MONEY ISSUE 87

BUSINESS

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LIFEST YLE

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DESIGN

THE FINANCE EDITION ISSUE 87

COVER STORY

NUMBERS, TRUST & THE NEXT BET

16 Roderick Attard, CFO at Tumas Gaming, on rebuilding confidence, cadence and clarity.

THE MORAL COST OF MALTA'S SUCCESS

DEBT, DEMAND & DISCIPLINE

BEYOND THE OLD BOYS' CLUB

Manuel Delia asks whether Malta can build lasting prosperity without compromising its values — and what’s at stake if it doesn’t.

Justin Mizzi breaks down how sharper pricing and investor scrutiny are redefining Malta’s propertydriven bond market.

Vanessa Macdonald examines how Malta’s boardrooms are evolving — tackling age, gender and digital gaps.

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44

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WELCOME

Editor’s note — Here’s a quiet recalibration

price risk more precisely and developers seek

across Malta’s economy. From listed boardrooms

alternative capital. Our pre-budget essay on

to rental streets in Birkirkara and Sliema, a

the “silent deficits” asks what never makes the

familiar story is shifting: the old rules no longer

speech—pensions, productivity and the green

guarantee the same results. Compliance, once

bill we keep rolling forward.

the endgame, is now just the starting line.

Threaded through every piece is the same This Finance Edition lands at a turning point.

idea: resilience is built where discipline meets

Our cover story with Roderick Attard, CFO

ambition. Malta doesn’t need louder slogans; it

at Tumas Gaming, captures a new breed of

needs better systems—boards that challenge,

financial leadership—where data, cadence and

regulators that enable, markets that reward

transparency reshape decisions in real time.

long-term value, and leaders who choose

Trust isn’t built in annual reports; it’s built daily

credibility over shortcuts.

through clarity, alignment and accountability.

Finance is about numbers, but as this issue Lea Hogg’s interview with Malta Development

shows, it’s also about values—how we balance

Bank’s CEO shows policy finance put to

growth with conscience, and momentum with

work—de-risking productive investment while

trust.

demanding better governance. In parallel, JP Fabri argues that a sector “built to comply” must

Welcome to the new language of money.

now prove it can compete, connecting finance to innovation, capital formation and national purpose.

We widen the lens on money culture. Cecil McCarthy tracks the shift from passive property income to active management and diversification, as intergenerational transfers and tighter yields force tougher choices. Manuel Delia takes the tricky question head-on: can Malta prosper without moral compromise? His answer is clear—integrity is strategy.

Boards, too, are in motion. In Vanessa Macdonald’s feature, Malta’s boardrooms confront age, gender and capability gaps while the compliance load swells. The message: digital fluency, independence and real training aren’t “nice to haves”; they’re a licence to operate.

Markets are telling their own story. Justin Mizzi dissects corporate bonds and property finance, separating signal from noise as investors

E D I T O R Anthony P. Bernard

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Be Communications Ltd. retains all intellectual property rights in the content published in this magazine, including but not limited to copyrights, trademarks, and patents. Any unauthorised use, reproduction, or commercial exploitation of this content violates applicable laws and may result in legal action. Opinions expressed in this magazine are those of the respective contributors and do not necessarily reflect the editor's or publisher's views. While every effort is made to ensure accuracy, Be Communications Ltd. assumes no responsibility for errors or omissions in the magazine's content, advertisements, or related materials and disclaims liability for the accuracy, legality, or originality of content provided by clients.

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ISSUE 87

MONEY

The New XC90 With space for seven

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CONTENTS

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26

44

Nudges in the right direction

Vibrant yet vigilant: Inside Malta's property bond market

Malta's companies are multiplying, and the pressure on their boards is mounting. Age, gender

Corporate bonds have become a cornerstone of

balance, digital fluency, and governance skills

capital raising in Malta, especially for property

are under scrutiny as regulators raise the bar

development. Yet alongside oversubscriptions

and markets accelerate. Vanessa Macdonald

and steady secondary demand, 2025 has brought

examines how Maltese boards are adapting — and

sharper investor scrutiny, isolated stress cases,

whether change is occurring at a sufficient pace.

16

COVER STORY

Built to comply, not yet to compete Malta's financial services sector has matured into a pillar of the economy, trusted and wellregulated. But regulation alone is not enough.

JP Fabri argues that Malta must evolve its financial ecosystem into a driver of innovation, capital, and purpose, one that powers national

and a market that is pricing risk more precisely.

Justin Mizzi takes stock with Josef Cutajar, Francesco Grasso, and George Vella.

50 The pension time bomb

growth rather than merely policing it.

As Europe is confronted with an ageing population, Malta finds itself at the sharp end

32 Numbers, trust and the next bet: Inside Tumas Gaming’s finance reset

of the pension crunch: a small economy, a state-heavy system, and young workers worried they may inherit less than their parents. Lea

Prosperity without integrity?

financial services expert, to explore whether Malta can defuse its looming pension time bomb -

services and gaming. But Manuel Delia asks: Is

or risk leaving a generation financially stranded.

this prosperity built on moral compromise?

has focused on understanding, stabilising and

By relying on loopholes, secrecy, and addiction-

aligning—pairing capital discipline with data-

driven industries, Malta risks confusing short-

driven oversight. From refurbishing casinos to

term gain with long-term wellbeing, eroding not

modernising BI and ERP, he frames finance as a

just its economy, but its democracy itself.

trust engine: agile balance sheets, clear KPIs, and for growth, sustainably.

20 Governance first, growth next: Inside the Malta Development Bank

employment law specialist, and Jesmond Mizzi,

Malta’s economy is built on the pillars of financial

In his first 100 days as CFO, Roderick Attard

compliance embedded in culture—not tacked on—

Hogg spoke with Dr Andrew Borg Cardona,

54

38 The culture of money: Are Maltese spending and saving habits evolving?

Property has long been Malta's default savings plan and the cornerstone of wealth. But the rules are changing. As yields tighten, costs rise, and

From safe to smart: How families are growing their money (without losing sleep)

Alison Micallef, CEO of the Malta Development

cultural values shift, landlords and households

Bank, tells Lea Hogg how a balance sheet

alike are rethinking how they save, spend, and

The old brief was simple: protect the pot and

can punch above its weight—de-risking green

invest. Malta's money culture is evolving —

pass it on. Paul Rostkowski explains why a

investment, unlocking capital, and turning Vision

sometimes reluctantly, but unmistakably. Cecil

new, steadier approach is taking hold—keep a

2050 from aspiration into bankable projects built

McCarthy explores Malta's evolving money

safe base, add a measured growth sleeve, and use

on transparency, inclusion, and growth for Malta.

culture.

Malta’s tidy fund structures to stay organised.

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ISSUE 87

MONEY

CONTENTS

56

MONEY's columnists — 1

2

3

A Maltese business owner’s guide to navigating the EU’s new product-safety era Product safety has become a balance-sheet issue, argues Ing. Stephen Mallia. With the EU’s GPSR live, REACH reform looming, and MCCAA enforcement rising, Maltese importers and manufacturers must treat compliance as capital—central to finance, insurance and survival in the Single Market.

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4

5

6

7

Malta’s budget 2025: Smart investments, tough cuts As Finance Minister Clyde Caruana gears up to deliver Budget 2025, he has already fired the first shot: low fertility, he warns, is Malta’s “greatest challenge.” But beneath the demographic headlines lies a broader fiscal balancing act.

MONEY examines the choices that matter: where to scale back, and where to double down.

62

1

JP is a founding partner at Seed,

a multi-disciplinary advisory practice.

2

Point 2 Point: Three friends, one journey, two causes that need us all

Justin is a partner (real estate advisory and

valuation) at QP. 3

Lea is a Malta-based journalist and author,

known for her TV programme which focuses Three lifelong friends are turning endurance into

on current affairs, cultural news and in-depth

empathy. Their message: donate, and make every

interviews on geopolitics and global issues.

moment matter.

64

4

Manuel is a civil society activist and writer.

5

Paul is part of a multidisciplinary advisory

firm specialising in private clients, high-networth individuals, and family offices.

Charles & Ron's "Rebirth"

6

Stephen is a freelance product regulatory

compliance expert and mechanical engineer This September, Maltese fashion house Charles &

with over 13 years of experience in the field.

Ron unveiled its Spring–Summer 2026 collection at F/ROW during New York Fashion Week. The

7

Vanessa had every intention of retiring

show on 10 September marked a powerful creative

but so far has been caught up by exciting

statement in a world hungry for renewal.

freelance projects and voluntary work.

MONEY

THE FINANCE EDITION

09

GOVERNANCE

NUDGES IN THE RIGHT DIRECTION 10

ISSUE 87

MONEY

GOVERNANCE

Malta's companies are multiplying, and the pressure on their boards is mounting. Age, gender balance, digital fluency, and governance skills are under scrutiny as regulators raise the bar and markets accelerate. Vanessa Macdonald examines how Maltese boards are adapting — and whether change is occurring at a sufficient pace.

I

n recent years, governance has moved

Age

dropped from 65 when company registration numbers were in the 10,000 range to 47 now

centre stage, putting boards firmly in the spotlight. Yet with more companies and

Some years ago, a survey revealed that the

that they are in the 110,000 range.

rising compliance demands, the question

average age of directors was 58. Things are

remains: are there enough directors to cope?

going in the right direction, though: the Malta

Simon Azzopardi, a start-up guru, is also a

And is it time to broaden the talent pool and

Business Registry's Annual Report for 2024

non-executive director at Izola Bank among

rethink the skills boards need?

showed that the median age has dropped

other entities, despite being relatively young

over time. It mapped the figures according to

compared to the median age of directors.

MONEY asked leading professionals for their

the company registration number. Although

However, he stressed that the issue is not age

views, sparking a debate on what it will take to

this does not indicate the actual time period,

per se but rather capabilities. As businesses

make Maltese boards more effective.

it is positive to see that the median age has

digitise and technology becomes →

MONEY

THE FINANCE EDITION

11

GOVERNANCE

a competitive advantage, he said that younger

default, personalisation as standard, and

tech entrepreneurs who have built something

speed as baseline. Directors closer to these

of relevance are exciting candidates for

realities help boards adapt strategy before

boards.

markets move past them.

"Expectations of boards must evolve as

"The bottom line is simple: if boards can't

fast as business itself. Industry experience

ask the right questions about AI and digital

alone is no longer enough. Boards need new

transformation, they can't govern. CEOs

capabilities at the table. Research from MIT

should be recruiting tech entrepreneurs

shows companies with at least three 'digitally

and digital leaders now, before irrelevance

savvy' directors consistently outperform. Yet,

becomes the real liability," he said.

in Europe, only 14% of large-company boards have at least one digital expert, compared to 26% in the US.

Gender Fran Moisa So much for age and tech-savvy members; however, there is another issue when it comes to the makeup of boards: gender equality.

same names circulate, and talented women

MONEY sought two opinions: from someone

outside these informal circles are often

who works with appointments to boards, and

overlooked," she explained.

from the National Council for the Promotion Are quotas the solution? She warned that

of Equality.

this must not be viewed simplistically: Headhunter Fran Moisa welcomed the fact

"While quotas can play a role in accelerating

that gender equality in Maltese boardrooms

change, they risk becoming 'token' gestures

has seen progress, but fretted that the pace

if not supported by a more fundamental

remains slow.

shift, which includes a systematic overhaul of the appointment process to broaden the

Simon Azzopardi

"As a headhunter, I've seen more women

talent pool and ensure that meritocracy

at the C-Suite level, yet this hasn't fully

truly prevails, allowing businesses to benefit

translated to directorships. Data from the

from the full spectrum of available talent,

Malta Business Registry confirms this: women

regardless of gender."

So much for the view from the private sector;

If boards can't ask the right questions about AI and digital transformation, they can't govern.

— Simon Azzopardi "Why does this matter? First, AI and

hold just 18.6% of all directorships, a figure

technology are now board-level issues. Few

that remains largely insufficient," she said.

how about the agency under whose remit this falls? Renee Laiviera is the Commissioner at the National Council for the Promotion of Equality. She said that the issue of women in senior positions is multifaceted. It does

boards have AI as a standing agenda item, despite evidence that 95% of generative

Unlike C-Suite roles, which have higher

AI deployments to date have yielded no

turnover and broad visibility, director

measurable return on investment. Without

appointments are often long-term and tend to

directors who have built and operated in the

lack public visibility.

digital era, boards risk approving investments they don't fully understand.

"Positions, particularly for non-executive directors, are typically filled through

"Second, customer expectations are racing

established, informal networks and personal

ahead. Consumers now expect digital by

referrals. This insular system means that the

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ISSUE 87

Renee Laiviera

MONEY

GOVERNANCE

not help that 75% of the Maltese deem that

listed companies will have complied with the

director (INEDs) space, if Malta is to continue

'women are more likely than men to make

objectives of the Directive. The NCPE is the

growing as a jurisdiction.

decisions based on their emotions'.

entity responsible for promoting, analysing,

"The invisible barriers that prevent women

monitoring, and supporting gender balance in

"Companies looking to expand into Europe or

these listed companies.

grow outside the European Union need a pool of strong INEDs to support growth ambitions, provide technical input and offer governance

Women hold just 18.6% of all directorships, a figure that remains largely insufficient.

— Fran Moisa

expertise. If Malta can meet this demand, it can be turned into a real competitive advantage for the jurisdiction", he said.

How to achieve this? In line with Simon, Fran and Renee, he also spoke about encouraging greater board diversity to deepen the overall talent pool, with a particular emphasis on younger INEDs and women directors. But there is more that can be done.

from progressing to leadership roles often

The NCPE has also taken specific actions.

For example, he strongly believes in

include persistent gender stereotypes, and

For example, it developed the Directory

the importance of training and ongoing

organisational cultures that undervalue

of Professional Women, which provides

governance education.

women's abilities, limiting access to decision-

further visibility to professional women –

making networks," she said.

currently 278 of them – and increases their

"This is already underway with Shireburn

opportunities for appointment to boards,

Academy and the Association of Directors

committees, and decision-making positions.

teaming up to offer a Certificate in the Role

The bottleneck had been the number of

of a Director in October this year and the →

women in the senior management pipeline, which, she said, was increasing. Indeed, the

Her message about why this matters is also

National Statistics Office reported at the end

unequivocal: "Ultimately, advancing gender

of 2024 that 40% of managers were women,

balance in leadership benefits society as a

compared to just 30% in 2019. And this is not

whole through making full use of the human

limited to the private sector: in the public

capital, be it male or female."

administration, 45% of public employees in Scales 1-5 were women in 2024, compared to 40% in 2019.

Skills

How can this trend be encouraged? Renee

Of course, skills and diversity are essential

said that increasing women's representation

factors, but they are not the only ones that

in senior positions required a combination of

matter. Directors represent the companies on

strategies, including equality policies, family-

whose boards they sit, and they need to be as

friendly measures, mentorship programmes,

well-trained and prepared as the executives.

and leadership training for women.

Mark Watkinson, a Chartered Director and Fellow of the Institute of Directors UK,

Her view on whether quotas are the solution

stressed the importance of continued

came with the same caveat as Ms Moisa's:

investment in the independent non-executive

Mark Watkinson

"EU Member States adopted the Directive on Women on Boards, making a clear statement that positive action is necessary and effective in increasing the number of women on boards in listed companies. However, quotas should complement broader measures that require structural interventions and cultural shifts," she said.

Indeed, Malta is working to implement the Women on Boards Directive, which aims to strengthen gender balance in corporate boards of listed companies. By June 2026,

MONEY

Companies looking to expand into Europe need a pool of strong INEDs...

If Malta can meet this demand, it can be a real competitive advantage.

— Mark Watkinson THE FINANCE EDITION

13

GOVERNANCE

Institute of Financial Services Practitioners looking to build out its director training offering," he said.

Another suggestion to promote training would be to examine the earlier stages and foster enhanced collaboration between the University of Malta and Industry to develop a diverse range of programmes at both undergraduate and postgraduate levels in

While company incorporation in Malta has always been straightforward, the process for company dissolution has now been significantly simplified.

— Geraldine Spiteri Lucas

corporate governance. participation on company boards.

Regarding ongoing education, he noted that this could be encouraged by establishing a standard number of CPE hours per year for

"One area that still needs attention, however,

directors of regulated entities, aligned with the

is gender diversity," she concluded.

accounting profession.

Compliance

It would also be helpful to have a register of qualified directors, as mentioned by Renee regarding women directors. In Mark's case,

Over the past few years, companies have

he suggested that the MFSA create a public

complained about the amount of time spent on

register of qualified directors that companies

compliance and its associated costs. However,

can access when seeking to fill INED roles.

perhaps we are not as aware of the impact that this has on boards. In 2019, Deloitte experts

And what about foreign directors, given the size of the Maltese talent pool? Why

noted that boards were spending up to 40% Geraldine Spiteri Lucas

not leverage incentives (such as the Highly

is reasonable to assume that this figure has

Qualified Persons Rule) to attract seasoned directors to relocate to Malta, he said?

Legislation The role of directors is, among other things,

of their time on regulatory matters, and it increased over the past five years.

The importance of governance was also a key issue. She explained that to enforce this, the

Tonio Depasquale, the former CEO of Bank of

Maltese framework restricts directors who

Valletta and a director on various boards, has

consistently fail to keep their company's profile

personally experienced this pressure. "Today,

up to date from taking on new directorships in

especially in financial services, it's fair to say

both new and existing companies.

that the number should be closer to 60%.

Regulatory alignment isn't just a compliance

outlined in the Companies Act, which has been amended numerous times over the past three

"The same rule applies to the timely updating

issue; it's a prerequisite for operating. Without

decades. However, it had not been given a

of beneficial ownership information. A

it, licences are at risk and so is the business

thorough review until now.

company that is not in line with its statutory or

itself.

beneficial ownership obligations can be struck This painstaking exercise was identified by the

off the register as it will be considered as non-

Malta Financial Services Advisory Council as

operational," she noted.

one of the projects that would help to guide Malta's future – not only in financial services

Recent changes also provide a competitive

but also across economic sectors.

edge, she added. "While company incorporation in Malta has always been

The project leader was the Malta Business

straightforward, the process for company

Registry, and its head, Geraldine Spiteri Lucas,

dissolution has now been significantly

explained why it was so important.

simplified. This makes it easier for directors to incorporate a company for a potential

"Malta is committed to attracting top-tier

investment, knowing that winding it up won't

investors, and this is reflected in past and

be a complex, difficult process."

also recent amendments to its Companies Act. A core focus is maintaining an up-to-

There is one area that the MBR is also

date company register. This benefits potential

concerned about: as mentioned above, its

investors, business partners, and other third

annual report analyses company boards

parties by ensuring transparency."

and reveals an apparent lack of female

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ISSUE 87

Tonio Depasquale

MONEY

GOVERNANCE

Independence

"Compliance has evolved into a strategic imperative. Boards must now navigate intricate regulatory landscapes while meeting

Apart from the people on the board, another

rising expectations for transparency and

aspect is their status—the rise of independent

accountability.

directors, who are not affiliated with the company's owners or management. One of

"This shift demands time and attention,

the companies that leads by example is the

which, if not managed wisely, can crowd out

Farsons Group.

innovation and strategic foresight."

Group Chairman Louis Farrugia explained that He admitted that the pressure on boards

the Farsons' story of boardroom experiences

was unprecedented – and that the best way

dates back to 1929, when L. Farrugia & Sons

forward would be to evolve.

and Simonds of Reading, UK, formed a public company called Simonds Farsons Ltd.

"The velocity of change is unyielding,

Louis Farrugia "It was natural at the time that the

and the complexity of issues from digital transformation to ESG imperatives is intensifying. Layer in persistent disparities in age, gender, and skill sets, and it becomes evident: boardroom evolution is no longer optional but a necessity.

"But in the push to modernise, we shouldn't lose sight of what seasoned leadership brings to the table. The experience, historical insight, and steady hand of veteran board members are invaluable.

"When you combine that with the fresh

Having independent directors on the board has been a major contributor to shaping Farsons' culture of good governance.

— Louis Farrugia

thinking, tech fluency, and energy of younger directors, you get something powerful: a board "Forward-thinking boards embrace data-

local company would inherit corporate

driven oversight. Tools like real-time analytics,

governance systems practised by Simonds of

As Simon did, he stressed that today, a broad

AI-based risk modelling, and predictive

the UK. Farsons has long maintained working

spectrum of expertise is essential.

insights are no longer aspirational; they're

practices which enhance good governance.

that's not just diverse, but dynamic," he said.

essential. Technology alone isn't enough; "Boards must go beyond traditional finance

it takes a board culture that values diverse

"Having independent directors on the

and legal competencies to include knowledge

inclusivity, curiosity, continuous learning,

Board, namely, those elected by the public shareholders, has been a major contributor to shaping the Farsons' culture of being

Forward-thinking boards embrace data-driven oversight… That's what empowers boards not just to navigate change, but to architect the future.

— Tonio Depasquale

a 'serious' player in the world of good governance," he said.

He also explained how important their role was in shaping the company's strategy: "Naturally, many momentous decisions have been taken by the Board of Directors in its almost 100 years of history. All of them would have been moulded by a combination of major shareholder representatives and independent directors who would always ensure that the long-term interest of the company – including all stakeholders – were

in cybersecurity, sustainability, and regulatory

and constructive challenge to harness these

affairs. Sourcing such multifaceted talent

capabilities truly. That's what empowers

is increasingly complex, especially as the

boards not just to navigate change, but to

Read the Malta Business Registry Annual Report

demands continue to shift.

architect the future."

here: bit.ly/MBRAnnualReport2024

MONEY

THE FINANCE EDITION

looked after."

15

COVER STORY

16

ISSUE 87

MONEY

COVER STORY

NUMBERS, TRUST AND THE NEXT BET Inside Tumas Gaming’s finance reset: capital discipline, clear KPIs, and growth with guardrails In his first 100 days as CFO, Roderick Attard has focused on understanding, stabilising and aligning—pairing capital discipline with data-driven oversight. From refurbishing casinos to modernising BI and ERP, he frames finance as a trust engine: agile balance sheets, clear KPIs, and compliance embedded in culture—not tacked on—for growth, sustainably.

You've stepped into the CFO role at Tumas

simple: understand the revenue drivers and

always seeking ideas to turn into actionable

Gaming after senior finance roles in iGaming

cost pressures.

plans. That's why I, along with the rest of the

and audit. What are your first 100-day

executive team, have established weekly

priorities, and how are you structuring the

Secondly, I assessed the finance organisation,

meetings to discuss current performance,

handover and cadence with the executive

covering aspects from team structure to

measure our progress against our original

team?

control environment, and from data processing

plan, and remain flexible to adjust for any new

to reporting cadence. The ultimate goal here

knowledge we learn along the way.

D

uring my first 100 days, my focus

was to ensure we, as the Finance Department,

has been threefold: understanding,

provide internal and external stakeholders

Tumas Gaming operates in a tightly

stabilising, and aligning.

with complete, accurate and timely insights.

regulated market with both land-based

It's not about presenting financial figures in

and digital dynamics. What's your capital-

The first step was to dive into the operational

a nicely presented financial report. It's about

allocation framework across maintenance

and regulatory context of both the land-

telling the story behind the figures.

capex, growth projects, and tech/analytics— especially where returns and regulatory

based and the online businesses. I sat down

timelines intersect?

individually with executive and middle

The third focus area is more future-looking:

management to understand, from their point

alignment with the executive management

of view, our services, challenges, compliance

team on strategic priorities and direction.

The timing of this question is perfect as Tumas

and processes in general. My ultimate goal was

I describe myself as a structured person,

Gaming is currently investing significant →

MONEY

THE FINANCE EDITION

17

COVER STORY

Every Euro must earn its keep.

of a well-established local group gives Tumas Gaming easier access to both fixed and floating debt options, thus allowing me to optimise the overall debt mix and maturity profile.

Moreover, casinos have high cash conversion rates, though somewhat seasonal. Therefore,

capital to refurbish its casinos. The Company's

obtaining flexibility in financing structures,

capital strategy must navigate two aspects:

via, for example, a revolving facility, can help

the physical infrastructure of our casinos and

in optimising the use of cash reserves while

the agile, fast-evolving digital side of gaming.

minimising borrowing costs.

Our capital-allocation framework is rooted in disciplined prioritisation: every Euro must earn

Stress testing helps us identify and address

its keep. Maintenance capex gets first call in

any weak areas by simulating different

the short-term, ensuring that compliance and

scenarios, such as a dip in players/visits, a

player entertainment experience remain top

change in gaming taxes or a sudden increase

priority.

in interest rates.

Capex to fuel strategic growth is equally

The goal is to build confidence – for

important as it ensures we stay aligned

shareholders, lenders, regulators and our

with technological development and remain

organisation. A healthy balance sheet gives

relevant to players' expectations in the long

us room to act strategically, whether that's

run. Growth projects are evaluated through

investing in new technology, minimising

a dual test: return on investment (ROI) and

borrowing costs or absorbing short-term

regulatory feasibility. In gaming, one can't

market turbulence.

separate the two – a great ROI on paper is meaningless if licensing or regulatory

Accountability and transparency are central

timelines push it out by two years.

to gaming. Which KPIs and reporting rhythms (monthly dashboards, risk heat-

Growth projects go beyond the casinos'

maps, audit-committee deep dives) will you

physical assets. Investments in data and

use to strengthen performance management,

technology are essential to enable better

compliance, and player-protection oversight?

data gathering and analytics. In fact, we're not just refurbishing the look and feel of our

Accountability is non-negotiable in

casinos; we are upgrading our technological

gaming – encompassing not just financial

platform to improve operational efficiency and

accountability, but also operational and ethical

enhance players' insights (from analytics to

considerations. I personally believe in clarity

responsible-gaming tools).

over complexity when it comes to KPIs. For daily performance management, we focus on a

Ultimately, capital allocation is about balance:

concise dashboard combining financial metrics

protecting core operations while funding

(e.g. Gross Gaming Revenue volatility) with

innovation that strengthens our long-term

operational indicators (e.g. number of new and

licence to operate.

recurring players). This helps us gauge daily performance and take swift action, if needed.

With interest rates still elevated, how are you

The latest technological platform will keep

thinking about balance-sheet resilience—

improving on existing dashboards by adding a

debt mix, refinancing windows, and liquidity

third yet equally important pillar: compliance

buffers—at the gaming-subsidiary level

indicators (such as player-safety metrics).

versus the wider group? What stress tests are

Our reporting rhythm will follow a tiered

you running?

approach: daily operating snapshots, monthly management reports, and quarterly deep

Interest rates in Malta have remained relatively

dives with the audit committee. This set-up

stable over the past decade. This is good news

helps to put compliance and player protection

for us during times when we're going through

as part of our performance culture, rather

Transparency isn't about producing more

significant investments. At the subsidiary level,

than treating them as afterthoughts. We're

reports; it's about telling the story behind

as CFO, my goal is to maintain an agile balance

also developing risk heat maps that integrate

figures and KPIs that drive better decisions

sheet that can absorb financial cost volatility

all departments, providing the board with a

and uphold trust with players and regulators

without constraining future growth. Being part

comprehensive view.

alike.

18

ISSUE 87

MONEY

COVER STORY

At Acroud, I was exposed to a variety of

Personally, I like data. What excites me the

projects, including building an internal

most is the use of historical micro- and

Business Intelligence system, switching

macro-data to compile forecasting trends and

stock exchanges, multiple acquisitions and

predictive analytics. For example, AI-assisted

growth initiatives, and refinancing a EUR20

forecasting can help us anticipate seasonality

Million+ bond. I was also lucky enough to

or optimise staffing costs. In my view, this

have been coached and mentored by a great

should not replace management's intuition

CFO. Amongst many things, he taught me

but rather add another perspective and tool at

that a CFO in general is much more than

management's disposal.

day-to-day book-keeping, internal controls, accurate reporting and other deliverables

Of course, regulatory compliance and data

one would expect from a traditional finance

security remain key. Gaming operates under

function. A CFO needs to monitor the

strict AML, GDPR, and responsible-gaming

underlying operational trends, maintain a

frameworks. Enhanced cybersecurity

light and healthy balance sheet, strengthen

protocols and data-access governance

the corporate governance structure, and

will accompany every digital upgrade. True

remain focused on the Company's bigger

finance transformation is not about perfectly-

picture and long-term sustainability. That

presented dashboards – it's about creating

mindset (combining operational insight with

trust in every number and every process.

financial discipline and strong governance) is what I'm bringing to Tumas Gaming.

Finally, what does success look like by this time next year—for shareholders, lenders,

Where do you see the most significant

regulators, and employees—and which two or

upside from finance digitisation—ERP

three metrics should they judge your tenure

consolidation, near-real-time BI, AI-

on (e.g., ROCE, cash conversion, compliance

assisted forecasting—and how will you

findings, engagement)?

balance speed of implementation with cyber, AML, and responsible-gaming

Success represents different things to

controls?

different stakeholders. To me, success means stability, credibility, and momentum. For

In today's digital age, collecting the correct

shareholders, this is reflected in improved ROI

data and knowing how to transform it into

and cash conversion, demonstrating that we're

value-adding information can give any

investing smartly and managing costs without

market participant a substantial competitive

compromising growth. For lenders, it's a clear

advantage. ERP systems help gather data

and resilient balance-sheet structure. For

from across all departments at all points

regulators, zero material compliance findings.

throughout the product life-cycle. Business

And for employees, it's engagement — knowing

Intelligence and Artificial Intelligence can

finance supports their decisions rather than

help in analysing the data gathered and

policing them.

transform it into meaningful information.

The most significant upside of integrating BI

I would like to be evaluated based on three

and AI with ERP systems would be unlocking

key metrics—first, cash conversion and

a 360-degree overview of the business in

working-capital efficiency, which demonstrate

near-real time, thus enabling management

operational discipline. Second, the return

to make better decisions, act faster, and

on capital reflects the effectiveness of

support compliance automation.

investment choices made. Lastly, audit and compliance outcomes are essential, as

You moved from Head of Finance to CFO at Acroud. Which lessons from a fast-moving affiliate/media business—working-capital discipline, revenue quality, data governance—

It's not about pretty reports—it's the story behind the figures.

are you bringing to Tumas Gaming?

MONEY

THE FINANCE EDITION

they showcase the integrity of execution.

These criteria will provide a comprehensive framework for assessing performance.

The CFO's role in gaming extends beyond financial management; it also involves risk management and driving growth. My goal is for finance to remain a proactive partner, enabling innovation and growth while safeguarding trust.

19

BANKING

GOVERNANCE FIRST, GROWTH NEXT Inside the Malta Development Bank Alison Micallef, CEO of the Malta Development Bank, tells Lea Hogg how a balance sheet can punch above its weight—de-risking green investment, unlocking capital, and turning Vision 2050 from aspiration into bankable projects built on transparency, inclusion, and growth for Malta.

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BANKING

Alison Micallef

seven years old, one that still has to prove its weight in an economy heavily reliant on sectors such as tourism, construction and online gaming. The MDB is small compared to its European peers. Still, Micallef argues its impact can be disproportionate if it positions itself as a lever to mobilise private capital into critical areas such as green infrastructure, digitalisation, and inclusion.

From crisis manager to architect of growth Micallef’s career demonstrates her extensive experience in financial risk, but her first months at the Malta Development Bank have been focused on a different challenge: enhancing the Bank’s visibility. Its most high-profile achievement came during the pandemic, when it was tasked with providing

W

close to half a billion euro in guaranteed hen Alison Micallef took the helm of

financing today’s projects; we’re enabling

loans. For such a young institution, it was a

the Malta Development Bank, she

Malta’s economy of tomorrow.”

significant test.

seized an opportunity to shape the

“It’s a shift in mindset,” she tells me.

“Crises have been a proving ground for the

architecture of Malta’s economic future. With a career spanning three decades in global risk

“Commercial banks focus on maximising

MDB,” she says. “We showed we could mobilise

management, Micallef is now applying her

private profit. Development banks exist to

quickly, effectively, and with accountability.

expertise not to minimise exposure, but to

drive socio-economic development and public

My task now is to build on that foundation and

maximise impact: steering the Bank toward

welfare. That means we’re often willing to take

guide the Bank into its next phase of growth.”

projects that drive innovation, sustainability,

on risks others won’t—because what we’re

and social inclusion.

prioritising is long-term sustainable growth,

That next phase is now visible on the ground.

not just short-term return.”

MDB has launched a Sustainability Guarantee— Malta’s first thematic InvestEU guarantee—

“Our role is to bridge gaps where traditional lenders hesitate,” she says. “We’re not just

MONEY

It is a big commitment for an institution barely

THE FINANCE EDITION

delivered through partner banks so that →

21

BANKING

SMEs can access support where they already bank. The instrument is live via BOV and HSBC,

By the numbers

with a third lender in process, widening reach

(latest available, Bank-reported)

shifting. “The focus is moving towards quality of life, inclusivity, sustainability, and innovation,” she says. “The MDB is placing itself at the centre of that shift.” That includes

without reinventing the customer journey.

Cumulative support: c €680m to

financing solar panels on factory rooftops,

Under the hood sits an uncapped portfolio

end-2023 (June 2025)

supporting SMEs to adopt energy-efficient

guarantee covering 80% of each eligible

Delivery: MDB flagship schemes (SGS

systems, co-funding creative projects

loan—calibrated, the Bank says, to give partner

and GCLS) are intermediated by APS,

spanning architecture to audiovisual media,

banks meaningful capital relief and lending

BOV and HSBC. The sustainability

and tapping European instruments—such

capacity, with the expectation that benefits

sub-schemes are intermediated by BOV

as InvestEU—for green mobility and digital

are passed through to SMEs in the form of

and HSBC.

productivity upgrades.

longer tenors, lower collateral and sharper

Guarantee design: uncapped portfolio

pricing within state-aid limits.

cover at 80% per eligible loan

Her rhetoric is confident, but the underlying

COVID legacy: ex-post assessment

challenge is ever-present: Malta spends a

cites claims below the worst-case

fraction of the EU average on R&D and remains

scenario and strong accessibility;

heavily dependent on traditional sectors. Can

delivery through eight banks during the

a bank with a modest balance sheet really tilt

scheme

the playing field? Micallef frames the MDB’s

Focus: rising share of sustainable/

role not as a lender of last resort but as a

energy-efficiency/digital productivity

catalyst. “Every euro of our guarantee can

projects under the sustainability

unlock multiples of private capital. That is how

schemes

small economies like Malta punch above their

Our role is to bridge gaps where traditional lenders hesitate.

weight.”

To avoid brochure-speak, we discuss where that leverage should show up. MDB targets observable outcomes—more viable projects financed on better terms, a rising share of green and digital investments, and shorter median approval times through partner banks.

Scrutiny as strength In Brussels and beyond, Malta’s financial system has faced its share of scepticism. For Micallef, multiple layers of oversight—from national audit to European reporting—are less a hindrance than a badge of trust. “Oversight

MDB’s COVID-era ex-post assessment

can make processes slower, yes,” she admits.

also shapes today’s approach: governance

“But it enhances credibility. It reassures

embedded at the design stage, strict eligibility

stakeholders that the MDB is a trusted partner.

agreed with banks up front, and delivery

Without that, we wouldn’t be able to attract

through normal bank credit processes. MDB

resources to Malta.”

says the headline lesson is that speed and accountability can co-exist—provided the rules

Critics counter that reporting burdens can

are clear from the start.

still slow roll-outs. MDB’s response is practical rather than rhetorical: standardise templates,

Reality check line: Uncapped structures

set state-aid and eligibility in advance with

typically deliver stronger SME benefits but

participating banks, and avoid duplicate data

lower headline “leverage multiples” than

requests. If a loan meets the scheme criteria,

capped schemes; MDB says it is prioritising

it proceeds without extra approvals—the bank

pass-through to businesses over optics.

underwrites as usual; MDB’s risk-sharing shifts the economics.

Beyond GDP Malta has enjoyed enviable GDP growth over

Yet credibility alone isn’t enough if the

the past decade, though often fuelled by

Bank’s services remain invisible to the very

industries that Brussels and environmentalists

businesses it aims to support. Even at home,

eye warily. Micallef knows the ground is

many SMEs remain unaware of the services

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BANKING

offered by the MDB. Micallef concedes the point. “Too many SMEs don’t know what support is available, or they’re put off by

How the 80% guarantee works

Alison Micallef, a risk manager turned development banker, argues that taking the right risks is the only way to build resilience.

“Our purpose is simple,” she says. “To empower

perceived complexity,” she says. Her answer is to partner with commercial banks—BOV,

Problem: viable SME investment, but

businesses, unlock investment, and contribute

APS, HSBC—so that small firms can access

collateral requirements and short tenor

directly to Malta’s long-term socio-economic

MDB guarantees through familiar channels,

make pricing tight; the bank hesitates.

resilience.”

with lower collateral requirements, better loan

MDB structure: an uncapped portfolio

terms and longer repayment periods.

guarantee covers 80% of each eligible

Already, the MDB has had an impact on

She is careful to add that additionality

loan. This provides partner banks with

Malta’s economy. Under Alison Micallef, the

matters: if a deal would go ahead on the same

capital relief, enabling longer maturities,

Bank isn’t just talking about Vision 2050—it’s

terms without MDB support, the Bank should

lower collateral, and improved pricing

acting on it: rolling out the Sustainability

not be involved.

within state-aid rules.

Guarantee through local banks, opening

Trade-off: lower headline leverage than It is a pragmatic fix, but hardly a glamorous

capped schemes, but stronger pass-

one. The danger, critics argue, is that the MDB

through benefits to SMEs.

risks becoming a quiet back-office guarantor

Outcome: the loan proceeds with

rather than the visionary development bank

the same bank, under normal credit

Micallef describes. She disagrees. “Access to

processes, on bankable terms.

finance should be a catalyst, not a barrier. If a project is viable, we want to ensure it gets

Every euro of our guarantee can unlock multiples of private capital.

support.”

From Vision 2050 to reality Malta's Vision 2050 is a long-term plan for a sustainable, innovation-driven, and inclusive economy. MDB, she insists, is not a bystander but an enabler. “Our contribution is already visible—from renewable energy and green mobility to education and community infrastructure. We’re not just supporting projects of today—we’re preparing Malta for the economy of tomorrow.”

For the MDB to be more than a cheerleader, it must design products that make ambition bankable: blending grants with guarantees, de-risking R&D, and co-financing social

channels to European facilities, and tightening

housing and healthcare—while publishing

operational plumbing so support lands where

time-bound KPIs so progress is measurable.

it’s needed. The test is now being executed

That means stating, in plain numbers, how

openly. As Micallef puts it: “To raise visibility,

the Bank intends to perform: target private-

we are strengthening outreach through

capital multipliers, the share of green/digital

chambers of commerce, SME networks,

projects, median approval times with partner

industry associations, and professional firms.

banks, claim ratios, and—crucially—how many

Our goal is to ensure that businesses with

viable SMEs actually receive improved terms.

viable projects are supported, rather than discouraged, by complexity.”

MDB also acts as a signpost and structuring partner for EU resources, aligning European

If Malta is to transition from a pay-as-you-go

facilities with Maltese needs and, where

approach to a plan-as-you-grow investment

relevant, helping projects connect into

strategy, risk-sharing must become routine.

specialist European programmes, including

The promise is not a slogan but a scorecard:

those focused on alternative-fuels

show the leverage, and let the portfolio speak.

infrastructure. For large or complex projects,

Faster does not mean looser; it means clear

the ability to blend national priorities with

rules, visible results, and finance that gets

European balance sheets is where a small

where it should—on time, on merit, and on

development bank can widen its footprint.

mission.

MONEY

THE FINANCE EDITION

23

PROMO

A NEW CHAPTER FOR MALTA’S RETAIL LEADERS Now operating 100 outlets across Malta and Gozo, The Convenience Shop has grown into one of Malta’s most recognisable retail brands. The company is now unveiling a bold new brand architecture under the “My” identity, marking the next stage in its evolution. MONEY sat down with CEO David Tabone to discuss what this transformation means for customers, employees, and the future of retail in Malta.

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Congratulations on reaching

identity, which uses a strong

offer and the way our stores are

a regular customer. The balance

the milestone of opening

corporate green. Within

designed, to the technology that

of digital efficiency and human

your 100th shop. Why is now

this, we have two main retail

powers the customer experience.

warmth defines our model, and

the right time to rebrand The

brands: MyConvenience and

We are introducing new concepts

we are investing in some of the

Convenience Shop?

MySupermarket. MyConvenience

that will be firsts in Malta, pushing

best training resources to ensure

retains the bright yellow that

the boundaries of convenience

that our staff can achieve the high

Thank you. Opening our 100th

customers already associate with

retail. Expect digital solutions,

standards we set for ourselves.

shop is a proud moment and, more

speed and accessibility, while

smarter store layouts and an overall

importantly, it marks a pivotal

MySupermarket takes on a more

enhanced customer experience –

You mentioned community. How

turning point. The time has come

casual, lighter green. This colour

whether in-store or online.

important is local culture and

for us to modernise our identity to

system creates immediate clarity,

truly represent who we are today

while also reflecting a fresh,

Innovation seems to be a

and our new value proposition to

modern personality for the Group.

recurring theme. How do you

It’s essential for us. We believe

the communities we serve across

From now on, whether you’re

balance technology with the

we are an integral part of Malta’s

Malta and Gozo. Our customers

doing rushed shopping or relaxed,

human side of retail?

daily life. Every one of our shops

and their needs have evolved, and

the difference is visible and easy

we want to demonstrate that we are

to understand – and now you earn

Retail is ultimately always about

role is to support and reflect that

adapting to meet their changing

rewards every time.

people. Technology should serve to

community. We have creative

make life easier for both customers

projects in development that are

heritage to your brand?

serves a community, and our

needs. The new “My” identity is about personalisation, clarity, and

Beyond colour and design, what

and employees. Whether it’s our

rooted in local heritage, which will

trust.

changes will customers notice?

new shopping app, loyalty scheme

enable us to connect with people

or smarter logistics, the end goal

in more engaging and meaningful

Can you explain how the new

Customers will start seeing more

is to give people time back, reduce

ways. It’s about celebrating what

“My” brand architecture works?

than just new logos. Our new

stress, and enhance service. At the

makes each place unique while still

identity represents our ongoing

same time, our shops are rooted in

providing the reliability of a large

At its core, the Group is now

investment in innovation and

personal interactions—the smile

national brand. You’ll see these

unified under the “My” corporate

people - from the formats we

at the till, the friendly word with

initiatives unveiled very soon.

24

ISSUE 87

MONEY

PROMO

And what about the company’s approach to social responsibility?

Corporate social responsibility is a core pillar of our identity. We support numerous NGOs and causes, and we will continue to do so in a more structured manner through a new platform that will enable us to support meaningful causes and ensure that our society benefits from our continued growth. We believe that true leadership is not only measured in financial performance but also in how you contribute to people’s daily lives.

On a personal level, what excites you most about this new chapter?

The chance to elevate this household brand to the level it truly deserves. The hard work of our founders, management, and staff over the past few years, combined with the trust of our customers and investors and the loyalty of our partners, is what sets us apart.

I see this brand launch not as a finish line but as the start of a new journey. The future of retail is dynamic, and Malta is more than ready for bold ideas. Knowing that we are shaping that future is both humbling and energising at the same time.

Finally, what’s your vision for the next five to ten years?

My vision is simple: to remain Malta’s foremost communityminded retail group, trusted, innovative, and relevant. We aim to continue leading, innovating, and giving back. The new identity is just the first step in a much bigger journey. Over the next decade, I see us not only as a retail leader in Malta but also as a role model in how business can evolve responsibly, blending growth with culture, technology with humanity,

David Tabone

and ambition with community.

MONEY

THE FINANCE EDITION

25

ECONOMY

BUILT TO COMPLY, NOT YET TO COMPETE 26

ISSUE 87

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ECONOMY

Malta's financial services sector has matured into a pillar of the economy, trusted and well-regulated. But regulation alone is not enough. JP Fabri argues that Malta must evolve its financial ecosystem into a driver of innovation, capital, and purpose, one that powers national growth rather than merely policing it.

MONEY

THE FINANCE EDITION

27

ECONOMY

M

alta's financial services sector has long

system, rather than individual institutions,

been a key engine of the economy. It

must come into focus.

has supported high-value job creation,

contributed significantly to the country's

Connecting the financial system to national

GDP, and helped diversify the economy

growth

beyond traditional sectors. In recent years,

We need to shift our perspective on financial

we've also seen critical regulatory advances,

services. Rather than treating the sector as

most notably under the steady hand of the

an isolated pillar of the economy, we should

Malta Financial Services Authority (MFSA),

view it as a critical enabler of the economy.

whose rigorous and methodical approach

This ecosystem can drive the development of

to MiCA licensing has earned recognition

new industries, expand access to finance, and

from European peers. This is a sector with

bolster national resilience. This ecosystem

real strengths. But it is also a sector at a

includes regulators, banks, investors,

crossroads.

entrepreneurs, educators, and policymakers.

Its strength lies not just in individual

Digital innovation, ESG mandates, and evolving

performance, but in the connections between

investor expectations are reshaping the

its parts.

global financial landscape. At the same time, the Maltese economy is seeking new growth

At present, these connections are too weak.

engines, stronger access to capital, and a more

The financial system is still geared toward

resilient private sector. For Malta to remain

traditional players and established models.

relevant and competitive, its financial services

The rules of the game have improved, but the

ecosystem must do more than comply. It

incentives to innovate, to experiment, and to

Malta’s financial system is compliant,

must evolve deliberately, systemically, and

support productive risk-taking remain limited.

but not yet unleashed

in alignment with a clear national economic

The result is a system that is technically sound

purpose.

but strategically underleveraged.

This is not a call for radical disruption. It

The task ahead is to build the connective

is a call for honest reflection, courageous

tissue to create an environment where

leadership, and integrated thinking. We have

innovation is encouraged, capital flows

a well-regulated engine, but we now need a

more freely, and finance is seen as a tool for

vehicle built for the future.

economic transformation, not just oversight and compliance.

From regulatory rigour to strategic renewalThe MFSA has done its part

Building an ecosystem that supports the

and deserves credit. Its structured and

future

transparent MiCA onboarding process, which

One of the most urgent challenges is

included industry consultations, technical

expanding access to capital. Too many

toolkits, and supervisory dialogues, is a model

promising ventures are stuck in a funding

for how regulation should be done. It reflects

desert, particularly in the early stages of

an institution that has matured significantly

growth. Whether it's in fintech, healthtech, or

and is aligned with European expectations regarding integrity, supervision, and resilience.

But regulation, no matter how well-executed, is only one piece of the puzzle. Malta's financial architecture is still too fragmented to unlock its full potential. Capital is not flowing where it is most needed. Start-ups continue to face steep challenges accessing finance. Capital markets remain underdeveloped. Emerging sectors, such as fintech, sustainable finance, and impact investing, are yet to be embedded within a supportive institutional framework.

The challenge is not one of failure; it is one of missed opportunity. And it is here that the

28

The challenge is not failure; it is missed opportunity.

ISSUE 87

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ECONOMY

green technologies, the capital infrastructure

vision, the more it becomes a driver of shared

remains shallow. We need to reimagine how we

prosperity. That is the kind of system we

structure risk and reward in our ecosystem.

should aim to build.

This may require public-private investment vehicles, tiered capital markets that

A call for integrated action

accommodate different scales of enterprise, or

Much groundwork has already been laid. The

new incentives to channel patient capital into

Financial Services Strategy Advisory Group

strategic sectors.

provided a clear roadmap for the sector's future. The MFSA has proven its ability to act

Innovation also needs to be placed at the

decisively and transparently, particularly in

centre of the system, not its periphery. Malta

sensitive regulatory domains. Institutions like

has the potential to become a testbed for new

FinanceMalta have continued to promote the

technologies and financial models. But this

jurisdiction globally. However, what is needed

requires more than pilot projects and sandbox

now is execution —strategic, coordinated, and

schemes. It requires intentional coordination

courageous.

among regulators, technologists, and the private sector to scale experimentation.

The transformation of Malta's financial

Whether in digital finance, regtech, or climate

ecosystem will not happen through press

finance, Malta can offer value through agility

releases or rebrands. It requires a collaborative

but only if the ecosystem supports viable

effort from government, regulators, industry,

paths to market.

and education, working toward a shared vision.

We must move from disconnected silos to a

Talent is another linchpin. The sector cannot

system built on alignment. Alignment between

thrive without a skilled and future-ready

the financial system and Malta's economic

workforce. This means aligning academic

development strategy. Alignment between

offerings with emerging needs, such as cyber

innovation and risk. Alignment between

risk, ESG reporting, and AI in compliance. It

regulation and growth.

also means creating compelling career paths that retain Maltese graduates and attract

This is not easy work. But it is necessary work.

international expertise. Building a credible,

And it is the only way Malta can compete not

innovation-friendly ecosystem will require

just on compliance or cost, but on credibility,

far more collaboration between universities,

innovation, and purpose.

training institutions, and industry bodies.

A system worth building Finally, we must root this transformation in

Malta stands at a rare and valuable moment.

purpose. Financial services must not operate

We have an opportunity to evolve a financial

in isolation. They must serve real needs:

ecosystem that is trusted, agile, and

funding the energy transition, supporting

meaningful. The tools are available. The

job creation, strengthening infrastructure,

institutions are capable. What's needed now is

and enabling inclusive growth. The more

the will to go deeper; not to fix what is broken,

finance aligns with Malta's long-term strategic

but to reimagine what is possible.

Systemic change does not mean abandoning what has worked; it means adapting and refining existing approaches to achieve greater effectiveness and efficiency. It means

Malta's financial system is technically sound but strategically underleveraged.

MONEY

THE FINANCE EDITION

building on it, expanding it, and aligning it with tomorrow's opportunities. The future of finance in Malta is not just about reputation or regulation; it is also about innovation. It is about relevance. And relevance comes from bold thinking, honest collaboration, and the courage to move beyond the surface.

It's time to stop asking whether Malta's financial services sector is compliant. It's time to ask whether it's transformative.

29

PROMO

The evolution of financial services automation and its impact on talent When I started my career in

multiple disciplines. They

financial services two decades

need to understand regulatory

ago, the relationship between

frameworks, stay current

technology and human expertise

with market trends, and grasp

was straightforward: we did the

the interconnection between

work and technology helped us

compliance, technology, and

organise it. Today, this dynamic

client service. The world changes

has undergone a profound shift,

quickly, so adaptability has

with significant implications for

become more valuable than deep

talent development.

specialisation in any single area.

The reality behind the

This doesn't mean technical

automation revolution

qualifications have become

Clients and investors now expect

irrelevant. We still operate in a

granular details, real-time

highly regulated industry where

reporting, and live adjustments

competence and precision

that would have been impossible

are non-negotiable. However,

to deliver manually two decades

we've shifted our focus from

ago. What we're seeing goes

traditional qualifications, such

well beyond digitisation

as ACCA, to evaluating thinking

and represents a complete

skills and adaptability as primary

transformation of how we

hiring criteria. Before adding to

operate. Investment performance

our team, we now ask: Can this

reporting now runs on live data,

person learn quickly? Do they

comparative analysis happens in

communicate effectively with clients? Can they collaborate

real-time, and clients can tailor reports instantaneously.

across teams and geographies?

Przemyslaw Koger

Learning in the age of

This shift has liberated our teams from what I call the "manual

However, what the headlines

today need to be fundamentally

automation

tedium" that once defined much

often overlook is that automation

different from those who

The way people develop expertise

of financial services work. In my

in financial services is about

succeeded twenty years ago.

has evolved with technology.

early days, I dedicated countless

amplifying human expertise, not

Previously, you could build a

While structured training

hours to basic data entry and

replacing it. While technology

successful career by mastering

programmes remain essential, the

manual reconciliations.

manages the routine, our

one discipline (for example,

majority of meaningful learning

professionals focus on what truly

accounting, compliance, or

now happens on the job through

Frankly, it was mind-numbing

matters: understanding client

tax) and staying within those

iteration with colleagues and

work that drove talent away from

needs, interpreting complex data,

boundaries. That approach no

direct client interaction. Software

the industry. Today's automation

and building the relationships that

longer works.

manuals can teach you how to use

handles these routine tasks with

drive successful outcomes.

greater accuracy and speed,

a tool, but understanding how to Today's financial services

apply that tool to solve real client

reducing errors and eliminating

The skills transformation

professionals must be

problems requires experience and

human bias but not adding value.

The professionals we're hiring

comfortable operating across

collaboration.

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PROMO

We've deliberately restructured

assessment. Our clients trust us

eliminating the mundane work

As automation handles routine

our approach to graduate

with substantial assets, and that

that previously caused burnout

tasks, successful firms will be

development. Instead of

trust requires the careful and

and high turnover. Instead,

those that create environments

the traditional model where

measured implementation of new

professionals can focus on

where creativity and collaboration

junior staff performed basic

technologies.

relationship building, strategic

can flourish. We're already seeing

thinking, and solving complex

this at Alter Domus Malta, where

administrative tasks, we ensure new joiners engage with

We've successfully integrated

problems: the work that initially

our team focuses on meaningful

meaningful work from day one.

some aspects of AI and

attracted many of us to financial

work, cross-border cooperation,

We explain the 'why' behind our

automation across various

services.

and continuous learning.

processes, not just the 'how.' By

processes while maintaining the

the time today's graduates reach

high standards clients expect.

For those entering the industry

The future belongs to

senior positions, the industry

The key is understanding that

today, my advice is simple:

professionals who can work

will have undergone significant

automation enhances rather

embrace flexibility, develop

alongside technology while

changes, so we focus on building

than replaces human judgment.

strong communication skills,

providing the human insight,

adaptable thinkers rather than

Technology flags issues and

and focus on understanding how

judgment, and relationship

technical specialists.

processes routine transactions,

different aspects of the business

management that no algorithm

but humans make the strategic

interconnect. The specific tools

can replicate.

Balancing innovation with trust

decisions and manage the

we use will continue to evolve, but

Financial services operate

complex relationships that define

the ability to build trust, interpret

Przemyslaw Koger is Country

under a unique constraint: the

successful financial services.

complex information, and guide

Executive / Chief Executive Officer

clients through change will always

of Alter Domus Malta, part of

remain valuable.

the global Alter Domus network

stakes are too high for rapid experimentation. Unlike retail

The future of financial services

industries, where companies can

careers

"move fast and break things," we

Looking ahead, I'm optimistic

The most significant change

depositary, corporate services, and

must strike a balance between

about career prospects in

over the next five years won't be

technology solutions across nearly

innovation and rigorous risk

our industry. Automation is

technological… it will be cultural.

4028 offices worldwide.

MONEY

providing fund administration,

THE FINANCE EDITION

31

REFORM

PROSPERITY WITHOUT INTEGRITY? Malta’s economy is built on the pillars of financial services and gaming.

But Manuel Delia asks: Is this prosperity built on moral compromise?

By relying on loopholes, secrecy, and addiction-driven industries, Malta risks confusing short-term gain with long-term wellbeing, eroding not just its economy, but its democracy itself.

MALTA'S ECONOMIC DEAD END 32

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REFORM

When morality becomes optional in economics, it soon becomes optional in politics.

M

alta takes pride in its economic successes. We describe

light-touch regulation, and the promise that if you set up here, nobody

ourselves as a centre for financial services and gaming, as if

would ask too many awkward questions.

these were neutral, reputable terms. Remove the polite labels,

and what remains is less glamorous: one industry prospers by helping

For a time, this seemed to be a masterstroke. Banking, insurance,

outsiders evade taxes, the other by supporting businesses that thrive

and investment firms are founded here by the hundreds. Gaming

on people’s addictions

companies set up their servers and declared Malta the “capital of iGaming.” The sectors now contribute a significant portion of the GDP,

For a small country with no oil, no minerals, and no space to farm,

employ thousands, and support a thriving service economy, including

this is the narrative we tell ourselves: moral compromise is the cost

lawyers, accountants, IT specialists, and estate agents.

of survival. The argument appears pragmatic, even clever. Better to exploit loopholes than fall into irrelevance. Better to host online

But behind the official account lies another reality. Financial services

casinos than to export potatoes.

have become a shorthand for helping wealthy outsiders minimise their tax bills. Gaming has become a euphemism for hosting businesses

But is this truly the best we can do? Should a nation of half a million

that exploit compulsive behaviour and debt. Our role was to provide

people depend on supporting tax evaders and those who exploit

the legal framework, the servers, and the workforce that made these

gamblers for its prosperity? Or is the deeper, more uncomfortable

models profitable.

truth that we have confused short-term gains with long-term wellbeing, thereby damaging not only our economy’s resilience but

We told ourselves that this was clever pragmatism for a small island.

also the very foundations of our democracy?

Yet what we truly built was an economy that outsources its risks and keeps the moral costs at arm’s length. It pays off in the short term, but

This article asks a simple question: Does Malta need to be amoral to

it leaves us dangerously dependent on industries that regulators and

succeed?

the public worldwide are increasingly suspicious of.

Malta’s dependence on financial services and gaming did not happen

Whenever criticism of Malta’s economic model is raised, the usual

by chance. Successive governments promoted the island as agile,

defence quickly emerges: everyone does it. Small nations cannot

adaptable, and “open for business.” We had no natural resources, so

compete with large economies on scale, so we establish niches in the

we traded on what we had: a passport into the EU, a reputation for

grey areas. Cyprus operates financial schemes. Gibraltar thrives on →

MONEY

THE FINANCE EDITION

33

REFORM

Low tax was Ireland’s entry point; innovation and talent made it sustainable.

gaming. Ireland attracted tech companies with generous tax deals.

temptation to bend rules grows strong. Planning laws are often

Why should Malta be any different?

bypassed to favour well-connected developers; financial watchdogs are lenient to reassure important clients; gaming oversight is relaxed

The problem is, this defence doesn’t last long. Yes, other small states

to prevent operators from relocating elsewhere. Rules become

have used similar tactics — but many have also recognised their limits.

optional for those who can challenge them, and meaningless for

Ireland promoted its low-tax strategy to attract investment, but then

everyone else.

developed an innovation and talent ecosystem around it. Estonia used its small size to lead in digital trust and governance, rather than hiding

This dynamic is harmful to democracy. It fosters a culture where

behind opacity. Luxembourg is now focusing on the green and space

citizens no longer trust that the law is applied fairly. If economic

finance sectors.

success depends on regulatory capture, then politics turns into managing exceptions for the powerful rather than upholding rules for

Meanwhile, Malta clings to the myth that its prosperity depends

the majority. Corruption stops being a rare occurrence; it becomes the

on turning a blind eye to its problems. However, reputational risk is

core business model.

increasing. The EU and OECD are closing tax loopholes. International watchdogs are tightening anti-money-laundering measures.

The cost is measured not only in reputational damage abroad but also

Gaming is under greater scrutiny for its social impacts. The world is

in cynicism at home. People conclude that fairness is an illusion, that

progressing, and Malta remains defending the indefensible.

government exists to serve those who can pay for access, and that public life is merely a theatre of excuses. In such a climate, democracy

Far from being unavoidable, amorality is a tactic that makes us

is weakened not by a single scandal but by the normalisation of

vulnerable. What appears as clever pragmatism may, in reality, be

amorality as a national strategy.

narrow-minded, self-destructive behaviour.

When a country accepts that morality is optional in economics, it The danger is not just economic. An economy that relies on opacity

shouldn’t be surprised if morality also becomes optional in politics.

and loopholes inevitably erodes the institutions designed to protect the public interest.

The biggest mistake Malta could make is to believe there are no alternatives. Our size, rather than a disadvantage, can be a strategic

When financial interests depend on compliant regulators, the

34

benefit if we make the right choices. Small states can respond more

ISSUE 87

MONEY

REFORM

Economies based on secrecy and addiction cannot garner respect, stability, or trust.

quickly, pass laws more swiftly, and craft a sharper identity than larger

The choice is not between prosperity and principles.

economies, but only if they select a route that fosters trust rather The real dilemma is between short-term gains that fall apart under

than damages it.

investigation and long-term credibility that supports growth.

There are examples close to home. Ireland may have initially offered tax advantages, but it used that as a starting point to develop an

So, does Malta need to be amoral to succeed? The answer is no, but

innovation ecosystem, anchored by universities and tech talent.

only if we accept that the path we are on is not clever pragmatism but

Estonia turned its small size into agility, pioneering digital governance

a dead end. Economies based on secrecy and addiction may generate

that has become a global benchmark. Luxembourg reinvented itself as

money in the short term, but they cannot garner respect, stability, or

a centre for sustainable finance, using its credibility as its main selling

trust. And without those, prosperity remains fragile.

point.

The alternative is more challenging, but significantly more rewarding: Malta could implement similar changes. Instead of maintaining

leveraging Malta’s small size to create an economy built on integrity

secrecy and exploiting loopholes, we should focus on transparent

and trust. We can become the place where finance signifies clean

finance, such as becoming a hub for environmental, social, and

capital, where digital innovation benefits people rather than exploits

governance investments: funds and projects that channel money into

them, and where rules are not bent for the powerful but enforced

companies practising sustainability, fair treatment of workers, and

fairly for everyone.

open management. Rather than hosting dubious shell companies, Malta could establish itself as a trustworthy jurisdiction for investors

That is not merely an economic choice; it is a democratic one. Because

who want their money to do good as well as generate profits.

when a country’s wealth is based on honesty and fairness, its politics can follow suit.

Our gaming expertise can develop into responsible digital innovation, such as gamified education, health applications, or online platforms

Malta’s future need not rely on loopholes and dependencies. Our true

that improve rather than exploit human behaviour. And our greatest

strength lies not in taking shortcuts, but in setting the way forward.

untapped asset, a functioning rule of law, could become the

We can be remembered either as the country that chose easy ways

foundation of our brand: a jurisdiction trusted not because it turns a

or as the nation that demonstrated integrity is not a flaw but the

blind eye, but because it upholds integrity.

foundation of lasting prosperity.

MONEY

THE FINANCE EDITION

35

PROMO

Building QLZH Holding Plc:

THE MERCIECA BROTHERS' 12 MILLION BOND QLZH Group has officially closed the first €6.8

be received in the coming months, contingent

by a pipeline of income-generating property

million tranche of its €12 million secured

upon the achievement of specific development

developments strategically located across

callable bond programme, a move that

milestones. This staggered approach

Malta and beyond.

underscores the market's confidence in the

demonstrates the Group's disciplined strategy,

Group's strategy and growth prospects. Fully

which involves raising capital in phases tied

The company's focus on property development

subscribed within three days, the bond issue

directly to project execution and delivery.

is well-timed. Despite economic uncertainties

Such a model not only reassures investors

and shifting global investment trends, Malta's

about transparency and accountability but

real estate sector remains resilient, supported

The first tranche of the bond has been

also aligns funding closely with operational

by steady demand for residential and

allocated to high-yield, affordable rental

progress.

commercial space. By leveraging its market

is now listed on the Malta Stock Exchange. It offers investors an attractive yield of 5.5%—a rate that has drawn strong demand from both institutional and retail investors.

This successful fundraiser marks a pivotal milestone in QLZH's broader growth plan.

As the Group strengthens its foothold in the property development sector, the fresh capital will provide a springboard for new projects and opportunities.

Investor confidence and market momentum The rapid take-up of the first tranche highlights more than just the appeal of the bond's yield; it reflects confidence in QLZH's long-term vision. Investors are increasingly seeking opportunities that combine strong returns with solid fundamentals, and QLZH's blend of robust financials, governance upgrades, and an expanding asset base is proving compelling.

knowledge and strong local presence, QLZH

properties, comprising a total of 19 units, which deliver steady income streams. The

Expanding asset base and long-term growth

is positioning itself to capitalise on growth

upcoming second tranche shifts focus toward

projections

opportunities while mitigating risk.

higher-end investments, particularly exclusive

QLZH's current trajectory is ambitious but

residences within historic palazzos, designed

backed by data. According to recent public

Strengthening governance with a PLC

to enhance capital value over the long term

disclosures, the Group is on track to expand

structure

significantly.

its asset base beyond €14 million by the end

In tandem with its financial expansion, QLZH

of this year, with projections reaching €22.7

Group has formally transitioned into a Public

million by 2027. This growth will be driven

Limited Company (PLC)—a structural evolution

A second tranche of €5.2 million is expected to

36

ISSUE 87

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PROMO

The real estate sector, particularly in Malta, remains a haven in a world where many asset classes are facing volatility. Against this backdrop, QLZH's bond issue provides a unique opportunity: exposure to real estatedriven growth with the added security of a listed, regulated investment vehicle.

The Group's projections, which aim to more than double its asset base within the next four years, signal both confidence and capability. Yet what makes this growth more compelling is its foundation: transparent financial disclosures, market demand for its core product, and a management team with both vision and discipline.

The road ahead With its first tranche closed, a second on the horizon, and a strengthened governance framework in place, QLZH Group is poised that signals its intent to operate at a higher

Looking ahead, the company sees a wealth

for an ambitious next chapter. Its journey

level of corporate governance. The newly

of opportunity in Malta's evolving property

reflects the growing maturity of Malta's

appointed Board of Directors brings together

landscape. From residential developments

capital markets, where investors are

a mix of executive leadership and independent

to mixed-use projects, the Group intends to

increasingly backing local companies with

oversight. Group Chairman Dr Francis Galea

capitalise on demand trends while pursuing a

scalable models and international potential.

Salomone provides strategic direction, while

sustainable and measured approach to

Group CEO and Executive Director Stephen

expansion.

For QLZH, the message is clear: the road ahead is lined with opportunity. Armed with

Mercieca leads the company's growth initiatives. Group Finance Director and

Why this matters for investors

financial strength, strategic focus, and a

Executive Director Michael Mercieca ensures

For investors, QLZH's story is one of calculated

bold vision, the Group is not just building

fiscal discipline, supported by non-executive

ambition. The combination of an above-market

properties—it is creating long-term value

directors Luke Coppini and Edward Cachia,

yield, a phased capital-raising strategy, and

for its stakeholders and helping shape the

both of whom bring external perspectives and

a governance-enhanced corporate structure

future of real estate investment in Malta and

governance expertise.

creates an attractive risk-reward profile.

beyond.

This governance upgrade not only strengthens internal decision-making but also reassures investors about transparency, accountability, and long-term stewardship.

Leadership vision and market outlook Commenting on the success of the first tranche, Group CEO Stephen Mercieca described it as "a clear vote of confidence from the market." He emphasised that the infusion of fresh capital, combined with a stronger governance framework, positions QLZH to "unlock the next phase of growth—delivering quality developments and long-term value for stakeholders."

Mercieca also acknowledged the critical role of the team behind QLZH's progress, noting that "this milestone would not have been possible without the hard work, commitment, and loyalty of all our people."

MONEY

THE FINANCE EDITION

37

THE CULTU R E A L E S TAT E

O 38

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URE

R E A L E S TAT E

Are Maltese spending and saving habits evolving?

Property has long been Malta's default savings plan and the cornerstone of wealth. But the rules are changing. As yields tighten, costs rise, and cultural values shift, landlords and households alike are rethinking how they save, spend, and invest. Malta's money culture is evolving — sometimes reluctantly, but unmistakably. Cecil McCarthy explores Malta's evolving money culture.

OF MONEY F

or decades, property has been the

shaped by market saturation, changing

enjoyed high returns without the need for

bedrock of Maltese wealth. Families

lifestyles, and a European context that is

significant reinvestment in their assets.

invested their savings into bricks and

both comparable and strikingly different.

(Average Residential Property Price Index, Malta vs EU, 2010–2023, source: Eurostat)

mortar, confident that homes and apartments would appreciate steadily and reliably.

Property as the cornerstone

Owning property was more than a matter of

of Maltese wealth

But beneath this apparent success

financial prudence — it was a cultural norm,

Malta's financial story cannot be told without

story, the foundations began to shift. As

a symbol of stability, and in many cases, the

property. Between 2010 and 2020, residential

supply increased — fuelled by aggressive

backbone of intergenerational security.

property prices rose by more than 40%,

development and speculative purchasing

according to Eurostat, outpacing inflation and

— the market entered what many landlords

Yet today, this once-stable relationship

reinforcing the perception of real estate as

now describe as a phase of saturation. More

between money, property, and savings is

a "can't lose" investment. Rental yields were

apartments are available than ever, yet

evolving. Landlords, tenants, and households

strong, short-term rentals surged with the

tenants' expectations have also grown. What

alike are adjusting to an economic reality

boom of Airbnb and tourism, and landlords

once sufficed — basic furnishings, minimal →

MONEY

THE FINANCE EDITION

39

R E A L E S TAT E

maintenance, and low operating costs — no

saving rate fell from nearly 18% in 2020

effort. Properties were rented as-is,

longer guarantees occupancy or strong yields.

(a pandemic-driven high) to below 12%

sometimes with dated furniture or minimal

in 2023, reflecting both cost-of-living

upkeep, and still, tenants would line up.

The landlord's dilemma: Reinvest or exit?

pressures and changing attitudes toward

Today, yields are tighter, and competition

Casa Rooms, which manages hundreds of

money. (Household Saving Rates, Malta vs

is fiercer. Casa Rooms data suggests that

properties across Malta, has observed an

EU Average, 2015–2023, source: Eurostat)

landlords who invest in refurbishments and amenities — from modern kitchens to high-

apparent change in landlord behaviour over the past three years. Many of our clients,

Spending patterns are also evolving. Younger

speed internet — enjoy occupancy rates

who once expected near-automatic returns,

generations, in particular, display a greater

up to 20% higher than those who do not.

now find themselves at a crossroads. Some

willingness to spend on experiences — such

are choosing to reinvest, upgrading their

as travel, dining, and leisure — even if it

This evolution mirrors broader shifts in

properties with modern amenities, stylish

means saving less for a property. This is

Maltese financial psychology. The idea

partly cultural, influenced by European

of money "working for you" is no longer

peers, and partly structural, driven by

limited to holding property and waiting

rising housing costs that make property

for appreciation. It increasingly involves

ownership less attainable. The result is

active decision-making, reinvestment,

a generation that treats property less as

and, in some cases, diversification.

an inevitable milestone and more as one of several possible financial strategies.

The Central Bank of Malta study found that wealth transfers enable Maltese households to

The days of guaranteed returns with minimal effort are over.

Comparing Malta to Europe

purchase homes that are almost a third more

Malta's trends are both unique and familiar

expensive than those of their peers without

when set against the European context.

such support, underlining how family money

In many EU states, property is central to

continues to shape not just ownership, but

household wealth, but not to the same

also the quality of the property acquired.

overwhelming degree. According to the European Central Bank's Household Finance

Inflation, cost of living, and the

and Consumption Survey, over 80% of

"experience economy"

Maltese households own their homes, which

A further pressure point is inflation. Between

is among the highest rates in Europe. In

2021 and 2023, Malta experienced inflation

contrast, Germany has a rate below 50%,

rates above 5% annually, primarily driven

reflecting a stronger culture of renting.

by increases in the costs of energy, food, and housing. While government subsidies

This disparity shapes financial culture.

helped temper energy prices, the impact on

In Germany, saving often flows into

disposable income was real. Families found

interiors, and improved maintenance

financial assets such as pensions and

themselves balancing the need to save and

schedules to attract tenants in an increasingly

diversified portfolios. In Malta, savings

maintain a quality of life. (Inflation Rates in

competitive environment. Others, however,

flow overwhelmingly into property. The

Malta, 2018–2024, source: Eurostat/HICP)

are opting to cash out altogether, selling

recent shift among landlords toward

properties purchased five or ten years ago to

reinvestment or divestment is therefore

Interestingly, surveys by the Central Bank of

realise gains before yields decline further.

not a minor detail but a major cultural shift:

Malta show that despite inflation, spending

Maltese households are slowly beginning

on leisure, travel, and dining has remained

This choice — reinvest or exit — reflects

to recognise that money may also need to

resilient. This supports the thesis that Maltese

a broader cultural shift in how Maltese

be deployed outside of bricks and mortar.

households — especially younger cohorts — are increasingly prioritising experiences over

landlords view money. No longer is property a passive store of value; it is now an active

Yet researchers caution that Malta's high

traditional savings, reflecting an "experience

investment that requires ongoing attention,

ownership rates may not be sustainable.

economy" trend visible across much of Europe.

expenditure, and strategic decisions.

They are propped up by intergenerational wealth transfers — a model that will be harder

Generational divides

The wider cultural lens: Spending,

to sustain as today's parents carry heavier

The cultural shift in money is also generational.

saving, and shifting habits

mortgage burdens than previous generations.

Older Maltese remain firmly attached to property as the primary means of wealth

The behaviour of landlords is just one aspect of a broader Maltese financial culture that

The psychology of returns: From

accumulation. For many, their homes — often

is evolving in real time. Household saving

passive to active investment

acquired decades ago at modest prices — have

rates in Malta, while traditionally strong,

Another cultural change lies in expectations

appreciated significantly, lending validation

have been declining in recent years.

of return. Historically, landlords expected

to this approach. Younger generations,

According to Eurostat, Malta's household

double-digit rental yields with minimal

however, face higher barriers to entry. Rising

40

ISSUE 87

MONEY

R E A L E S TAT E

away from property dominance overnight, the trend lines are clear: financial culture here is becoming more dynamic, less tied to tradition, and more reflective of the balancing act between saving, spending, and investing that defines the modern European household.

An evolving culture of money So, are Maltese spending and saving habits evolving? The answer is yes — though the changes are uneven and complex. Landlords, once passive beneficiaries of an undersupplied

Maltese households are beginning, slowly, to recognise that money might need to be deployed outside bricks and mortar. property prices, coupled with stagnant wage

What this means for landlords — and

rental market, now face choices that mirror

growth, make ownership more difficult.

for Malta's financial future

the broader cultural shifts: reinvest actively,

For landlords, the lesson is clear: the days of

diversify, or cash out. Households, long

As a result, younger Maltese are both more

guaranteed returns with minimal effort are

savers by default, are grappling with inflation,

willing to rent and more open to investing

over. Investment in staging, refurbishment,

rising costs, and the allure of the experience

in other forms, from equities to digital

and tenant experience is now essential.

economy. And generational divides suggest

assets. According to MFSA reports, financial

Those unwilling to adapt may find themselves

that the next chapter in Malta's financial

literacy initiatives have led to greater

squeezed by competition, negative reviews,

story will look different from the past.

awareness of investment opportunities,

or prolonged periods of vacancy. Others

though adoption remains gradual. Still, the

will exit, cashing in on past appreciation — a

In short, the culture of money in Malta is

fact that younger Maltese even consider

sign of changing financial behaviour itself.

no longer static. It is adapting, sometimes reluctantly, to the realities of a saturated

alternatives signals a cultural departure from the near-exclusive focus on property.

For Malta more broadly, these shifts suggest

property market, European integration,

a gradual rebalancing of financial culture.

and global economic change.

According to a recent study by the Central

Property remains central, but the cultural

Bank of Malta, younger households that

assumptions underpinning it are weakening.

The story of the Maltese landlord — from

benefit from family gifts or inheritances

Saving rates are declining, spending patterns

effortless rent collector to active investor

are 15% more likely to own a home than

are diversifying, and alternative investment

or cautious seller — is not just a real estate

those that don't. Larger transfers can

vehicles are gaining traction slowly.

story. It is a cultural one, and it may be the most transparent lens through which

raise that likelihood to 20%. Without this intergenerational support, the age of first-

The contrast with Europe also offers

to understand how Maltese saving and

time buyers would likely be much higher.

perspective. While Malta is unlikely to pivot

spending habits are, indeed, evolving.

MONEY

THE FINANCE EDITION

41

CHRISTMAS STAFF PARTIES 2025

a

Party

s election

LEARN MORE

PROMO

FinanceMalta’s 18th Annual Conference A record-breaking edition rooted in sustainability

FinanceMalta is proud to announce its 18th Annual Conference, set to take place on 19–20 November 2025 at the Hilton Malta. This flagship event has established itself as the premier platform for the financial services community, bringing together regulators, policymakers, industry leaders, and international stakeholders to exchange insights and explore new growth opportunities.

This year’s edition carries the

Malta’s strategic priorities and the

A defining feature of this year’s

theme: “Redefining Finance: A

pressing global trends shaping

conference is its commitment

Quality Driven Future for Malta.”

the industry.

to sustainability. FinanceMalta

The theme reflects the industry’s

This year’s conference is also

initiative, ensuring that for every

collective commitment to

set to break records, with 45

ticket purchased, one tree will be

strengthening Malta’s position as

sponsors supporting the event.

a financial centre built on quality,

The unprecedented level of

FinanceMalta COO

yet impactful campaign is part of

innovation, and long-term vision.

backing from both local and

Graziella Grech

FinanceMalta’s broader effort to

Discussions will address how

international organisations is a

Malta can continue to evolve in

strong endorsement of Malta’s

an increasingly competitive and

financial services industry

provoking keynote addresses,

interconnected world.

and its reputation as a trusted

panel discussions, and fireside

has launched the “Tree 4 U”

planted in its place. This symbolic

reduce the event’s environmental footprint while giving back to the community.

jurisdiction. Their presence

chats covering both the

As FinanceMalta continues

Topics on the agenda include

underscores the conference’s role

opportunities and challenges

its mission to promote Malta

Envision 2050 in relation to the

as a genuine marketplace of ideas

facing the sector. By convening

as an international financial

financial services sector, raising

and collaboration.

a mix of international experts

centre, the conference stands

and Maltese practitioners, the

as a testament to the industry’s

the bar on quality, taxation developments, ESG integration,

The speaker lineup is equally

conference will provide a unique

growth, resilience, and capacity

digital assets, captives, private

compelling, featuring high-profile

opportunity to assess the future

to innovate. With record

equity, and venture capital in

voices from across the global

of finance while highlighting

sponsorship, an exceptional

the context of capital markets.

financial services landscape.

Malta’s role in the evolving global

programme of speakers, a

These focus areas reflect both

Delegates can expect thought-

marketplace.

forward-looking theme, and a meaningful sustainability initiative, FMC18 is set to be more than just a conference—it will be an experience that leaves a lasting impact on both the industry and the environment.

For more information about the agenda, speakers, sponsors, and ticket purchasing, please visit www.financemalta.org/conferences/ fmconf18.

MONEY

THE FINANCE EDITION

43

R E A L E S TAT E

VIBRANT YET VIGILANT Inside Malta's property bond market

C

orporate bonds have become a cornerstone of capital raising

premium of approximately 50% to the prevailing market price but is almost

in Malta, especially for property development. From shopping

9% below MPC's reported net asset value as of 30 June 2025.

malls to hotels and mixed-use projects, real-estate issuers

dominate issuance and trading. Yet alongside oversubscriptions and

Other strategic initiatives in the real estate sphere included PG p.l.c. 's €19

steady secondary demand, 2025 has brought sharper investor scrutiny,

million acquisition of a showroom and adjoining land in Lija, covering

isolated stress cases, and a market that is pricing risk more precisely.

approximately 13,100 sqm, along with its 60% shareholding in db Gauci Shopping Mall Limited. The latter holds a promise-of-sale agreement

To take stock, Justin Mizzi, partner, real estate advisory and valuation

over a property that will host a shopping mall comprising retail outlets,

at QP, speaks with Josef Cutajar, financial analyst at MZ Investments;

a supermarket, catering establishments, and a car park forming part of

Francesco Grasso, partner at 94 Finance Ltd and Hatten M&A Advisory;

the €260 million db St George's Bay project in St Julian's, scheduled for

and George Vella, partner and head of advisory at Grant Thornton Malta.

inauguration in 2026.

Josef, let's begin with you. Since our last article ('From Bricks to

In the hospitality segment, International Hotel Investments p.l.c. ("IHI")

Bonds', published in the MONEY 2024 Finance Edition, Issue 82),

expanded its portfolio with the opening of the Corinthia Grand Hotel

how has the local real estate bond market evolved?

Astoria in Brussels (50% owned), alongside two luxury properties in Bucharest and New York, both managed by its subsidiary Corinthia Hotels

JC The previous article (which has a cut-off date of 28 June 2024) offered

Limited. In the United States, IHI also entered a partnership with Kuwait-

a snapshot of the influence of real estate on Maltese investments and the

based Action Real Estate Company to explore development opportunities

central role this asset class plays within the local capital markets. Since

for luxury hotels and high-end real estate. The first move involved two

then (considering between 01 July 2024 and 23 September 2025), real estate

neighbouring hotels in Beverly Hills and the lease of an adjacent 3,250 sqm

has remained a cornerstone of market activity, underpinning some notable

office block. Separately, IHI has also been engaged to provide its services

corporate developments.

for a landmark mixed-use 102-storey development in Dubai, owned by Dubai General Properties LLC. This development will comprise two linked

Although investor sentiment across the equity market remained fragile,

towers occupying approximately 320,000 sqm of floor area, along with

reflected in persistently weak trading volumes and subdued share prices

a luxury 120-room Corinthia Hotel, which will provide branding and

when compared to underlying net asset values, a handful of interesting

services to the residences in the towers.

initiatives emerged. Chief among these were the conditional voluntary takeover bids launched by Hili Ventures Group for Tigné Mall p.l.c. –

Closer to home, the Verdala Wellness Hotel, owned by AX Real Estate

which was subsequently delisted in February 2025 – and Hili Properties

p.l.c. and forming part of AX Privilege, opened its doors in August 2025 as

p.l.c. More recently, BMIT Technologies p.l.c. shareholders approved the

Malta's first fully-fledged wellness hotel. VBL p.l.c. announced a long-term

acquisition of 49% of Malta Properties Company p.l.c. ("MPC") for €25.32

lease agreement with Ruby Hotels for the Silver Horse Building, whilst

million, equivalent to €0.51 per share. The consideration represents a

Malta International Airport p.l.c. ("MIA") unveiled a near €350 million

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MONEY

R E A L E S TAT E

investment programme partly dedicated towards strengthening the retail

Additional property-related issuance included IHI's €35 million unsecured

and property arm of the company. In fact, MIA's project includes the

bond maturing in 2035, MM Star Malta Finance p.l.c. 's €35 million

extension of the La Valette Lounge terrace, the complete refurbishment

callable secured issue due between 2029 and 2031, and Golden Triangle

of the VIP Terminal, the expansion of Park East, and the development of

p.l.c. 's €42 million secured bond maturing in 2030. Taken together, these

SkyParks Business Centre II. This 70,000 sqm complex will incorporate

transactions reaffirmed the central role of property-linked financing

the first business hotel on the airport campus together with several office,

within the Maltese capital markets, both in terms of scale and in the

retail, and dining facilities.

diversity of geographic exposure and property type.

Meanwhile, debate continued over the future of MIDI p.l.c. 's Manoel

The period also witnessed redemptions amounting to €116.05 million, of

Island project. The company remains in discussions with the government

which €23.71 million related to real estate issuers. These comprised Hal

as it seeks an equitable settlement that would see the voluntary

Mann Vella Group p.l.c. 's €7 million in 5% secured bonds, the redemption

termination of the concession.

of Best Deal Properties Holding p.l.c. 's €1.24 million 4.25% secured bonds, and the early repayment of €15.47 million of GAP Group p.l.c. 's 3.9%

In the corporate bond market, activity remained vibrant, underpinned

secured bonds initially due between 2024 and 2026. Such redemptions

by encouraging trading volumes and several corporate actions. Year-to-

not only released liquidity back into the market but also created scope for

date, just over €89 million worth of corporate bonds changed hands on

reinvestment into the new offerings highlighted above.

the secondary market, reflecting continued investor appetite for fixed-

Overall, the corporate bond market demonstrated resilience and depth,

income instruments despite the evolving interest rate environment and the

characterised by healthy trading activity, buybacks, a buoyant issuance

numerous new bond issues.

pipeline that included new entrants to the market, and timely redemptions.

The clear trend has been the continued dominance of property-related financing.

— Josef Cutajar One significant feature during

The clear trend has been the continued dominance of property-related

recent months was the prevalence

financing in shaping market dynamics. This development is likely to

of bond buybacks, with real

remain a defining feature of Malta's capital markets in the near term.

estate issuers taking the lead.

Plaza Centres p.l.c. absorbed €0.25 million, whilst Best Deal Properties

George and Francesco, why do you think more developers are

Holding p.l.c. and GAP Group p.l.c. repurchased €1.17 million and €2.49

tapping the bond market?

million of their respective bonds. Melite Finance p.l.c. bought back the entire €9.25 million of its outstanding bonds well ahead of their

GV Several factors are driving this shift. First, bank financing for

redemption date of 23 November 2028, following years of financial

commercial real estate has become more selective. The Central Bank's

distress partly attributable to the lingering effects of the COVID-19

Financial Stability Report highlights that since 2021, banks have adopted

pandemic. In aggregate, real estate issuers accounted for €13.16 million

a more prudent stance on commercial real estate lending, with heightened

in bond buybacks, equivalent to 86.34% of the overall total of €15.24

sensitivity to vacancy risk, asset quality, and leverage. Commercial real

million.

estate loans tend to be large and concentrated, which raises risk for lenders and makes capital markets funding an attractive alternative.

Primary market activity was equally robust, with 20 new issues raising a total of €671.30 million. Of this amount, €196.80 million was purely

Second, regulatory clarity has improved. The MFSA's Capital Markets

linked to real estate companies. Noteworthy offerings included Hal Mann

Rules were recently amended in February 2025, which continue to classify

Vella Group p.l.c. 's €23 million secured issue maturing between 2031 and

admissibility and ongoing obligations, including specific requirements for

2034, Mercury Projects Finance p.l.c. 's €20 million secured bond due

property companies and Financial Analysis Summaries. This stable and

2034, Agora Estates p.l.c. 's €9 million tranche of its 2036 secured series,

transparent framework provides issuers and advisers with confidence to

and VBL p.l.c. 's €10 million secured issue maturing between 2030 and

utilise bonds as a reliable funding channel.

2034. Other significant real estate financings comprised TUM Finance p.l.c. 's €12 million secured callable issue, Excel Finance p.l.c. 's €50

Finally, from a financial perspective, bonds can enhance equity returns.

million secured bond due 2031, Best Deal Properties Holding p.l.c. 's €7

For long-lived, cash-generating assets, locking in term debt at predictable

million unsecured bond due 2032, JD Capital p.l.c. 's €40 million secured

costs optimises capital structure. When a project's internal rate of return

issue maturing in 2035, and QLZH Holding p.l.c. 's €6.80 million callable

exceeds the bond coupon rate, the result is an improved return on equity.

secured issue. Two separate ACMUS p.l.c. secured issues, each for €9.50

This point is often highlighted in local market commentary as a key reason

million, further broadened the sector's debt footprint.

why firms refinance via bonds. →

MONEY

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R E A L E S TAT E

FG In the context of real estate bonds, most issues finance either property

FG Real estate-backed bonds provide a degree of credit risk mitigation,

developments intended for sale or assets to be retained for rental income

supported by the long-term appreciation and relative stability of property

and operational purposes. However, for relatively small development-

values. Conversely, issuers with limited or illiquid collateral and elevated

for-sale projects, a bond may not be the most suitable instrument, as

leverage are more vulnerable to financial distress.

the shorter project timeline does not align well with a longer-term bond structure. Additionally, such projects typically require a sinking fund over

Listed entities must also recognise their responsibilities as public

the life of the bond, further increasing the overall cost of financing.

companies and towards their investors. They are expected to implement

Security helps, but it's not a panacea for weak cash flows.

— Francesco Grasso Historically, bond issuance has

safeguards that ensure full compliance with bond terms, along with

been concentrated in commercial

internal controls to prevent actions that could be detrimental to

properties or large-scale

bondholders.

developments. However, over the past 12 months, we have seen the emergence of bond funding for

Additionally, credit protections may be embedded within bond structures

residential projects intended for rental. One key advantage of bonds in

to safeguard investors further. The introduction of financial covenants,

this segment is that leverage parameters are generally less restrictive than

for example, can require issuers to operate within predefined thresholds,

those applied by banks due to Directive 16 of the Central Bank of Malta.

with ongoing compliance serving as a condition for the bond's continued

Given the strong demand for residential property in Malta, this asset class

validity.

is regarded as relatively lower risk, provided leverage is maintained within acceptable limits.

Josef and George, can you expand on investor sentiment and bond performance?

For larger projects, a combination of both bank loans and bonds often provides the most efficient capital structure. For smaller developments,

JC Investors have continued to view the local corporate bond market

bank loans tend to be more feasible, as they are generally less expensive

positively, as evidenced by the strong support for new bond issues in

and easier to implement.

recent months. That said, there is today greater sensitivity to credit risk, with market participants showing heightened awareness of the ability of

Let's turn to the recent headlines that have created more

certain companies to honour their obligations, particularly in cases where

awareness of the risk of defaults in capital markets, which were

sizeable redemptions are due in 2026.

recently discussed in Parliament. Are these isolated cases, or signs This increased sensitivity and selectivity have also been reflected in the

of something broader?

performance of the Malta Stock Exchange Corporate Bonds Total Return GV These appear to be issuer-specific challenges rather than systemic

Index. After advancing by 3.25% in 2023 and a further 1.88% in 2024,

problems. For example, MIDI plc introduced uncertainty in June 2025

following eight consecutive quarters of positive returns, the trend shifted

when it announced it was open to discussions with the government about

in 2025. Indeed, the Malta Stock Exchange Corporate Bonds Total Return

reverting the Manoel Island concession, while committing to protect

Index eased marginally by 0.07% in Q1 2025, declined by 1.36% in Q2, and

shareholders and bondholders. This is a project-specific situation, though

edged further lower by around 0.20% in Q3 2025.

it has raised questions about financing plans.

The recent drops in the Index are particularly striking against the Central Business Centres faced challenges in late August when it sought

backdrop of a declining interest rate scenario in the euro area, which

more time to repay a short-dated, zero-coupon instrument and continues

would ordinarily be expected to support bond valuations. This more

to deal with low occupancy at some sites. Similarly, MMH Finance, linked

subdued performance highlights the repricing of several bonds, even as

to the Mediterranean Maritime Hub, had its trading suspension extended

the bond market continues to attract steady demand for well-structured

earlier this summer due to delayed financials. The group is seeking

offerings from issuers with sustainable business models and strong

strategic investors and has postponed publishing accounts, though it has

fundamentals.

maintained its interest obligations.

GV The past year has been marked by stability and steady activity in the While these situations have garnered attention, they are concentrated

corporate bond market. As Josef mentioned, the MSE Corporate Bonds

cases tied to individual business models and circumstances, rather than a

Total Return Index finished the 12 months of 2024 in positive territory. On

reflection of systemic stress across the market.

the primary market side, activity has remained substantial and diversified,

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R E A L E S TAT E

with continued momentum this year across various sectors, including

investment to drive the upgrading of Malta's property and infrastructure

banking, gaming, logistics, hospitality, and property. The market's total

base. This spans not only aesthetic improvements but also enhancements

size stood at approximately €2.8 billion as of the end of 2024.

in sustainability and efficiency, the development of technology-enabled

Investor interest has stayed firm, and the past twelve months confirm it.

buildings, and the introduction of disaster-resilient construction methods

New admissions have spanned various industries, including banking,

such as earthquake resistance. The scope is broad, extending across both

hospitality, gaming, and property. Josef earlier mentioned recent

the public and private sectors, and underscores the strategic role that

examples in the property sector, and it is worth noting that Bank of

capital markets can play in financing long-term development.

Valletta's €150 million 5% subordinated issue was taken up in full, with the overallotment exercised, which is a clear indication of demand.

That said, there is room for improvement in further strengthening investor awareness and education. Whilst security features such as collateral

Trading has been selective rather than one-way, which is what a healthy

provide comfort, they can never be viewed as an absolute safeguard

market looks like. Higher-quality or more transparent structures are

against failure. A more mature market, where investors are equipped to

holding around, or just above, par. Recent board marks indicate that

evaluate risks with greater sophistication, will enhance both resilience

Golden Triangle 2030 is nearing one hundred, Excel Finance 2031 is

and confidence, ensuring that growth in the bond market is built on a

slightly over one hundred, International Hotel Investments 2035 is

sound and sustainable footing.

above one hundred and two, GPH Malta Finance 2032 is also above one hundred and two, and Lidion Bank 2030–2035 is around one hundred

GV The outlook remains constructive. In the primary market we expect

and two. By contrast, credits with execution or refinancing questions are

continued issuance, both for refinancing and new money, as bonds mature

priced below par. That is issuer risk being priced, not a blanket verdict on

and developers align projects with set interest rates. Pipeline indicators

the asset class.

point to a healthy calendar across multiple sectors, not just real estate.

Under the hood, published metrics indicate a clear split. Stronger names

Investor demand should stay supportive. Retail appetite for fixed

are presenting better interest cover and moderate leverage, which helps

income remains strong, as evidenced by the 2024 index gain and the

explain their resilience on screen. On the property side, investors have also

oversubscription of 2025 deals. That said, selectivity could remain high,

been drawn to issues where security and cash flows are well-defined. Excel

with investors continuing to reward quality assets.

Finance's prospectus details Q Hub in Qormi, which has signed leases and a ring-fenced security package, and Golden Triangle's documentation sets

On the funding side, bank lending to commercial real estate is still

out first-priority security over two Beverly Hills hotels and an adjacent

selective, which keeps bonds as a credible alternative. Overall, the market

office property. Where visibility is weaker, pricing is accordingly more

fundamentals suggest a steady flow of activity, provided issuers maintain

cautious.

transparency and sound financial structures.

Banks remain selective on CRE, keeping bonds a credible alternative.

— George Vella The net result is that new issues

FG Looking ahead, Malta's property and bond markets are expected to

are being absorbed across sectors,

remain active, supported by steady demand for real estate and continued

secondary pricing is discriminating

appetite for bond financing across both commercial and residential

on fundamentals, and the health of

projects. My primary concern, however, is that a default in the bond

issuers is visible in the numbers they publish and the spreads they trade at.

market could undermine investor confidence and reduce participation

That is the kind of market backdrop that sets up your outlook section well.

in new issues, potentially triggering a ripple effect across the market. To safeguard resilience, it is important to maintain prudent borrowing levels

Looking ahead, what do you all expect for the bond market and real

and strengthen transparency for investors.

estate issuers?

Closing thoughts JC I believe that the prospects for the local corporate bond market remain positive for the remainder of 2025 and into 2026. More companies are

Malta's real estate bond market stands at a crossroads: vibrant and

expected to consider the bond market as an attractive source of financing,

resilient yet shadowed by recent red flags. For investors, the message is

which in turn should sustain issuance activity, offering investors a

clear - discernment matters. For Issuers, the challenge is equally clear

continued pipeline of opportunities.

— transparency, prudence, and sound structures are essential. If these lessons are heeded, the coming years could see Malta's capital markets

Beyond the financing dimension, there is a significant opportunity for

MONEY

play an even greater role in financing the island's property future.

THE FINANCE EDITION

47

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MONEY

THE FINANCE EDITION

49

PENSIONS

The pension time bomb Can Malta afford to grow old?

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As Europe is confronted with an ageing population, Malta finds itself at the sharp end of the pension crunch: a small economy, a state-heavy system, and young workers worried they may inherit less than their parents. Lea Hogg spoke with Dr Andrew Borg Cardona, employment law specialist, and Jesmond Mizzi, financial services expert, to explore whether Malta can defuse its looming pension time bomb - or risk leaving a generation financially stranded.

M

aria Borg, a 32-year-old professional in Malta, captures the unease of her generation: “Will I ever have a pension

worth living on?” Her concern is justified. The number of people aged 65 and over per 100 working-age adults is projected to rise from

A mixed model — state and private — is the only credible path.

— Dr Andrew Borg Cardona

about 34 in 2022 to nearly 50 by 2050, placing Malta among the regions with the highest oldage dependency ratios in the world.

Malta looks prosperous on paper: steady GDP growth, buoyant tourism, and record employment. Yet beneath the surface lies a fiscal and demographic fault line. The state-heavy pension system, coupled with underdeveloped occupational and private schemes, has created a “pension time bomb” that threatens both fiscal sustainability and intergenerational fairness. Employment lawyer Dr Andrew Borg Cardona puts it bluntly, “Malta cannot ‘afford to age’ because the older you are, the less you can contribute to work and taxes. It’s not rocket science, unlike finding a solution, which is certainly beyond me, a mere lawyer.”

Malta’s state pension currently replaces about 39% of average income, a figure projected to fall to just 32% by 2070. With limited participation in voluntary or occupational plans, most retirees remain dependent on the state. Labour force participation among those Dr Andrew Borg Cardona

aged 55 to 64 sits at around 60%, limiting contributions from older workers. Migration →

MONEY

THE FINANCE EDITION

51

PENSIONS

offers modest relief, roughly 1% of the

that the earlier people start saving, the more

Younger Maltese, already squeezed by housing

working-age population annually, but cannot

flexibility and security they will have later.

and living costs, fear higher taxes and later retirements to support older cohorts. That

offset the structural imbalance. Borg Cardona recalls that the alarm has been sounding for

Automatic enrolment in the Maltese context

anxiety is rational. A credible system must

decades. “When I started working with the

could begin with modest contributions that

protect low-income pensioners while linking

Malta Employers’ Association in the early 80s,

rise gradually over time, paired with mandatory

retirement age to life expectancy, setting

we already knew we were heading for a very

employer contributions. Workers could retain

realistic expectations for younger workers.

tough future.”

the option to opt out, but research shows few

Reforms should be framed as solidarity, not

would. The system is simple, affordable, and

as a zero-sum struggle between generations.

Reform hinges on three levers: contribution,

largely self-sustaining. But quantity alone

Borg Cardona highlights a cultural hurdle:

coverage, and efficiency. Europe offers

is not enough. The EU’s own pan-European

“Sadly, Malta is ‘everything-ist’ when it comes

lessons. The UK’s automatic enrolment model

pension experiment has struggled, hamstrung

to interacting with anyone different, whether

boosted participation among eligible workers

by weak incentives and high fees, a cautionary

it’s skin colour, country of origin, religion

to 86% by 2021, particularly among younger

tale that without transparent tax treatment,

or age. Beyond a certain age, people find it

and lower-income earners. Fees are capped

competition, and robust governance, reforms

difficult to be employed, though the labour

at 0.75%, with many funds charging less

will underdeliver. Financial literacy is equally

shortage might soften that attitude.”

than 0.5%, keeping savings intact. In Malta,

critical, Mizzi notes, as many Maltese people

employer participation in voluntary schemes

underestimate their retirement needs and

To make reform measurable rather than

remains patchy. Jesmond Mizzi warns that

start saving too late. Building awareness

rhetorical, experts have suggested that

relying solely on the state pension will simply

from a young age is essential if reforms are to

pension coverage should extend to 65% of

not be enough for future generations, and

succeed.

under-35s within three years, with total fees kept below 0.5% and retirement age

Every year of delay makes reform harder and less fair.

— Jesmond Mizzi

transparently linked to life expectancy by 2027, with carve-outs for physically demanding jobs.

Borg Cardona is frank that someone has to pay for the ageing population, and there will be fewer people in the productive age band in the future, though immigrant workers are often cited as part of the solution. Mizzi adds that while more workers help in the short term, without proper long-term savings structures, the problem is merely delayed. Sustainable solutions, she says, are essential; temporary fixes will not suffice.

There are feasible steps Malta could adopt immediately. Automatic enrolment could be phased in for young workers with low initial contributions that rise gradually, paired with mandatory employer top-ups. Tax incentives should be harmonised and fee structures simplified to allow providers to offer lowcost, attractive products. Financial literacy programmes should target those in their twenties and thirties, paired with workplace nudges that make saving automatic. Statutory retirement age should be linked transparently to life expectancy, while recognising the needs of physically demanding jobs. Critics will argue that higher employer costs make this unrealistic, but the alternative, rising taxes and unfunded liabilities, risks a harsher fiscal reckoning later. Borg Cardona notes, “State

Jesmond Mizzi

pension or private or both? A mix. As the Americans, even pre-Trump, showed, relying

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PENSIONS

solely on the private sector isn’t exactly a brilliant idea.” Mizzi echoes the urgency: “We’re running out of time to make the right choices.

Every year of delay makes reform harder and less fair.”

Good policy is about designing the society you want in twenty, thirty, or fifty years.

Malta need not reinvent the wheel. The Netherlands has near-universal secondpillar coverage with minimal fees; Italy offers high occupational participation but limited flexibility; and the UK’s auto-enrolment

generations burdened by higher taxes, longer

scheme has transformed savings habits

careers, and insecure retirements. Someone

among younger workers. Across Europe, the

will have to pay, Borg Cardona reminds us, but

lesson is consistent: simple, transparent,

the question is whether Malta pays steadily

professionally managed systems outperform

and fairly through reform, or belatedly through

complex, high-fee ones.

crisis.

Malta now faces a stark but manageable

Good policy is about designing the society you

choice: act decisively to build a balanced,

want in twenty, thirty, or fifty years. For Malta,

transparent, and professionally governed

the clock is already ticking and the fuse is

pension framework, or delay and leave younger

getting shorter.

MONEY

THE FINANCE EDITION

53

FINANCE

FROM SAFE TO SMART How families are growing their money

(without losing sleep)

The old brief was simple: protect the pot and pass it on. Paul Rostkowski explains why a new, steadier approach is taking hold—keep a safe base, add a measured growth sleeve, and use Malta’s tidy fund structures to stay organised. It’s not about gambling; it’s about keeping ahead of inflation without losing sleep.

F

or years, the family rule of

comfortable with technology and

families that have built companies

of involvement. Instead of

thumb was straightforward:

global ideas, and the past few

over several decades and now find

owning only funds and property,

protect the pot and pass

years have reminded everyone

themselves with surplus cash to

more families are taking small,

it on. Wealth was parked in

that inflation can quietly shrink

manage; professionals who have

carefully chosen stakes in real

government bonds, blue-chip

savings. The goal now is not to

accumulated meaningful savings

businesses—often in fields

shares and a couple of solid

gamble but to grow sensibly—

after long careers; and multi-

they understand, such as

properties. The brief was

keeping a firm safety base while

generational households that run

hospitality, clinics, logistics or

continuity, not cleverness; the

allowing a measured slice of the

their affairs through a small family

niche technology. Some prefer

most significant risk was thought

portfolio to work a little harder.

office or a trusted adviser. The

to join forces with others,

common thread is a long-term

pooling capital and expertise so

When we say “families,” we don’t

horizon and a desire to protect the

that no one carries the burden

only mean the billionaires with

legacy while earning a fair return.

alone. Others back new ideas

to be losing money, not losing momentum.

close to home, where they can

That mindset is changing.

private jets. In Malta and across

Younger generations are more

Europe, we see business-owning

54

What’s changing is the level

ISSUE 87

see the people, the product

MONEY

FINANCE

and the progress. None of this

how much can be committed, to

licensed structures in larger

avoid new commitments unless

means abandoning caution. The

what types of opportunities, and

jurisdictions.

their dashboard—comprising cash

safety base—cash for surprises,

who gets to decide. Liquidity—

sensible bonds, core property—

your ability to get at cash when

For a family that wants to gather

status of existing investments—

still does the heavy lifting. It

school fees, renovations or

capital in one place, co-invest

indicates they are ready. It sounds

simply sits alongside a modest

emergencies appear—needs its

alongside a trusted manager, and

almost boring. That’s the point—

“growth sleeve” designed to keep

own line in that plan. So does

maintain transparent governance

boring compounds.

on hand, near-term bills, and the

Preservation no longer means standing still.

For Malta’s market, the implications are encouraging. As more families take this measured path, collaboration becomes the norm rather than the exception.

Service providers who can explain pace with a world that moves

harmony: it is better to agree

and estate planning, the speed

clearly, report cleanly and charge

faster than deposit rates.

on decision rights and review

and cost can be attractive. Add

fairly will stand out. Timelines will

dates when everyone is getting

to this the practical benefit of

shorten as everyone becomes

The appeal is easy to grasp.

along than to discover them in

local service providers, who

accustomed to a standard of

Cash left idle loses buying power

the middle of a disagreement.

are accustomed to working

documentation that is robust

in an inflationary world, and a

Complexity is another silent

with families rather than just

without being overly burdensome.

family’s particular skills can

threat.

institutions, and the case

Most of all, expectations will

becomes even stronger.

mature: families will arrive at the

be an advantage. A family that

table not only with capital but

understands hotels, say, may be

A measured start, with a trusted

better placed to judge a small

partner and clean paperwork,

Imagine a second-generation

with a process, which is what

hospitality expansion than a

beats a sudden leap into five

family rooted in healthcare and

keeps returns and relationships

generic global fund. There is also

different vehicles that no one has

hospitality. They keep the bulk

intact over time.

a growing interest in purpose:

time to monitor. Patience matters

of their wealth in safe, familiar

choosing investments that

as much as enthusiasm.

assets and carve out a measured

None of this requires a leap into

slice—say fifteen per cent—for

the unknown, and it certainly

create jobs, encourage better environmental practice or support

Malta offers a practical home for

opportunities they understand.

doesn’t require billionaire status.

local regeneration, without

this quieter, steadier version of

They pool that slice in a notified

It requires a sensible division of

turning the exercise into charity.

growth. The island’s “notified”

fund, write two or three tickets

labour inside the portfolio: a safe

The point is returns with meaning,

fund frameworks—often referred

of one to three million euros into

base that lets you sleep at night,

not marketing.

to in shorthand as NPIFs and

local healthcare roll-ups and a

and a modest growth sleeve that

NAIFs—are essentially tidy

medical distribution business, and

reflects what you understand and

This approach comes with risks,

containers. Think of them as

invite one independent expert to

believe in. With a clear plan, the

and the answer to those risks is

labelled jars with agreed rules:

sit on their investment committee.

right wrapper and a little patience,

process, not bravado. Families get

who can invest, what the

They review progress every

families can protect what they’ve

into trouble when they fall in love

money can be used for, and how

quarter. They hold two years’

built—and help it grow for the

with opportunities and forget the

reporting works. The regulator

worth of family spending in easy-

next generation—without turning

rules. The antidote is a simple plan

recognises them and is quicker

access accounts so that nothing

money management into a second

written in plain English that says

to stand up than heavy, fully

ever has to be sold in a hurry. They

full-time job.

MONEY

THE FINANCE EDITION

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COMPLIANCE

A Maltese business owner’s guide to navigating the EU’s new product-safety era

Product safety has become a balance-sheet issue, argues Ing. Stephen Mallia. With the EU’s GPSR live, REACH reform looming, and MCCAA enforcement rising, Maltese importers and manufacturers must treat compliance as capital—central to finance, insurance and survival in the Single Market.

T

he lesson from recent headlines is brutal and

variation. A regulation applies uniformly, “as is”, across

immediate. Philips, engulfed in a recall of millions of

the Union. GPSR, therefore, raises the bar and removes

sleep apnoea devices, faces settlements topping €1.2

ambiguity.

billion and a steep erosion of shareholder value.

One of the most consequential operational shifts is the That may feel far away—until you read the local scorecard.

formalisation of the Responsible Person. For almost all

An EU-wide safety sweep conducted by the Malta

consumer products, an EU-established economic operator

Competition and Consumer Affairs Authority (MCCAA)

must be legally responsible for verifying compliance. That

found that 44% of everyday products sampled failed

role can be that of an EU-based manufacturer, importer,

to meet safety standards, encompassing a range of

authorised representative, or fulfilment service provider.

products, from toys to lighting and disposable e-cigarettes.

For Malta, the implication is straightforward: if you import

Global financial damage and local enforcement reality

from non-EU hubs such as China, the UK or Turkey, you are

now converge. In the post-2024 Single Market, product

the importer—and by default the Responsible Person. Legal

safety has shifted from a legal afterthought to a financial

liability for product safety now sits squarely with you.

determinant, as it now governs access to trade finance, GPSR clarifies obligations across the supply chain,

insurance, market valuation—and ultimately, survival.

including manufacturers, importers, and distributors.

For Maltese importers and manufacturers, mastering this

Duties include verifying that technical documentation

shift is no longer optional; it is central to protecting the

exists and is adequate, ensuring labels and traceability are

bottom line and competing credibly.

correct, cooperating with market surveillance authorities such as the MCCAA, and reporting accidents or serious

From directive to regulation: GPSD gives way to GPSR

risks via the EU’s Safety Business Gateway (the successor

At the core of the change is the General Product Safety

to RAPEX).

Regulation (EU) 2023/988 (GPSR), which replaces the General Product Safety Directive (GPSD) of 2001. The

Crucially, GPSR pulls online marketplaces into scope.

difference matters. A directive sets goals that member

Platforms must maintain a single point of contact for

states transpose into national law, allowing for some

authorities, act swiftly to remove dangerous listings

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when notified, and ensure that product pages display the

»

Time-bounded registrations: validity periods of around 10 years, requiring renewal to retain market access.

required manufacturer, Responsible Person, and safety information. This narrows the gap between e-commerce

»

Scope expansion: Certain polymers and low-tonnage substances previously exempt will be included.

and bricks-and-mortar compliance. »

Digital Product Passports (DPPs): compliance data will

A modern definition of “safety”

increasingly be embedded with the product—machine-

Safety assessments must now consider risks associated

readable, transferable across the supply chain, and

with new technologies, including cybersecurity

discoverable by authorities and partners. DPPs are as

vulnerabilities, embedded AI behaviour, and

much a data-governance challenge as a regulatory one.

interconnectivity with other devices. Risk assessments must also factor in vulnerable groups—children, older

Enforcement in Malta: the new normal

people and persons with disabilities—and account for

These are not abstract Brussels texts. The MCCAA is

foreseeable misuse, including products whose appearance

the national market surveillance authority and has been

(for example, mimicking food) could prompt unsafe use. In

active, conducting over 13,000 product inspections in

short, “safety” now extends beyond physical hazards to

recent years. The authority has publicly committed to

digital, behavioural and contextual risks.

implementing GPSR, with a focus on enhancing traceability and utilising strengthened powers. For local firms, the

Beyond GPSR: REACH is being recast, and DPPs are

signal is unmistakable: the era of lax enforcement is over.

coming GPSR is one piece of a broader regulatory tightening. The

From “set and forget” to continuous, data-driven

EU’s cornerstone chemical law, REACH, is undergoing a

compliance

significant overhaul (the “REACH Recast”). Expected shifts

The combined effect of a uniform regulation (GPSR), a

include:

dynamic chemicals regime (REACH), and the rise of digital traceability ends the old model of securing a certificate and filing it away.

Compliance is now a continuous management function embedded in operations, underpinned by data discipline and auditability.

Key GPSR obligations: »

Responsible Person: Appoint an EU-based operator— often the importer—to take legal responsibility for product compliance on goods from outside the EU.

»

Technical documentation: Perform risk analysis and maintain a technical file (general description, essential characteristics, assessment) for each product. Keep it for 10 years and provide it to the authorities on request.

»

Labelling and traceability: Affix type/batch/serial identifiers. Display the manufacturer’s and Responsible Person’s name, postal and electronic addresses on the product, packaging or accompanying document.

»

Online sales transparency: Ensure listings clearly show the exact Responsible Person/manufacturer details, imagery and required safety warnings.

»

Accident and risk reporting: Notify authorities immediately via the Safety Business Gateway if a product presents a risk or has caused an accident.

»

Recalls and Remedies: When a recall is necessary, notify identifiable consumers directly and offer at least two remedies (repair, replacement of equal value, or adequate refund).

Why compliance now decides your access to capital The new product-safety regime reshapes trade finance and insurance. Historically, banks have focused their due

Traceability is the new passport—no code, no capital

diligence on financial crime compliance. That is no longer →

MONEY

THE FINANCE EDITION

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COMPLIANCE

enough. Lenders and insurers must now assess the market

fees, spiking insurance premiums, and reputational damage

worthiness of the goods themselves, as regulatory failure

that dwarfs direct recall expenses.

directly threatens collateral and repayment.

SMEs are not spared. Dutch e-bike startup WATT Mobility Expect financiers to ask:

was forced into a recall of over 7,000 bikes after a battery-

»

Is there a designated EU Responsible Person?

fire risk was identified in late 2023. For a fast-growing

»

Can the importer provide a complete and valid technical

young company, the logistics of retrieval and battery

file upon demand?

replacement—running into millions—threatened survival

Is CE marking accurate and backed by a Declaration of

and derailed expansion.

»

Conformity? »

Has the product been checked against the EU Safety

This is happening against a backdrop of record activity:

Gate for alerts/recalls?

European product recalls reached 14,484 events in 2024— an increase of 16% year-on-year—primarily concentrated in consumer products, the same categories that dominate Malta’s import/manufacturing mix.

The financial risk is asymmetrical. Multinationals can sometimes absorb nine-figure shocks. A Maltese SME often cannot. One seized container, a single recalled line, or the voiding of a key trade-credit insurance policy can be existential.

Compliance is no longer a box to tick; in today’s Single Market it is capital—deciding your access to finance, insurance, and market share.

A practical blueprint for Maltese businesses React-and-hope is not a strategy. Build compliance into the fabric of operations with a structured plan.

Step 1: Gap analysis & appoint the Responsible Person Map your product portfolio against GPSR requirements and upcoming REACH changes. Identify who your Responsible Person is for each product (for many importers, it’s you).

Clarify roles and liabilities. Close obvious gaps first—missing identifiers, incomplete addresses, and absent risk analyses.

Step 2: Build the technical file and risk assessment This is non-negotiable. For every product placed on the market, assemble a technical file that proves due diligence and conformity. Maintain for 10 years after placement.

Standardise templates, define ownership, and versioncontrol documents. Ensure your risk assessment includes cybersecurity, embedded AI behaviour, interconnectivity, foreseeable misuse, and vulnerable user groups.

Step 3: Digitise traceability and reporting Spreadsheet-based systems cannot stand up to today’s volume and audit needs. Implement technology to:

Any “no” is a red flag: goods might be seized at customs, blocked by the MCCAA or another EU authority, or recalled— jeopardising the underlying asset and the transaction.

Conversely, firms that present a comprehensive compliance dossier—technical files, traceability evidence, precise regulatory mapping—signal lower risk and often secure better terms, higher limits and stronger, trust-based partnerships.

The price of getting it wrong The costs of non-compliance are not confined to replacing the product. Philips’ CPAP recall illustrates the cascade: settlements exceeding €1.2 billion, legal and regulatory

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assessments covering digital vectors, and clear change-control. »

Traceability from supplier to shipment, including batch IDs that reconcile with sales and recall procedures.

»

A documented incident-response and recall playbook, including consumer notification, logistics, and remedy options.

»

Evidence of training for staff in purchasing, logistics, quality and customer service on their specific compliance duties.

Common pitfalls to eliminate now »

Treating online listings as “marketing only”. Under GPSR, listings must carry the same compliance data as labels.

»

Assuming CE marks or supplier certificates are enough.

Without underlying evidence in your own files, you carry the risk.

»

Leaving cybersecurity/AI behaviour out of risk assessments for connected products.

»

Using generic addresses or out-of-date contact points for the Responsible Person.

» »

Assign and track batch/serial identifiers across the

»

Forgetting post-market surveillance obligations—

supply chain.

collecting field feedback, recording incidents, and

Attach or link documentation (test reports, conformity

reporting risks.

declarations, supplier attestations). » »

Use QR codes or similar to provide verifiable origin/

Culture, governance and the board’s role

compliance data to partners and authorities.

This shift is not merely procedural; it is a cultural one.

Maintain an auditable log of incident investigations and

Boards should treat product safety like financial reporting:

Safety Business Gateway submissions.

define ownership, set KPIs (such as time to complete technical files, incident response time, and supplier

Digital Product Passports will raise expectations further.

documentation completeness), and receive regular

Start building the data model you will need—structures,

dashboards. Compliance must be resourced appropriately—

fields, ownership—so you can populate DPPs without

encompassing people, tools, and external expertise—and

tearing up your systems later.

included in strategic planning, particularly when new product lines or geographies are involved.

Step 4: Engage your ecosystem and pre-empt capital discussions

The payoff: Compliance as competitive advantage

Compliance is collaborative.

When executed well, compliance becomes a commercial

»

»

Suppliers: Clearly specify the data you require from

asset. It accelerates customs clearance, reassures

non-EU vendors and include it in the contract. Refuse

distributors, unlocks better finance and insurance terms,

shipments that don’t meet documentation standards.

and differentiates you in tenders. It also reduces wasteful

Financiers and insurers: Do not wait for renewal day.

firefighting and protects brand equity. In an environment

Proactively present your compliance framework,

where recalls are on the rise and authorities are assertive,

including technical file process, traceability tooling, and

reliability sells.

governance. Show evidence, not promises. »

Specialist support: Engage product-compliance experts

The bottom line

familiar with EU and Maltese law. Expertise at design

The EU has fused compliance with capital. For Maltese

and pre-market stages is far cheaper than post-market

manufacturers and importers, inaction risks blocked

firefighting. Use them to train internal teams and stress-

shipments, voided cover, frozen finance and reputational

test files.

damage that few can absorb. The way forward is clear: appoint accountable roles, build robust technical files, digitise traceability, engage suppliers and financiers

What “good” looks like to a lender, insurer or authority » » »

A named Responsible Person per product, with contact

early, and bring in expert help where needed. This is

details and documented responsibilities.

not a bureaucratic burden to be endured; it is the price

A current regulatory map (GPSR, sectoral directives/

of admission to a tougher but opportunity-rich Single

regulations, applicable standards, REACH status).

Market. Invest in compliance now, and you are investing in

Complete technical files with test evidence, risk

resilience, access to capital and durable growth.

MONEY

THE FINANCE EDITION

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FINANCE

Malta’s budget 2025 Smart investments, tough cuts As Finance Minister Clyde Caruana gears up to deliver Budget 2025, he has already fired the first shot: low fertility, he warns, is Malta’s “greatest challenge.” But beneath the demographic headlines lies a broader fiscal balancing act. With debt hovering below 50% of GDP, a deficit still above 3%, and subsidies weighing on the public purse, the question is not whether Malta spends, but where it spends. MONEY examines the choices that matter: where to scale back, and where to double down.

Where Malta must invest

particularly if linked to future growth sectors, such as AI, cybersecurity, and green technology.

Skills and education Malta’s long-term competitiveness depends on people. Yet, too many

Green transition

graduates remain mismatched with market needs, while SMEs struggle

Malta remains heavily reliant on imported fossil fuels. With EU climate

to find talent in STEM, finance, and digital fields. Targeted investment in

targets tightening and energy prices volatile, the government must

reskilling, digital literacy, and vocational training will yield dividends —

ramp up investment in renewables, energy efficiency, and sustainable mobility. A euro spent here is not a cost but a hedge against future shocks — and a signal to investors that Malta is serious about its environmental obligations.

Digital infrastructure Caruana has promised fiscal responsibility, but cutting digital investment would be a false economy. From cloud capacity to cyber defences, Malta risks falling behind its EU peers. The next budget must ring-fence funds for digitalisation in both public administration and private enterprise, enabling productivity gains that keep Malta competitive.

Family and workforce support Yes, fertility rates matter. But tackling them is not about “baby bonuses.” It’s about creating the conditions — such as affordable housing, childcare, and parental leave — that make family life feasible.

Policy here intersects with workforce participation: increasing the

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number of women in the labour market by making work and parenting more compatible is a growth driver in itself.

Where the government should scale back

The question is not whether Malta spends, but where.

Universal subsidies Energy and food subsidies shielded households during global price spikes, but broad subsidies are blunt instruments. They benefit everyone, including high-income earners who don’t need them. As inflation moderates — forecast at 2.3% in 2025, down from 2.4% in 2024

euro spent there not only supports families and workers today but also

— the case for blanket subsidies weakens. Over time, they should be

builds capacity for tomorrow’s economy.

tapered and better targeted, freeing funds for strategic investments.

The government also has to take a hard look at itself. Malta’s labyrinth Public sector inefficiencies

of regulators may give the impression of oversight, but too often it adds

Malta’s civil service remains bloated. Duplication between agencies,

layers of cost without delivering more accountability. Consolidating

outdated processes, and political appointments absorb resources that

agencies to reduce overhead and simplify compliance would free up

could be channelled into frontline services. Streamlining structures,

resources and decrease friction for businesses attempting to innovate

digitising workflows, and demanding performance metrics would save

and expand.

millions without cutting citizen value.

The private sector, meanwhile, needs clear incentives to invest in the Ineffective incentives

future. One route would be targeted tax credits for companies that

Some schemes have outlived their usefulness. Property tax breaks and

invest in green technology and staff upskilling — rewarding those who

blanket grants, for instance, often distort markets rather than create

contribute to sustainability and resilience, rather than focusing on

lasting value. A smarter approach would review every incentive by ROI:

short-term gains.

if it doesn’t deliver growth, skills, or sustainability, it should go.

And finally, the government should lead by example. The public sector still relies on outdated working models. Piloting flexible work policies

The fiscal tightrope

cannot only improve productivity internally but also demonstrate to employers what a modern workplace looks like, helping to shift cultural

Caruana has pledged a “fiscally responsible” budget. That means no

norms.

free-for-all giveaways. Malta’s deficit stood at 3.7% of GDP in 2024, and is forecast to narrow only slightly to around 3.3–3.4% in 2025. Public

Budgets are often judged on giveaways — how much people “get back.”

debt remains below the EU’s 60% threshold, at approximately 47–48% of

But the stakes in 2025 are bigger than tax rebates or subsidies. Malta is

GDP, although some analysts predict it will edge closer to 50% in 2025

at a crossroads: it can either keep propping up an unsustainable model

before stabilising.

or pivot towards smarter, targeted investment. Fertility is one symptom of a broader reality — that families, businesses, and workers all need the

The economy is still expanding, with the European Commission

conditions to thrive. The test for Caruana is whether Budget 2025 will

forecasting GDP growth of around 4.1% in 2025. That is healthy, but

show the courage to cut what no longer works, and commit to what will

not strong enough to absorb inefficiencies indefinitely. The trade-off is

matter for Malta’s economy in the decade ahead.

clear: keeping safety nets broad risks missing investment opportunities; scaling them back too sharply will put a squeeze on households.

What the budget could do If Budget 2025 is to be more than a stopgap exercise, it needs to demonstrate where the government is prepared to take risks and where it is willing to undertake reform. One prominent place to start is subsidies. While they shielded families from price shocks, broad, acrossthe-board support is unsustainable. A more innovative approach would be to means-test subsidies, ensuring that help reaches the households who genuinely need it, rather than handing out benefits to those who can afford to pay their way.

The savings could then be redirected into areas with proven multiplier effects, such as childcare, education, and digital infrastructure. Each

MONEY

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61

HOPE

POINT 2 POINT Three friends, one journey, two causes that need us all

Three lifelong friends are turning endurance into empathy. Through the Point 2 Point Challenge, Daniel Abela, Douglas Barbaro-Sant, and Joseph Casha are running, swimming, and cycling across Malta and Gozo to raise €163,000 for Hospice Malta and the Children in Need Foundation. Their message: donate, and make every moment matter.

T

heir goal is simple yet urgent: raise €163,000 for two vital causes. The

Children in Need Foundation will build a dedicated Kids Haven at the YMCA for children experiencing homelessness. At the same time, Hospice Malta will expand holistic palliative care at the new St Michael's Hospice.

Both charities address human needs at their most fragile— children without shelter, and families facing serious illness.

This is a call not just to admire their journey, but to join it.

Every donation, whether from individuals or businesses, is a step closer to giving comfort, dignity, and hope where it's needed most.

Daniel Abela As founder and chairman of the Children in Need Foundation, Daniel Abela has long believed in the power of giving as a vehicle for change. For Point 2 Point,

The Children in Need

Homelessness is a reality in Malta,

the idea of transforming Dar

he brings that same energy and

Foundation has supported

and tragically, it affects children

Nikki Cassar into a KIDS Haven

vision to an initiative that fulfils

hundreds of children. For this

too. Last Christmas, following

was born. We want to give these

his mission to create dignity and

challenge, which projects do

a news story about kids without

children a dedicated space where

opportunity for disadvantaged

you most want the public to

shelter, we reached out to the

they can feel safe and valued.

children.

support?

YMCA. From that discussion,

Nobody should be without a

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roof over their head—least of all

Most of us grew up with love,

Hospice offers essential,

children.

security, and certainty. These

compassionate care—not just for

mean to you?

children live with fear and trauma

patients, but also for their families

It's powerful to see two charities

Endurance challenges are a

every day. This project won't solve

and caregivers. They walk with

supporting very different groups

hallmark of your fundraising.

everything, but it will give them a

you through the most challenging

come together. For me, it's

How does Point 2 Point

safe place to rest, play, and feel a

journey, ensuring dignity and

personal—Hospice Malta has

symbolise the struggles of

little closer to what home should

empathy every step of the way.

supported my family during the

vulnerable children?

be. That is the least they deserve.

That's why people must rally

terminal illnesses of my mum, my

I implore everyone to be generous

behind them.

sister, and my mother-in-law. I have

These challenges reflect the daily

and help us make it happen.

struggles families face. For us,

many reasons to give back.

Corporate partners such as

it's not about records, but about

Beyond the event itself, what

GasanMamo play a central role.

This is about more than

showing resilience. We can stop

long-term impact do you hope

How do you see businesses

endurance. How will the

if we're tired. A child with cancer

for?

contributing?

challenge bring visibility to

child cannot simply go home.

Point 2 Point is a vehicle to grab

Businesses provide vital support—

The pain, the struggles, the daily

people's imagination. We want it to

financial resources, visibility,

There are serious gaps in

fight—this is what the challenge

shed light on local realities that we

and volunteers. GasanMamo

government funding for cancer

represents. These kids are the real

too often overlook. Hopefully, none

gave us the launchpad to make

treatment and homelessness.

teachers of endurance.

of us will ever need the services of

this challenge possible. Without

Families in need don't have

Hospice Malta or CIN, but if we do,

corporate partners, initiatives like

choices; they just face the journey.

it's comforting to know support is

this cannot thrive.

With donations, we want to make

cannot stop treatment. A homeless

unseen struggles?

there. Nobody is immune. It's up to

that journey a little easier.

us to help one another in moments

The challenge ends with a

of need.

symbolic visit to Hospice Malta.

The fundraising target is

Why is this significant?

ambitious. How confident are

Douglas Barbaro-Sant

you that the community will Closing at Hospice Malta connects

respond?

our effort with its real impact. It's For Douglas Barbaro-Sant, giving

a reminder of why we embarked

The need is enormous, but even

back has always been part of

on this journey, and a message of

small contributions make a

life. Through Point 2 Point, he

empathy for all families in need.

significant impact. CIN's support for the YMCA's Kids Haven will

channels teamwork and resilience into raising funds for Hospice

Beyond the event, how do you

finally provide homeless children

hope awareness grows?

with a dedicated space. Hospice's St

The need is enormous, but even small contributions make a Joseph Casha significant impact.

Michael's Hospice will expand care

I hope Point 2 Point sparks ongoing

for families beyond what Mater Dei

dialogue about children's causes.

can currently offer. We're already

Malta is far from a utopia—

seeing a positive response and are

poverty and hardship are very

determined not just to reach €163K

real. By fostering awareness and

but to exceed it.

community engagement, we can ensure these vulnerable groups are

Looking beyond September,

consistently supported.

could Point 2 Point become a lasting platform?

That depends on the Maltese community and businesses. If

For Joseph Casha, giving back

they support us and the charities

is at the heart of Point 2 Point.

beyond our target, it will motivate

At stake is more than sport—

us to continue our efforts. The will

Children in residential care

Malta and the Children in Need

it's about dignity, care, and

is there—it depends on collective

often need stability and

Foundation.

opportunity for people at their

generosity.

healing.

most vulnerable.

To donate , visit cin.mt and click

Hospice Malta supports over How will the funds raised

1,500 families a year. Why

What does combining Hospice

Donate. Corporate donors may

address these deeper needs?

should people rally behind it?

Malta and CIN in one challenge

contact daniel@cin.mt for details.

MONEY

THE FINANCE EDITION

63

FA SHION

CHARLES & RON’S “REBIRTH” T

his September, Maltese fashion house

Foam, evoking the healing forces of nature. It

Philosophy and florals. Rebirth draws on

Charles & Ron unveiled its Spring–

closes in pure white, signalling clarity and the

Eckhart Tolle’s A New Earth, particularly the

Summer 2026 collection, Rebirth, at F/

serenity of a true fresh start.

spiritual significance of flowers—objects that

ROW during New York Fashion Week. The highly anticipated show on 10 September marked a powerful creative statement in a world hungry for renewal. Miss Universe Malta, Julia Cluett, featured in the opening film and also opened the runway.

Conceived as a response to global turmoil, the collection channels beauty with purpose.

“Too much suffering. We need a restart,” the designers say. “We believe in the power of beauty, and now more than ever, we feel the need to channel it into something meaningful.”

A journey through colour and emotion. The show opens in vibrant red—vitality, passion, and alarm—before softening into golden sand, Hyacinth Haze, Sky Blue, and Sea

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In-house prints: Malta in bloom. True to form, Charles & Ron developed all prints in-house, rooted in Maltese flora and fauna: the Maltese rock centaury (Cheirolophus crassifolius), poppy, wild hyacinths, and the Maltese Swallowtail (Papilio machaon melitensis), the island’s only endemic butterfly. These motifs are juxtaposed with vintage text from Charles’s old schoolbooks, adding a nostalgic, poetic narrative to the island’s wild landscape.

works of art that articulate the brand’s Maltese roots: bold, refined, unmistakably C&R. have inspired artists, poets, and mystics across ages. The designers nod to the

Made in Malta. Shown to the world.

Buddha’s silent contemplation of a flower

Presented in New York and London with the

and Jesus’s call to learn from them, while

support of Visit Malta, Rebirth is more than a

a Qur’anic image likens life to a blossoming

collection; it’s a hopeful message crafted into

field that withers—reminding us of beauty’s

garments and accessories—a reminder that

impermanence and the soul’s enduring

from disruption, beauty can be born again.

journey.

On 25 October, the collection will be

MONEY

Accessories, designed and made in Malta.

showcased in Malta in collaboration with

Every detail—accessories, jewellery, and

Malta Enterprise, marking the 5th anniversary

handbags—is designed in-house, extending

of the Malta Startup Festival, with proceeds

the Rebirth narrative into sculptural, wearable

supporting Victim Support Malta.

THE FINANCE EDITION

65

NEWS

25 Years of Sparkasse Bank Malta

measured not only by products launched, but by trust earned.

Reflecting on the journey, Managing Director Paul Mifsud notes that this anniversary is a moment to acknowledge challenges overcome, relationships forged, and principles that

Honouring Our Journey, Shaping Tomorrow

continue to guide the organisation—grounded in the dedication of its people and the trust of clients, shareholders, and partners. Looking ahead, the commitment is clear: embrace

Sparkasse Bank Malta plc marks its 25th anniversary—a milestone shaped by

sight of long-term value creation. The result

change with purpose and keep clients’ needs

measured growth, trusted partnerships,

is a steady, discreet presence that prizes

at the heart of every decision.

and an unwavering client focus. Established

discipline as much as innovation—progress

in 2000 to support Malta’s ambition of

As the financial landscape evolves, Sparkasse

becoming a financial services hub, the Bank

Bank Malta will continue to build on its

grew alongside a transforming local market,

strengths—supporting customers, innovating

tailoring services to evolving needs while

thoughtfully, and maintaining a disciplined

holding fast to core values of integrity, client

approach to sustainable value. The 25th

centricity, and excellence.

anniversary is more than a celebration; it is a reaffirmation of the Bank’s role as a reliable,

Across a quarter-century, Sparkasse Bank

forward-looking partner in Malta’s financial

Malta has built enduring relationships with

ecosystem. It honours the foundations on

businesses, investment funds, and high-

which the institution was built, while renewing

net-worth clients, adapting through shifting

its promise to help shape tomorrow with

economic and regulatory cycles without losing

prudence, discretion, and purpose.

A Morning with GirardParregaux

design language with clarity—showing how

On Monday, 15 September 2025, MONEY met

disciplined geometry and understated

Girard-Perregaux’s Lisa Parolini at Edwards

confidence: an octagonal bezel that wears

Lowell’s Portomaso outlet for a hands-on

naturally, immaculate finishing that shifts from

tour of the Maison’s icons. Parolini connected

satin to soft gleam, and proportions that feel

GP’s 1791 origins to its contemporary

tailored rather than showy—even in steel.

“manufacture” still means movements and aesthetics conceived and executed in-house.

The session began broadly, then narrowed to references that best capture the brand’s character. The Laureato impressed with

The mood lifted with the Bridges collection.

Seen in person, the Tourbillon with Three Bridges reads less like a conventional watch and more like spatial design. Light pours through the case, animating bevels and chamfers; the tourbillon at six o’clock

bracelets, straps and clasps are thoughtfully

“breathes” while the graphic bridges turn

resolved; ergonomics are intuitive; operation

mechanics into a signature silhouette. It

is precise and drama-free. Parolini fielded

underlines a simple truth: Girard-Perregaux

questions on calibres, materials, servicing and

didn’t just perfect a complication; it authored a

lead times with warmth and authority. MONEY

visual language.

left convinced: GP isn’t chasing trends—it’s refining an idea it defined long ago, where

What stood out most was coherence. Cases,

66

ISSUE 87

engineering becomes beauty.

MONEY

MALTA’S DEFINITIVE

BOATS AND YACHTING MAGAZINE. AUTUMN 25

Informative and exclusive content, high profile interviews, sailing destinations and lifestyle. Available at all marinas, affiliated businesses, embassies, 5-star boutique/hotels and sailing clubs.

ON I T I D E TUMN E SPECIAL

AU X MIDDLE SEA RAC

ISSUE 37 · POWERED BY

THE DEFINITIVE BOATS AND YACHTING MAGAZINE

14 COVER STORY

RAISING THE BAR 73 Marine’s next chapter: The Eolo Nove Gianluca Sammut on redefining Maltese boating

16

34

44

Your insider guide to the race that starts with a cannon and ends in legend

10 new yachts that made us look twice — and why

20 years of Esprit Yachting, celebrated the Italian way

ROLEX MIDDLE SEA RACE

W O N T OU

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