Business Agenda

THIS ISSUE

Issue 24 | AUTUMN 2015

business agenda

NEWSPAPER POST LIFESTYLE

Meet over lunch? Read through the real benefits of doing business in an informal setting.

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BUSINESS Malta has certainly made its mark as a destination for foreign investment, but can we maintain this advantage in the years to come?

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CASE STUDY Managing Director at Insignia Group of Companies Rafael Carrascosa discusses the company’s journey over the past 20 years, and how it is leading the way today in lifestyle management services.

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anniversary 2009 2014

THE Official Business publication of the Malta business Bureau

“Investment has been missing from our economics in recent years” – EU Commission Vice-President Jyrki Katainen In an exclusive interview with Business Agenda, European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, talks about the Investment Plan for Europe, which has the potential to inject an estimated €330 to €410 billion into the EU's GDP and create 1 to 1.3 million new jobs in the coming years.

“There is sufficient liquidity in the EU, but private investors are not investing at the levels needed

TOURISM As the global travel sector gets increasingly more cutthroat, is Malta doing enough to stay competitive and wow its visitors?

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DESIGN Business Agenda speaks to leading professionals to find out how design impacts the way we live and its role in the success, or otherwise, of a business.

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due to a lack of confidence and uncertainty among other factors, so the Investment Plan for Europe aims to address this,” he says. Speaking of the priority areas identified by the Plan, and how the Commission plans to support strategic investments in key areas in concrete terms, the EC Vice-President explains that the European Fund for Strategic Investments (EFSI) is at the heart of it, with its main challenge being “to break the vicious circle of under-confidence and underinvestment.”

Malta’s first Corporate Social Responsibility Platform launched Malta’s first national platform for Corporate Social Responsibility was launched last September by President of Malta Marie Louise Coleiro Preca. Her office facilitated and supported the setting up of the platform. The new board, called Corporate Citizenship for Responsible Enterprises (CORE), falls under the responsibility of the Chamber of Commerce, Enterprise and Industry, which appointed businesswoman Helga Ellul as its first president. “CSR is not charity, it

makes business sense,” Ms Ellul asserts. “No matter how big or small a company may be, CSR will add benefits to the company, its employees, customers and the community at large.”

See full story on page 5.

Turning his attention to the local economy which he describes as “among the best performing in the EU,” the EC Vice-President asserts that “the Investment Plan for Europe can contribute to boosting public and private investment in Malta, facilitating access to finance for SMEs and removing barriers to investment, and thus help to maintain the good economic momentum.”

See full story on page 24.

Bridging education and the labour market Director General at the European Centre for the Development of Vocational Training (CEDEFOP) James Calleja, discusses CEDEFOPS’s role in the context of the recently endorsed Riga conclusions, which he describes as a roadmap towards a more robust approach to European Vocational Education and Training (VET).

The conclusions will also pave the way for a more targeted agenda that can increase the quality of education and training, and establish parity of esteem

between VET qualifications and other sectors of education.

Mr Calleja asserts that the main challenges are funding and making VET attractive in terms of structures and quality: “governments must realise that funding will make or break VET in the future. If we want to push apprenticeships and provide the workforce of the future with work-based learning, then we need to be serious about the funding of vocational training.”

See full story on page 39.

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editorial

Supporting Businesses to Innovate The notion that innovation refers only to technology, ICT and products can be a rather misleading and somewhat myopic view as it does not encompass just how far reaching it really is.

Understanding the holistic definition of innovation is necessary to create a mind-set as to how innovative ideas might be applied to things other than in the traditional sense.

In recent years, certain trends that now drive the innovation process, have emerged. In a world where competition is fierce and globalisation takes precedence, the need for organisations and businesses to improve their efficiency, beckons. Nowadays, good products must be accompanied with innovative processes and management.

This year, the European Commission released an Innovation Union Scoreboard depicting positive trends, primarily that innovation in the EU has remained

stable. 2015 has also seen more doctorate graduates than previous years and that there are now more jobs in fast growing companies within the innovative sectors. Despite these positive trends, the Commission has also pointed out that much less innovation is being driven in SMEs. For a while now, the EU has been doing its utmost to encourage entrepreneurship and boost economic growth through innovation and design initiatives, due to the fact that Europe still lags behind leading countries like Japan, China and the US in terms of Research and Development.

According to these Scoreboard statistics, Malta is considered a moderate innovator in respect of its innovative performance and is also considered a leader in innovation performance growth together with Poland, the UK, Latvia, Ireland and Bulgaria. While it is a pleasure to know that Malta is doing well on this front, the MBB’s experi-

ences with some of the country’s most innovative start-ups, does not necessarily depict the reality or the true challenges on the ground.

initiatives to boost economic growth, the Innovation Union is one of the Europe 2020 flagship initiatives aimed at securing global competitiveness.

Domestically, several hurdles remain for start-ups that make it difficult for them to bring their ideas to the market. Many startups liken their experiences to an obstacle course of red tape and rigid procedures which often make it seemingly impossible for cash flow survival even before entering the market. If we want to strengthen Malta’s position as a start-up hub, we must think beyond the box and must work on improving or even creating new methods in order to let innovation flourish.

On this note, I am pleased that throughout this year, the MBB promoted intensively the Horizon 2020 (as well as the Creative Europe and Erasmus+) programme through the Innovation Leaders Project, which brought applicants from the business community even closer to the application process to obtain funding for their own innovative project initiatives. Through the project, several valid project ideas with huge potential have emerged and the MBB is committed to bring further opportunities to enterprises to seek EU direct funds in order to continue to innovate.

So how can we innovate further?

There is a golden opportunity to innovate for instance through EU funding streams, particularly the Horizon 2020 – a prominent financial instrument dedicated to implementing the Innovation Union. As with many of the EU’s

Indeed, all businesses and organisations stand to win as long as the direction points toward innovation. There are some good initiatives locally to

By Joe Tanti, Chief Executive Officer, MBB encourage and nurture innovation, but truth is that we are still lagging behind in comparison to other EU leading and global players.

For this reason a collective effort is required between all stakeholders to make innovation central to the way we think, the way we act and the way we come across to the new generation of businesses.

The Malta Business Bureau is a non-profit making organisation acting as the European-Business Advisory and Support Office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The MBB has two offices, the Head Office in Malta and the Representation Office in Brussels.

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Business Agenda is the quarterly publication of the Malta Business Bureau. It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

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COVER STORY

Malta’s first Corporate Social Responsibility Platform launched Following the recent launch of CORE, Malta’s first national platform for Corporate Social Responsibility, Martina Said chats to Consultant to President of Malta Maria Rauch, first President of the platform’s Board Helga Ellul and Malta Business Bureau CEO Joe Tanti to find out how this national entity will encourage companies to take their first steps towards embracing CSR. The true meaning of Corporate Social Responsibility (CSR) is often misconstrued, largely because its definition varies between companies, cultures and possibly even continents.

Often, companies regard CSR as a sense of responsibility towards the community and environment they operate in – yet, to what extent do Maltese companies really practise CSR? Until now, the number has been somewhat minimal, however, the recent launch of a national platform which goes by the name of CORE, the Corporate Citizenship for Responsible Enterprises, aims to make a difference. In September, President of Malta Marie Louise Coleiro Preca launched

the new board, which her office facilitated and supported the setting up of. Businesswoman Helga Ellul was nominated by the Malta Chamber of Commerce, Enterprise and Industry as CORE’s first president.

“Enterprises often assume philanthropy is CSR but the truth is that there is much more to it than charity.”

– Maria Rauch “The Malta Chamber of Commerce, Enterprise and Industry considers CSR as a valuable tool

that can be used by both large and smaller enterprises in order to build a social purpose into their operations that is as important as their economic purpose. In business, earning respect is sometimes more difficult than earning money,” Ms Ellul asserts. “For this purpose, the Malta Chamber is proud to form part of CORE, set up under the auspices of the President of the Republic to promote the values of CSR in Malta.

I am also honoured to have been appointed by the Malta Chamber as the first President of this board. In this function, it will be my duty to see that a culture of Corporate Social Responsibility is nurtured nationwide, for the benefit of our communities and businesses alike.”

Ms Ellul is a firm believer that CSR is an excellent way for ethical and serious employers to build close relationships with their workforce and communities. “This is something I’ve always maintained during my business life. Furthermore, during my presidency, the Malta Chamber had embarked on a project in 2011 in collaboration with Bank of Valletta, to show that it is possible for businesses to simultaneously make a profit and benefit the community. It was felt that the Chamber had a significant role as the most important business institution in Malta to be at the forefront to promote CSR with the business community.”

Maria Rauch, Consultant to the President of Malta, remarks that

CSR is an issue Maltese companies have been addressing for a long time. That said, however, there’s been a pressing need for transformation and innovative, economic and societal changes in order to attract more companies to this initiative. “Climate issues, depletion of resources, pressure of financial budgets and demographic changes call for a more collaborative and innovative approach to CSR, keeping in mind a sense of citizenship towards people and institutions.

This requires the real involvement of companies, government, civil society, investors and other stakeholders to step up their individual and collective efforts.”

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COVER STORY Ms Rauch explains that, on a global scale, sustainable development – which is closely linked to CSR – is nowadays considered to be the driving force behind economic growth. “Businesses – from small to multinational enterprises – are uniquely positioned to help establish a more equitable, inclusive and sustainable society. Many business champions have already developed circular business models leading to new opportunities and market leadership. However, a transformative change requires all companies to further integrate environmental, social, ethical and good governance approaches into their strategies and to focus on creating shared value. This is the true contribution of corporate responsibility to a sustainable world.”

“Customers and employees alike increasingly want to understand how companies behave. CSR is the perfect means to develop this trust, as actions speak louder than words.”

– Joe Tanti Within this context, the main purposes of the CORE platform are to promote the concept of Corporate Citizenship and Corporate Social Responsibility by supporting awareness and the activities developed by members and other parties searching for wide collaborations with local communities and with NGOs. The platform is also dedicated to the promotion and exchange of good practices and mutual learning amongst its members and associates.

The activities of the platform are far reaching, in that it also intends to organise national and international events in cooperation with its members, provide services to members and its associates in the related areas, develop and organise CSR Awards and pro-

mote events in the context of the European awards recognised by CSR Europe.

In practice, Ms Rauch adds, the CORE platform aims to raise awareness whilst implementing a corporate sense of social responsibility regarding best practices on lifelong learning, work organisation, equal opportunities, social inclusion and sustainable development. “To achieve these goals, it is necessary to promote a collective effort with the commitment of businesses, public bodies and civil society. This is the reason why CORE is a ‘platform’, in order to bring together the representatives of these three different ‘worlds’ and establish real intercultural dialogue and joint action.

Meanwhile, we’ve had promising feedback from companies that have expressed their interest in collaborating with CORE, and we are therefore confident that other businesses will too engage in the initiative.”

As one of the founding members of CORE, Malta Business Bureau CEO Joe Tanti says many are under the impression that CSR is for large companies that wish to create good PR, but this is not the case. “Customers and employees alike increasingly want to understand how companies

behave. CSR is the perfect means to develop this trust, as actions speak louder than words,” he asserts. “There is definitely a business case for CSR. The problem is that corporate philanthropy is often mistaken for corporate responsibility. CSR is more than just philanthropy. While it includes this too, it is more strategic and more about companies moving towards sustainable and responsible business.”

Mr Tanti adds, using MBB as an example, “our largest environmental initiative to date – MBB’s Investing in Water project – focused strongly on training and advising management and staff within enterprises. This increases the knowledge base within industry by developing industry’s key resource: its people. In the end, the 136 enterprises that participated in the project were saving over 141 million litres of water per annum. In the end, CSR is about how you make your money – the opportunities for businesses are tremendous.”

Helga Ellul is in agreement that CSR is not exclusively the realm of large enterprises. She says that while larger companies may be better suited to communicate their activities, SMEs actually have more of an impact on their

surroundings, as they are closer to the community they serve and they are often more integrally involved in their responsible entrepreneurship activities.

“In business, earning respect is sometimes more difficult than earning money.”

– Helga Ellul “CSR is also a form of corporate self-regulation integrated into a business model. CSR policy should function as a built-in, selfregulating mechanism whereby a business would monitor and ensure its adherence to law, ethical standards and international norms. In fact, the Malta Chamber is of the belief that CSR should remain voluntary and should not be regulated, in order for companies to remain flexible.

Further to this, we believe that no additional reporting rules should originate from legislation and therefore no additional costs and burdens would apply for companies,” she asserts.

Asked about her opinion on how CSR is carried out in Malta, Maria Rauch believes that when companies are promoting socially

responsible behaviour, they normally mean it. “However there is often a big lack of information on CSR and its multidimensional character (in truth, there is no consensual definition for it, even internationally),” she asserts.

“Enterprises often assume philanthropy is CSR but the truth is that there is much more to it than charity. This is why the platform is relevant and why it emphasises that companies get to know more about the topic. Furthermore, being part of such a team will encourage a more creative approach whilst being able to rely on other partners for advice.”

Ms Ellul agrees, adding it is proven that a company which embraces CSR often enjoys higher levels of customer satisfaction and loyalty, improved company, brand and product reputation, more motivated and productive employees, better relations with the local community and public authorities, and increased cost savings.

“CSR is not charity, it makes business sense. No matter how big or small a company may be, it will add benefits to the company, its employees, customers and the community at large.”

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BUSINESS

Foreign Investment: Is Malta Still Attractive?

Malta has certainly made its mark as a destination for foreign investment, but can we maintain this advantage in the years to come? Jo Caruana asks the experts for their advice on how to keep our island attractive.

Foreign investment has placed Malta firmly on the international map over the last 20 years or so.

Today, global firms sit side-byside with local ones, and countless expats have chosen to move here to buy property or set up shop. Malta has certainly been noticed. So, what’s put us in the spotlight, and are we going to stay there?

Mark Watkinson “Malta consistently scores highly on the stability stakes, while its regulatory framework is also deemed particularly strong,” says Ronald Attard, Country Managing Partner for Ernst&Young in Malta, which conducts annual research on the topic of national attractiveness. “There’s also our skilled, English speaking workforce, EU membership and continued low cost base, all of which

factor strongly when it comes to Foreign Direct Investment (FDI).

It is the relative ease of doing business and the well-known accessibility of Government that ultimately encourages investors to set up here.”

By the time this issue of Business Agenda went to print, the results of EY’s 2015 report may have been released. Mr Attard believes that Malta’s attractiveness to both existing and potential investors remains strong. “Today, investors find service-based industries most attractive, with knowledgebased sectors expected to drive Malta’s growth forward,” he says.

“While geopolitical and financial turmoil has affected many countries in the wider Mediterranean in recent years, Malta has escaped largely unscathed due to our strong banking system and the economic, financial and social stability we provide to investors. EU membership has enhanced the attractiveness of a number of sectors. That said, competition for FDI has also increased, and today we are truly competing for FDI with countries from across the globe.”

There is certainly a lot that has gone into making Malta attractive so far. Asked for his opinion on the topic, Dr Mario Vella, Execu-

“We believe Malta has the potential to become a ‘Singapore in the Mediterranean’.”

– Mark Watkinson tive Chairman at Malta Enterprise, stresses that our proactive approach has also helped to get us noticed. “We do not wait for investors to knock on our door but instead target specific potential foreign investors and knock on their door,” he says. “We look beyond Europe, whilst leveraging the advantages of European Union membership, and work hard to diversify the sources of foreign investment. Together this has helped us to get out there in the world and be seen.”

Vodafone Malta CEO Amanda Nelson, who moved to the island from the Netherlands, believes that investors have noticed Malta’s reinvention in the past couple of decades. “The economy has been in a state of transformation,” she says, “diversifying from a traditional, closed economy heavily reliant on manufacturing and tourism, to a more open economy that has carved out successful niches in new sectors, particularly financial services,

ICT and gaming. This sense of energy and innovation can be, and has been, very attractive to potential investors.”

Beyond this, Ms Nelson specifies Malta’s accession to the EU in 2004 as a key moment that increased its international attractiveness. “This made the island part of a huge single market with all the benefits that has to offer, particularly to non-European investors looking to enter the European market,” she says.

“Telecommunications is a perfect example. I believe that the levels of FDI Malta attracted in the last decade would not have been achievable if investors were not certain that they would find quality telecommunications here; we needed to be as good – if not

Ronald Attard

better – than those elsewhere in Europe.”

Expanding on that, outgoing CEO of HSBC Bank Malta Mark Watkinson explains that the island has also seen successful partnerships between the Government and the private sector, as well as some key foreign alliances that have attracted new business. “Aside from telecommunications, we have seen this in the airline maintenance sector, the Freeport and the pharmaceutical sector. These have all been very encouraging developments,” he says.

Now, though, it seems that Malta is facing its next step. As the experts explain, competition for international investment is fierce and there is a lot to be fought for.

“There is still a lot to be done,” continues Mr Watkinson. “For instance, Malta will reap more benefits by upscaling its tourism product, thus attracting higher revenues from this sector,” he stresses. “Meanwhile, there are other incentives in place. For instance, our Malta Trade for Growth proposition and the current €75 million Trade Fund, which was launched following the success of the first €50 million fund, are aimed at ensuring

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BUSINESS more investment in Malta. As a bank we are dedicated to encouraging the expansion of local businesses in foreign markets through our unmatched connectivity with the most relevant and important markets around the world.”

“It is the relative ease of doing business and the well-known accessibility of Government that ultimately encourages investors to set up here.”

– Ronald Attard Ms Nelson also has some key suggestions about how Malta should continue to focus on its attractiveness, including some related to Malta’s infrastructure.

“Currently, the island is lacking the infrastructure needed to properly support significant growth in the workforce and businesses,” she says. “The right infrastructure strategy needs to include housing plans, significantly improved road and public transport networks, more schools, and so on. I think it’s clear to everyone that the current congestion will only get worse if more people come into the workforce, so it is key that this is addressed.”

Similarly, Mr Attard stresses that we cannot sit back and assume that our current levels of success will continue to be matched year-on-year. “Countries around the globe are trying to outdo each other with new and innovative measures, and Malta cannot stand still,” he says. “We need a forward-looking strategy, coordinated marketing efforts and the support of delivery partners to help drive, reach and tap existing market knowledge. Respondents to our past EY surveys often outline that Malta should continue to focus on developing education and skills, support SMEs, support high-tech industries and innovation, and increase FDI incentives.”

Speaking about technology specifically, Ms Nelson states that Vodafone is focused on keeping a close eye on emerging techno-

Amanda Nelson

“Currently, the island is lacking the infrastructure needed to properly support significant growth in the workforce and businesses.”

– Amanda Nelson logical developments and directing its capital investment accordingly.

“Technology is a key concern for any business, and we are as concentrated as ever on providing a strong and reliable network that can support new services, such as 4G and HD Voice, at the same pace as other developed countries,” she says. “Vodafone Group recently published its 2015 Annual Report which outlined its global strategy to place Vodafone at the forefront of growth in mobile data and the increasing trend towards the convergence of fixed and mobile services. This is very clearly where the industry is heading and so our strategy here in Malta is also heavily focused on this area. Thus, I would like to see foreign investment continue to develop particularly in areas where new technologies can play a key role.”

Naturally, there’s also a lot to be done when it comes to assess-

ing the markets that will be most popular in the years to come, as very few industries sit still for long in the current marketplace.

“At Malta Enterprise we have worked persistently to identify new niche sectors, such as advanced training and education; it has been found, for instance, that Malta is a good location for regional campuses of important universities,” says Mr Vella.

“Another area of interest is that of health tourism – the subject of high prospective growth.

This sector is set to grow further in the coming years with the planned expansion of the General Hospital in Gozo, in line with the opening of a campus of Barts and the London School of Medicine and Dentistry, one of Britain’s most prestigious medical schools. This new hospital, a private public venture servicing both locals and international patients, will provide 250 new acute beds, bringing the total of beds in Gozo to 450. There is a lot that could be

Dr Mario Vella achieved with this in mind,” he says.

The concluding opinions are clear: Malta will continue to remain competitive, so long as we keep our eyes on the prize.

“We believe Malta has the potential to become a ‘Singapore in the Mediterranean’,” adds Mr Watkinson. “There’s a lot to be done, but the potential and interest is certainly there. Now is the time to follow through on everything that has been achieved and planned, and to continue on our route to success.”

“We are proactive in our approach to foreign investment.

We do not wait for investors to knock on our door but instead target specific potential foreign investors and knock on their doors.”

– Dr Mario Vella

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CASE STUDY

Insignia Cards Ltd:

Leading the way in lifestyle management services Its product offering is unique for Malta and beyond, and Insignia Cards Ltd – notwithstanding its relative youth as a company – shows no signs of slowing down. Martina Said speaks to Managing Director at Insignia Groups of Companies Rafael Carrascosa to find out more about this forward-thinking company.

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CASE STUDY The very nature of Insignia Cards requires immense vigilance from the team that is leading it, particularly in view of new regulations and EU legislation. “We are a regulated entity and we are constantly striving to stay on top of legislative changes and our regulatory obligations. Compliance is a major focus in our business and ensuring compliance with the rules that protect against fraud and money laundering is at the forefront of what we do,” asserts Mr Carrascosa. “Of course, we screen all our applicants, collect all required KYC and ensure as much as possible that they will not pose a risk to us given the fact that we offer lines of credit. This is definitely an area we’ll be keeping an eye on.”

“Insignia’s main business is our cardholders, so we pride ourselves on providing unparalleled services – both financial and lifestyle management services,” says Rafael Carrascosa, Managing Director at Insignia Group of Companies. With almost 20 years of experience in servicing high and ultra-high net worth individuals who want to access luxurious lifestyle services, Insignia is certainly a force to be reckoned with in the industry.

Since being founded as a travel expert and issuer of co-branded payment cards in 1996, Insignia has come a very long way.

“In 2001, payment cards were launched and the luxury lifestyle management services company was founded. In the following decade, Insignia launched more cards with more benefits – such as multi-currency functionality – and during this time, the company employed many lifestyle experts and forged preferred partnerships worldwide to be able to satisfy its growing client base,” explains Mr Carrascosa.

In 2012, Insignia was granted an E-money license in Malta, allowing the company to issue payment cards across Europe and, as a result of this, Insignia Cards Ltd, which forms part of Insignia Group of Companies, was established in Malta to be the operational cards issuing centre: “Malta has proven to the world that it is economically stable, which makes it a secure and business-friendly environment.” In 2014, Insignia leveraged its global expertise in lifestyle management to launch the Platinum Card and Platinum Business Card locally. This year, Insignia is also issuing Platinum Cards for foreign markets.

“In the beginning, payment cards were issued through third party banks and Insignia would provide the lifestyle benefits associated with the cards. This served us well initially but we wanted even more control over delivering great service, which meant that we needed to set up our own business here in Malta,” he asserts. “What distinguishes us from other banks and concierge services is the fact that we link both of these together, and this gives us the perfect opportunity to serve our clients. Our payment cards are designed to be convenient and give our customers the financial flexibility they expect, but it’s the added personalised service that really places us over and above our competitors.

Our team of personal assistants caters for our customers 24/7 – we believe luxury today is not only about amazing things, it’s also about saving time which is why we always aim to serve any request, large or small.”

Insignia Cards Ltd’s product range spans across three tiers – so-called mass market products, Platinum cards and the Premium range. “The Premium range targets ultra-high net worth customers and our main

target here is to solicit customers overseas, whereas Platinum cards target affluent and highnet worth individuals both locally and overseas.” The services and tangible benefits for each payment card differ, therefore a specific card can be tailored to a person’s requirements.

“For example, the Insignia Visa Card, which is our so-called mass market card strictly for the local market, offers cardholders the benefit of buying now and paying later,” says Mr Carrascosa. “Through a unique Deferred Payment Plan, a cardholder can buy something today and pay it off in fixed monthly instalments of three, six, nine or

“Malta has proven to the world that it is economically stable, which makes it a secure and business-friendly environment.”

12 months. It’s therefore a credit card with a built-in personal loan facility.” This card also offers basic travel insurance and purchase protection as well as a rewards programme through a system of earning points with each purchase, which can later be redeemed for free gifts.

The Platinum Card benefits are further tailored to a more affluent client base. “The lifestyle and concierge services are at the centre of the product offering making Insignia’s Platinum Cards the first truly platinum products on the market since they give customers access to luxurious services they’ve never imagined possible. Some other tangible benefits include access to VIP services, travel assistance and a comprehensive travel insurance package, financial freedom and flexibility, and interest-free credit since it’s a charge card not a credit card.” He adds that while platinum cardholders do not have their own personal assistant as do premium cardholders, they have access to a skilled team

of lifestyle specialists to tend to all their needs on a 24/7 basis.

The Platinum Business Card, which was launched last year alongside the Platinum Card, is designed on the other hand to make it easier for companies to manage and control their payments and cash flow. “It not only gives full control over the company’s expenses but also offers 24-hour access to lifestyle management services, travel benefits and protection. Whether you’re treating a client to a lavish dinner or need tickets to a cultural or sports event in Malta or overseas, Insignia’s concierge team will handle all arrangements in full discretion and with excellent results,” explains Mr Carrascosa. “The card offers a 56 day interest-free period, and for additional convenience, all company expenses will be settled by a single payment in full each month by direct debit.”

He adds that businesses can also apply for an unlimited number of supplementary cards per account for key people within the organisation. Management will have the ability to assign individual credit limits per supplementary card depending on the person’s spending requirements within the company. “This card has proven to be very popular with new business operators in Malta especially, giving them better control over their expenses plus outstanding service that can save them time,” he asserts. “The card business can be complex and is strictly regulated, which is why we make sure we operate using a method of excellence.”

Part of the company’s role – that of offering debit and credit cards – is intrinsically associated with banks. How is Insignia Cards challenging local banks with its product offering and how does it differ exactly? Mr Carrascosa says that Insignia offers a unique portfolio because it combines payment cards with personalised lifestyle management services, which no other bank or card issuing company does.

“Insignia is challenging the banks locally by providing a better, more

personalised service to its cardholders. A bank’s primary business or revenue stream would be savings, loans, investments and the likes, so a payment card is a secondary service – banks offer cards because it is standard once you have an account with them but servicing cardholders is never a priority,” he asserts.

Most importantly, and for the first time locally, this service is accessible to the growing number of expats and new businesses, not just Maltese nationals. Such niche markets, he says, are not being catered for by local banks. “Banks make it very difficult for expats to open a bank account and therefore they can’t obtain credit cards.

Insignia is not a bank, so there’s no requirement to open a new bank account or to deposit any funds – customers are simply required to link the Insignia Platinum Card to an existing bank account when applying.

Also, the application process takes place online, giving customers maximum convenience in today’s busy lifestyle, whereas traditional banks require you to go in person and manually fill out an array of forms.”

The company’s future prospects look very promising, and now that its main business in Malta is operationally live, it is setting its sights on targeting foreign markets and clients, by means of partnership agreements with banks specialised in private business, and by targeting Eastern European affluent and premier clients among others. Mr Carrascosa says that the company already issues Platinum Cards to other European countries and that there are plans to continue to expand on this in the coming years.

“As time goes by and more purchases are transacted online, paper money will become less abundantly used in the economy and e-wallets, e-money, card transactions and bank transfers will become the norm, in Malta too. This is something we are monitoring – our technology team is always looking to innovate, and mobile tech, which is something we’ve already expressed our interest in, is something we could potentially tap into. We look forward to a great future building better products and services as we go, and ensuring that Insignia remains the world’s leading luxury financial and lifestyle management group.”

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INVESTMENT Life Sciences Park in San Gwann. Final works underway.

Attracting foreign direct investment with a pro-active approach During 2015, Malta’s economy continued to grow fast in relation to the rest of the European Union.

When comparing April-June 2015 with the corresponding quarter in 2014, the Maltese economy in real terms grew in excess of 5 per cent. When comparing the first six months of 2015 with those in 2014, the Maltese economy grew at an average real rate of 5.1 per cent. This rate was one of the highest growth rates recorded in all the EU member states. UK, Germany, Italy and France grew at the rate of 2.6 per cent, 1.4 per cent, 0.7 per cent and 1.0 per cent respectively.

The European Commission commented that “job creation and the unemployment rate are projected to out-perform euro-area peers”.

It also stated that “employment growth surprised positively”. The European Commission forecasts that Malta’s unemployment rate in 2015 will be 5.9 per cent. This places Malta among the top performers when compared with the other euro zone countries, namely Germany (4.6 per cent), Luxembourg (5.7 per cent) and Austria (5.8 per cent).

In terms of success in keeping unemployment figures down, Malta has no peer in Southern

Europe. Compare its 5.9 per cent to Greece’s 25.6 per cent, Spain’s 22.4 per cent, Cyprus’ 16.2 per cent, Portugal’s 13.4 per cent, Italy’s 12.4 per cent and France’s 10.3 per cent. It is also expected to do well when compared to more northern member states, such as Slovakia (12.1 per cent), Lithuania (9.9 per cent), Latvia (10.4 per cent), Ireland (9.6 per cent) and Belgium (8.4 per cent).

All this, it must be underscored, is being achieved within the context of a further decline in the budget deficit.

As Malta’s Prime Minister Joseph Muscat has already remarked, the European Commission may well be surprised at Malta’s economic success but we Maltese are not at all surprised. As stated

by Dr Muscat, it is a matter of working hard and smartly, and of not trying to live beyond one’s means. It is a question of having a bold but flexible vision, and the determination to go for it.

The promotion of Foreign Direct Investment, its attraction to Malta and all that is needed to keep it here, is a key component of this vision. This is what Malta Enterprise is responsible for, what it endeavours to do as cost effec-

tively as possible and what it is, in fact, succeeding in doing.

Foreign Direct Investment continues to be central to Malta’s economic development strategy and, therefore, it continues to be critical to Malta Enterprise’s mission.

Over the last year we achieved very significant successes. Whilst we have broadened the geographic and sectorial scope of our theatre of operations, we have continued to refine our micro-targeting methodology (no to blind blanket media campaigns, yes to approaching specific potential direct investors with specific requirements).

“Later this year we will announce the setting up of Malta Enterprise’s Institute of Foreign Direct Investment Studies (IFDIS), a project that will see us partnering with important international players.”

Our success is due to our proactive approach. We do not wait for investors to knock on our door. We target specific potential

foreign investors that are, for a variety of specific reasons, likely to consider a presence in Malta, and knock on their door. Also, we look beyond Europe, whilst leveraging the advantages of European Union membership – we work hard to diversify the sources of foreign investment.

Of course, this approach required a radical upgrading of our ability to gather and analyse concrete and specific intelligence (as opposed to the sort of newsmaking but insufficiently granular data of the sort generated by global rankings... good for media and politics but not quite what investors need). We are now proud to have become the best in this field in Malta and certainly amongst the best in Europe. To underscore our commitment to serious research, later this year we will announce the setting up of Malta Enterprise’s Institute of Foreign Direct Investment Studies (IFDIS), a project that will see us partnering with important international players.

Malta Enterprise leverages Malta’s location advantages in a broad range of engineeringbased niches, in the more creative niches of information and communications technology (includ-

ing synergies between ICT and the life sciences), in higher education and training for the regional and European markets, in innovative niches within aviation services, in the creative industries generally and the long neglected field of international logistics where we cannot simply be satisfied with having a vibrant marine Freeport.

To this end, Malta Enterprise is leveraging the excellent reputation we have built within the world of shipping; we are after all Europe’s largest flag register and one of the world’s fastest growing ones. We are leveraging Malta’s tradition of medical excellence and its historical reputation as ‘the nurse of the Mediterranean’ to develop it as an international medical and health care hub.

As stated by Prime Minister Joseph Muscat, “opportunities don’t fall from the sky. Opportunities are the result of navigating smartly in an uncertain international environment and to identify situations created by uncertainty itself.”

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TOURISM

Tourism: Are We Being Served?

As the global travel sector gets increasingly more cutthroat, Jo Caruana looks at whether Malta is doing enough to stay competitive and wow our visitors.

Gone are the days when Malta was only really vying against other Mediterranean countries for tourists. Today, travel has gone global – visitors make longhaul trips almost as easily as they make short-haul ones, and we’re up against the whole world when it comes to attracting tourists here.

The flip side of that, though, is that we also have the opportunity to invite the whole world to visit us – and not just people from just across the water. Malta is an international player and we have to do enough to impress guests from Russia and India, in the same way as we attract ones from Italy and the UK. So, are we doing enough? “’Enough’ is quite a big word to use in this context,” says MHRA CEO Andrew Agius Muscat. “In truth, no, it’s never ‘enough’ when we’re talking about the standards of our tourism product. This is an incredibly dynamic sector, so it’s vital to keep the product fresh and to update our offering in line with international trends. There is always something new to consider and changes to be made.

We could always be doing more, and we must do more.”

That said, Mr Agius Muscat believes change is afoot, and that higher tourist numbers have encouraged the private sector to reinvest profits back into improving our product and, thus, doing more.

Pierre Fenech “From refurbishments to new developments, the private sector is reacting,” he says. “This is down to the good results we’ve had in recent years, as well as the 25 per cent reduction in energy bills, which has certainly left an impact on business’ bottom lines. At MHRA we would like to see more of these support schemes, as it really does help the industry to make very important changes.”

Mr Agius Muscat also believes that Government efforts are being made – but that even more

needs to be done. “Our infrastructure is a clear challenge at the moment and everyone is talking about it,” he says.

“There needs to be a drive to improve our roads and boost the general upkeep of the country, as we are certainly lagging behind on that front. Our transport system is also still unsettled, and this needs to be dealt with urgently as so many visitors rely on it while they are here.

Impeccable service – whether at hotels, in restaurants, or in Government-led services – should also be finessed. Tourism has become incredibly competitive and we need to be able to provide the best.”

Excellent training, then, should naturally be a focus for those involved in the industry – and the local Institute of Tourism Studies has long sat at the centre of this effort.

“I believe the tourism industry has been given due importance by both the Government and the private sector, but, of course, there is always more that could be done. Notably, numbers have increased steadily when compared to other destinations, though, so we are certainly doing something right,” he says.

Mr Fenech, meanwhile, admits that it can be tricky to determine whether tourists are getting good service here. “It’s subjective,” he says. “It all depends on individual expectations, and it’s impossible to take a ‘one-size-fits-all’ approach.

“In general, I do feel that Malta offers value for money, although expectations are constantly on the increase and can be hard to match. We need to keep working to improve our offering, while maintaining the value-for-money that tourists have come to expect.

This can be achieved by employ-

“Industry growth rates have made it hard for us to keep up with demands; no matter how many graduates we have, it is never enough to meet sector needs.”

– Pierre Fenech “There’s no doubt that we need to keep focusing on training our human capital – it is absolutely essential,” stresses ITS executive director Pierre Fenech.

ing highly-talented and qualified staff who will ensure that the level of service we give is the best we can possibly offer. The challenge, though, lies in the fact that industry growth rates have made

it hard for us to keep up with demands; no matter how many graduates we have, it is never enough to meet sector needs.”

Thus, it seems that Malta should focus on improving its product so as to attract more quality visitors, rather than quantity visitors. “There’s no doubt that we’re getting the numbers, and that’s fantastic,” says Mr Agius Muscat. “But now’s the right time to fine-tune our offering to ensure we’re giving our visitors the bestpossible value; I’m not suggesting a price war, but instead that we raise prices and give a better service – it will be appreciated by the higher end of the market.

“Meanwhile, we also need to find ways to make the industry more attractive to current and potential employees, as it is already

very hard to find the right staff to meet needs today. With this in mind, the MHRA is working on a study to establish the attractiveness of the industry and to assess the sector’s HR requirements so as to meet the National Tourism Policy and the island’s Vision for 2030. Today the whole world is our competitor, and having good people working in the tourism sector will ensure we’re on the best level footing to compete.”

Approaching the topic from an ‘outside tourism’ perspective, well-known businesswoman Helga Ellul does believe that our tourism product has been upgraded in recent years, and that we have plenty to be proud of.

“We have seen improvements to hotel offers, restaurants, events

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TOURISM away from the ‘quantity’ frame of mind and focus, instead, on ‘quality’.

Helga Ellul and so on,” she says. “However I think we need to urgently move

“Our focus needs to shift to a number of points. Firstly, safety.

We have always marketed Malta as a safe destination, and it is imperative that this aspect remains high on our agenda, especially when you consider the challenges being faced by some other countries in the region.

“Numbers, too, need to be looked at. Rather than achieving high numbers in the summer months

we need to look at ways to promote our winter period, as this will ensure consistent demand rather than seasonal. Malta has so much more to offer than ‘sun and sea’, and our mild winters should make attracting winter tourists so much easier. This has been said year on year, but I still don’t think we are doing enough.

“Finally, sustainable tourism and environmental concerns need to be pushed to the top of the agenda, as they are sorely lacking. The island is a constant building site with cranes that dot

“We need to urgently move away from the ‘quantity’ frame of mind and focus, instead, on ‘quality’.”

– Helga Ellul our horizon creating eyesores; this does nothing to enhance our tourism product. In my opinion, Malta looks shabby and dirty, so we need proper waste collection and planning. Environmental issues need to be looked at, and

laws enforced, whether for littering, building regulations or even noise levels.”

Mrs Ellul fears that, if these points are not tackled, Malta stands to lose its attractiveness. “We take our tourists for granted,” she says. “This is largely because increasing numbers have blinded us to the issues here and made us complacent. So, before we spend more money on marketing, we should spend money on improving our product. In my opinion we should aim for less numbers but higher yields; we should transform Malta into a quality destination. To achieve that we need all the stakeholders on board to buy into this vision and to upgrade our beloved ‘product Malta’,” she adds.

Andrew Agius Muscat Agreeing, Mr Agius Muscat believes we should better manage our resources – so as to do more despite our limitations.

“Our small size may provide a challenge, but it’s also a plus, as visitors can do and see so much while they’re here,” he says.

“We need to invest further in the ‘experience’ that surrounds all of our natural and historical assets, so that people can really get to know our story and fall in love with Malta for all the right reasons. Tourist operators need to understand that today’s visitors are looking for something that little bit different; they’re looking to go beyond the obvious and to have an immersive travel experience. If we invest in that and understand their needs then yes, we will we able to serve them.”

Finally, from an education perspective, Mr Fenech stresses that emphasis needs to be on training people who are already in the industry, so as to improve the skills of those on the frontline. “Training really should lie at the very crux of everything we do in the coming years – with both local and foreign staff getting the training they need to excel and provide the genuine Maltese hospitality that we have always been known for. This will continue to set us apart among our competitors and to ensure that yes, our tourists really are being served.”

“Tourism has become incredibly competitive and we need to be able to provide the best.”

– Andrew Agius Muscat

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Diar il-Bniet

Il-Veduta: Unparalleled views

Diar il-Bniet offers a pioneering opportunity to taste delicious Maltese cuisine at source. During the heat of the day, the restaurant offers an ideal setting for a cool drink and local delicacies. In the evening, one can enjoy their famous hospitality over a hearty, seasonal menu. Good food is always in season and they take great pride in the fact that all their produce and ingredients are home-grown. At the core of Diar il-Bniet is the passion for food that is produced in-house, using fresh fruit and vegetables selected every day from their fields.

Moreover, they employ traditional methods which have been passed down through the family for many generations. Prepared, preserved, pickled, dried or like honey and oil, just packaged in their purest form; it is with pride that these products are offered at the farm shop.

As the name implies, il-Veduta is blessed with unparalleled views of two-thirds of Malta, directly overlooking the countryside and distant sea. Situated just outside the fortifications of Malta’s old capital, Mdina, the restaurant has become a household name with families looking for the perfect Sunday lunch venue. The spacious establishment is split on three levels and can cater for large groups of up to 300 people. The third floor can be used for private functions for up to 100 people. The diverse menu consists of a vast selection of delicious Mediterranean fare, with a variety of starters, pizzas, pasta and grills, all modestly priced. IlVeduta also offers a delivery service for customers to enjoy the enticing menu from the comfort of their homes. Delivery menus can be viewed on Veduta’s website.

Diar il-Bniet, Main Street, Had-Dingli.

T: 2762 0727; E: info@diarilbniet.com; www.diarilbniet.com

Open daily 11am-11.30pm. Seating: Indoor and outdoor. Price: Under €25 (average price per person excluding drinks). Cuisine: Mediterranean, Pizza, Pasta.

Il-Veduta, Is-Saqqajja, Rabat. T: 2145 4666; 2145 3656; Deliveries: T: 2145 5500; E: info@veduta.com.mt; www.veduta.com.mt

MTA QUALITY-ASSURED RESTAURANTS

Lovage Bistro At Lovage we are passionate about food, and creating exceptional dishes with fresh ingredients to make your meal an utterly scrumptious one, is our specialty!

Come and enjoy a delicious and enjoyable meal at our restaurant which combines a traditional style of cooking with a contemporary and modern twist. The bistro also enjoys the bonus of outdoor seating and a bar. The appealing Mediterranean dishes, snug ambience and overall great service make Lovage a great choice of restaurant, be it for a quick dinner or a relaxed meal with your loved ones.

Excellent-quality, delicious fare is high on our head chef’s agenda. Meet the man behind the magic at Lovage, chef Matthew Schembri who sprinkles his expertise into every dish. For him, each and every dish is a creation destined to be savoured and enjoyed. His selectiveness and desire for perfection come from both his wealth of training in gastronomy and more than a decade’s worth of experience in the catering industry.

Ta’ Marija: The true Maltese culinary experience For a truly authentic Maltese evening, we invite you to a delicious dinner at the top-rated, award-winning, family run, understatedly elegant Ta’ Marija restaurant, set in the pretty town of Mosta. Winner of a myriad awards, including Best Maltese food restaurant for nine consecutive years, our chefs don’t just serve Maltese cuisine, but create dishes with what is locally traditional and then add our own signature flavours of sumptuousness.

Chef Matthew promises diners at Lovage heavenly food, excellent service and a fantastic dining experience.

On Saturday evenings and Sunday lunches we offer an all-inclusive Carvery Buffet at just €25 per person, complete with unlimited wine, water and coffee. Plus we also have popular singer Corazon joining in every Saturday night, who promises to enchant you with her powerful voice and emotional songs. On Wednesdays and Fridays join in for our popular Maltese Extravaganza nights. Let yourself be entertained by strolling guitars and mandolins, and enjoy a folk show by our dance troupe in 18th-century costumes! Open Monday to Sunday, for lunch and dinner.

Lovage Bistro, Triq l-Imhar, Qawra, St Paul’s Bay. T: 2157 2088; M: 7959 4098; E: info@lovagebistro.com; www.lovagebistro.com; F: lovagebistro

Ta’ Marija Restaurant, Constitution Street, Mosta. T: 2143 4444; E: info@tamarija.com; www.tamarija.com

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LIFESTYLE

Meet over lunch?

The benefits of doing business in an informal setting

Has that person you’ve been chasing for a while finally agreed to a meeting? Scheduling it away from the confines of the office over breakfast, lunch or dinner has a number of advantages and could help you reach the conclusion you’re after. Sarah Micallef investigates the draw of engaging with clients in informal settings.

When it comes to shifting the odds in your favour in a business deal or important meeting, doing it over the phone or Skype just won’t cut it, while carrying out the meeting at your office or theirs leaves you open to all sorts of distractions and interruptions from colleagues, your phone and email. Taking your business associate out for a business breakfast, lunch or dinner means that you will get to control the environment – and that could make all the difference.

What are the benefits?

Apart from avoiding distraction, arranging to meet within a neutral environment is also likely to make your associate feel more comfortable than if you were to meet at your office – being in your territory may cause them to put their guard up. Talking it out over lunch will put you on an even footing (which works far better than proposing your plans while sitting in front of their desk or behind yours, or within the stuffy environment of a boardroom); and it will put them at ease, while allowing you to still exercise an element of control.

Business breakfast, lunch or dinner?

Now that you’re convinced of the benefits, you’ll need to decide on which one to go for – breakfast, lunch or dinner? Apart from what fits best within both your schedules and time constraints, the time of day you set your meeting should reflect what you’d like to accomplish. Meeting for a coffee

“The way you pitch ideas and make proposals should differ at an informal setting – besides having more time to explain yourself, you’ll have a captive audience that’s ready to be wowed.” in the morning is perfect if you’re after a brief meeting at which you can get straight to the point.

Other advantages to a breakfast

meeting are the ability to get it out of the way before getting bogged down in your daily schedule (and thus not affecting your

work flow), while taking advantage of the fact that most people are at their sharpest in the morning, making for a potentially more receptive audience.

Meanwhile, lunch is the traditional favourite for business meetings, and could be just what you need to close that deal or form an alliance. Lunch meetings tend to be reasonably short,

ranging from one to two hours, as participants will generally need to return to the office for the afternoon. This means that they retain focus, so as not to spill over onto anyone’s personal time.

Still, if you’re on a tight schedule and need to leave the meeting at a specific time, be sure to warn the other participants in advance, so as not to cut things short too

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LIFESTYLE “A business dinner is a more laidback affair with a greater focus on camaraderie, and proceeds at a more relaxed pace since no one has to rush back to the office afterwards.” the desire to delve further, be prepared to go into greater detail and answer any questions they may have, and if not, leave it for them to go over at their own pace and use the rest of your time to make a social connection – lunch or dinner is perfect for this, and could serve to further sway them in your favour.

abruptly, and risk making a bad impression.

The most leisurely of the options is the business dinner. Regardless of the number of participants, a business dinner is generally a more laidback affair with a greater focus on camaraderie.

It also proceeds at a more relaxed pace, giving it a longer time span since no one has to rush back to the office afterwards. This can work to your advantage – giving

you the time you need towards completing a piece of serious business. Apart from this, meeting for dinner is also ideal for commemorating special occasions, such as the retirement of a long-standing colleague or employee, or welcoming a new client. It is also the preferred option for entertaining business associates who are visiting from overseas.

How do you go about it?

When it comes to choosing a place, go for a quiet eatery that will facilitate a business meeting but also make the desired impression – be it bold, relaxed or refined. Always ask for the other party’s food preferences and accommodate them, and it always helps if you’re familiar with the place and staff – a great rapport will serve to impress and put you in a good light.

The way you pitch ideas and make proposals should also differ at an informal setting such as this. Besides having more time to explain yourself than you would within a fast-paced office environment, you’ll have a captive audience that’s ready to be wowed. At table, a paper presentation that your associate can take home to review will always work best – all you need to do is present it well, and describe what you’re after. Should they express

Once all is said and done, it goes without saying that you should pick up the cheque. While many business people lean towards splitting bills, you should avoid this if you’d like to retain an element of power. Remember, if you’ve called the meeting because you wanted to make a proposal or suggestion to them, you’ll want to put them in a position of gratitude once the meeting is over – paying for a small lunch could mean you win big, so it’s certainly an investment you should be more than willing to make.

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ENVIRONMENT

Doing more with less!

European Week for Waste

Reduction 2015 The ‘circular economy’ concept is rapidly gaining traction in Europe and in the local scenario, but despite the key objective of decoupling waste generation and economic growth, this is no easy task to achieve. According to 2013 statistics by Eurostat, waste generation in Malta is estimated at circa 1.5Kg per person per day and action is needed to reduce the amount of waste generated and to take responsibility.

The European Week for Waste Reduction (EWWR) is a great way to start; a whole week dedicated to awareness-raising actions about sustainable resource and waste management. This year will be the sixth consecutive for Wasteserv to coordinate this project in Malta alongside 20 other European countries. Building on past success and a growing reputation in Europe as a high calibre event, the 2015 edition is being organised under the patronage of the European Parliament.

The EWWR bases itself on how one can think of an awarenessraising action to implement or communicate during the last week of November. It is open for everyone to participate in, with applications for various categories, whether an individual citizen, the public administration sector, educational establishments, NGOs/associations or the business sector comprising all segments from manufacturing to services, SMEs to large industries.

The project focuses on the reduction of solid waste, giving applicants the flexibility to focus on Reduce, Reuse or Recycling as the central theme of their action.

Other key elements of the project are innovation and long-term vision – in other words, coming up with original ideas that will capture the attention of the target audience and make a lasting impact. In fact, the most successful actions organised during the week are those which aim at

a change in lifestyle rather than one-off events.

Each year the EWWR is themed in the hope of inspiring those who may need a boost for ideas, although participants need not necessarily stick to the theme and have the flexibility to focus on any aspect of waste reduction. For 2015 the chosen theme at European level is Dematerialisation – doing more with less! In the business scenario this poses the question: what strategy can the company implement to minimise the use of resources and cut down on wastage?

In terms of past actions implemented locally, entities such as ICE Malta launched a green policy for the company during the dedicated week, implementing new company procedures to better improve its waste management.

Another example is that of Malta Freeport Terminals Ltd, a repeat participant of the EWWR, which linked its Environment Day to the EWWR with multiple teambuilding activities for staff members and their families, gaining them an award as part of the Malta Waste Reduction Awards.

From the financial sector, Bank of Valletta, also a repeat participant, implemented actions such as the collection of WEEE (waste electrical and electronic equipment) while from the tourism industry, last year Le Méridien St Julians Hotel & Spa focused on the theme for 2014 ‘Stop Food Waste’ by separating food waste within the hotel and organising a separate collection for this waste stream. Apart from the direct environmental benefit, this also led them to win first place in the dedicated category of the Waste Reduction Awards 2014.

For EWWR 2015, the theme Dematerialisation can be translated into actions aimed at reducing waste through repair or reuse of materials. Dematerialisation can be described as the usage of less or no material to deliver the same level of functionality to the user. EWWR actions can consist of a repair workshop, an organised swap day or collection of second-hand items for charity, an eco-design contest and many others… the more innovative the better! If throughout the year the

company is already taking part in green activities, then this also can be implemented as an action for the EWWR. An important factor is for the action to include a form of communication during the particular week. Further ideas and tools are accessible from the official website www.ewwr.eu.

The key to being effective when participating in this project remains communication. In doing so, there is also the opportunity for positive exposure for the entities involved with the use of local media, promoting the environmental efforts taken by the action developer.

Wasteserv makes sure that every participant is rightly recognised for its efforts. This is done through the Malta Waste Reduction Awards. During the award ceremony prizes are handed out to the most outstanding actions performed within each category, along with acknowledgement for each participating entity. Participants in the EWWR will also be in the running to represent Malta as nominees for the European Waste Reduction Awards, an annual awards ceremony that

brings together the best participants from all over Europe. This is great exposure at a European level thanks to publicity through social media and on the official EWWR website, always keeping in mind the core message of this project – working together to take responsibility and raise awareness about how we can all contribute to reducing waste.

Applications are now open and close 2nd November for the EWWR, a European project coordinated by the international network ACR+ as lead partner and co-funded by the EU’s LIFE programme and the French public agency ADEME. For more information and to download the tools visit www. ewwr.eu/en/support/prevention-thematic-days-2015, or contact Wasteserv, the local coordinator of the EWWR on Freephone: 8007 2200; E: ewwr. ws@wasteservmalta.com; F: Wasteserv; Twitter: Wasteserv

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INTERVIEW

Boosting Europe’s sluggish economy Could the European Commission’s Investment Plan be the answer?

With the potential to inject an estimated €330 to €410 billion into the EU's GDP and create 1 to 1.3 million new jobs in the coming years, the Investment Plan for Europe could be big news for Europe’s economy.

Sarah Micallef speaks to European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, about the Plan’s objectives and what it means for Europe, and Malta.

“The Investment Plan for Europe has three objectives: removing obstacles to investment by deepening the single market, providing visibility and technical assistance to investment projects and making smarter use of new and existing financial resources,” European Commission Vice-President Katainen maintains, making reference to the Commission’s estimates for the Investment Plan’s potential impact on the EU’s GDP. “There is sufficient liquidity in the EU, but private investors are not investing at the levels needed due to a lack of confidence and uncertainty among other factors, so the

Investment Plan for Europe aims to address this,” he says.

Speaking of the priority areas identified by the Plan, and how the Commission plans to support strategic investments in key areas in concrete terms, the EC Vice-President explains that the European Fund for Strategic Investments (EFSI) is at the heart of it, asserting that the EFSI's challenge is “to break the vicious circle of under-confidence and under-investment, and to make use of liquidity held by financial institutions, corporations and individuals at a time when public resources are scarce.”

“There is sufficient liquidity in the EU, but private investors are not investing at the levels needed due to a lack of confidence and uncertainty among other factors, so the Investment Plan for Europe aims to address this.”

In tangible terms, he continues, the EFSI is being set up within

the European Investment Bank (EIB), and will mobilise additional investments in the real economy in areas including infrastructure, education, research, innovation, renewable energy and energy efficiency. It will also focus on Smalland Medium-sized Enterprises (SMEs) and mid-caps (companies employing between 250 and 3,000 individuals), and target projects that will, among other objectives, promote job-creation, long-term growth and competitiveness.

The Investment Plan also talks of investing in the real economy.

Vice-President Katainen maintains that in order to establish

EFSI, a guarantee of €16 billion will be created. Additionally, the EU guarantee will be backed by a guarantee fund of €8 billion from the EU budget, while the EIB will commit €5 billion, giving EFSI a risk absorbing capacity of €21 billion. Already before EFSI is operational, he continues, “the Investment Plan has given financial backing to several projects across the EU, such as research into Alzheimer's and heart disease; new energy connectors across Europe; making steel and pulp production greener; extending family healthcare to rural areas; and improving energy efficiency in homes.”

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INTERVIEW Elaborating on timeframes in relation to the Plan, the EC VicePresident draws up a timeline, maintaining that in May, four and a half months after the Commission adopted the legislative proposal in January, EU legislators reached a political agreement on the Regulation for European Fund for Strategic Investments (EFSI). Following this, in July, the Commission agreed on a package of measures that will allow the EFSI to be up and running by early autumn. According to VicePresident Katainen, the EFSI will be fully operational by mid-October, once the final appointments are made.

“The EFSI has an initial investment period of four years,” he

“The Investment Plan has given financial backing to several projects across the EU, such as research into Alzheimer's and heart disease; new energy connectors across Europe; making steel and pulp production greener; extending family healthcare to rural areas; and improving energy efficiency in homes.”

continues. “After three years, it will be subject to an independent evaluation when the Commission will publish a report assessing its EU-wide impact on investment, job creation and access to financing for SMEs and mid-caps.”

Based on this report, the Commission will propose whether to set a new investment period, he explains.

Linked to this, September also saw the launch of the European Investment Advisory Hub, which, according to Vice-President Katainen, “brings together all the expertise we have already, and makes our advisory services more coherent and more efficient than before.” The Hub provides a single access point to a wide range of advisory services in support of project identification, development and implementation, access to finance, the use of financial instruments, and capacity building, he continues.

Yet while the Commission is seeking to boost a sluggish economy with the Investment Plan, drastic events have been taking place within the EU that could undermine this, such as the recent deadlock in talks with Greece. Asked whether there is a case of conflicting currents, where one is pushing for reform while the other is holding it back, the EC Vice-President asserts that the Juncker Commission’s

top priority is to get Europe growing again and to increase the number of jobs without creating new debt. “Investment has been missing from our economics in recent years. Alongside making structural reforms and pursuing responsible management of finances, we also need to restore investment levels – to overcome the crisis, kick-start jobs and growth, and sustain them,” he says.

“The Investment Plan for Europe can contribute to boosting public and private investment in Malta, facilitating access to finance for SMEs and removing barriers to investment, and thus help to maintain the good economic momentum.”

Shifting to a local perspective, Vice-President Katainen comments on the fact that Malta’s economy seems to have escaped the turbulence experienced by many other EU member states, maintaining, “The Maltese economy is among the best performing in the EU, with GDP growth of 3.5 per cent and an unemployment rate below six per cent in 2014.”

Despite this, he warns that whilst public investment in Malta has recovered swiftly from the financial crisis and is expected to remain stable in 2015, it is forecast to decline in 2016. “Private investment declined considerably during the financial crisis but it is strongly recovering and is expected to reach pre-crisis lev-

els of around 20 per cent of GDP in 2015. The Investment Plan for Europe can contribute to boosting public and private investment in Malta, facilitating access to finance for SMEs and removing barriers to investment, and thus help to maintain the good economic momentum,” he concludes.

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Business News

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MBB Update 1st August –

28th August –

MBB appointed Design for MBB and UNIVERSITY OF MALTA Europe Ambassador in Malta set up Foundation The MBB has recently been selected as the ambassador for the European Commission’s Design for Europe programme in Malta. Design for Europe is the public name of the EC’s ‘European Design Innovation Platform’ (EDIP). The three-year, €3.8 million programme aims to help people use design to accelerate innovation across Europe - boosting economic growth and job creation.

The Design for Europe project aims to showcase to business and public services the benefits they

can achieve by integrating leading-edge design.

The MBB was chosen because of its broad local market knowledge and extensive network of contacts, and now embraces its new role by working closely with the Design Council in the UK and its Design for Europe counterparts across Europe.

The MBB is also currently undergoing preparations to support and promote this initiative by extending this network to Malta and encouraging sectors to better understand how they can benefit from using design as a driver for innovation and growth.

The MBB is organising an event on Design on 6th November 2015.

Foreign guest Dr Kamil Michlewski and local expert Caldon Mercieca will be sharing their valuable thoughts and asking your views. Join us and let us help you help your business! To register contact Ana Vella on avella@mbb.org.mt or call on T: 2125 1719.

has developed the initiative on behalf of the MBB in its initial stages.

Together with the University of Malta, the Malta Business Bureau has established the Foundation for the Promotion of Entrepreneurial Initiatives. The Foundation, a non-profit organisation, is situated at the University of Malta. The undertaking is a first-of-its kind Crowdfunding Platform which is due to launch by the end of the year. CEO Joe Tanti welcomed Karl Grech who has recently taken the role of Crowdfunding Platform Manager, whilst also thanking Daniel Debono who

Its main objectives are to primarily encourage, promote and sponsor entrepreneurship in Malta and will also offer its support for the establishment and growth of start-ups. Additionally, the Foundation will also serve to attract foreign foundations and organisations of a similar nature to participate in the events that it organises, thus increasing the visibility of entrepreneurial initiatives. As a founder of the Foundation, the MBB will now be a key contributor in devising the strategies and plans to attain the Foundation’s overall objectives.

4th September –

European Commission Vice-President Jyrki Katainen and Commissioner Karmenu Vella exchange views with local business stakeholders In an event co-organised by the European Commission Representation and the Malta Business Bureau in collaboration with the Enterprise Europe Network, the EU Investment Plan was the central theme of discussion with business stakeholders.

The high level debate saw the participation of European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, as well as European Commissioner Karmenu Vella, responsible for the Environment, Maritime Affairs and Fisheries.

European Commission Vice-President Jyrki Katainen

MBB President Mario Spiteri

In a welcoming note, Malta Business Bureau President Mario Spiteri commended the European Commission for this landmark initiative. He made reference to the importance of investment for steady economic recovery and to boost jobs and growth.

Mr Spiteri stated that “investment contributes towards job creation and accelerates productivity growth. Yet the challenge is how to go about facilitating the climate for investment, particularly for the private sector, when lenders take a step back from the credit market, and the lack of market confidence reduces the likelihoods of return on investment in reasonable timeframes. The European Commission’s drive to reverse this trend through its landmark initiatives, the EU Investment Plan and Capital Markets Union, are a step in the right direction.”

European Commissioner Karmenu Vella

During the event, business stakeholders also had the opportunity to exchange views with VicePresident Katainen and Commissioner Vella in an open floor debate moderated by Economist Lawrence Zammit.

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MBB UPDATE 10th September –

Launch of the CORE Platform

The launch of the Corporate Citizenship for Responsible Enterprises, otherwise known as CORE, has earmarked the creation of an instrument to support companies, civil society and communities to come together and deliver joint initiatives that will improve the quality of life of people and the success of businesses.

CORE was launched under the auspices of the Office of the President of Malta Her Excellency Marie Louise Coleiro Preca.

During the launch, Her Excellency highlighted how Corporate Social Responsibility (CSR) has been implemented by Maltese companies over the years but that it was also time to promote it on the national agenda and offer the space to bring all actors together.

Joe Tanti, CEO of the Malta Business Bureau, participated during the second panel discussion and contributed his thoughts on the theme ‘What brings social

responsibility and corporate citizenship to companies?’

Sharing his views on the topic, Mr Tanti commented, “there are many who think that Corporate Social Responsibility is only for large companies wishing to create good PR – this is not the case. Customers and employees alike increasingly want to understand more how companies behave. CSR is the perfect means to develop this trust – as actions speak louder than words.

Our mission is to bring the CSR agenda forward in Malta.”

CORE is the national platform to promote awareness and exchange knowledge and experience about CSR. Under the patronage of the President of Malta, the official launch of the Association took place in the beginning of September together with the participation of the European Commission, CSR Europe, OECD and GRACE from Portugal.

25th September –

TTIP – What’s in it for Maltese Business?

The Malta Business Bureau, supported by the European Parliament office in Malta, organised a conference event dedicated to the upcoming trade agreement between the EU and the US known as the Trans-Atlantic Trade and Investment Partnership (TTIP) and its implications on local business. The event was held at the Malta Chamber of

Commerce and was moderated

by MBB CEO Joe Tanti.

Mark Seychell, MBB EU Policy Senior Executive.

The event witnessed two keynote presentations delivered by David Sammut, Director of International Economic Relations within the Economic Policy Department at the Ministry of Finance, who has first-hand experience in the ongoing TTIP negotiations and

The presentations served to provide an overview of both the state of play and the issues that are being debated in the TTIP discussions. The key elements discussed in the conference stressed on the notions that on the one hand TTIP’s economic potential is significant, on the other it should not be achieved at the cost of existing standards.

Above all, the process should be as transparent as possible.

In addition to the presentations delivered, the event also held two informative panel debates, the first of which focused on the impact of TTIP on local businesses and comprised of key figures in the various sectors, namely, the manufacturing, pharmaceutical, financial services, and transport sectors.

The second panel, moderated by Stefano Mallia, Maltese Employers Representative at the EESC, welcomed the political views and reactions of MEPs Dr Roberta Metsola, Dr Miriam Dalli and Dr Alfred Sant who shared their personal insight.

The event, organised in collaboration with Enterprise Europe Network, follows on a series of sector-specific consultation meetings with key industrial actors and business representatives held earlier this year. A report reflecting the findings of this process will be published later this year.

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MBB UPDATE

28th-30th September –

MBB delegation visits Brussels On EU Funding At the time of this issue going to print, an MBB delegation of 15 Masterclass participants from private firms is visiting Brussels on a three-day programme focusing on EU direct funding.

The Malta Business Bureau was represented by President Mario Spiteri, CEO and Project Leader Joe Tanti, and Project Administrator Marija Elena Borg.

The MBB’s Masterclass initiative is a result of the training undertaken under ESF4.245 Innovation Leaders: Improving Knowledge on EU Direct Funds. Since its inception, the programme has provided training and support to over 100 managers and executives on three EU funding streams of great relevance to private industry: Horizon 2020, Erasmus+ and Creative Europe.

Following the training undertaken, the best 15 project ideas submitted by the successful participants to the Malta Business Bureau and the European Projects Association rendered the successful participants eligible to be part of this study visit.

The aim of the study visit is to provide further training and support for the participants to develop their idea further and actually submit their project proposals to the European Commission in due time. Throughout this visit the group had the opportunity to attend presentations at the European Commission, European Parliament, Permanent Representation of Malta to the EU and the MBB’s transnational partners in the project – the European Projects Association.

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BUSINESS AWARDS

European Business Awards, National Champions of the Year For Growth in Strategy Last week Ozosystem was notified that the company is the national champion for growth strategy of the year 2015/16.

Besides being awarded the national award, Ozosystem will be representing Malta for The ELITE Award for Growth Strategy of the Year in the European Business Awards.

This award reflects this year’s success of being the first and only company in the industry to obtain the ISO 9001 certification as well as that of being the only company in the industry to have its own state-of-the-art training academy.

The fact that the company’s strategy plans for growth and sustainability have been recognised means that Ozosystem is heading in the right direction.

Ozosystem has grown into one of Malta’s leading Cleaning and Hospitality Services.

The award does not mean that the company has reached the top; it means that it has managed

to climb another step, in an endless staircase.

The company directors thank their clients for their trust in the company’s services as well as all of the employees for their

hard work, dedication and loyalty towards the company. www.ozomalta.com

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DESIGN

Innovation through Design Ana Vella speaks to Senior Consultant at Value Engineers Dr Kamil Michlewski and Project Leader of the Valletta Design Cluster Caldon Mercieca to find out how design impacts the way we live and its role in the success, or otherwise, of a business.

Where would we be without design? Not many people understand just how big a role design plays in our everyday lives. It literally shapes the world we live in, attracts us to the products we buy and use, and helps to create new and innovate services used by millions around the world.

Unknown to many, design plays a vital role in terms of economic growth – its potential to take business sectors and public services to the next level is proving a force to be reckoned with.

Kamil Michlewski So then, what is design exactly?

One cannot talk about design without the element of innovation – the two go hand in hand. Design is fundamentally important not

only to products, branding and services but also to the core of any business. Naturally, most would agree that design is key for the manufacturing and technology base as it gives products value and differentiates them from each other.

Anybody can replicate another product, but replicating unique design that is ingrained in a product is a different story. The idea is that design should not be relegated to any one particular industry alone as it is capable of being integrated wholly into all sectors.

Despite its indispensable, yet somewhat uncapitalised potential to translate ideas into commercial streams, design is often assigned to an inferior role. Dr Kamil Michlewski, International expert and Senior Consultant at Value Engineers, London, offers his insight on the topic from a business perspective. When asked what impact design could have on companies, organisations and SMEs in particular, Dr Michlewski replies, “design and designers have always had a tremendous impact on organisations of all sizes. The breadth and depth of that impact has only recently started to be recognised

in the mainstream business debate.”

Design is often the reason for the success of most commercial products, however it is becoming increasingly relevant to even wider contexts. He continues, “with the broadening of design's reach through innovative concepts and practices such as Service Design and Design Thinking, the number of businesses that realise the benefits of design are on the rise. The nature of that impact is linked to how deeply design is embedded. The levels range from a simple intervention at the product or service level through to organisational culture level, where the ethos and values of design and designers serve as a guide to how the entire organisation behaves.”

Dr Michlewski argues that for SMEs, design offers a really neat framework for delivering exceptional value to their customers. For instance, by tuning into what customers want in a deep and personal way, SMEs have the opportunity to create products and services that are more attractive than those offered by the larger, less nimble organisations. “By iterating more quickly around consumer needs, SMEs

can more effectively create the optimal product-market fit. If they do it using the spirit offered by design they can achieve better profits and be more meaningful in the lives of their consumers.”

memorable customer experiences. Take the work of Virgin Hotels – by focusing on how people actually use hotel rooms, the brand was able to come up with a collection of little improvements

“The number of businesses that realise the benefits of design are on the rise.”

– Kamil Michlewski When asked which sectors could potentially benefit from design the most, Dr Michlewski makes the interesting argument that “there is no industry that is immune to the forces of disruption sweeping the world today. As a consequence, all sectors and industries have an acute need to do something about it. Design and designers offer a way to focus more precisely on meeting the needs of the consumers that is relevant, actionable and ultimately more beneficial to everybody.”

Dr Michlewski illustrates the suggestion that businesses should tap into service design to become more competitive and to offer championed customer experiences. “In the hospitality sector, service design can play a key role in creating better, more

that make a stay there a more pleasant and comfortable experience, such as a headboard with lumbar support and an alarm clock that displays time on the ceiling at night. Today people are expecting great, intuitive and aesthetically-fulfilling brand encounters and design offers a very compelling set of tools as well as values, to create those experiences.”

Dr Michlewski suggests that in order for there to be a flare for design, it is not merely businesses alone that must gain a greater appreciation for the concept but also society. He continues that “in order to create a more design-conscious society, people need to collectively buy into the benefits design and designers bring to their daily lives. Denmark is a good exam-

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DESIGN ple, with institutions such as the MindLab – a design-centric body working at the heart of the government to infuse policy-making with the ethos and values of design."

“The Valletta Design Cluster, a first-of-itskind initiative, serves to provide a model of regeneration focused on creative networking, community integration and social regeneration.”

– Caldon Mercieca So then, how may these practices be applied in the Maltese context? Are we design-conscious? Manager at the Culture Directorate within the Ministry responsible for Culture and Project Leader of the Valletta Design Cluster, Caldon Mercieca sheds some light on the subject. "Design comprises a very wide range of activities, ranging from industrial design to product design, from urban design to communication design, and from fashion design to service design.

Malta already has a wide range of operators in this sector, with over 600 enterprises employing over 1,200 people,” says Mr Mercieca. “The Valletta Design

Cluster, a first-of-its-kind initiative, serves to provide a model of regeneration focused on creative networking, community integration and social regeneration. It also respond to the needs of new graduates that have followed design-related degrees and recent developments within the industry."

Business Agenda learns that, once fully fledged, the Valletta Design Cluster will offer a number of support services. The Cluster will primarily serve as a support platform for design and design-related enterprises that wish to extend their operations internationally.

Will the Cluster be able to assist the local private sectors that use design in some way, to tap into export potential? Mr Mercieca replies, “it will offer internationalisation support in the form of access to international networks, coordination and streamlined support for the participation in relevant international markets.

This initiative will also provide mentorship and consultancy on innovation through a mentorship programme which will involve international industry experts and specialists."

Mr Mercieca adds that the Cluster prioritises these individuals and enterprises, especially startups, that have a multidisciplinary

Caldon Mercieca approach to their business idea, and which demonstrate an effort to be innovative in their creative and business approach. “We are carrying out a study on the value chain of the urban design and urban regeneration element within the local industry; in the future we intend to extend this to cover communication design and product design as well.”

The Cluster is currently working to build the basis for its intended strategic support for the industry, with one key element being the capacity building of the organisation, with recruitment and training of staff planned for 2016 and 2017. “The capacity building process also includes the devising of a detailed action plan for the design sector in Malta, which will include the framework for startup programmes that will be run by the Cluster itself.”

The project will involve the conversion of a large site in Valletta into the base of operations for the Cluster. The premises will provide facilities for start-ups and established companies in design, including co-working spaces, studios for start-ups, meeting rooms and conference facilities and access to dedicated equipment and software required by the Cluster clients. Mr Mercieca explains that this dedicated facility will also provide spaces for project development that focuses mainly on collaborations with international partners. “This initiative is linked to our current efforts to build a strong international base of strategic partners, with links already established in Copenhagen, Cyprus, Dubai, Helsinki, Tallinn and Tokyo.”

Mr Mercieca concludes, “the intention is to enable Maltabased enterprises to access these markets, gain expertise from design promotion organisations based overseas and also make Malta attractive to incoming practitioners and organisations that can support the development of our design industry.”

The MBB is organising a Conference on design on 6th November which welcomes keynote speakers Dr Kamil Michlewski and Caldon Mercieca together with your participation. To register your interest for this event

e-mail your request to Ana Vella avella@mbb.org.mt or call T: 2125 1719.

“Today people are expecting great, intuitive and aesthetically-fulfilling brand encounters and design offers a very compelling set of tools as well as values, to create those experiences.”

– Kamil Michlewski

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INTERVIEW

Building bridges between vocational education and training and the labour market The notion that the world of education and the world of work are two disparate things is unfortunately not so uncommon. ANA VELLA chats to CEDEFOP Director James Calleja to discuss the misconceptions of the relation between education and work, and the lack of awareness of the strong link that exists between the two.

James Calleja

CEDEFOP – the European Centre for the Development of Vocational Training – is an EU agency that supports the development of European Vocational Education and Training, also known as VET. The main aim of the CEDEFOP agency is to assist the Commission, member states and social partners develop adequate VET policies that provide the right and necessary skills needed in the labour market. Developing vocational education and training is imperative in changing the

“Apprenticeships and work-based learning provide a good bridge between what the labour market is offering and what universities are providing.” way we think about education and work. It is also indispensable if we want to diminish the mis-

match between learning and the skills acquired.

Mr Calleja begins by discussing CEDEFOP’s role on the recently endorsed Riga conclusions. He explains that the Riga conclusions are a roadmap towards a more robust approach to VET provision and a more targeted agenda that can increase the quality of education and training, and establish parity of esteem between VET qualifications and other sectors of education. Fol-

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INTERVIEW lowing the Bologna process for higher education that started in 1999, the Copenhagen process initiated, in 2002, a Europeanwide reform process for VET in order to make qualifications and systems of vocational training more readable between themselves and to enhance the quality and relevance of VET to labour market realities.

One might think, what’s so different about Riga? Mr Calleja comments that for the first time, “there is a much stronger political commitment by ministers in charge of education and training on the way forward for VET and where it should be by the year 2020, as they are the ones who are pronouncing, not just endors-

ing, declarations. It is they who have committed themselves to lead the process.”

Essentially, the Riga conclusions focus on five manageable and important deliverables to be achieved by 2020. Their aims are to promote work-based learning and apprenticeship. Work-based learning is an umbrella concept under which apprenticeship falls, just like simulated training or work experience.

Secondly, Riga also aims to make VET accessible to all including those who are illiterate or who drop out of schools. Additionally, it ensures that all certifications and programmes are qualityassured to the highest degree,

that VET provides key competences and lastly, training availability for teachers who teach in VET. Mr Calleja continues, “the main objective of Riga is that by 2020, teacher training will be in place, we would ensure that key competences are adequately embedded in VET programmes, that quality is activated at all levels of VET provision, that access is really there and therefore no one is marginalised after compulsory education and becomes a NEET (not in education, employment or training), and finally that apprenticeships and work-based learning become a reality within programmes of vocational training.”

Mr Calleja insists that it is here that industry and the private sector must become synchronised as part of a whole system of education. When asked about the main challenges for Riga to be put in place, Mr Calleja reiterates that the main challenges are funding and making VET attractive in terms of structures and quality. “Governments must realise that funding will make or break VET in the future. If we want to push apprenticeships and provide the workforce of the future with work-based learning, then we need to be serious about the funding of vocational training.”

The question of Riga’s main challenge leads one to ask: are all countries the same? Mr Calleja disagrees that all countries give VET the same priority, “some take it very seriously, but there are others that lag behind, that do not really believe that investing in vocational training gives industry the right push and attracts investment. In countries where VET is an adequately funded ‘culture of learning and working’, unemployment, especially of young people, is low; where VET struggles to attract governments, learners and employers, unemployment is high.”

Interestingly, this argument is exemplified by the comment that in countries where youth unemployment is high, parents would still push their children to obtain a University degree regardless of what the labour market is offering. “Unfortunately, it is often a case of ‘first get your degree and then we will see’.”

In the case of VET, culture is no easy challenge because it is such a major determining factor. Mr Calleja explains that often, it is the mentality that what’s more important is ‘where you study’ rather than ‘what you study’. Mr Calleja suggests that if governments could make non-mainstream VET more attractive in terms of funding, job attraction and of course, the quality of the certification, then it will open new doors and will be taken up by individuals not as a second option after failing mainstream education, but as a first choice.

VET aims to narrow the gap between education and the world of work that systems of education and employment have widened over the years. Of course, this does not apply to all countries. There are some which invest heavily in apprenticeships and very often a pattern forms where unemployment is very low because of these apprenticeships.

In the past few years, promoting work-based learning and in particular apprenticeships has been high on the European Commission’s policy agenda through the European Alliance for Apprenticeships as well as in many EU member states. Mr Calleja explains that Europe’s 2020 strategy target for higher educa-

tion attainment remains 40 per cent. He hopes that change will however come about in terms of universities and higher education when they embrace such concepts of work-based learning or apprenticeships.

True, a number of universities including Malta’s have a number of work practices, “but it’s not exactly work-based learning, it’s not an apprenticeship as this has different conditions.”

“Apprenticeships and workbased learning provide a good bridge between what the labour market is offering and what universities are providing. It bridges the gap between training engineers for the labour market, and having engineers already working in a labour market environment and being graduates of that particular university. This is the difference.”

“Governments must realise that funding will make or break VET in the future. If we want to push apprenticeships and provide the workforce of the future with workbased learning, then we need to be serious about the funding of vocational training.”

Europe’s economy is largely characterised by SMEs and in many countries micro-enterprises tend to predominate. Many find it difficult to offer apprenticeships and become concerned that their investment will not yield sufficient benefits. Despite the fact that 80 per cent of an apprenticeship salary is normally covered by EU funds, SMEs still tend to regard training as yielding no benefits when their trainees leave for bigger enterprises one or two years down the line. Mr Calleja acknowledges that this is still an issue, thus he keenly proposes the idea that social partners could very well become the ‘multiplier effect’ that helps SMEs overcome this.

Mr Calleja shares his final thoughts on his belief that the way VET is perceived can only be changed or possible if it is injected with a good dose of entrepreneurial spirit. Vocational education must become more competitive; this can be done through industry and the labour market.

“The more social partners play an active role in education and training, the more we narrow the gap between education and the world of work. We need industry to play a more proactive role. We are attracted by money, by what is lucrative. It is the quality of life that people aspire to that drives them to go for job A instead of B. If you do not fund VET as you should, it remains unattractive, it remains a second option.”

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POLICY

The future of corporate taxation in the EU

Daniel Debono, EU Affairs Manager at the Malta Business Bureau, takes a closer look at the EU Action Plan for Fair and Efficient Corporate Taxation in the EU. Corporate taxation in the European Union is a very sensitive and controversially debated subject, which has persistently stayed on top of the agenda in recent years.

This is understandable given the high economic value that results from tax paid by corporates, for which states – not limited to the EU – have to undergo very stiff competition.

Over the past century, the very nature of doing business within specific national borders has changed, particularly with the emergence of digital and communication technologies that have revolutionised the global economy, particularly in high-value service sectors.

For a long time, the European Commission was pressured to take action in this area, particularly by the larger member states, blaming lower-tax rate regimes for encouraging companies to conduct aggressive tax

planning and shift their profits to pay corporate taxes in jurisdictions where value was not necessarily being created.

In 2011, the Commission put forward a proposal to introduce a Common Consolidated Corporate Tax Base (CCCTB). In brief, this intended to introduce an EU-wide standard tax return for corporates – known as tax base.

Furthermore, it included a formula based on labour, assets and sales, to distribute profits of groups operating cross-border within the EU to their respective companies in order to pay a share of corporate tax in each jurisdiction in which they are present.

This proposal ran into lengthy and inconclusive discussions particularly at the European Council.

Naturally, one of the most defining factors was that smaller states were unhappy with the proposed formula of distributing profits to companies operating

cross-border according to labour, assets and sales, as this would penalise them heavily.

With discussions stalled at the Council at the end of the Barroso Commission, the CCCTB did not come to an end. The new Juncker Commission was determined to re-introduce the issue, this time, however, through a more extensive and elaborate plan on corporate tax, which also takes into consideration past failed attempts to push the CCCTB through.

In fact, in June 2015 the Commission published an ‘Action Plan for a Fair and Efficient Corporate Taxation in the EU’, highlighting five key points on how to move forward on this issue.

Re-launch the Common Consolidated Corporate Tax Base

The CCCTB remains at the centre of the EU project on corporate tax. While the nature and objectives remain similar, this time round the Commission aims to first agree on an EU common tax base before moving on to the more sensitive consolidation part.

Furthermore, in contrast to the previous proposal, the Commission is envisaging a mandatory use of CCCTB for multinational companies. It claims that the optional solution suits most multinationals that benefit from current loopholes and that are most likely to engage in aggressive tax planning.

Ensuring fair taxation where profits are generated One of the biggest issues before the Commission is the accusation by larger EU member states that companies shift profits towards jurisdictions with lower corporate

tax rates, particularly third countries. On this basis, the Commission wants to introduce measures to link profits to the jurisdiction where profits are made. Among others, it will suggest ways on how to improve the transfer pricing system, impose stricter limits on preferential tax regimes and protect national tax bases through harmonisation.

Creating a better business environment The Commission will propose measures to remove current tax obstacles for businesses that operate in the single market in order to make it more attractive for companies to do business cross-border within the EU rather than limit their operations in one member state. This will improve the EU’s competitiveness and lead to more growth as well as corporate tax revenues generated in the EU.

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POLICY “The European Commission’s plans in the area of corporate taxation, particularly the CCCTB, are expected to have serious repercussions on the Maltese economy as well as many Maltese businesses.”

the advantageous factors offered by the Maltese tax regime due to the homogeneity of the system.

The fact that, in the new proposal that is expected to be published in 2016, the Commission will propose to make CCCTB mandatory for cross-border businesses would make matters worse, because this will also remove the flexibility for companies to choose the benefits of the Maltese tax regime, should it suit them more.

Increasing transparency

As a result, it is assumed that many multinational companies would find it less attractive to set

In March 2015, the Commission presented a Tax Transparency Package which among others suggests that there should be the automatic exchange of information on cross-border tax rulings and for a common approach against non-cooperative tax jurisdictions. On the latter, third countries are encouraged to apply minimum standards of good governance in tax matters. As a matter of action, the Commission has published a list of such non-cooperative jurisdictions.

Improving EU coordination To improve cooperation between EU member states and other stakeholders on tax issues, the EU is proposing to reform, extend the mandates and strengthen the instruments for the Code of Conduct for Business Taxation Group and the Platform on Tax Good Governance, in order to improve their efficiency.

The European Commission’s plans in the area of corporate taxation, particularly the CCCTB, are expected to have serious repercussions on the Maltese economy as well as many Maltese businesses.

It is no secret that the Maltese tax regime is a highly advantageous one, particularly within the EU, for international businesses to set up shop in Malta. This has fuelled the development and consolidation of many new industries such as the financial services, ICT and i-gaming sectors, which together with other traditional ones such as manufacturing and tourism, have become the bedrock of the Maltese economy. As a result, many professional services were created in order to service these thriving industries.

The immediate impact of the consolidation part of CCCTB would be a reduction in corporate tax revenue for the Maltese government. On the basis of the formula suggested by the Commission in the 2011 proposal based on labour, assets and sales, Malta would only be benefitting from a fraction of the corporate tax billed to cross-border operating companies.

Malta would also be impacted negatively by a harmonised tax base. This is because a standard tax return would remove

up shop and have a presence in Malta. This would undoubtedly impact the business of local companies offering professional and ancillary services.

Having conducted an impact assessment on the original European Commission CCCTB proposal in 2012, the Malta Business Bureau will continue to follow the developments of this issue together with local and EU stakeholders.

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business update

Middlesex University honours Malta CEO Ivan Bartolo, CEO of 6PM, was awarded an Honorary Doctorate by Middlesex University at the graduation ceremony held last week for 60 graduates from the University’s campus in Pembroke, Malta. The award was made on the basis of Mr Bartolo’s extensive achievements in developing products that address the problems of HIV, stroke recovery and dementia. 6PM is recognised as a pioneer of contemporary healthcare solutions which have made a difference to the lives of patients in hospitals around the world.

Ivan addressed the graduates, urging them to “…use your knowledge, education and passion for positive outcomes. While financial rewards are important, do not be driven by them. Be driven by your passion and by what you want to be known for.”

This was the second graduation ceremony for students of the University’s Malta campus which was launched in 2013. Professor Tim Blackman, Vice-Chancellor of Middlesex University, noted that the students in Malta have achieved outstanding success,

with a high proportion of First Class honours and Distinctions in their Bachelors and Masters degrees.

The Honourable Chris Agius, Parliamentary Secretary for Research, Innovation, Youth and Sport also addressed the congregation, congratulating the students on their achievements and emphasising the government's commitment to making Malta a centre for international higher education.

Express Logigroup International Freight Service peripheral tasks and enable them to concentrate on their core business. The customer benefit – cost savings and improved quality – is always in the foreground of our company’s ethos. We therefore continuously monitor and optimise procedures and processes, and thus permanently improve the efficiency of our services.

Within today’s booming marketplace, companies must be adaptable and specialised. As a logistics company based in Malta, we at Express Logigroup use innovative strategies to achieve specific goals and this is why we are unrivalled and unparalleled in our international services.

Express Logigroup offers custom-made solutions even to the most remote locations and our coordinated methods ensure that your logistical needs are met professionally. Through integrated logistics solutions and innovative outsourcing concepts we relieve our customers of

Express Logigroup cooperates throughout Europe with highly efficient and privately operated companies that like us, act independently of large corporations and are flexible and much more customer centric. Serviceoriented company philosophies and highly efficient procedures place the customer at the centre of our attention. In addition to our regular part and full loads services, Express Logigroup offers courier, trade fair logistics, professional packing, home to home removal services and professional logistical consultancy service.

For more information visit www.expresslogigroup.com

Problems sleeping?

Obstructive Sleep Apnoea (OSA) is a common and debilitating condition that can affect people at any age, although it is most prevalent from middle age onwards.

In OSA the upper part of the air passage behind the tongue narrows and often blocks during sleep causing an interruption to breathing. Obstructive Sleep Apnoea is characterised by loud snoring with episodes of silence.

Occasional brief obstructive events are harmless and are quite common in a normal adult. Each brief awakening required to re-open the airway passage destroys the normal sleep pattern and sleep is severely disrupted. This prevents the sleeper from enjoying sufficient deep sleep to feel refreshed and energetic the next day.

Sleep Apnoea’s short to medium term symptoms include chronic fatigue, mental confusion and lower testosterone count which reduces libido and associated erectile dysfunction, but is also linked to many other serious conditions if left untreated over the long term. OSA can in fact be a contributing factor for hypertension, stroke, diabetes, heart disease and ultimately, heart failure.

Continuous Positive Airway Pressure (CPAP) is the most effective and non invasive treatment offered to OSA sufferers.

This therapy is designed to stop the air passage from narrowing or collapsing during sleep by acting as a splint.

Contact us now on T: 2134 4345; E: admin@technoline-mt.com; www.technoline-mt.com

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business update

Malta's first full-blown weddings portal launched on 1st October OurWedding.com.mt is a highend lifestyle-oriented portal featuring fresh content, including a plethora of information to make the journey to a couple’s big day effortless and fun. It also offers relationship advice, travel tips and home décor ideas that couples will find useful whatever the stage of their relationship.

Backed by a brilliant team of editors, journalists and bloggers on behalf of Content House Group – the publishing company behind many of Malta’s top magazines – OurWedding.com.mt serves as an essential tool for couples, covering an extensive range of sectors from wedding planning to venues, catering to flowers, bridal wear to fashion, bridal cars, photographers, make-up artists to musicians, jewellery to invitations, honeymoon and travelling, a home and design section, and much more.

There’s something about weddings, and the love stories tied to them, that captivates the romantic in all of us. From the proposal to the planning stage, right up until the big day arrives, there’s so much to plan and do, and while there are many resources out there to provide inspiration

and advice, few can compare to the recently-launched, exciting new platform that is the first of its kind on the Maltese islands: OurWedding.com.mt.

Always up-to-date, easy to use and chock full of locally relevant ideas, inspiration and suppliers,

“What we set out to achieve with this portal is an active one-stopshop for couples who are planning their big day, as well as for anyone who loves or is interested in weddings, home interiors and travelling. It features a mix of local stories and news, plus interesting international hap-

penings and trends within the world of weddings,” says co-editor Sarah Micallef.

Apart from this, very much like a wedding itself, OurWedding.com. mt also serves as a visual treat.

In fact, the portal’s design is also something that co-editor Martina Said believes really sets it apart. “Aside from the interactive content and engaging stories, I believe OurWedding.com.mt is special because of its sophisticated, elegant design and accessible interface,” she says.

An extensive wedding directory covering all major wedding and home sectors including bridal wear and jewellery, cars, catering, florists, invitations and souvenirs, and home furnishings also forms an integral part of the portal, as well as a Real Weddings section, which pro-

vides insight into real couples’ weddings, featuring photos and interviews from actual weddings in Malta.

Certainly, as OurWedding’s online sales manager Petra Urso concludes, “our job is to understand what the market wants to tap into, so as to highlight their products and services to brides and grooms across Malta. We’ve created something new, and OurWedding.com.mt really does differ from the many wedding directories that are currently available.”

Ourwedding.com.mt is a project owned and managed by Content House Group. For advertising and editorial enquiries contact Content House Group on 2132 0713 or via email on info@contenthouse.com.mt

BUSINESS AGENDA | AUTUMN 2015

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BUSINESS AGENDA | AUTUMN 2015