe managing finances
submitted, and our fees start at just €9.99 a
set up a proprietary wallet, a payroll wallet
should be simple and accessible for everyone.
month. Moneybase is licenced and regulated
and a supplier wallet and assign additional
Our mission is continually improving our
by the MFSA and is part of the Calamata
permissions to staff as required. Payment
offerings, and Moneybase Business is the
Cuschieri Group, which pioneered the local
approval flows can also be set for each wallet.
when managing their finances.
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MONEY
COVER STORY
Another key advantage is that Moneybase
or cold, which many businesses experience
Moneybase Business is available across the
provides business owners, CFOs and finance
with legacy banks today. Moneybase is here to
EU, with a particular focus on helping Maltese
managers with a convenient way to optimise
provide a friendly, efficient, and cost-effective
businesses. We cater for an extensive range of
their company’s cash positions by using
experience to our business customers so that
sectors, from shipping and aviation to the local
Treasury bills to earn interest. Of course, they
they can focus on growing and scaling their
boutique, toyshop, or freelancer. Our mission
can also access the international bond market
businesses.
is to be as inclusive as possible, and therefore, our coverage of sectors is already extensive.
or new local IPOs on the Malta Stock Exchange, as well as 40 global markets across bonds,
What types of businesses and industries does
equity, ETFs, and funds.
Moneybase primarily cater to, and are there
In the realm of financial technology, what
plans to expand into new sectors?
trends or innovations do you see shaping
Moneybase is available on both mobile and
the future of business transactions and
desktop and is unique in its proposition of
payments? How does Moneybase adapt to
offering businesses extensive payment capabilities combined with a wide range of investment options. How does Moneybase support the growth and scalability of businesses within the B2B ecosystem? Our mission is for our customer experience to be second to none, not only from a technological perspective but also from a
Security and data privacy are areas where we leave no stone unturned.
these changes? Business leaders today are expecting the same convenience they have become accustomed to on their personal accounts; this means providing complete control and customisation in an easy-to-use platform. This is precisely what we have worked on and will continue to work on. In the coming months, we will be launching
customer journey perspective. Managing
more innovative functionality; I encourage all
business finances should not be complicated
businesses to open an account and to get →
MONEY
THE BUSINESS EDITION
23
COVER STORY
Moneybase Business is available across the EU, with a particular focus on helping Maltese businesses. involved in our community so that together, we can continue to shape the future of managing business finances today. Security and data privacy are paramount in any transaction. How does Moneybase •
Dedicated Support: Moneybase offers
ensure the security of sensitive financial data
Bonds, Funds, ETFs, and Treasury bills
for its clients?
across 40 exchanges.
24/7 support from an ISO-certified human
Multi-Currency Capabilities: Customers
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24
ISSUE 78
MONEY
INVESTING TOGETHER
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The value of investments may go down as well as up and may be affected by changes in currency exchange rates. Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, Il-Belt Valletta VLT 1130. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and licensed to carry out the business of investment in terms of the Investment Services Act (Cap. 370 of the Laws of Malta).
BUSINESS
CHARTING NEW HORIZONS Local Companies Making Their Mark Worldwide
In an era of rapid globalisation and interconnected economies, local companies increasingly look beyond their home turf for expansion opportunities. Lyndsey Grima dives deep into the journeys of three dynamic leaders who have successfully steered their Maltese businesses onto the international stage.
Meet Marco Santini, the co-founder and chief marketing officer of Eeetwell, Simon Debono, chief marketing officer of eCabs, and Steve Mercieca, co-founder and CEO of Quicklets and Zanzi Homes, as they share their insights, experiences, and strategies for taking their companies global. These individuals represent a diverse range of industries, and their stories provide a compelling glimpse into the challenges and triumphs of local businesses as they navigate the complexities of international expansion.
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BUSINESS
In which countries or regions have you extended your
be essential players in shaping the ride-hailing landscape
international presence, or where do you intend to expand
in their respective jurisdictions, providing seamless online
internationally?
solutions for riders and safe and flexible work for drivers.
Marco Santini: We started our journey in Malta but were
Steve Mercieca: Our dream was always to expand and
always dreamers. Now, we’re in hotspots like Antwerp,
breathe our culture, vision and purpose all over the globe.
London, Dubai, Avignon, Turin, Wijnegem and Hasselt. We’ve
We started first with Cyprus, just before the pandemic
spread our wings to six countries with 27 stores in recent
hit, which made it much more complicated than we
years. Our mission is strong, and we’re not stopping here.
thought. Today, the branch is finally beginning to thrive,
There’s a whole world out there we want to reach with our
and the team there is happy and reaping the values of our
hearty bowls and fresh juices. Within the next few months,
operation.
we will be opening in Libya and Milan, and we plan to hit the We have now spread from Limassol to Barcelona, Madrid,
US in early 2024.
Valencia, Malaga, Alicante, and Lisbon. We always launch different products, mainly tech-based, but remain in the real estate field. What is driving your decision to explore international markets?
MS: We’re on a mission to change how people think about food, and we believe this conversation is global. Venturing into international markets isn’t just about spreading our Simon Debono: The partnership model which eCabs
wings; it’s about sharing our passion for fresh, wholesome
Technologies has developed means that rather than
food and showing how it can be a force of change and good.
extend the eCabs brand beyond Malta’s shores, it is instead
Every new place we go, we find more people who share our
working with partners to launch new distinct brands in
enthusiasm for a healthier, more conscious way of eating,
new jurisdictions. Two new ride-hailing brands have been
and it’s this shared vision that drives us to explore beyond
successfully deployed beyond Malta, utilising eCabs
our home turf.
Technologies’ ride-hailing technology as their backbone, SD: 14 years ago, eCabs was born from the belief that
with other jurisdictions also in the pipeline.
the transport industry needed a thorough shake-up. The
MONEY
In September, the Greek taxi company Intelligent Mobility
company set out to challenge the status quo from its
App S.A. launched the taxi.gr ride-hailing app in Athens.
inception - providing a more professional, reliable, and
Meanwhile, Autonom Drive, the largest mobility operator in
consumer-friendly mobility service. We then began a digital
the Romanian market, has selected eCabs Technologies to
transformation - transitioning from a traditional dial-a-cab
help launch Blue, a new ride-hailing service in Bucharest,
operation to an app-based ride-hailing solution, building its
Romania. Both taxi.gr and Blue are fully equipped and set to
technology from scratch. →
THE BUSINESS EDITION
27
BUSINESS
After years of perfecting our product at home, eCabs announced this year that it is leaving the sandbox and taking the eCabs Technologies’ platform to several major cities in Europe and beyond. We remain driven by the same desire - to be an essential player in the international ridehailing scene today and beyond. SM: The urge to learn more about different cultures and industries. I also feel that Malta is sometimes too small for our ambitions in the real estate world. What is your competitive advantage in the target market? MS: Our canvas is the community, and every meal we serve is a brushstroke contributing to a larger picture. This artistic approach and our commitment to sustainability and transparency create a unique space for Eeetwell. It’s less about competition and more about offering a fresh perspective on the global food scene. SD: The eCabs Technologies offering is not just an offthe-shelf product - it is a blend of invaluable industry operational expertise and a robust technology stack already successfully competing with the world’s largest
Apart from that, eCabs’ technology is continuously
brands. What distinguishes eCabs from competing
improved by a team of product owners, developers and
white-label technology operators is its 14 years of 24/7
engineers, in direct daily contact with our central tenant
operational, marketing, and business acumen, which is part
in Malta as it crosses its sword in this highly competitive
of a product offering that delivers more than just robust
market featuring Bolt and, more recently, Uber.
technology. SM: Tech, tech, tech...top people and a clear and focused vision that is hard to come by nowadays! How will you adapt your product or service to meet the specific needs of the target market? MS: Every place is unique with its own food love story, and we get that. That’s why we give a local twist, which totals up to 40% of our menu, in every new place we expand. We create unique items that vibe with the local taste and consider what’s fresh in that country or city. True to our local sourcing values, we adapt the 40% based on what Mother Nature offers us in that market. It’s about being a part of the community, not just present. SD: eCabs Technologies’ platform is, by and large, a complete platform. However, different markets may have additional requirements, and the eCabs Technology team can adapt to these needs. Any new developments implemented for one market are also available for all other markets we deploy, further enriching the platform. One example is taximeter pricing, which was developed for the first tenant in Greece but is now available for any new country that may require this feature. SM: This has been our biggest struggle. Besides the obvious language barriers, there are licensing and cultural issues; of course, our EU counterpart markets are
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BUSINESS
MS: Our values are rooted within everything we do, from sourcing local produce to engaging with our community. The brand experience remains the same across all our markets. It’s all about partnering with like-minded people across the globe who share our vision and passion for food and community. We firmly believe that when the ‘why’ is clear, the ‘how’ naturally follows. The uniformity in our offerings comes from a blend of standardised recipes, rigorous quality control, and a sprinkle of local flavour. Our product development team collaborates closely with the local operations’ chief executives, ensuring that every dish we serve and how
Houzit team, Barcelona
Houzit office, Portugal
incredibly mature. We don’t seem to realise most of the EU has been thriving since the Romans. Malta only began to flourish after our independence, and even then, we still had never dealt with the problems that our EU counterparts have been facing for a long time, such as overpopulation. To overcome this, we studied markets well, recruited top talent and adapted our technology to have a competitive edge. What are the potential pitfalls or risks you anticipate? MS: It’s not always a smooth sail, especially when navigating different rules and cultures. We’re all about
Quicklets in Limassol, Cyprus
learning and growing from those bumps on the road, making our story richer and our bowls tastier. we serve it resonates with our standards and values. SD: In the face of population growth and global warming,
This collaborative approach helps us navigate the
the transport sector faces ever-increasing challenges.
diverse culinary landscapes while keeping the essence of
Likewise, the gig economy, which ride-hailing often forms
Eeetwell intact, offering a familiar warmth and quality in
part of, has triggered debate and varying reactions across
every corner of the world we touch.
the globe. SD: The partnership model which eCabs Technologies
MONEY
SM: Legislation change is constantly pulling our tale, but
has developed means that rather than extend the eCabs
the value of estate agents will stay for another 40 years.
brand beyond Malta’s shores, it is instead working
Generations must be outgrown before tech takes you from
with partners to launch new distinct brands in new
A to Z in every transaction.
jurisdictions.
How will you maintain consistency in your company’s
SM: Many visits to all the cities, weekly meetings, reviews,
values, culture, and quality standards across
ratings, surveys, coaching available to the team and
international locations?
always having a finger on the pulse!
THE BUSINESS EDITION
29
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ISSUE 31
Informative and exclusive content, high
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PROMO
EMPOWERING ENTREPRENEURS MONEY speaks with Giselle Borg Olivier, the foundation manager of FPEI and Zaar Crowdfunding Malta, about FPEI Enterprise, Malta’s new go-to service directory for start-ups, businesses, and entrepreneurs.
Can you start by telling us more about FPEI
information, services, resources, logo, and
Enterprise and its mission?
contact details. You can also enhance your
FPEI Enterprise is Malta’s leading service
knowledge and skills through discounted
directory designed to assist start-ups,
or complimentary access to expert-led
businesses, and entrepreneurs in their journey
workshops and training sessions. Our
to success. Our mission is to bridge the gap
mentorship programs and blog also provide
many entrepreneurs and organisations face
opportunities to share experiences and
when seeking the service providers they need
expertise.
to support their businesses. It sounds like an all-encompassing support Navigating the start-up landscape can
system for entrepreneurs. What about
be challenging. How does FPEI Enterprise
industry-specific insights?
address this issue?
Staying ahead of industry trends and insights
Whether you’re a seasoned entrepreneur or
is crucial in today’s fast-paced business
just starting, building a network of trusted
landscape. FPEI Enterprise provides its
contacts takes time. In the interim, you still
members with industry-specific knowledge,
need professional assistance in various
trends, and market insights through
areas like legal, financial, co-working spaces,
newsletters to keep them well-informed about
education, recruitment, and digital services.
their sectors.
can apply online, and the annual membership fee is just €175 (excluding VAT), renewable
FPEI Enterprise acts as the connective tissue, helping entrepreneurs quickly and confidently
You mentioned sponsorship and funding
every 365 days, making it easy and affordable
find the right service providers while allowing
opportunities. Can you elaborate on how
to become a part of our community.
businesses and service providers in Malta to
FPEI Enterprise facilitates these?
connect with entrepreneurs.
We have a unique initiative called Zaar,
Finally, Giselle, what is the vision of FPEI
Malta’s only reward- and donation-based
Enterprise for the entrepreneurial and
Please tell us more about the FPEI
crowdfunding platform. It’s the go-to resource
start-up industry in Malta?
Enterprise Membership Club and its
for assistance in crowdfunding. Through
We firmly believe in the growth potential of
benefits.
FPEI Enterprise, you can support your
the entrepreneurial and start-up industries in
The FPEI Enterprise Membership Club is our
organisation’s Corporate Social Responsibility
Malta. We aim to empower founders, pioneers,
latest initiative, and it serves as a vital bridge
(CSR) efforts through our ‘Matchfund’
entrepreneurs, and innovators like you to
between entrepreneurs, businesses, entities,
feature, which allows companies to match the
take their next steps towards entrepreneurial
and collaborators. We’ve created a range of
amount raised by a voluntary organisation
success. FPEI Enterprise provides the
valuable benefits for members to address their
through crowdfunding, fostering meaningful
resources and support to turn those visions
needs.
relationships.
into reality. For those interested in joining the
As a member, you can fast-track your network-
Joining FPEI Enterprise sounds promising.
building through our networking activities, and
Can you tell us about the membership
each listing in the FPEI Enterprise Membership
process and cost?
I look forward to welcoming new members to
Directory provides space for your company
Joining FPEI Enterprise is straightforward. You
our community.
FPEI Enterprise Membership Directory, visit
MONEY
THE BUSINESS EDITION
https://fpei.mt/membership/.
31
MOBILIT Y
THE RISE AND FALL OF E-SCOOTERS IN MALTA A missed opportunity
Dayna Camilleri Clarke examines the reasons behind banning electric scooter rentals, the missed potential for sustainable transportation and improved last-mile connectivity, and highlights contrasting views from operators and residents. Ultimately, she questions Malta's stance on e-scooters and its potential to pioneer micro-mobility in the EU.
E-scooters, the compact and convenient
Sustainable Transportation
Reducing Traffic Congestion
electric-powered two-wheelers, took the world
One of the primary reasons rental e-scooters
Malta’s roads are often clogged with cars,
by storm as a new mode of transportation in
made sense in Malta was their potential to
especially in densely populated areas like
urban areas. Malta was no exception to this
promote sustainable transportation. With
Valletta, Sliema, and St. Julian’s. E-scooters
trend. The introduction of e-scooters in Malta
its small size and limited parking space,
offer a solution to this problem by providing a
was met with great enthusiasm, offering a
Malta faced growing traffic congestion
convenient means of transportation for short
breath of fresh air on an island accustomed
and air pollution, a story we know all too
trips. Commuters and tourists could easily hop
to traditional modes of transport and in the
well. E-scooters provided an eco-friendly
on e-scooters, reducing the number of cars
face of extreme traffic. However, the recent
alternative that could help reduce greenhouse
on the road during peak hours and making the
announcement of a ban on rental e-scooters
gas emissions and alleviate the pressure on
traffic flow smoother.
in Malta is cause for concern, as it represents
the island’s infrastructure. By introducing
a missed opportunity for the island to embrace
several fleets of electric scooters, Malta took a
Boosting Tourism
modern mobility solutions.
step towards a greener and more sustainable
Tourism is a vital part of Malta’s economy,
future.
and rental e-scooters present a unique
Now, let’s take a closer look at why rental
opportunity to enhance the experience of
e-scooters were a good idea for Malta, and just
tourists. Visitors could explore the beautiful
to set the record straight, private e-scooters
island at their own pace, discovering hidden
will still be allowed, with incentives introduced
gems and scenic spots. E-scooters were a
to encourage people to buy their own. “This
fun and efficient way for tourists to navigate
initiative aims to promote responsible e-kick
the narrow streets and enjoy Malta’s stunning
scooter usage and reduce inconvenience
views, contributing to a positive tourism
for communities and people,” the Ministry
experience and increasing revenue.
of Transport said in an official statement. Some may already argue that using the word
Last-Mile Connectivity
“inconvenience” doesn’t bear much hope for
E-scooters were a perfect solution for the
future things.
“last mile” problem, helping commuters bridge
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MONEY
MOBILIT Y
the gap between public transportation and their final destination. This convenience encouraged more people to use buses or ferries, knowing they could easily continue their journey with an e-scooter. It also made it easier for residents to work, shop, or attend events without owning a car, reducing the island’s overall carbon footprint. E-Scooter Regulations Despite the many advantages of e-scooters in Malta, the recent ban points to the need for stricter regulations and better enforcement.
Bolt parking bays abroad
For a while, the government has expressed dissatisfaction with rental e-scooter companies like Bolt and Bird, citing concerns
e-scooter parking can be attributed to the
Bolt said it had yet to receive a response from
that riders frequently endanger bystanders
government’s failure to provide necessary
the transport minister’s team for their meeting
and obstruct walkways with their parking.
infrastructure, such as designated parking
request. Similarly, Seven Group, the company
Safety concerns, including reckless riding and
bays.
that operates Bird scooters, said: “The operators are looking to meet the minister in
accidents, were cited as reasons for the ban. To address these issues, Malta could have
person to understand the reasons behind this
Just a few weeks ago, the Home Affairs
implemented mandatory helmet use, lower
extreme decision.”
Minister, Byron Camilleri, informed parliament
speed limits, designated parking zones,
that 10,943 fines had been handed out to
and more thorough education for e-scooter
What next?
e-scooter riders by the police and the Land
riders from the get-go. Did we move too far
The introduction of e-scooters in Malta was
Transport Authority.
forward with any lack of insight here? Where
indeed a good idea, as they offered a range of
was the long-term vision? How can we expect
benefits that could have improved the island’s
While the news of the upcoming ban may
e-scooter companies to park properly if no
transportation and environment. However,
disappoint e-scooter operators and users,
such designated hubs are designed?
the recent ban on e-scooters is a setback for Malta’s potential to embrace modern
who have seen their service become one of the few thriving transportation options in the
The Operators
mobility solutions. Instead of an outright
country, it is likely to be met with approval
Bolt has ruled out legal action against the
ban, the government should have worked to
from residents and pedestrians who have been
government over its decision to ban rental
create sensible regulations to address safety
dealing with the problem of poorly parked
e-scooters in Malta from March. Instead,
concerns while preserving the convenience
scooters.
Bolt and its main competitor, the operator of
and environmental benefits of e-scooters.
Bird scooters, are seeking to meet transport Sliema Mayor John Pillow warmly embraced
minister Aaron Farrugia and find a “balanced
Malta needs to reassess its stance on
the announcement, noting that he had already
solution” (as of October 26). “Court is not
e-scooters and consider a more balanced
begun receiving messages from delighted
the answer to the problem; building parking
approach that allows these electric wonders
residents expressing their happiness with the
infrastructure across Malta, working together
to flourish once again, transforming the way
news.
with authorities, and implementing a new
people move around the beautiful Maltese
parking regulation is the solution to this
archipelago.
He emphasised that the core issue lay in how
problem,” a Bolt spokesperson told the Times
e-scooters were initially introduced, with a
of Malta.
After all, how can it be that one of the EU’s tiniest nations is the first to outlaw rental
glaring absence of rules and regulations from the very start. He clarified that he wasn’t
“As an international company operating in
e-scooters? This contradicts the very
against e-scooters, as he used them, but he
more than 250 cities and 25 countries, we have
essence of promoting micro-mobility
stressed that responsible usage could only be
been collaborating with cities everywhere,
and conveys an unfortunate message.
ensured if individuals owned their e-scooters
and we believe that only by working together
Malta should be a pioneer in the field of
rather than renting them. He stated, “The real
can we find a more balanced solution,” the
micromobility, leveraging the unique
problem was the misuse of e-scooters.”
spokesperson told the Times.
advantage of our compact size. We often
On the other hand, operators argue that
“We are also looking forward to meeting
kilometres in length, with the national average
e-scooters represent one of the few
the minister in person to understand the
daily travel distance hovering around 5
successful alternative transportation
reasons behind this extreme decision, which,
kilometres. Nonetheless, we continue to invest
solutions in a country heavily reliant on cars.
unfortunately, has only been shared with us
in oversized intersections and overly extensive
They contend that the problem of haphazard
through the media.”
roads to accommodate more cars.
overlook the fact that Malta is just 27
MONEY
THE BUSINESS EDITION
33
S TA R T- U P S
PITCH BLACK COMPETITION SHINES AT MALTA START-UP FESTIVAL 2023 The Malta Start-up Festival 2023 marked its third edition as a vital gathering for entrepreneurs, investors, and service providers in the island’s growing start-up ecosystem. With the festival’s most notable attraction being the Pitch Black competition, Jessica Camilleri and Paul Grech shared their perspectives on its unique vocal pitch format. Beyond Pitch Black, they discussed the festival’s growth and practical concerns, highlighting its role in fostering innovation and meaningful connections for start-ups and investors.
The third edition of the Malta Start-up Festival cemented the event’s
either. But to my surprise, all ten finalists slayed their pitch,” Camilleri
status as the most critical gathering of entrepreneurs, investors, and
exclaims. This unconventional format challenges participants to truly
service providers in the island’s nascent start-up ecosystem. That
master the art of pitching and communicate their ideas with confidence.
reputation is supported by the physical growth of a festival that has
“I also liked that the judges were among the audience, but not so much
rapidly outgrown previous hosting venues, with the most recent edition
the preplanned questions and how the questions were being posed to
being held at the MFCC. The event’s undoubted highlight was Pitch-Black, which featured ten competing founders looking to win over the judges in a novel setup. “I was super curious about the Pitch Black competition,” Jessica Camilleri, head of business advisory at Bajada Lyons Group, notes, sharing her initial doubts about this distinctive event. The competition places participants in an unusual scenario where they must present their start-up ideas based solely on their vocal pitch without the aid of traditional pitch decks or presentation screens. However, her scepticism quickly transformed into admiration as she witnessed all ten finalists deliver compelling pitches. “I was sceptical at first, given that the competition is based on your vocal pitch with no assistance from a pitch deck and no comfort screens
34
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Having the ability to succinctly convey their ideas is an invaluable skill that will greatly aid start-ups on their entrepreneurial journey. — Jessica Camilleri MONEY
S TA R T- U P S
direct the answer,” Camilleri remarks about the Q&A session following the pitches. While the idea of judges mingling with the audience adds a unique element to the competition, the preplanned questions raised concerns about their potential to influence the answers. Paul Grech, head of investments at GO Ventures, echoes her thoughts. “Pitch Black was hyped up by the organisers before the end, but ultimately it delivered. It energised the big audience that came to listen to the pitches and created a lot of buzz. I’m not sure I would follow up on a start-up purely based on what I saw at Pitch Black, but it was great entertainment.” “I spoke to a couple of participants afterwards, and they seem to have enjoyed the experience. All had been worried about the absence of any backing slides, but being forced to do without them made them focus more on what they’re trying to achieve.” so on, was poor.” Navigating the festival was not as straightforward as “Having the ability to succinctly convey their ideas is an invaluable
she had hoped, and she had to rely on asking for directions.
skill that will greatly aid start-ups on their entrepreneurial journey. Regrettably, many start-ups become so engrossed in their pursuits
Furthermore, she highlights the intricacies of scheduling and managing
that they often overlook the importance of effectively communicating
her time at the festival. “The DealRoom app is great for keeping track of
their concepts to external parties. Nonetheless, if you aspire to attract
what’s happening on the main stage against your pre-booked meeting
investors to your venture, you must be capable of articulating your
at the DealRoom,” Jessica shares. However, integrating workshops into
thoughts in a straightforward and understandable manner.”
the schedule could have been more seamless. This created challenges for attendees to balance their agendas and take advantage of valuable
Beyond Pitch Black, Grech praised the Malta Start-up Festival,
content.
highlighting the organisers’ ability to listen to and address feedback from previous years. “Whilst last year’s setting at Villa Bighi was quite
“I wanted to listen in to at least one workshop a day; however, my
scenic, it all felt a bit cramped, particularly when students were among
slots at the DealRoom took over my agenda completely,” she reveals,
the attendees.”
shedding light on the scheduling complexities.
“The move into the venue was welcome, extending some hosting areas
Ultimately, the idea of potential investors struggling for free slots
to outside venues. What was lacking this year was proper signage, which
is a nice problem to have. Indeed, despite the logistical challenges,
made it hard to appreciate all that was going on. I was also surprised
Camilleri highlighted the tremendous networking opportunities the
to hear that workshops were happening because I had not seen any
festival offered. “Our team of 3 individuals managed to have 52 separate
promotion.”
meetings,” she mentions. The festival became a fertile ground for forging connections and exploring potential collaborations.
Camilleri also points out these practical concerns during the festival: “Signage for the various rooms, be it the DealRoom, workshop area, and
“Let’s say 16 to 18 of them look promising, as we now pass on to the next stage of understanding their business models, forecasts or having demos of their products,” Jessica states, underscoring the tangible
There was a marked improvement in the quality of start-ups at the festival. There were three with whom we will definitely continue our discussions over possible investment. — Paul Grech MONEY
outcomes of their participation. “There was a marked improvement in the quality of start-ups at the festival,” Grech confirmed. “There were three with whom we will definitely continue our discussions over possible investments, as well as many more with whom we will keep following their progress.” “This is a healthy sign, as is the public consultation announced during the event aiming to identify improvements that can be made to the local infrastructure.” For Jessica Camilleri and Paul Grech, the Malta Start-up Festival remains a must on their yearly calendar. While they both identified areas for improvement, their overall experiences reflect the festival’s capacity to facilitate meaningful connections, foster innovation, and create opportunities for start-ups and investors alike.
THE BUSINESS EDITION
35
SURVEY
EY Malta’s
19th MALTA ATTRACTIVENESS SURVEY What current investors think about Malta during the Future Realised Conference
The findings from EY Malta’s attractiveness survey—the 19th edition of an annual study conducted among existing FDI companies in Malta—were launched today, with investors providing their views on what makes Malta an attractive location to invest in or the areas for improvement.
36
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MONEY
SURVEY
telecommunications infrastructure have decreased by 8% and 6%,
Attractiveness index
respectively, when compared with the results of 2022. The flexibility of labour legislation, which ranked sixth last year, can
87%
now be found in fourth place on the attractiveness scoreboard. The
79%
59%
attractiveness of labour costs (37%) increased slightly from 2022 (35%), whereas the attractiveness of local labour skills level decreased by 5% (from 40% to 35%), and flexibility of labour legislation (44%) increased by 3%.
37% 15%
11% 17%
2014
13%
2017
2020
2023
No
Source: all 2014-23 respondents
Only one-fifth of respondents find transport and logistics infrastructure favourable. This is a further deterioration of 10 points when compared with 2022. Despite a minor improvement over last year’s result, Malta’s R&D and innovation environment (25%) remains on the lower end of the
Yes
Don’t know
Attractiveness Index In the wake of global economic shifts, Malta’s allure as a hub for FDI
attractiveness scoreboard.
Biggest risks
holds steadfast. Fifty-nine percent of existing FDI investors affirm
(vs 2022)
OECD/EU tax reform
Malta’s investment appeal, which remains unchanged from 2022,
61%
Skills shortages
48%
marking a notable upswing from the post-COVID-19 era in 2021.
Reputational concerns
37%
However, despite this upward trajectory, the current FDI attractiveness
Cost competitiveness
35%
ratings have yet to regain the exceptional confidence levels observed in
Banking challenges
the years before 2019.
Environmental concerns
significant increases in population and tourism, presents a challenging
Ease of doing business challenges
situation. This has led to escalating pressures on various aspects,
36% 38%
24%
Physical national infrastructure
Investors claim that Malta’s ongoing economic growth, along with
54% 36%
32%
Quality of life factors
58%
11%
15%
N/A
15%
14%
9%
13%
Limited innovation capacity
6%
Lack of financing
6%
5%
Logistics and supply chain challenges
5%
18%
Evolution of European legislative framework on digital services and markets
4%
8%
War in Ukraine
2%
5%
notably the cost of living and labour supply.
4%
Attractiveness combined Corporate taxation
73%
71%
62%
Telecommunications infrastructure Stability of social climate
61%
69%
Flexibility of labour legislation
44%
Potential productivity increase for your company
42%
Level of protection of intellectual property rights
42%
Labour costs
37%
35%
Local labour skills level
35%
40%
Domestic or regional market
33%
Stability and transparency of political, legal and regulatory environment
30%
R&D and innovation environment
25%
Transport and logistics infrastructure
41%
43%
35%
58%
The most significant risks facing Malta’s FDI attractiveness
45%
54%
With corporate taxation ranked as Malta’s most robust FDI parameter,
44%
the changes brought about by international tax policy developments are considered by 61% of respondents to be Malta’s most significant
29%
FDI-related risk for the next three years. The other substantial risks
47%
that respondents have highlighted are skills shortages (down from 54%
50%
in 2022), reputational concerns, cost competitiveness, and banking
27%
challenges.
31% 24% 30%
Source: all 23 respondents
67% 64%
68%
The most significant changes compared with last year’s results are, on the one hand, an increased importance being placed on quality of
28%
life factors (from 11% in 2022 to 24% in 2023) and a decrease in the 2023
2022
2021
Source: all 2021-23 respondents
perceived risk of logistics and supply chain challenges (from 18% in 2022 to only 5% in 2023).
FDI Attractiveness Scoreboard
Presence in Malta in 10 years
As in previous years, corporate taxation (73%) is viewed as the
Forecasting a decade into the future presents a substantial challenge
parameter that makes Malta attractive as an investment destination.
for investors in today’s dynamic economic and geopolitical context.
This is followed by its telecommunications infrastructure (62%),
Despite this, most (68%) of the surveyed FDI companies affirm their
slightly surpassing Malta’s social environment stability (61%). From an
commitment to maintaining their operations in Malta. This number has
attractiveness standpoint, the stability of the social climate and the
seen a gentle decline, down from a high of 80% in 2019. →
MONEY
THE BUSINESS EDITION
37
SURVEY
They recognise the vital role of broad development, including
Presence in Malta in 10 years time 80%
infrastructure and skills enhancement alongside sectoral expansion, in reinforcing Malta’s position in a continually changing global
77%
environment.
68%
23%
18%
15%
Malta’s progress in sustainability-related factors
8%
2%
Private sector incentives for green infrastructure
2020
2019
Yes
Don’t know
2021
No
2022
2023
52%
Clear targets and progress tracking in sustainable finance
41%
Use of green bonds and sustainable investment tools
Source: all 2019-23 respondents
20%
in the coming year. At 36%, this is close to the expansion plans reported during the COVID-19 pandemic (at 39% in 2021) but 10 points less than
Business engagement and commitment to sustainability
47%
Advanced Leading
22%
Not present Don’t know
12% 18%
12%
21%
46%
Developing Progressing
the 46% that indicated expansion plans in 2022, a year buoyed by a
41%
Consumer awareness and support for sustainable practices
10%
24% 27%
52%
Availability of green infrastructure projects for private sector investment
More than one-third of Malta’s investors plan to expand their operations
19%
45%
Policies and incentives to support sustainable investments and business transformation
Expansion Plans
16%
22% 26%
12%
16% 17%
32%
9%
10%
Source: all 2023 respondents
post-COVID-19 recovery. Malta’s progress on sustainability-related factors Expansion plans Source: all 2023 respondents
The respondents’ perception of Malta’s rank across several
(vs 2022) 36%
Yes
37%
No Can’t Say
sustainability factors shows that all factors listed are developing.
46%
27%
The sustainability factor with the highest favourable ranking overall
30%
is business engagement and commitment to sustainability, followed
24%
by policies and incentives to support sustainable investments and business transformation. The lowest ranking is given to the use of green Priorities
Rank 2023
bonds and sustainable investment tools, followed by clear targets and
(vs Rank 2022)
progress tracking in sustainable finance.
1
Develop new economic sectors
1
Infrastructure, transportation and planning
2
2
Education and skills
2
3
Environmental, social and governance matters
4
4
Reputation and brand
5
5
Ease of doing business
6
6
Long-term economic planning
7
7
Strengthen institutions and enforcement
8
8
Fiscal incentives to attract specialised individuals
8
Changing existing tax framework
10
9
Support for established sectors
11
10
Stimuli to boost R&D and innovation
12
11
Shift to low carbon economy
13
12
Tech-related attractiveness compared
(vs 2022) Much more attractive
0%
2%
More attractive
15%
13%
As attractive
Source: all 2023 respondents
Don’t know
41%
41%
Less attractive Much less attractive
26%
28%
5%
3% 14%
13%
Technology-related factors attractiveness compared to other European countries Notwithstanding Malta’s small size, 41% believe Malta is as attractive as
Source: all 2021-23 respondents
other European countries in terms of technology-related factors that influence investment. Twenty-six percent say it is less attractive, and Priorities to remain globally competitive
only 5% said it is much less attractive, while on the other hand, 13% of
Investors emphasise the importance of developing new economic
respondents think it is more attractive.
sectors as a top priority for maintaining global competitiveness. This year, it has moved to first place, highlighting the need for a renewed
Planned infrastructure for population growth
focus on diversifying Malta’s economic landscape. The push toward
Eighty-eight percent of respondents consider Malta’s planning and
new sector development is accompanied by a clear need for improved
preparedness for population growth in infrastructure development
infrastructure, including transportation and planning, which have
inadequate. This is split between 50% of respondents who believe this
moved up to hold joint second place. Meanwhile, while still deemed
to be very inadequate and 38% who find it inadequate. Only 6% are
crucial, education and skills have moved to joint second place after
positive about this parameter and find it adequate.
ranking first last year. This shift highlights a balanced approach, where investors see the need for Malta to advance in multiple areas
Skills challenges
simultaneously.
Companies’ ability to retain specialised personnel has remained high
38
ISSUE 78
MONEY
SURVEY
and in line with the previous year and pre-pandemic levels. Still, challenges to find the required technical skills persist. For several years, Malta’s skill supply has been unable to keep up with the increasing demand for specialised (and other) skills. Sixty-nine percent of this year’s cohort reported being unable to find the required technical skills in the local labour market. This is slightly higher than the previous year’s survey results (66%).
19% No
69% No
31% Yes
Finding the Required Specialised Skills
Retaining Specialised Personnel
Source: all 2023 respondents
81% Yes
Ronald Attard EY Malta’s view In his opening address during the Malta Future Realised Conference, Ronald Attard, EY Malta Country Managing Partner, stated: “59% of FDI investors affirm the island’s appeal, very much consistent with the level in the previous year. While it is good to see that most investors perceive Malta to be attractive, the immediate question is why the numbers are not as high as those of a few years back.” Looking at Malta’s most attractive feature for FDI, he underlined external factors which may soon come into play: “Beyond the
[...] the immediate question is why the numbers are not as high as those of a few years back.
immediate, investors express concerns about the implications of international tax policy changes, skill shortages in the longer term, and the island’s reputation. These concerns emphasise the critical need for strategic and timely action, especially when the country’s tax regime
As infrastructure enters the national debate, he commented on the
continues to be a significant draw for many investors.”
delicate balance between economic growth and labour challenges: “The existing strain on Malta’s infrastructure, intensified by continual economic, workforce, and tourism growth, is immediately apparent.
2% Don’t know
2% Very adequate 4% adequate 7% Neither inadequate nor adequate
Concurrently, challenges in the labour market, marked by a demand for specialised talent amid low unemployment and increasing labour costs, further dent the island’s current attractiveness.” He posed several questions on this: “Is it time to profoundly re-evaluate our investment incentivisation strategy? Is it time for a radical overhaul of the education system? Should we stop talking about creating more jobs and start targeting more jobs in specific sectors? Can we leverage
Planned Infrastructure for Malta’s Population Growth
our existing skills base – both homegrown and imported – in industries such as gaming and pharma to establish Malta as a small European centre of excellence in AI, biotech and more?” Attard commented on the growing push towards sustainability: “We need to ensure that sustainability is at the forefront of our planning to preserve our environment, culture and industries. Both public and 37% Inadequate
49% Very inadequate
private sectors have an important role in accelerating the sustainability agenda. As a nation, we must ensure we have the right tools and talent
Source: all 2023 respondents
to face sustainability challenges. Reaching net zero should not only be a compliance goal but a value goal.”
MONEY
THE BUSINESS EDITION
39
ECONOMY
MALTA 2.0 Crafting a Unified Brand for Global Success
JP Fabri explores the imperative of transformation in a post-crisis world. Drawing parallels to Darwin’s principles, Fabri underscores Malta’s past successes and the urgency to diversify and fortify its economy. He delves into sectors, resilience, ecosystems, public sector reform, brand development, and educational enhancements, emphasising that adaptability is critical to Malta’s economic survival. 40
ISSUE 78
MONEY
ECONOMY
Economies and societies depend significantly
sectors. As a country, we must explore
predominant; however, this crisis has shown
on their adaptability, just like Darwin asserted
niche industries within existing sectors. For
us that any economy is an intertwined web
for living organisms. To prosper and thrive
example, in financial services, we need to
of actors, agents and different elements. For
in the long run, economies must evolve
review our regulatory frameworks to start
sectors and industries to thrive, we must
and remain future-proof by transforming
tapping into the sustainable finance industry,
have well-functioning ecosystems with no
themselves. Transformation is necessary but
which has been exhibiting growth globally.
broken links between market and institutional
becomes even more critical in a post-crisis
Therefore, it is imperative that, on a national
participants. Therefore, focus needs to be
environment.
level, we embark on a sectoral and industry
given to ensuring that all elements within an
transformation mapping exercise that needs
ecosystem are aligned and can support the
Over the years, Malta’s agility and skill have
to identify and target new growth areas within
respective sector. This includes the local talent
been vital determinants in transforming its
existing sectors.
pool, educational institutions, and access to finance and banking.
economy. Today, we are a diversified economy with solid sectors, including maritime,
Second, businesses must embark on and
aviation, financial services, remote gaming,
embrace resilience-building practices within
Fourth, we need to transform the public
life sciences and manufacturing. As a
sector, designed to deliver and be digital to the
country, we have developed robust regulatory
core. Although this is part of a broader digital
frameworks, innovative legislation, attractive
transformation, we need to ensure that before
incentive and support packages, invested in
going digital, a deep business re-engineering
robust telecommunications and technology
process of government services and delivery
infrastructure, and built an educational
of such services must be undertaken to
system capable of training the required human resources. Although we have achieved a lot, complacency is not an option. Even more so, given that all global economies have been paused, individual recovery plans are being drawn up, making the need for transformation even more critical. This is even more the case when the economic forecasts for Malta are analysed. The forecasts presented by the government project further increases in unit labour costs, which, together with the expected higher inflation, could negatively influence Malta’s competitive position. Concomitantly, some of the critical services sectors in the economy
A unified brand for Malta, encompassing tourism, investment, culture, and lifestyle, is urgently needed.
reduce costs, increase efficiencies and start instilling a culture of excellence throughout the country. Fifth, it is time that we develop the brand Malta. Unfortunately, there is a lack of a coherent brand for the country. At a time when competitiveness between countries is going to be cutthroat, it is essential to focus on our image, reputation and way of promoting ourselves. The need for a unified brand that ties together all the elements, including tourism, investment attractiveness, culture and lifestyle, has never been so urgent. Sixth, to transform the economy, we must
may be reaching market saturation. The
ensure that the fundamentals work. Here, we
potential impact of introducing global tax
must thoroughly review and re-assess our
harmonisation on multinational regimes also
educational system. International studies
constitutes a possible further risk factor for
such as PISA clearly show that Malta needs to
export growth. Furthermore, growth primarily
progress in crucial areas, including attainment,
emanates from increases in domestic demand,
soft or critical skills, and science-related subjects. Access to baking and finance is
mainly from private consumption expenditure. For growth to be sustainable, it ideally needs
their organisations. COVID-19 and the other
another essential area that needs to be
to be export-led, and this strengthens the
global crises we have lived through these past
addressed, whereby Maltese SMEs are faced
need to improve competitiveness through
two years have reaffirmed that we live in a
with higher interest rates when compared to
labour productivity increases.
volatile, uncertain, complex and ambiguous
their European peers.
environment. Business leaders need to shore As a country and economy, we need to embark
up organisational resilience to ensure a
I believe transformation is one of the critical
on a transformation process that is wide-
risk-based approach to identify, assess and
pillars that any economic recovery and vision
ranging and on various levels.
manage business risks and have business
must embrace. It is a process that takes time
continuity plans in place. Businesses must be
and that requires critical thinking, courage
First, on an economic level, we need to
better prepared and provide a reserve level as
to reform and determination. More than
continue focusing on further diversifying our
a buffer for unexpected events.
two thousand years ago, Heraclitus said that the only constant is change. Failure to
economy. Although we need to try attracting new economic sectors, we need to now focus
Third, we need to adopt a cluster and
continuously transform ourselves will be a
more on diversifying existing economic
ecosystem mindset. Silo-thinking has been
threat to our survival.
MONEY
THE BUSINESS EDITION
41
FINANCE
NAVIGATING MALTA’S BUSINESS LANDSCAPE Asset Management Perspective
Paul Rostkowski unravels asset managers’ challenges, from navigating complex regulatory frameworks to grappling with limitations in banking services and depositary options and sheds light on the anticipated impact of AIFMD II. It proposes collective initiatives to fortify Malta’s asset management ecosystem, emphasising the need for expertise, innovation, regulatory clarity, and technological integration to propel the asset management industry forward.
The beautiful archipelago of
Alternative Investment Fund
Malta is a reliable and strategic
ambiguous regulations and
Malta, tucked away among the
Managers Directive (AIFMD) in
choice for asset managers
lengthy approval processes,
crystal-clear waters of the
2013 marked a pivotal move
seeking a regulatory advantage
hindering their ability to respond
Mediterranean, has become a
towards standardising regulations
within the European Union.
swiftly to market opportunities.
land of opportunity for asset
across the European Union.
Despite these challenges, Malta’s
managers looking for a favourable
However, such regulatory
regulatory framework stands
regulatory framework, attractive
In recent years, the asset
measures implemented by
as a crucial foundation for the
tax structures, and a skilled
management industry in
the MFSA, though designed
success of its asset management
workforce. Malta has become a
Malta has witnessed a notable
to safeguard the industry,
landscape.
financial services hub, especially
evolution, significantly influenced
sometimes present complexities
in the asset management
by the regulator. In a recent article
for asset managers navigating
Malta’s Asset Management
industry, thanks to its strategic
in the Finance Malta newsletter, I
its intricacies. While providing
Ecosystem: A Critical Analysis
location at the crossroads of
explored the factors making Malta
stability, it can also impede
Europe, Africa, and the Middle
a compelling business jurisdiction.
innovation and agility, particularly
While Malta has emerged as
East.
From an asset management
for smaller asset managers
a prominent hub for asset
standpoint, Malta stands out not
lacking extensive resources.
management, the Maltese asset management ecosystem faces
Malta’s Regulatory Framework:
just for its strategic location,
A Double-Edged Sword for Asset
regulatory strength, and EU
The MFSA’s approach, aiming
critical challenges that sometimes
Managers
market access but mainly for
to balance fostering innovation
hinder its continuous growth and
its agility as a responsive and
and safeguarding investor
potential.
Malta’s asset management sector
adaptable asset management
interests, can sometimes lean
functions under the regulatory
jurisdiction. Malta’s distinctive
towards the latter, discouraging
The critical challenge the asset
oversight of the Malta Financial
strength is the regulator’s
asset managers from exploring
management sector in Malta
Services Authority (MFSA), a
foresight, which guides the
potentially beneficial, albeit
faces is the need for robust
regulatory body recognised for
ongoing evolution of regulatory
riskier, investment strategies.
banking solutions. The limited
its emphasis on safeguarding
solutions. This adaptability
investors and ensuring market
enables market players to identify
Criticism is not absent, with
services, such as prime brokerage
stability. In asset management,
the most suitable channels for
Malta’s regulatory framework
and custody solutions, poses
the shift from an unregulated
offering services, fostering
facing scrutiny for its complexity
a significant hurdle for asset
environment to the regulatory
an environment conducive to
and occasional lack of clarity.
managers operating in Malta. This
framework introduced by the
innovation and sustained growth.
Asset managers often navigate
deficiency sometimes requires
42
availability of specialised banking
ISSUE 78
MONEY
FINANCE
asset managers to rely on foreign
development of specialised
the industry’s landscape. With
emerging trends and maintain
banks, leading to inefficiencies
banking services tailored to
its innovative technologies,
its competitive edge, Malta’s
due to increasing costs and
the needs of asset managers,
fintech is revolutionising
asset management industry
operational complexities.
such as prime brokerage and
asset management practises,
must address several critical
custody solutions.
enhancing efficiency and
areas:
Attract Depositaries:
reducing costs. Sustainability
management ecosystem lacks
Implement measures to attract
is also gaining traction, with
sufficient qualified depositaries.
more depositaries to Malta,
asset managers increasingly
workforce will be able to meet
Depositaries play a crucial
such as offering tax incentives
incorporating ESG (environmental,
the changing demands of the
role in safeguarding investor
and a supportive regulatory
social, and governance)
asset management sector if it
assets and ensuring compliance
environment.
considerations into their
shifts from a quantity-based
Promote Collaboration:
investment strategies.
to a quality-based industry
Furthermore, Malta’s asset
with regulatory requirements
•
•
•
Fostering Expertise: Malta’s
that encourages the natural
for several investment fund
Foster collaboration between
structures. The limited availability
the Maltese government,
While these trends present
development of specialised
of depositaries in Malta constrains
banks, asset managers, and
exciting opportunities for
skills and expertise in the fields of AIFs, fintech, and ESG
the choices for asset managers,
investing.
potentially causing delays in •
fund launches and increased
Promoting Innovation: Create an environment that fosters
operational costs.
innovation and encourages The anticipated introduction of AIFMD II will bring some relief to Malta’s asset management industry. Part of the main changes proposed by the European Commission in AIFMD II aims to harmonise depositary rules across the European Union, allowing depositaries in one EU member state to passport their services to other member states, adhering to specific criteria. This will increase the availability of depositary services in Malta and provide asset managers with more options. However, the
By collectively addressing these challenges and proactively adapting to emerging trends, Malta’s asset management industry can redefine itself...
collaboration between asset managers, fintech companies, and academic institutions to develop cutting-edge solutions for the industry. •
Enhancing Regulatory Clarity: Continue to work with the regulator to provide clear and consistent regulatory guidance for AIFs, fintech, and ESG investing, ensuring that asset managers can confidently navigate the regulatory landscape.
•
Embracing Technology: Positioning Malta as a
implementation is still in progress,
technology-driven asset
and its full impact on Malta’s asset
management hub involves
management ecosystem remains
embracing cutting-edge technologies such as
to be seen. In the meantime, asset managers operating in Malta
depositaries to identify and
asset managers, they also pose
blockchain and artificial
must continue to navigate the
address industry-specific
challenges that require careful
intelligence, aligning
challenges of a limited banking
challenges.
consideration and adaptation.
the industry with the
The increasing complexity of
advancements of the
Malta’s Asset Management
investment strategies, driven
digital era.
Landscape: Navigating
by the growth of AIFs and the
While discussions on this matter
Emerging Trends and Adapting
adoption of fintech solutions,
By collectively addressing these
have been extensive locally, we
to Challenges
demands a higher level of
challenges and proactively
expertise and skill from asset
adapting to emerging trends,
infrastructure and a scarcity of depositaries.
must confront these pressing matters. Taking collective action
Malta’s asset management
managers. Additionally, the
Malta’s asset management
is essential to strengthen Malta’s
industry is poised for continued
growing focus on sustainability
industry can redefine itself as
asset management ecosystem
growth, driven by several key
necessitates a deeper
an innovative hub for asset
and address its challenges. Such
trends reshaping its future.
understanding of ESG factors
managers. This involves
initiatives could include:
The growth of the AIF sector,
and their impact on investment
attracting and retaining talent,
fuelled by investor demand
decisions.
fostering innovation, and driving
•
Enhancing our local banking
for diversified investment
infrastructure: Encourage the
opportunities, is transforming
MONEY
growth in this dynamic and To successfully navigate these
THE BUSINESS EDITION
continually evolving sector.
43
ECONOMY
STICKY INFLATION Economic resilience at risk on the back of higher rates for longer
Jordan Portelli analyses the delicate balance between achieving desirable inflation levels and preventing economic shocks. Despite these challenges, pockets of economic resilience exist globally, offering hope amid uncertainty.
The repercussions of the COVID-19 pandemic and other unprecedented
emerged as a year in which unpredictability on the path of inflation re-
circumstances, namely geopolitical tensions, continue to weigh on
emerged, which caused uncertainty about the levels of interest rates
inflation despite the actions taken by major central banks to hike
going forward.
interest rates. The ache of high inflation levels continues to pressure economic Inevitably, high inflation levels were warranted, while its extent and
sustainability. Simply put, disposable income will decrease as prices
duration were, and still are, difficult to predict. The actions taken by
increase, and consumers will inevitably change their spending
both monetary politicians in terms of rate cuts, remarkable liquidity
patterns. Indeed, historically, in times of inflation pressures,
injections through quantitative easing, and notable efforts by many
consumers cut back on discretionary spending as they are faced with
governments to combat a stagnant global economy due to the
higher prices for basic needs and other uncertainties that instantly
pandemic were a plausible cause for expected inflation. However, 2022
push household savings higher.
44
ISSUE 78
MONEY
ECONOMY
Expectedly, central banks have raised rates to combat the high inflation
costs are at historic highs as the as-yet-low participation rate
levels and achieve their 2% inflation target. However, the monetary
continues to pile pressure on wages. Likewise, a similar situation is
tightening action of excessively higher rates threatens economic
experienced in the euro area, with a rate of 6.7%, a historically low
growth over the short to medium term.
level.
Contrary to expectations, inflation remained sticky, with major central
Reading through inflation in the U.S., unsurprisingly, core inflation
banks pursuing their efforts to tame inflation by increasing rates. This
has upheld its downward trend over the past readings, which kicked
scenario was not the base case in January this year. At this stage, the
off in June 2022 and should be sustained, given the elevated rates.
question is whether these higher and longer rates will push inflation
However, lower core inflation in Europe is slower than expected, with
towards desirable levels without causing economic shocks.
the ECB remarking that this sustained level is a cause for concern.
In theory, higher rates will reduce consumption, implicitly pushing
As said, prolonged inflation will continue to pose severe implications
inflation lower. However, in practice, a mismatch between reality
for economic sustainability. Undesirably, if inflation remains sticky,
and expectations is one of the major concerns today. Achieving
central banks will retain these high rates or consider increases,
lower inflation, with the significant implications of slower growth, is
which will inevitably cause hardship to the global economy.
acceptable at this juncture. The real risk is a situation in which the desirable inflation levels are achieved through a challenging landing
Locally, inevitably, we have also experienced high levels of inflation.
scenario.
However, recent inflation figures showed that we are aligned with
Chart 1 — US Unemployment rate
Chart 2 — Core Inflation
Unemployment rate (%) / Time
Core inflation (%) / Time
16
7
14
6
12
Eurozone
US
5
10 4 8 3 6 3.8%
4
2 1
2 0
0 Jan-20
Apr-21
Jun-22
Sep-23
Jan-18
Jan-21
Jul-23
I do not think this is the base-case scenario. From a regional point of
our peers in experiencing an easing inflation path. Nonetheless,
view, we continue to see economic resilience in selective geographical
what is frustrating locally is the still elevated prices consumers are
areas, and thus, this augurs well for the entire global economy.
charged for selective goods. For instance, the excuse was the high freight rate, which, realistically, impacted transportation costs.
Realistically speaking, a soft landing or a slower growth scenario is the
However, today, we are back to 2019 levels, a notable depreciation of
base case at this juncture.
80% from the highs reached in January 2022. So last year’s excuse is irrelevant today, and the as-charged higher prices are an unfair and
In reality, we have seen a clear trend of inflation easing. However, as
self-centred approach to local consumers.
of now, it could be more satisfactory in terms of its pace. Thus, higher rates for longer are the most plausible in the current environment.
In conclusion, the short-to-medium view is that current interest rates are here to stay for longer. In reality, we have to accept that
At this juncture, despite selective economic data points having
we are entering a new normal versus what we were accustomed
softened, namely leading indicators such as purchasing manager
to over the past decade—a scenario of an ultra-low interest rate
indices, others are still emerging as a notable threat to abating inflation,
environment. Despite resolving short-term issues, the latter has also
including the strong labour market that continues to hinge on inflation.
posed negative long-term repercussions, namely the excess levels
This is a long-term repercussion of the pandemic.
of debt, which now need refinancing at today’s higher rates. Thus, let’s be optimistic but tread with caution. Unfortunately, the recent
Practically speaking, in the U.S., the unemployment rate currently
geopolitical tensions are another pinch on much-needed stability.
stands at 3.8%, a rate last seen c.50 years ago, while unit labour
Let’s hope that common sense prevails.
MONEY
THE BUSINESS EDITION
45
PROMO
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a stealth-like front grille and digital LED
formula.
lighting. These sleek designs, the slimmest
Luxurious Interior
From those who seek efficiency to those
ever fitted to a Land Rover, rest above a
Stepping inside reveals an equally stunning
desiring sheer power, the lineup includes:
sculpted lower bumper, incorporating a
interior. The cockpit-like cabin is designed
1. Six-cylinder extended-range electric
bisecting body-colour element that enhances
to enhance the dynamic driving experience
visual width.
while ensuring excellent visibility. Innovative
hybrids;
and sustainable materials, such as
2. A powerful V8; and The rear showcases a sculpted tailgate with
Ultrafabrics™ premium textiles, are finished
uninterrupted LED light graphics, a first for
in attractive dual-tone colourways. Options
Land Rover production vehicles. The longest
include luxurious-grained Windsor or soft
Excitingly, pure-electric propulsion is set
Range Rover spoiler to date and lower fender
semi-aniline leather.
to debut in 2024, marking Land Rover’s
details highlight the vehicle’s distinctive
continued electrification journey.
shoulder line, which runs the entire length.
3. Mild hybrid six-cylinder petrol and diesel Ingenium engines.
These tactile materials seamlessly blend with new moonlight chrome interior
Beautifully executed flush glazing, door
finishers, creating a clean, modern aesthetic.
handles, a hidden waist rail finisher, and a
Integrated audio speakers, developed with
laser-welded roof enhance the vehicle’s clean
Meridian and hidden behind the textile of
lines. These design enhancements not only
the rear doors, contribute to the crisp and
improve aesthetics but also contribute to
contemporary look.
excellent aerodynamic performance, with a drag coefficient of just 0.29.
Engaging Performance The Range Rover Sport introduces advanced
46
For those who seek a sportier appearance,
chassis technologies that elevate the
the Dynamic model offers unique design
driving experience. The flexible mixed-metal
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architecture (MLA-Flex) provides superior
the Air (SOTA) ensures the vehicle remains
system output of 510 PS. It can achieve 0-100
torsional stiffness, and the Integrated Chassis
at the cutting edge of innovation, modern
km/h in just 5.4 seconds, an electric driving
Control system governs systems specially
technology, and services.
range of up to 113km, and CO2 emissions of just 18 g/km.
tuned for the vehicle. The award-winning Pivi Pro infotainment Dynamic Response Pro, working with Dynamic
system features a high-resolution floating
A P440e Electric Hybrid is also available,
Air Suspension, provides ultimate roll
13.1-inch curved touchscreen at the centre
producing 440 PS and offering a similar all-
control, ensuring a confident and composed
of the modernist dashboard. Amazon
electric driving range and low CO2 emissions.
driving experience. Dynamic Air Suspension
Alexa integration allows for natural voice
For those seeking power, the V8 Twin Turbo
optimises suspension responses based on
commands, keeping drivers focused on the
churns out 530 PS and can go from 0-100
eHorizon navigation data to prepare for
road.
km/h in just 4.5 seconds.
upcoming bends. Electrified Performance
Peerless Capability
The Active Twin Valve Dampers are
The Range Rover Sport offers a
The Range Rover Sport is not just about
constantly controlled by Adaptive Dynamics
comprehensive lineup of electrified
luxury and performance; it also excels
2 technology to stop the body from moving
powertrains. The P510e Electric Hybrid
off-road. Intelligent All-Wheel Drive (iAWD)
in ways that are not wanted. This gives you
combines a 3.0-litre six-cylinder Ingenium
integrates with all-terrain innovations like
precise and stable driving dynamics.
petrol engine with a powerful electric motor
Adaptive Off-Road Cruise Control and Terrain
and a 38.2kWh battery, producing a total
Response 2® to ensure outstanding off-road performance.
Adding all-wheel steering, torque vectoring by braking, and the electronic active differential takes cornering agility to a new
In conclusion, the Range Rover Sport
level, enhancing stability at high speeds and
represents more than an SUV; it embodies
manoeuvrability at low speeds.
luxury, performance, and innovation. With its diverse powertrain options, striking design,
Seamless Technology
luxurious interior, and advanced technology,
The Range Rover Sport embraces Land
it’s ready to redefine how we experience the
Rover’s powerful Electrical Vehicle
road. Whether pursuing electrification or
Architecture (EVA 2.0), offering seamlessly
seeking the ultimate driving experience, the
connected technologies. Software Over
Range Rover Sport has you covered.
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R E G U L AT O R Y
EU REGULATORY RIDDLES UNVEILED A Guide for Manufacturers and Importers
As globalisation links economies, manufacturers and importers increasingly seek to expand into international markets. The European Union, with its robust economic power, is a prime destination for business expansion. However, entering the European market is often a daunting prospect due to the labyrinthine structure of EU directives and regulations. These laws safeguard consumers and uphold the integrity of the European market, making compliance a non-negotiable factor for businesses.
Stephen Mallia delves deeper into each step of achieving compliance, providing a comprehensive roadmap for navigating EU regulatory frameworks.
Before plunging into the intricate nuances of compliance,
underestimated. Beyond the immediate financial penalties
it’s crucial to grasp its profound significance in the modern
and potential forced withdrawal from the market, the
business landscape. Compliance isn’t merely a legal
damage inflicted on a brand’s reputation can have long-
obligation; it’s an integral element in the architecture
lasting ramifications, necessitating years, if not decades,
of brand equity. In a marketplace where consumers are
to fully recover.
increasingly discerning, the assurance that a product meets stringent safety and quality standards becomes
While both directives and regulations aim to harmonise
a powerful asset. This assurance cultivates trust, which
laws across the EU, they function differently. Directives
fosters brand loyalty and encourages repeat patronage,
are guidelines that outline objectives, but it’s up to
critical ingredients for sustained business success.
individual member states to enact laws that achieve these
Conversely, the costs of non-compliance are not to be
objectives. This can lead to nuances in how a directive is
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implemented across countries. For instance, the EnergyRelated Products (ErP) Directive 2009/125/EC sets eco-design requirements but allows each member state to enforce these rules as they see fit. Regulations, such as the General Data Protection Regulation (GDPR), are universally binding and take effect without requiring national legislation. The immediate applicability of regulations can both simplify and complicate matters. On the one hand, their universal enforcement simplifies compliance by providing a single, unified set of rules. However, this can be a double-edged sword: the standards set by regulations are often elevated
The complex framework of EU directives and regulations serves a dual purpose: protecting the consumer and ensuring a fair marketplace.
and call for meticulous compliance protocols. The absence of local variation means businesses must meet these high standards uniformly, irrespective of where they operate within the European Union. It might seem elementary, but accurately defining your product’s intended use is crucial and often requires more detail than one might initially think. A more explicit definition is needed instead of a broad categorisation such as ‘Electronic temperature measurement device’. For example, ‘An electronic device powered via 230V mains supply will measure the surrounding temperature within indoor spaces and send the measured information over WiFi. This will be used only by adults to monitor household ambient temperatures and is not intended for industrial or commercial applications’. Specific identification of the application not only delineates the market scope but also sets the stage for identifying the particular compliance requirements your product must meet. Moreover, these functional markers and limitations should be communicated to potential clients before purchasing,
covering general machines or the Low Voltage Directive
eliminating ambiguities and setting appropriate
for “electrical equipment designed for use with a voltage
expectations from the shop window.
rating of between 50 and 1,000V for alternating current and between 75 and 1,500V for direct current” – of which
Typically, a document covers a range of essential factors
general household and industrial electric goods are
to ensure complete transparency and comprehensive
considered.
understanding. These include, but aren’t limited to, the economic operator classification, the product designation
For one product, multiple directives or regulations are
and intended use within the specified application area,
often relevant, making it crucial to grasp the scope
foreseeable misuse, scope of delivery, workplaces to be
and specifics of each fully. For instance, due to its
used, the possible operating modes, the intended service
communication functionality, the Radio Equipment
lifetime, disposal requirements and other pointers.
Directive would likely be the primary point of reference with the aforementioned electronic temperature-
Identifying the relevant directives and regulations
measuring device. Navigating this intricate mesh of
is indispensable before putting pen to paper on your
regulations can be significantly simplified by consulting
product’s initial design. While generic criteria apply to
with legal experts and professionals in your industry. Their
multiple product types, specialised regulations often
insights can help identify which harmonised standard
exist for niche industries. A typical generic directive can
titles are relevant to your product, ensuring it aligns with
be easily identified, such as the Machinery Directive,
all pertinent criteria and smoothing the path through the
when considering “an assembly, fitted with or intended to
EU’s complex regulatory environment.
be fitted with a drive system other than directly applied human or animal effort, consisting of linked parts or
Moving forward, a preliminary risk assessment is a crucial
components, at least one of which moves, and which
next step. This can vary in format but should encompass
are joined together for a specific application” – thus
critical elements such as defining the scope and →
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devices. This directive restricts the incorporation of specific hazardous materials in electrical and electronic devices. Any design modifications should undergo rigorous
Firms that master this regulatory maze unlock the doors to a financially rewarding market and secure a treasured asset: consumer trust.
testing and documentation to mitigate risks. Once your product has been fine-tuned and has cleared all internal tests, the next milestone is undergoing formal conformity assessments. Your product’s nature heavily influences the intricacy of this stage. For instance, machinery mandates a multifaceted evaluation encompassing various fields, such as mechanical and perhaps electrical assessments. These products often require validation from a Notified Body due to the higher inherent risks. In contrast, items like children’s toys might necessitate fewer layers of third-party evaluation but are still held to rigorous safety criteria. The choice between accredited and non-accredited labs for evaluations presents a balancing act between
intended use, identifying hazards, and estimating
credibility and cost. Accredited labs come with a stamp of
and evaluating risks. The assessment should include
quality assurance and global recognition, earned through
recommended hazard mitigation and control methods
stringent evaluations by accrediting organisations.
to manage these identified risks. Finally, any proposed
Regulatory bodies widely accept their findings, offering
solutions should be verified and validated to ensure their
businesses more confidence. Although generally more
effectiveness.
budget-friendly, non-accredited labs need this formal oversight, making their results less universally accepted.
The recommended risk mitigation measures may not
They may be suitable for preliminary assessments but
eliminate all risks. In such instances, the process is
come with an implicit risk due to the absence of rigorous
reevaluated and refined until the residual risks reach
scrutiny.
an acceptable safety threshold. This iterative riskassessment cycle should be applied across all lifecycle
Looking back at our electronic temperature monitoring
stages, from initial production to eventual disposal.
device, one of the critical milestones is placing the CE
Rigorous documentation of each step is crucial, as it
mark. This marking, while simple in appearance, holds
facilitates ongoing improvements and serves as a valuable
considerable weight. It signifies that the product has
record for compliance and future reference.
undergone rigorous testing and evaluation covered by
Conducted in the initial stages, risk assessments often rely on theoretical analyses guided by existing standards rather than evaluations of the actual product. As such, revisiting these assessments once prototypes are available is advisable. This allows for identifying and incorporating any unforeseen anomalies that may have emerged during the development phase, thereby ensuring a more accurate and comprehensive risk profile. A subsequent review often incorporates simulated testing conditions, in-house trials, and third-party evaluations. Compliance with the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) Regulation may be necessary for products involving chemical substances or those that maintain constant user contact. This involves a thorough investigation and documentation of the chemical properties and their potential impacts aimed at mitigating the risk of harmful chemical transmissions. Adherence to the Restriction of Hazardous Substances (RoHS) Directive is crucial in manufacturing our electronic
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the related standards and complies with all relevant
any product modifications throughout its lifecycle, often
directives. Acquiring these attestation certificates is
extending up to a decade following the sale of the last
often a lengthy process that requires you to engage
unit. This archival diligence ensures you’re well-prepared
with various stakeholders, including certification bodies,
for any regulatory or safety inquiries that may arise.
material suppliers, and sometimes even end users, that help you provide valuable insight into the information your
Once your product enters the market, compliance remains
prospective clients require.
an ongoing responsibility. Post-market surveillance entails continuous data collection and analysis of your
The ultimate goal is to assemble a comprehensive
product’s safety and performance. Adhering to numerous
technical file based on the processes we’ve explored.
EU directives and regulations, this phase is not optional
This file is a repository for crucial information beyond
but mandatory. If your product becomes involved in any
what we’ve already discussed. It should include the user
incidents, prompt reporting to relevant authorities is
manual, the corresponding declaration of conformity
essential, and corrective measures, ranging from product
to affirm that the product meets requisite standards,
recalls to design adjustments, as the request entails.
technical drawings and schematics to provide a detailed view of its design, and clearly defined manufacturing and
Having an organised and current technical file simplifies
assembly procedures. Additionally, datasheets of critical
this process, enabling you to share pertinent data with
components used in the product should be present, as
market surveillance bodies promptly. Conversely, an
well as safety and operational stickers and markings to
incomplete or outdated file can turn a manageable
ensure proper usage. Including these elements should be
situation into a crisis, leaving you scrambling for essential
part of the file, offering a complete picture of the product’s
information, documents, or test reports when time
compliance and specifications.
is of the essence. Keeping your compliance records meticulously updated prepares you to act quickly and
After compiling all the necessary documentation and
responsibly, ensuring safety remains at the forefront of
securing compliance marks like the CE mark for the
your business operations.
product, you can confidently assert that your product meets local and European regulatory standards. This
Indeed, some may argue that as importers or distributors
assurance isn’t just a formality; it offers manufacturers
rather than manufacturers, the onus of compliance should
invaluable peace of mind that their product is compliant
stay on them. However, in the legal landscape, importers
and safe for both the intended users and bystanders.
and distributors bear responsibility for the products they
To sustain this level of assurance, it’s vital to implement
introduce to local markets. As such, they may be called
rigorous documentation control procedures. Coupled
upon to furnish safety-related documentation at anytime.
with a robust quality management system, such as the To safeguard their operations and uphold product quality,
attestation to ISO9001, it allows for meticulous tracking of
these stakeholders should establish strong relationships with their European and especially non-European suppliers. Proactively requesting essential documentation well before any issues arise serves a dual purpose: it not only prepares them for any regulatory scrutiny but also gives them, and by extension, their customers, the assurance that the products meet requisite safety standards. By taking these steps, importers and distributors elevate the quality marker of their offerings and instil a more profound sense of responsibility within their business framework. The complex framework of EU directives and regulations serves a dual purpose: protecting the consumer and ensuring a fair marketplace. While the process is intricate and often challenging, the payoff is significant. Firms that master this regulatory maze unlock the doors to a financially rewarding market and secure a treasured asset: consumer trust. Given the rapidly evolving landscape of international trade and legislation, continuous learning and adaptation are essential. With the right resources and meticulous approach, navigating the EU directives and regulations maze is feasible and rewarding.
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AI
CATALYSING
THE AI REVOLUTION Empowering SMEs for a Digital Future
The dawn of AI technology has ushered in a new epoch in contemporary business settings, with its potential to transform operations, amplify customer engagement, and propel competitive advantage. For SMEs, embracing AI could be a linchpin for attaining operational efficacy and a competitive edge in the rapidly morphing market arena. Jake Aquilina looks into the challenges and opportunities and suggests rules for using AI in small and medium-sized businesses, giving them information that could help them have a successful digital future.
Small and medium-sized enterprises (SMEs)
Based on the research that was published
be robotic. Accuracy of information is also still
are the backbone of the global economy,
recently by Harvard Business School,
a worrying factor*, as well as questionable
constituting a significant portion of the
‘Navigating the Jagged Technological
trawling and data-hoarding.
business landscape. On the other hand,
Frontier: Field Experimental Evidence of
artificial intelligence (AI) represents the
the Effects of AI on Knowledge Worker
Many emerging AI business solutions are
zenith of technological innovation, unveiling
Productivity and Quality’, employees utilising
budding, allowing businesses and employees
various solutions for the business sector.
ChatGPT significantly outperformed those
to decrease the time needed to complete
Good or bad, it’s here to stay, and companies
who did not (25.1% increase in speed, over
specific tasks. But challenges remain.
and employees might need to adapt.
40% improvement in output quality, and 12.2% more tasks completed).
Barriers to AI adoption in SMEs
AI and productivity: What the data tells us AI also demonstrated a skill-leveling effect,
Financial Constraints: The financial outlay
The odyssey of AI adoption in the business
where lower-performing consultants
for procuring and deploying AI technology
realm traces its roots back to the evolution of
experienced a 43% performance boost,
can significantly impede SMEs. Unlike their
machine learning algorithms, which are the
diminishing the performance gap between
larger counterparts, SMEs often grapple with
bedrock of modern AI technologies. Numerous
top and bottom consultants. Navigating AI
restricted financial resources, rendering
studies have delved into AI adoption in SMEs,
involved two approaches: ‘Centaur Behavior’,
the upfront investment in AI technology
shedding light on these enterprises’ potential
which splits tasks between humans and AI
daunting. Usually, there are pricing solutions
boons and challenges. The current wave of AI
based on strengths, and ‘Cyborg Behavior’
provided by SaaS companies, with monthly
technology, encompassing machine learning,
for an intertwined human-AI collaboration.
subscriptions or free trials, which could help
natural language processing, and robotics,
However, on the negative side, overreliance
businesses test the specific AI solution and
holds substantial promise for SMEs, unlocking
on AI can diminish vigilance and lead to less
see if it is the right solution for their business
a treasure trove of opportunities.
diverse and individualistic output, which can
before paying.
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Technical and Skill Barriers: Another towering hurdle is the need for more specialised expertise for implementing and managing AI solutions. Training and development quandaries further aggravate the technical barriers as SMEs need help to upskill their workforce to meet the demands of AI technology. Data Privacy and Security Concerns: Adhering to data protection laws and managing the risks tied to data handling are pivotal concerns for
AI’s potential to personalize customer experiences can enhance satisfaction and loyalty.
can liberate precious time and resources,
programs and certifications could offer an
paving the way for enhanced operational
accessible and cost-effective platform for
efficiency. Moreover, AI-powered data
skill augmentation, preparing SMEs for the
analytics can significantly bolster decision-
digital transformation journey.
making processes, providing actionable insights that drive operational efficiency.
Data Protection Policies: Strengthening data privacy laws and propagating awareness
Customer Engagement: AI can engineer
and education on data security is paramount
personalized customer experiences, nurturing
for safe AI adoption. Robust data protection
stronger relationships and loyalty. AI-powered
frameworks can instil confidence among
chatbots, for instance, can revolutionize
SMEs, encouraging them to embrace AI
customer support, delivering prompt and
technologies with minimised risks.
efficient service, which could enhance customer satisfaction and loyalty.
Encouraging a Culture of Innovation: A positive attitude towards technological
SMEs delving into AI. The potential misuse or mishandling of sensitive data looms as a
Competitive Advantage: Real-time market
change is crucial for overcoming resistance
substantial risk, necessitating robust data
analysis facilitated by AI can give SMEs a
and fostering innovation. Incentives for early
security measures.
crucial advantage in a fiercely competitive
AI adopters among SMEs could catalyse
market. Furthermore, innovative product or
widespread AI adoption, promoting a culture
Resistance to Change: The ingrained
service offerings propelled by AI technology
of innovation and continuous improvement.
organizational culture and employee
can position SMEs as frontrunners in their
resistance can thwart the seamless adoption
respective domains.
of traditional operational practices is
As the digital dawn unfolds, small and medium-sized enterprises stand on
of AI technology. Surmounting the inertia Policy Recommendations
the cusp of a transformative era fueled by artificial intelligence. The road to AI
indispensable for a successful transition to AI-enabled operations. Some employees also
Financial Support: Government grants and
adoption is punctuated with challenges
think that AI might take their jobs, and indeed,
subsidies could ease the financial strain on
and opportunities, each forming an integral
people need to be more flexible and adaptive
SMEs, making AI technology more accessible.
part of the learning curve. The harmonious
and will need to upskill and reskill themselves
Public-private partnerships (PPPs) can also
melding of human ingenuity with AI’s
more consistently. It is the result of such fast-
cultivate a conducive milieu for AI adoption
computational prowess heralds a new
paced advancements, which could result in a
in SMEs, pooling resources and expertise to
paradigm, one where the ‘jagged frontier’ of
heightened Neo-Luddist aura.
mitigate financial and technical barriers.
AI is navigated with prudence and strategic
Opportunities for AI adoption in SMEs
Skill Development and Training: Both
foresight. governmental and private sector initiatives
*www.theguardian.com/technology/2023/sep/06/
Process Optimisation: Automating
are vital for fostering the requisite skills
chatgpt-cant-be-trusted-the-guardian-is-right-
monotonous and routine chores through AI
among the workforce. Online training
to-block-its-web-crawler
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PROMO
CHARTING THE COURSE MONEY speaks to Ruben Caruana, the dynamic chief sales officer at Intercomp Pro. With a knack for driving revenue growth and a vision for global market expansion, Caruana shares insights on leading Intercomp Pro’s sales strategies, navigating rebranding, and ensuring the team’s agility in a rapidly evolving tech landscape.
Congratulations on your new
this by looking at the specific
the purpose of this rebranding
To align our sales strategies with
role as head of business sales
business problems and tailoring
is to drive business growth.
the broader company goals and
at Intercomp. Can you tell us
customised solutions to address
Intercomp Pro’s rebranding
long-term objectives, I plan to
about your key responsibilities
those requirements.
efforts were anchored in strategic
implement the following strategic
in this position and how your
initiatives:
background and experience
Intercomp recently underwent
have prepared you for it?
a branding exercise. Can you
Market Expansion: Identify
share the driving forces behind
and capitalise on new market
Thank you for the warm
this rebranding effort, and
opportunities, domestically and
congratulations! As the newly
what do you believe are the
internationally, by conducting
appointed chief sales officer at
key elements that will help
comprehensive market research
Intercomp Pro, I am thrilled to
the company stand out in the
and establishing strategic
take on this pivotal role. I will be
competitive market?
partnerships to facilitate market
responsible for shaping the overall
entry.
sales strategy, setting ambitious
Intercomp Pro, in its recent
targets, and ensuring alignment
branding endeavour, embarked on
Customer-Centric Approach:
with the company’s vision. I
a journey that extends beyond a
Prioritise understanding our
will focus on driving revenue
mere moment of transformation.
customers’ evolving needs and
growth, expanding market
Successful brand revitalisation
preferences through regular
share, and fostering long-term
is not a sprint; it’s a marathon
feedback mechanisms and data
client relationships. Together
of strategic, creative, and
analysis, enabling us to tailor our
with my team, we will identify
operational decisions. Let’s
new opportunities and secure
delve into the driving forces
decisions to enhance market
strategic partnerships. Retaining
behind this rebranding effort and
share, revenue, and profitability.
existing clients is equally vital,
the key elements that will set
This long-term perspective
Product Diversification: Work
and I’ll work closely with my team
Intercomp Pro apart in the fiercely
ensured sustained success.
closely with the product
to ensure exceptional service
competitive market. Intercomp
delivery.
Pro recognised the need to
As the head of business sales,
new and enhanced offerings that
transform the company structure
what is your vision for the
align with market demands and
After starting my profession
to accommodate technological
future of Intercomp? How do
technological advancements,
working for various companies,
advancements and evolving
you align your sales strategies
catering to a broader customer
my career evolved into business
consumer behaviours. The heart
with the broader company goals
base and solidifying our position
development and sales
of any brand lies in its connection
and long-term objectives?
as an industry innovator.
enablement. I also worked with
with consumers. Intercomp Pro
Microsoft, helping business
sought to create emotional bonds
As the head of business sales at
Sales Team Empowerment: Invest
customers locally with their
by delivering exceptional value,
Intercomp Pro, my vision for the
in the training and development
digital needs. I love working with
personalised experiences, and
company’s future is centred on
of our sales team, equipping
customers and guiding them on
meaningful interactions. This love
sustainable growth, customer-
them with the necessary skills
how to use today’s technology
for the brand would translate into
centric innovation, and global
and resources to effectively
to achieve their objectives. I do
loyalty and advocacy. Ultimately,
market expansion.
communicate the value of our
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solutions to meet their specific requirements effectively.
development team to introduce
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products and build long-term
that not only imparts in-depth
access new markets and expand
for the core values and principles
relationships with clients.
knowledge of our evolving service
our service portfolio to cater to a
that have contributed to
offerings but also equips the
broader client base.
the company’s success. By integrating these foundational
Strategic Alliances: Forge
sales team with the necessary
partnerships with complementary
skills to navigate complex client
Customer-Centric Communication
strengths with a forward-
businesses and industry leaders
requirements and effectively
Channels: Implement personalised
thinking approach, we aim to
to enhance our market presence,
communicate the benefits of our
and interactive communication
balance preserving the essence
broaden our reach, and leverage
tailored services.
channels, such as dedicated client
of our legacy and propelling the
portals and regular feedback
company towards innovative
mutual strengths to create a comprehensive and competitive
Market Intelligence Integration:
sessions, to foster open dialogue
horizons. This entails encouraging
value proposition for our
Implement advanced market
with clients. This approach will not
a culture of continuous innovation
customers.
intelligence tools and processes
only strengthen our relationships
that builds upon our traditional
to give the team real-time
with customers but also enable
expertise while embracing
Sustainable Growth: Emphasise
insights into emerging industry
us to swiftly adapt our services
modern technologies and
sustainable and ethical business
trends, customer preferences,
to meet their evolving needs and
methodologies that align with our
practises throughout the sales
and competitive landscapes.
expectations.
core competencies. Additionally,
process, fostering long-term
This data-driven approach will
relationships built on trust,
enable our team to make informed
We hope to keep the Intercomp
partnerships and collaborations,
transparency, and reliability.
decisions and swiftly adapt to
Pro business sales team flexible,
enabling us to combine our
I intend to foster strategic
market changes. We aim to achieve sustainable growth while maintaining our
Dynamic Service Customization:
commitment to delivering
Foster a culture of dynamic
exceptional customer value. This
service customisation by
approach will not only align our
encouraging the sales team
sales efforts with the broader
to collaborate closely with
company goals but also position
clients, understand their unique
Intercomp Pro as a trusted and
challenges, and tailor our services
forward-thinking industry leader
to meet their specific needs.
in the global marketplace.
This client-centric approach will
Innovation isn’t just a buzzword; it’s the heartbeat of Intercomp Pro’s sales strategy.
reinforce our reputation as a In a rapidly evolving technology
provider of flexible and adaptable
landscape, what strategies
solutions.
and initiatives do you plan to implement to ensure
Rapid Prototyping and Innovation:
quick to respond to changes in
established strengths with the
Intercomp’s business sales
Establish a dedicated cross-
the market and agile. This will help
insights and resources of other
team remains agile and
functional team focused on rapid
us continue to grow and solidify
industry leaders. Through this
adaptable to market changes
prototyping and innovation. This
our reputation as a reliable source
integrative approach, we strive
while driving growth?
enables us to swiftly develop
of customised and cutting-
to not only uphold our esteemed
and test new service concepts
edge services in the constantly
reputation but also solidify
In the face of a rapidly evolving
in response to market demands.
changing world of technology.
Intercomp Pro’s position as a
technology landscape, ensuring
This approach will ensure we stay
the agility and adaptability
at the forefront of technological
Intercomp has a rich history
way in shaping the future of our
of Intercomp Pro’s business
advancements, offering cutting-
and reputation in the industry.
industry.
sales team is critical to driving
edge solutions that address
Can you share some insights
sustainable growth and
emerging industry challenges.
into how you plan to leverage
In wrapping up our conversation,
the company’s strengths and
Caruana leaves us with a vision
Strategic Partnerships and
heritage while innovating for
of dynamic growth, customer-
We will focus on implementing
Alliances: Forge strategic
the future in your new role?
centric innovation, and a
the following tailored strategies
partnerships and alliances with
and initiatives, emphasising the
key technology providers and
Indeed, in my current role, my
forefront of the ever-evolving
unique value proposition of our
industry leaders, leveraging
strategy involves harnessing
tech landscape. His blend of
services:
their expertise and resources to
the valuable heritage and robust
experience, strategic foresight,
enhance our service offerings
reputation that Intercomp Pro has
and passion for customer
Continuous Training and
and remain at the forefront of
cultivated within the industry. I
success promises an exciting
Development: Establish a
technological innovation. These
plan to leverage this rich history
journey for Intercomp Pro in the
comprehensive training program
partnerships will enable us to
by fostering a deep appreciation
days ahead.
maintaining a competitive edge.
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pioneering force, leading the
commitment to staying at the
THE BUSINESS EDITION
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BRAND
IS YOUR MOST POWERFUL ASSET in the wrong hands? Branding encompasses an organisation’s core values, behaviour, and customer experience. Ed Muscat Azzopardi emphasises company leadership's crucial role in shaping and nurturing a brand that resonates with employees and customers, highlighting its vital contribution to sustainable growth and brand equity.
We inherit the wisdom of those who came before us. It is then up to us to
However, a brand is much more than a visual expression. Brand is
challenge this and add to it, intending to leave something more valuable
behavioural. It is the total of the behaviours of every individual who
for the ones who will take on our wisdom.
works for the company (or product). That, along with the product/ service itself, makes up the totality of the brand.
This does not happen half as often as it should. While this might sound like a very inclusive definition - it is. In reality, Take the word ‘brand’ itself. We have inherited this word from the farmer,
brand also resides in the hearts and minds of its audiences. It is what
who thought that using a red-hot piece of metal to mark his cattle was a
‘they say’ it is. They perceive the brand as a result of their experiences
good way of keeping tabs on his property. It was a barbaric practice, but
with the product and the humans they interact with along the journey
we carry on using the word regardless.
from demand to purchase to post-purchase.
It is also a slightly useless word. To some, it means ‘logo’. To others, it
Brand has an aspect that is handled by marketing, but it is a small part
means ‘the very fundamentals upon which a company’s reputation is
of what the term represents. We can trace all the elements a brand
built’. Until we have a single definition that we can all abide by, it remains
comprises and determine which parts should reside with the marketing
too broad for comfort.
people.
Brand is not marketing
It starts in the boardroom
Today, we will start with another myth about branding - that the
Working from the inside out, the brand makes its way to marketing
responsibility for the brand resides with the marketing department. In
this way:
the beginning, brand was lumped with marketing because it included
•
and trickles outwards from there.
weird enough to enjoy that stuff - and there it stuck. In time, the words ‘brand’ and ‘logo’ were used interchangeably.
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Every team member is motivated by the reason for the company’s existence - brand purpose. Brand purpose starts in the boardroom
a logo and a colour palette - traditionally, the marketing people were •
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Every team member behaves according to the brand’s core values or
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BRAND
principles. This, too, must be lived by the board and executive branch
a brand and a model that I felt would be the best ‘fit’, as it were, for
of the company.
the purpose. She said she’d never purchase a shoe of that brand
•
Products and services are designed to fulfil the brand’s purpose.
locally and that she either orders them online or buys the brand
•
Products and services are aligned with the brand’s values.
when she’s abroad. I was intrigued and asked for a detailed reason
•
Communication is designed and produced by the brand’s values,
why. It turned out that the brand is represented by a chain of sports
personality, and tone of voice.
stores that ran a body shaming campaign about five years ago. In
Communication is finally given the brand identity treatment - its
her memory, the campaign said something like, ‘Your ass looks big in
colours, logo, fonts, and all other aspects of its expression are
those shorts’.
•
prepared by the brand guidelines. This account shows that clients view marketing as the final Using this journey from the boardroom to the billboard, we can see
expression of how a company thinks and behaves. The campaign tells
that it’s the last two steps in the journey that are the responsibility of
us that the boardroom is okay with this kind of thinking.
the marketers. If your boardroom does not get brand, there is a strong chance that your organisation is not growing, at least at the pace of the
Someone thought about this campaign; someone approved the
market. In many cases, this is equivalent to a slow slide backwards.
production and the budget; someone saw it in the wild and was okay with it. The company needed to be aligned with the values of its
The boardroom is also solely responsible for the growth of brand equity.
audience. And now, to win a client back, it has to work at least twice
Trying to pawn this enormous burden onto the marketing department is
as hard to change their mind.
tantamount to abdication. Truth be told I was chatting with a friend, and running shoes came up. I suggested
The brand starts in the boardroom. It is an honest manifestation
Brand is behavioural.
of the core beliefs of the organisation’s leadership. Whether the executive arm of the company is aware of it or not, they are responsible for how every person at every touchpoint conveys the spirit of the organisation. It is indeed a significant burden, and the biggest brands in the world are the ones where this awareness drives every decision. From the boardroom, the principles and the ethos work steadily and deliberately in marketing. The reverse direction is a recipe for eventual dilution of brand equity, which is a best-case scenario. At worst, it can spell disaster for a brand - and when it does spell disaster, reparations will, once again, start in the boardroom and then make their way to marketing. We should indeed update the wisdom we’ve inherited. The sooner we shift the brand’s responsibility from anywhere in the company onto the boardroom table, the sooner that organisation can see a steady and sustainable growth in brand equity. And we know that brand equity counts. While it falls under the appalling misnomer of ‘intangibles’ in accounting terms, it accounts for the most significant proportion of the value of the most influential companies on earth.
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THE BUSINESS EDITION
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DOUBLE Photographer
Model
Stylist
Marvin Grech
Marcus @ Models M
Peter Carbonaro
[All items by Armani Exchange at Tigné Point and Mercury Towers. Shot on location around the Ballutta promenade and Balluta Buildings.]
DENIM MONEY
THE BUSINESS EDITION
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[All items by Armani Exchange at Tigné Point and Mercury Towers.]
[All items by Armani Exchange at Tigné Point and Mercury Towers.]
FA SHION
AUTUMN APPAREL MONEY welcomes the new season with a show of delectable fashion pieces. [All items available from mrporter.com, unless otherwise specified]
BRUNELLO CUCINELLI
ANDY WARHOL
Winter Escape full-grain
1976 signed 2-dollar bill
leather duffle bag
€12,000 / elcol.com
€4,500
BALMAIN Logo-jacquard padded canvas hooded jacket €3,590
VEJA V-90 suede and leather sneakers €165
FA SHION
GUCCI (Must-have) Horsebit 1953 leather loafers €750
CELINE HOMME
BMW
Slim-fit cashmere
Bucket hat arc
rollneck sweater
€84 / info@mml.mizzi.com.mt
€1,290 BMW Motorsport car graphic Puma t-shirt €75 / info@mml.mizzi.com.mt
POLO RALPH LAUREN Embroidered intarsia cotton and cashmereblend sweater €550
DRKSHDW BY RICK OWENS Mastodon slim-fit tapered cotton-jersey sweatpants
ROLEX
€655
Datejust, Oyster, 31 mm, Oystersteel and white gold €10,050 / elcol.com
NEWS
Malta’s tech leaders reborn and expand: The future of tech in Malta, Saudi Arabia, and beyond 9H Digital heralds a new era in Maltese tech
Malta’s first WooExperts and HubSpot partner,
and digital marketing, symbolising rebirth and
ensuring quality and streamlined solutions.
collective growth. In early 2023, executive
CEO Benji Borg expressed pride in sharing
directors James Abela, Zak Borg, Matthew
this milestone and rebirth, representing the
Sammut, and Benji Borg, now CEO of the 9H
culmination of the company’s 15-year journey,
Group of Companies, took the helm at 9H
emphasising a team of over 70 dedicated
Capital plc (formerly Anchovy Studios plc and
individuals committed to innovation and client
NIU). The board welcomed Joseph Sultana as
success.
non-executive director and chairman, along with non-executive directors Chris Mifsud and
Notably, 9H Digital expanded its footprint
Etienne Borg Cardona.
in Saudi Arabia by acquiring a 50% stake in The Studio Upstairs, now rebranded as Tayb
9H Digital, operating under the finance holding
and led by founder and CEO Tala Saleh. This
company 9H Capital plc, has emerged as
strategic move amplifies the company’s global
the premier digital solutions agency. As an
influence and underscores its commitment to
ISO-certified entity, it is distinguished as
pioneering digital excellence.
Mercury’s shopping district opens Mercury, a groundbreaking retail destination,
The shopping district operates from Monday
opened its doors on November 10, 2023,
to Sunday, 10:00 a.m. to 10:00 p.m., offering
introducing a unique shopping experience in
complimentary parking with purchases over
St Julian’s with over 80 fashion and lifestyle
€50. Mercury boasts a diverse selection of
brands. The contemporary design-led spaces
fashion, including exclusive limited-edition
create an immersive atmosphere, and the
drops and capsule collections. The food and
central square, spanning 4,000 square metres,
beverage options include Malta’s first Illy café,
becomes the vibrant heart of St Julian’s,
Italo salumeria, Café Pascucci, Amorino ice
featuring artistic installations and providing a
cream parlour, and Peperino, a Neapolitan-
year-round platform for performances.
style pizzeria.
As Mercury opens, it sets the stage for future developments, evolving into a downtown oasis with entertainment for all ages. It features 17 bars, restaurants, bistros, and the luxury ME Malta by Melia Hotel. Completing the final phase establishes Mercury as Malta’s premier lifestyle destination, revitalising Paceville as an inclusive hub for all generations.
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