The Malta Business Observer, 27th February 2020

NEWS

Issue 107

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Distributed with Times of Malta

February 27, 2020

UK-EU free trade deal benefits Malta businesses – High Commissioner

e law governing aircraft registration will be amended to give owners more choices while ensuring protection to lessors, Transport Minister Ian Borg says, when speaking about the Malta Aviation Register’s success story. see pages 5, 6 >

Rebecca Anastasi A comprehensive free trade agreement, with zero tariffs and zero quotas, between the United Kingdom and the European Union is in the best interests of Maltese businesses, the British High Commissioner, Stuart Gill, said, stressing that the transition period will not be extended beyond 2020 if this agreement fails to be secured.

In comments to The Malta Business Observer, Mr Gill pointed to the healthy trading relationship tying Malta and the UK together, saying “we want that to continue”, even after the transition period, and this can be achieved through a free trade agreement, a so-called Canada-style relationship with the bloc. Yet, he urged “continuous dialogue”, asserting that if local firms or industry stakeholders have any concerns, they should “raise them with the Maltese Government” since “this is a negotiation which takes place with the European Commission”, with which the local authorities are liaising.

The UK officially left the bloc on 31st January, but still trades as a full member during a transition period, which kicked off on 1st February and ends on 31st December 2020, when the UK will leave both the single market and the customs union. Over these next 10 months, both parties expect to negotiate the details of their future relationship across various areas including trade, law enforcement, data sharing, security, aviation, fishing, and pharmaceuticals.

The British Government has said it aims to finalise a free trade agreement with the Union – in which no tariffs or quotas will be applied, without the need to commit to staying aligned with EU rules – within this time period, though both Michel

BUSINESS OPINION A growing number of macroeconomists and central bankers are sitting up and paying attention to the issue of climate change. Central Bank of Malta Communications Coordinator, Vanessa Macdonald discusses issues related to the greening of the financial system. see page 11 >

ANALYSIS

Barnier, the EU’s chief Brexit negotiator, and the European Commission President, Ursula von der Leyen, have expressed doubts that this is possible within such a tight timeframe. More recently, the French foreign minister, Jean-Yves Le Drian, even went so far as to say that Britain and the European Union are going to rip each other apart during trade talks since their differences were wide.

However, Mr Gill stressed that the parties were “at the starting point of these negotiations”, though he did underline that the British position was unequivocal.

“We are very clear. We have set out our position. Zero tariffs, zero quotas, like the Canada-style [agreement]. Michel Barnier has done the same, and, of course, there will be discussions about it. We see ourselves, on 1st January 2021, as a separate, sovereign nation, and without jurisdiction of the European Court of Justice, and that’s a key point,” Mr Gill stated.

Indeed, he underlined that while Brexit is “now done” there needs to be a focus on “the future relationships” with member states, throughout the bloc. Yet, should the free trade agreement not be secured, the UK will not

ask for an extension, but will operate “on the basis of the agreement reached in October 2019, including the Northern Ireland protocol”, he explained.

Mr Gill continued: “there’s been much talk of aligning our laws [with the EU’s]. The Prime Minister made it very clear that that’s not what we are seeking to do as a sovereign nation.

We want to have control over our own laws,” he affirmed, stating that “it is our right to do that as a sovereign nation – to get back control of our economic and political position.” continued on page 3

Economists Marie Briguglio, Gordon Cordina and JP Fabri analyse Prime Minister Robert Abela’s proposals on social housing, as well as the environment and planning in the final part of our two-part series. see pages 13, 15 >

CASE STUDY Jean-François de Clermont-Tonnerre, Director and Founder of AUM Asset Management Ltd, explains how the privately-owned investment management company is focusing its efforts on promoting the island’s unique strengths in terms of value-adding activities among investors. see pages 18, 19 >

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“Suite of arrangements” will facilitate trade with UK post-2020 continued from page 1 However, he also stressed that this does not mean the UK would renege on any of its deals. Indeed, Mr Gill highlighted Britain’s aim to be “a champion of free trade” globally, saying that the upcoming negotiations were not only about “our relationship with the EU but our relationship with the rest of the world”.

Whatever the outcome of the negotiations, the High Commissioner stressed that Malta and the UK will remain close. “This is about a friendly relationship we want to keep in place, in a way that facilitates trade,” he said, going on to say that he was “incredibly positive about the UK-Malta relationship. The future bilateral relationship is a serious, mature one, but, yes, based on the history. And within that business relationships will be able to thrive,” he underlined.

He said this was not only determined by the countries’ historical ties but it was actually based on “the things we do from now on”, in terms of working together on global issues, such as financial crime and cybersecurity. He points to the recent Bank of Valletta hacking case as an example of fruitful collaboration, saying that the criminals were apprehended thanks to the joint effort of the UK and Malta.

To ensure these positive relationships are sustained, Mr Gill has also been meeting with Maltese businesses. When asked by this newspaper if Maltese businesses expressed concern during this meeting, on what would happen should the zero tariffs and zero quota agreement not be reached by the end of the transition period, Mr Gill said concerns had not yet been expressed, insisting that the meeting was “a first discussion”

“Our business and other relationships are not solely determined by our membership of the EU” – Stuart Gill, High Commissioner which outlined the British Government’s position.

But he also referred to other interactions he has had with local businesses in the run up to Britain’s exit from the EU, saying that, despite a feeling of uncertainty, the communication has been “heartening”, and forward-looking. “Businesses are saying ‘yes, we don’t really know where it’s going to end up, but we are going to – and want to – continue working and doing trade with each other’. So, there’s a positivity about it. It’s not complacency. I think that would be a mistake, and it is accepted that there will be challenges,” he explained.

Moreover, he underlined that, over the next few months, the British High Commission’s role will be to “keep talking, keep communicating” so that both the Maltese Government and businesses based on the island “understand where we’re coming from” and vice-versa, since “there may be things we may need to pay particular attention to”, he said.

“It’s a dialogue that we need to keep going and we’re very good at that.

People talk to us a lot, and we did this all throughout the [negotiations for

the] withdrawal agreement, particularly on the citizenship issue. So, we work very closely with the Maltese Government on this and we will continue doing so with the relevant ministers, including [new Economy Minister] Silvio Schembri,” he states.

The High Commissioner also pointed to a “suite of arrangements”, in addition to the desired comprehensive free trade agreement, which will be put into place to facilitate business between the UK and the EU’s member states. One of these is the temporary entry scheme for businesses, which will enable people to travel to and from the UK for business purposes. “There are all sorts of ways to facilitate business, but it’s not going to be free movement. We’ll be outside. But there may be a number of different arrangements, though, again, they will not be based on aligning our laws with the EU,” he stated.

Mr Gill continued by pointing to certain administrative tasks Maltese businesses might have to take on, if they want to continue trading with the UK, once the transition period is over. One of these is registering for an EORI (Economic Operators Registration Identification) number, which allows firms to do business with other entities in non-EU countries. But he also pointed to initiatives being taken to aid businesses adapt, such as the Brexit Support Scheme, being organised through Malta Enterprise.

Ultimately, Mr Gill said, “our business and other relationships are not solely determined by our membership of the EU”. He pointed to the productive connections prior to Malta’s accession saying that “before you joined, we had a business relationship”, going on to assert that these connections will carry on.

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More choice and protection to lessors in Aircraft Registration Act amendments Ray Bugeja The Aircraft Registration Act is expected to be amended in the near future giving owners more choices while ensuring protection to lessors, Transport Minister Ian Borg has revealed, when speaking about the success story the Malta Aviation Register has been having in recent years.

Malta was allocated its aircraft registration prefix 9H on independence in 1964. However, the success the Malta Aviation Register is enjoying is much more recent, and appears brighter than ever, according to Dr Borg.

The register, he said, markets itself with its very success. “The fact that we have one of the fastest growing registries speaks for itself. This sustained pattern of growth is a direct result of the efficiency and organised operations of our Civil Aviation Directory, together with a positive reputation and a strong but flexible legal framework.”

The fact that more and more aircraft owners and operators are deciding to register their aircraft in Malta is testament to the trustworthiness and good service the Malta regulator and registry give when dealing with clients, Dr Borg added, underscoring a determination to continue exceeding expectations.

Initially, he had set a 400-aircraft registration target, which, of course, has been met and exceeded. “We are very ambitious for this sector. I believe it’s common knowledge that our maritime industry has exceeded every expectation – and every goal – and is now the largest in Europe and the sixth in the world, with the potential of stepping up into fifth place. We are very satisfied that we are witnessing

HIFLY’S AIRBUS A380, BEARING THE MALTESE REGISTRATION 9H-MIP, PICTURED AT MALTA INTERNATIONAL AIRPORT ON 19TH JULY 2018. PHOTO: KEITH PISANI

the same patterns in our aviation industry,” he explained.

“At the same time, we cannot let hubris cloud our judgement. I have always believed in pacing oneself and setting goals and milestones for every step of the way. For 2020, we have set our sights on reaching 460 aircraft while fostering proportionate growth with regard to Air Operator Certificates,” he asserted.

Yet, it is not only about numbers, according to the Transport Minister.

“We want to be proactive when it comes to infrastructure, investment and sustainable development in the

sector. This is the right way to grow,” he stated.

The Minister noted that the sector has come a long way from where it was in 2012, with the aviation industry becoming one of the pillars of the Maltese economy, and the register has since grown by nearly 250 per cent, “an achievement we could have only dreamed of eight years ago”.

Dr Borg noted that the industry has also created opportunities of gainful employment, be it within the regulatory sector, the aviation service sector or, more recently, in the field of leasing. He highlighted the industry’s positive ripple effect on

other sectors, such as law firms, financial services and accommodation, among others.

Moreover, the Government, he pledged, will continue striving for further growth so more Maltese people can join the industry, receive training and progress in fulfilling careers within the sector.

Dr Borg admitted he is very satisfied with the level of interest shown by operators who continue to choose Malta, put their trust and invest their money in this country. He noted that the number of Air Operator Certificates issued is satisfactory and included some that brought “great

promise for our register and great wealth to our economy”.

Dr Borg was, however, quick to remark that this does not mean the desired destination has been reached. “In reality,” the Minister continued, “a sector such as aviation for an island state like Malta is like a train on a track that never ends. We will never really arrive because there is always more we can do to improve, always more we can do for our country and for this important sector.”

In this regard, the civil aviation authorities would like to see a more continued on page 6

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NEWS

460-aircraft registration target for 2020 continued from page 5 proportionate growth in Air Operator Certifications when compared to the number of registrations. The Minister is certain that the “capable” Civil Aviation Directorate, within Transport Malta, fully backed by the Government, will continue to attract and secure more investment.

Yet, the question is whether these positive developments might necessitate further expansion at the airport. Here, the Minister said that “I believe we need to be proactive.

That is what we are doing when it comes to maritime.

“It would be wise to set our sights on similar endeavours in the aviation sector and I believe this needs to be a global effort. We need to make better utilisation of the land close to the airport, to continue maximising the opportunities presenting themselves. Having sufficient airport infrastructure means a more efficient service for consumers, enhanced attractiveness for investors and less time and fuel wasted due to air traffic delays,” he asserted.

This positive view of the sector was reiterated by Charles Pace, a seasoned airline pilot who now heads Transport Malta’s Civil Aviation Directorate. “We got here

because we had to invent a way to make ourselves significant in this industry,” he said, attributing the success to the manner in which the Directorate deals with aircraft owners. “We make ourselves accessible and approachable,” he remarked.

Today, there are 420 aircraft on the register, including helicopters and planes, the biggest being an Airbus A380 operated by HiFly and bearing the registration 9H-MIP. The Directorate handles anything between five and eight new registrations every week. Ryanair subsidy, Malta Air, has already registered over 60 aircraft in Malta and more will follow.

It is not just aircraft that are being registered but air companies too, he explained. Three have already submitted a ‘proper’ application for an Air Operator Certificate and another five are in the queue. Capt. Pace spoke about the potential openings linked to this ‘niche’ and highlighted the benefits of looking at the leasing and financing aspect of aviation.

“They will be the final jewel in the crown. But we need to adopt an aviation mentality. We need to think more aviation,” he remarked.

Capt. Pace went on to further articulate what he meant. The education system, for example, he

“e register has since grown by nearly 250 per cent, an achievement we could have only dreamed of eight years ago.” – Transport Minister pointed out, is not yet tuned to the civil aviation industry’s requirements, or, rather, to the whole cluster that makes up an industry.

Moreover, commercial banks, at first, had some problems understanding the industry, but the way they are speaking now is a very positive sign, he noted, adding that Government departments need to better understand what is being created.

Capt. Pace would also like to see the National Statistics Office better analyse the contribution the Malta Aviation Register makes to the economy both directly and indirectly.

Leasing and financing, he stressed, would mean jobs and activities beyond the flying aspect. Even offices can be located away from Malta’s only airport, freeing precious land there to be used for strictly flying-related operations.

Promoting Malta as an ideal location for the management of airlines is another opening Capt. Pace believes in. He sees a lot of potential in the wider use of helicopters and drones, and thinks that a second airport is doable. A small airstrip would be very beneficial to general aviation and also lessen the danger of having the main runway closed for commercial flights in case of a landing mishap involving light aircraft. Also, more parking space for large aircraft will be available at Malta International Airport.

“It is time to start thinking of alternatives,” Capt. Pace commented.

On the private stakeholders’ front, there also seems to be a great deal of satisfaction. What mainly attracts aircraft owners to the island is “the synergy between the Maltese aviation authorities and the professionals within the private sectors, all working hand in hand and willing to

grow further this industry,” Stephan Piazza, Senior Manager within KPMG’s Transport Team, said.

The fact that Malta is an EU member is an added value, particularly from a regulatory perspective.

Dr Piazza noted that Malta’s “incredible growth” in this sector was made possible through a flexible legislative framework that adapts regularly to the ever-changing geopolitical and macro-economic scenarios.

The fact that English is the main business language in Malta is another key selling point as is the island’s geographical location, he noted.

In his opinion, the corporate tax efficient framework, the “extremely advantageous” highly qualified rules for people employed in the aviation sector and competitive social security rates make Malta the ideal place to attract a qualified workforce.

In addition, in his view, one of the strongest points of the Malta Register is the excellent client relationship skills of its staff members and easy access to its top-ranking executives.

“The flag is growing steadily, and we hope that this trend is supported through regular staff intake. If such client services standards are kept and improved from time to time, Malta will be the threat and never the threatened one,” he said.

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e first Business Who’s Who for Malta launched Malta’s first business who’s who portal, WhosWho.mt, was successfully launched last month, facilitating business and networking opportunities with thousands of leading people in business and companies already on board.

WhosWho.mt is an extensive ambitious project by Content House Group, one of Malta’s largest media organisations, owning and managing over 20 successful media brands in different genres.

Besides the portal, Content House Group has now also launched the Malta Business Who’s Who 2020 publication, which is officially Malta’s largest publication for 2020, with over 400 pages, containing a wealth of information about who’s who in the business scene in Malta.

Raisa Mazzola, Head of Digital and Marketing at Content House, said the feedback on the new business portal over the past few weeks has been incredible with more than 40,000 unique visitors making use of the new business portal and a sig-

nificant demand by professionals, managers and business people to participate in the project.

WhosWho.mt has a hybrid role – that of a local online business networking and search engine, as well as a business portal specifically linked to people in business or to companies.

Ms Mazzola explained the specific role of WhosWho.mt: “Whereas other business portals, even ones managed by us, focus on anything that happens, particularly locally, that can impact businesses or is relevant to the business segment of society, WhosWho.mt is specifically focusing on and particularly (not to say exclusively) interested in news or announcements related to local companies and local people in business and management. And that means we are very interested to report on anything that is intrinsically linked to people in business or to companies operating in Malta but not necessarily on other news items, including, for

instance, macroeconomic or business sectorial coverage, which is more suitable for mainstream news portals or mainstream business news portals.”

Ms Mazzola continued that the business search engine is equally original and targeted: “this is not a search engine for everyone or for everything. There are other portals that aim to fill that niche in the market. This is about searching for people in business or companies. So, it is specific and can be a search about individuals operating in a market, for instance. And each entry is backed with an additional keyword facility that enhances the network-

ing and search engine, and makes the search more intuitive.”

A solid team of business journalists and writers, digital strategists and online marketers, as well as business development and sales executives are behind WhosWho.mt, with daily stories and business updates, as well as announcements. Such daily updates are also posted on the social media outlets of WhosWho.mt, particularly on Facebook and Linkedin.

For more information on the project send an email on info@contenthouse.com.mt or call 2132 0713.

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11 e Malta Business Observer is Malta’s leading business newspaper distributed with Times of Malta every month.

EDITORIAL

Building on the ties which bind us The June 2016 European Union referendum, which saw the British people vote to exit the bloc, has gone down in history as a seismic political and economic event which will continue to change the face of the continent – and beyond – for many years to come.

Since that date, the world has watched, gripped, as one of the most stable democracies in the world has come to grips with the repercussions of that vote, with the withdrawal agreement’s myriad twists and turns regularly hitting the international headlines. As a result, some businesses based in the UK, shaken by the prospect of not being able to trade freely with the EU once Britain exits the single market and the customs union, looked to attain passporting rights in a member state. On the other hand, firms on the continent drew up their own plans to protect the bottom line.

In Malta, concerns were flagged about how Brexit would affect business (and other) relations.

Yet, as the British High Commissioner, Stuart Gill, says in our cover story of this month’s edition, the two countries’ deep historical roots, and intimate ties have, even before Malta joined the bloc, seen them enjoy a healthy economic relationship.

And, if the UK’s aim of achieving a comprehensive free trade agreement, with zero tariffs and zero quotas, with the European Union comes to pass, much is unlikely to change. Indeed, Mr Gill emphasises that this free trade agreement is in the best interests of Maltese businesses, and, should local firms have concerns that this may not be concluded on time, then he suggests that they make their voices heard, by speaking up to the local authorities who, in turn, will put pressure on the European Commission. For, wherever the outcomes of the negotiations are by 31st December 2020 – the last day of the transitional period – the UK will not ask for an extension. DDay will remain D-Day. Of course, these statements have been made with the full awareness that the negotiations between the UK and the EU may not go completely smoothly. This is partly because the starting points are poles apart. The British High Commissioner himself stresses that the UK saw itself “as a separate, sovereign nation, and without the jurisdiction of the European Court of Justice”. Yet, the UK was always a sovereign

nation, as many within the bloc have insistently pointed out.

This divergence in viewpoints throws the complexity of these talks into sharp relief. Indeed, Michel Barnier, the EU’s chief Brexit negotiator; the European Commission President, Ursula von der Leyen; and, more recently the French Foreign Minister, Jean-Yves Le Drian, have all expressed reservations that the time allocated to resolve this, and other, thorny issues, is enough.

But, what does this all mean for Maltese businesses and industries that trade regularly with the UK – and mean to continue doing so? Firstly, continued communication with the authorities, and the British High Commission, is a must. Concerns must be raised, and solutions must be lobbied for – particularly since the authorities may not have an insiders’ view of the repercussions of high-level decisions. And, secondly, this needs to be done in unity, with businesses coming together to determine the most effective approach.

For it is only by staying on the ball, and ensuring continued communication, can local firms and SMEs adapt to these changing political circumstances.

Executive Editor Rebecca Anastasi

Publishers Allied Newspapers Ltd. Content House Group Ltd.

Advertising Enquiries Tel: 2132 0713 Email: info@contenthouse.com.mt

Advertising Sales Matthew Spiteri Director of Sales and Business Development

Jean Mark Meli Senior Brand Sales Executive

Lindsey Napier Director of Sales and Operations

Sue Ann Pisani Advertising Coordinator

BUSINESS OPINION

Central banks and climate change

Vanessa Macdonald When facing the EU Committee on Economic and Monetary Affairs last autumn, the new President of the European Central Bank, Christine Lagarde, vowed to include the risk of climate change in the Bank’s macro-economic modelling. She even described climate change policy as “mission critical”.

The statement caused a fearsome debate in the media, with passionate statements coming both in favour and against this stand.

It is far from the remit of this article to determine what will happen at the ECB – this will take shape as the ECB’s policy review gets underway. However, it might be useful to understand the issues at stake, and why there are such heated arguments about whether bond portfolios are labelled as green or brown, and whether Lagarde is rushing in where angels fear to tread.

The debate on climate change over the past decades has never been straightforward. Indeed, there are still those who dispute that human impact is affecting climate, let alone what impact this is having on the Earth.

However, the latest report from the United Nations’ Intergovern-

mental Panel on Climate Change (IPCC) assessed the impact of a 1.5°C rise in global temperature. The (IPCC) Fifth Assessment showed a clear link between global mean temperature changes and total carbon dioxide (CO2) emissions from 1870.

If the trend continues at the current rate, global warming is likely to reach 1.5°C between 2030 and 2052.

If no action is taken global mean temperatures could be 4°C higher by the end of the century.

In this scenario, the entire world would experience – on a regular basis – extreme climate events such as heatwaves, droughts, floods, windstorms, etc. No wonder scientists recommend immediate action to reduce greenhouse gas emissions (Russo et al 2019, Lenton et al [2019], Ripple et al [2019]).

The 2015 United Nations Climate Change Conference (COP21), and the resulting 2015 Paris Agreement signed by 196 countries were major political achievements. However, the decree has done little to alleviate concern. More and more people clamour for action, from Swedish teenage activist Greta Thunberg to protesters in Australia. And it is not just because plastic is choking rivers or melting Greenland’s ice cap.

The impact will take its toll on efforts to achieve sustainable development, to eradicate poverty, and to reduce inequalities, while extreme events could pose a risk to financial stability in the insurance and banking sectors and could result in greater migration flows into the euro area.

Which brings us to the current debate…

Former ECB President, Mario Draghi, had his hands full with

fighting the euro area debt crisis and stimulating growth, and did not prioritise climate change. Moreover, the Federal Reserve in the US, in the meantime, has been tepid on the subject (no pun intended).

That said, a growing number of macroeconomists and central bankers are sitting up and paying attention. As of December, there were 54 members and 12 observers in the Central Banks and Supervisors Network for Greening the Financial System, up from just eight founding members two years ago (the Central Bank of Malta has been a member since July 2019.)

The network’s mandate is to guide the actions of central banks and supervisors to green the financial system.

So, where does the debate about the ECB come in? The issue is whether climate change falls under its remit or not – or whether it should be left to individual governments.

The primary mandate of the ECB is price stability. However, Lagarde believes that the impact could fall under its secondary objective of supporting the broad economic strategy of the European Union.

Working the impact into its models could affect short-term growth and inflation, and longer-term productivity growth and equilibrium policy rates.

Central banks have other tools at their disposal: they can also adjust their asset holdings to promote greener financial markets.

But what constitutes a ‘greener financial market’? How could climate change be worked into the methodology used in stress tests and how could long-term impacts be reflected in short-term indicators? And even if

“Central banks have other tools at their disposal: they can also adjust their asset holdings to promote greener financial markets.” central banks decided to buy more green bonds, are there enough available on the market?

The former Governor of the Bank of England, Mark Carney, now UN Special Envoy for Climate Change and Finance, believes that financial services have to actively deter investment in fossil fuels.

Researchers announced in January that the past decade was the hottest on record. It is increasingly clear that what to do about it is going to be at least as hot an issue.

Vanessa Macdonald is the Communications Coordinator at the Central Bank of Malta.

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ANALYSIS

Leading economists on PM Robert Abela’s initial policy ideas Economists Marie Briguglio, Gordon Cordina and JP Fabri analyse proposals on social housing, as well as the environment and planning in the final part of our two-part series.

Helena Grech Having been in power for just over a month, Prime Minister Robert Abela is being watched closely by both sides of the political divide to determine whether he really was the continuity candidate, or whether he would shake things up significantly.

From an economic standpoint, serious concerns have been raised about his predecessor’s style of leadership, leading to tremendous pressure on social services, the environment and public services.

In the second of our two-part series, three of Malta’s leading economists share their thoughts on Dr Abela’s proposals.

While members of the business community may support Dr Abela in leading through continuity, others have questioned whether this could be an opportune moment to correct market failures stemming from unprecedented growth.

Social Housing Dr Abela has elevated the portfolio of social housing to ministerial level, the first time this has happened in 25 years.

Since coming into power in 2013, the PL has come under fire for failing to provide social housing units, only allocating 10 newly built units since 2013, as revealed

by Social Accommodation Minister Roderick Galdes last January in Parliament.

PRIME MINISTER ROBERT ABELA MEETING THE PRESIDENT OF THE EUROPEAN COMMISSION, URSULA VON DER LEYEN IN BRUSSELS LATE LAST MONTH. PHOTO: DOI - JASON BORG

In early February, the Housing Authority was handed 11 freshly refurbished units by the Grand Harbour Regeneration Corporation to

use for social housing as part of a project to regenerate Valletta.

Recent Labour governments have also announced and intro-

duced schemes aimed at providing affordable rental accommodation and new social housing units.

New social housing construction

projects, rent subsidies, and the provision of affordable rental units for those that are not eligible to be placed on the social housing waiting list have been announced.

The year 2020 also saw the new rent law come into force which provides restrictions on how much a landlord can raise rents from one year to the next, as well as the implementation of other measures intended to enforce rental contract registration and encourage longer lets.

On this, Marie Briguglio commented that, “as the new law kicks in, the rigorous conditions imposed on the sector will translate into costs which will create some pressure to raise rents. The cap on the annual percentage increase will also incentivise a higher rent in the first year”.

This pressure “is already being noted” she said, “despite the fact that the rental market was starting to settle down.”

Dr Briguglio also expressed concerns that given that the law focuses on residential lets “some property owners may also divert their properties away from residential to shortlets,” adding that “this will mean more demand for social housing”.

She remained hopeful, however.

“Many solutions exist to ensure everyone has a safe, secure, habitable and affordable home. The Government can indeed buy property to let or lease property and sub-let it. But it should also focus on wages so that families can afford to rent,” she said. continued on page 15

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Urgent action still needed in social housing, the environment and planning, leading economists say continued from page 13 JP Fabri acknowledged that positive projects were currently being implemented by the Government “which should increase the number of available units.” However, he stated “there is definitely need for more.”

Reviewing the context of the current real estate environment, Mr Fabri said that increased demand, economic growth, a boom in the population and low interest rates have diverted capital towards property. Such a shift has led to an increase in the value of property and rental units, thereby leading to a shortage of social housing units.

“We are facing what can be described as a broken property market and, therefore, I do hope that social housing becomes part of a broader and more holistic approach to policymaking. This needs to tie in with spatial planning policies as well as the regeneration of localities”.

Mr Fabri believes encouraging more public-private partnerships in developing and operating social housing would be a beneficial alternative to the proposals that have been made.

“Having elevated housing to a Ministry shows firm commitment towards focusing on this issue. However, here again, we might need to think outside of the box to find novel solutions through different partnerships and collaborations.”

Meanwhile, Gordon Cordina said that a more “effective use of vacant properties, which represent an inefficient use of one of the scarcest resources in Malta, land,” would be a positive step.

This would have a two-fold benefit, he commented, as the Government “would be contributing to quality urban regeneration – which ties in with environmental amelioration and the improvement in the quality of life – while contributing to a price of housing that is more in line with medial levels of income”.

This would require “well-balanced schemes which identify the sources of failure such as legal obstacles, for example. It would require tackling such failures appropriately and focus on intended objectives without supplanting, but rather by encouraging, the efficient operation of the market”, he added.

“We also need a focus on regeneration policies to ensure that new virgin land is not lost to development.”

Merging the Environment and Planning portfolios Dr Abela previously said that the environment cannot continue to be the sacrificial lamb of development when explaining the decision to merge the planning and environment portfolios into one Ministry.

He has since said the construction industry is one of the main motors of the local economy and called for a

better balancing between development and the environment.

In this regard, Dr Briguglio brought up how the demerger of the Malta Environment and Planning Authority, into the Planning Authority and the Environment and Resources Agency, was intended to provide the latter with autonomy. “It did,” she added, “but it also relegated the environment to the sidelines. Joining one ministry may help, but there are other issues which need urgent attention”.

Moreover, if the idea is to strengthen the environment, then “we need to revisit the law for existing loopholes, we need to step up enforcement and we need to immediately rethink the extensive road widening projects that are causing irreversible damage and enabling ever more reliance on private vehicles”, she said.

Mr Fabri said that Malta needs “to start seeing the environment as a critical resource of our country, one which also supports the economy. It is therefore commendable that the environment and planning functions were merged. However, it is now even more impor-

tant for the right policy and decision-making environment to come into effect.”

He called for policies to be informed by robust economic and demographic forecasting models. “We also need a focus on regeneration policies to ensure that new virgin land is not lost to development.”

On this vein, Dr Cordina said that he looks “forward to a time when the environment would be a key factor in an economic model where Malta becomes a regional Mediterranean island hub of choice where to work, learn, relax, heal and engage in cultural and scientific creativity”.

Concluding, he said he “would rather advocate a more prescriptive approach by the Government, where planning regulation based on designs centred on individual well-being would specify what needs to be done, rather than merely prohibiting that which cannot be done. I also look forward to the Maltese territory being divided in self-sufficient regions or zones so as to minimise the extent of travelling which needs to be done.”

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AUM Asset Management – why Malta has the potential to be a global asset management player Jean-François de Clermont-Tonnerre on turning Malta into a global player.

Interview by Helena Grech.

“We have real ambition in Malta, and we are a real Maltese company. We are not relying on added value from outside.”

AUM Asset Management Ltd, a privately-owned investment management company since 2010, is focusing its efforts on promoting the island’s unique strengths in terms of value-adding activities among investors, the company’s Director and Founder, Jean-François de Clermont-Tonnerre has said.

In an interview with The Malta Business Observer, the veteran of the asset management industry shed light on his vision for the island, arguing against competing with well-established jurisdictions such as Luxembourg and Ireland, and, instead, promoting Malta on its own merits for a plethora of reasons.

He shared his success in promoting alternative fund opportunities, such as insurance/re-insurance, and investment opportunities in physical asset markets such as shipping.

Mr de Clermont-Tonnerre has spent most of his career in the sector in Switzerland, and eventually sold the majority of his Swiss asset management company.

Looking towards the future for his next challenge, Mr de ClermontTonnerre explained how his relationship with Malta was a “happy accident. One day, a lawyer I had been working with spoke to me about an asset management company available for purchase in Malta. My initial idea was to get a foothold into the EU, because Switzerland is not a member. I said, why not, and acquired the company,” he recalled.

At the time, Mr de Clermont-Tonnerre did not know much about the island. But he “fell in love,” he said and “what was supposed to be a foot in the EU, became a full-scope AIFMD-compliant asset management licensed business”.

Mr de Clermont-Tonnerre also recalled the first fund launched on the AUM platform under his leadership, commenting that he chose an asset allocation fund because he was confident such an investment strategy would be successful, more so in light of his extensive experience in managing a diversified portfolio of assets.

“From this experience, I discovered that Malta is an attractive place to live in, with strong resources in terms of the regulator, while support functions, corporate and risk management services are well maintained. I also realised Malta was a place where we could really develop something. The company grew, and I am proud that we have a very strong Maltese team.”

Indeed, AUM has grown from a company of two people to a “modest operation” of ten. “I must say that Malta has been growing steadily. That’s why we wanted to focus here, and we believe we have a role to play on the island. Many people consider Malta as a small platform. But we have real ambition in Malta, and we are a real Maltese company. We are not relying on

added value from outside.”

Mr de Clermont-Tonnerre stressed his reservations in promoting Malta as a favourable tax jurisdiction, arguing that it is impossible to say what the future will hold for taxation law. He instead highlighted the strengths he believes can carry the island on its own steam.

He commented that setting up the business and ongoing operations have “been sometimes challenging” but not that difficult. “You have an amazing university, talented people and well-equipped service providers. I discovered that step by step and realised that we can build something here that is a purely Maltese asset management company.”

Turning to a broader overview of the industry, Mr de Clermont-Tonnerre argued that Malta, from a historical perspective, has been quite successful. “It’s where small fund managers come to start, and that is ok. But we still believe Malta can be a global player,” he stressed.

He acknowledged that there are bigger players, with Luxembourg and Ireland having been in the asset and fund management industries for years. “Competition is huge. They are the big fund providers in the EU but we believe Malta can compete and has a very specific role to play.”

Indeed, Malta’s cutting-edge lies in its ability to nurture the smaller players, the Director said. “We have to remember what an asset management company is here for – to bring investors to the best investment ideas. The more mature jurisdictions have their rigidities, so it’s hard to penetrate if you are new.

Malta is well positioned if you are starting out.”

Yet, he added that attracting investors to Malta is the biggest challenge, despite the positives.

“We have good enough infrastructure here. There are, of course, issues but when you look at the overall package, Malta is a good place to do business. Investors are still looking at Malta as a new kid on the block – and they are wrong.”

Mr de Clermont-Tonnerre said that his contacts from working in asset management throughout Europe helped convince investors of AUM’s credibility and to get the ball rolling. “When I started here, I was lucky to have a base of investors that trusted us”.

This is not to say there weren’t any challenges, the Director specified.

The banking situation is creating barriers for companies setting up in Malta to open a bank account here – a situation which has been extensively covered in the local media. In this regard, the Director believes that the international banking industry is facing challenging times but is optimistic that the local banks will adapt to the evolving regulatory landscape and operational challenges. Mr de Clermont-Tonnerre is

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CASE STUDY

of the opinion that if new, credible banks set up in Malta, this will enhance the service offering to the local asset management and financial services industry.

Despite this, he listed the reasons why the island is, overall, a favourable jurisdiction, pointing towards the balanced Government budget, “an Anglo-Saxon way of looking at the world”, a stable environment and high levels of education, giving particular praise to the University of Malta.

Mr de Clermont-Tonnerre also said that the low level of unemployment, while bringing challenges, is overall positive. He described his experience in hiring local fresh university graduates. “I have to tell you, I hired people in Switzerland, Luxembourg, France and in England, and Maltese students are as good as anybody else. They want to work; they want to progress and grow.

Being so motivated is of huge value.”

He shared his “personal vision” for Malta and highlighted the futility in trying to attract a European investor into local stocks and bonds. “What is on offer in their jurisdictions is already what they need”. Instead, Mr de ClermontTonnerre called on a focus on what he called the ‘South/South’ relationship. “Over the last 50 years, most of the money came from Europe to be invested in Europe or elsewhere.

I think what we have to sell is the fact that we are part of the EU in terms of stability and regulation, and realise that investors are not only in Europe, but in India, China and Africa.”

He believes Malta should be a bridge to investment opportunities coming from such regions in the world. “This is where I believe we have added value. Africa is growing – it is going to be one of the most populated [continents] in the world. So, there are business opportunities there. We are not going to compete for stocks and bonds mar-

kets but to position ourselves as an alternative place.”

In his view, investors could be swayed into investing in real assets through a platform in Malta, with the understanding that the situation will be slightly different to what they find in more established jurisdictions. He highlighted the success in sectors such as ship-

ping, where many funds investing in containers and barges have proved successful.

Moving on to a heartfelt contribution to Maltese society, Mr de Clermont-Tonnerre has been working to set up a scholarship fund, to pay for a local student’s Master’s level in exchange for working with the company. This,

“Over the last 50 years most of the money came from Europe to be invested in Europe or elsewhere. I think what we have to sell is the fact that we are part of the EU in terms of stability and regulation, and realise that investors are not only in Europe but in India, China and Africa.” he said, also tied with the necessity for efforts, on a state level, to cultivate an eco-system where the best and brightest are living and working in Malta, and able to fill highlevel positions.

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A changing market – the importance of pension planning Helena Grech meets with the Managing Director of GlobalCapital Life Insurance Ltd, Cristina Casingena.

Along with the Western world, Malta is facing a rapidly ageing population, precipitating a shift in how the public views pension planning.

Following the 2020 Budget, it has become evident that the Government is placing pensions high on the national agenda, through the implementation of tax credit incentives for employers and employees contributing to a voluntary occupational pension scheme or a personal retirement scheme.

Cristina Casingena, Managing Director of GlobalCapital Life Insurance, shed light on the company’s latest pension and life insurance products, as well as the overall market.

How does GlobalCapital Life Insurance differentiate itself from other players in the industry?

GlobalCapital Life Insurance Ltd has been present in Malta for more than 50 years. We have always tried to meet our customers’ needs and expectations through innovative propositions.

PHOTO: INIGO TAYLOR

Could you give an overview of GlobalCapital Life Insurance’s currently available products?

We offer a comprehensive range of protection, savings, investments and retirement products.

We are the first insurer in the market to offer a standalone cancer cover. Cancer Care is a unique product which has been designed to provide important financial aid in the case of a cancer diagnosis, which is particularly essential when statistics indicate that one out of every three Maltese get diagnosed with this disease throughout their lifetime.

Another unique product on the market which our company offers is the RealLife Plan. The flexibility of this product is unmatched. The customer can choose to increase or decrease the life cover or the excess investment premium depending on his/her circumstances during the lifetime of the policy. It is designed to match the wonderfully varied path that our life takes. The product combines life protection with investment options, and offers a number of additional benefits, such as accidental death benefit, critical illness, as well as disability benefits.

It protects the client’s lifestyle and family, with our team working around the clock to meet the clients’ demands at their convenience.

GlobalCapital has just launched attractive pension plans. Can you shed some light on these?

We have started the year on a very positive note with the launch of our pension propositions. We have designed PENSION Plus for the individual customers and PENSION Pro for corporate clients.

Retirement may seem like a faroff concept for many but the most one can get from a state pension is just under €1,300* a month.

Pension legislation has been under review for many years but it was only recently that the Government introduced attractive incentives for individual contributors and employers.

Now is the most opportune moment to invest in a pension product, thanks to favourable legislation allowing any contributor to benefit from 25 per cent of the yearly contributions, resulting in a maximum tax credit of €500 per person .

This applies to each eligible individual who chooses to invest in PENSION Plus, as well as for employers who wish to motivate their employees by offering PENSION Pro as an employee benefit.

Before choosing to invest, any eligible contributor can consult our website to find out more or explore our online calculator to check how much they would have to invest to gradually build up a private pension pot to secure a more comfortable financial future upon retirement.

The calculator can be found at the bottom of our PENSION Plus webpage: https://www.globalcapital.com.mt/life -insurance/the-globalcapital-pensionplus Why would someone invest in a private pension?

The public pension may not be enough, so the private pension will help bridge the gap and ensure one can maintain a comfortable lifestyle during retirement.

Life expectancy in Malta is 82 years old, while the retirement age is 65. This means that people retiring now would have to live, on average, 15 years on a pension.

GlobalCapital’s pension plans will provide customers with a sum insured in case of death of €2,000, over and above the policy account value if the death occurs before the retirement date and this will be passed on to the legal heirs – if the death occurs after the retirement age, the remaining account value will be passed on to the legal heirs. Other benefits include: tax credits of 25 per cent of the yearly contributions, up to

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CASE STUDY

“Retirement may seem like a far-off concept for many but the most one can get from a state pension is just under €1,300* a month.” *the figure is sourced from Malta Social Security website, subject to change in the future

€500 per year; investments in three in-house professionally managed strategies; and a 30-per-cent tax free lump sum at retirement plus a monthly retirement income.

Additionally, in the case of PENSION Pro, the employer is also entitled to tax credits, calculated on the corresponding contribution, on top of the trust they build with their employees by providing them with a pension benefit.

To all the benefits above, we can also add simplicity and flexibility.

Could you shed some light on the overall company strategy you are overseeing as Managing Director?

Innovation is important to us and we have shown this in the past years.

More importantly, however, is that, for us, the only innovation that matters is when it brings real value, simplicity and quality for customers at all points of contact, efficiency for the company and added value for our customers and our shareholders.

According to a company statement, recent restructuring has borne fruit, turning a €2.5 million loss in 2018 into a €2.3 million profit as at September 2019. This appears to be quite an achievement. Could you elaborate on this restructuring experience?

GlobalCapital is going through a fundamental transformation, and our main goal is to achieve efficient automated processes which will ultimately improve our customers’ experience. We aim to remain an innovative and dynamic partner for our customers by reacting to their needs and to the rapid market changes.

You have been in this role for almost two years. What are you most proud of and what has been the biggest challenge?

We believe that people are the most important asset of the company and we have put our team and our customers at the core of the restructuring process. We trust that our achievements are being carried out by people for people. I am proud of the team we’ve built in the last two years and I am confident that this team is key to our future successes.

In terms of financial performance, this is the result of a significant effort throughout the company and, therefore, I would like to thank

WE’VE GOT YOU COVERED Life Protect Plan If the client requires a policy to protect his or her family should the unexpected happen, GlobalCapital Life Protect will pay out the pre-chosen sum insured to the client’s beneficiary if she or he passes away during the term of the policy.

Loan Protect Plan Buying one’s dream home will, in most cases, require obtaining a bank loan. The GlobalCapital Loan Protect is an ideal solution to satisfy the buyer’s life insurance needs when taking out a bank loan.

Cancer Care Plan The GlobalCapital Cancer Care Plan is the first product of its kind on the local market. It has been designed to give the client peace of mind, by providing important financial aid if he or she is diagnosed with cancer.

Real Life Plan The GlobalCapital Real Life Plan – a whole of life policy that is unit-linked based on the customer’s preferences, investment goals and risk tolerance.

The flexibility of this policy is unmatched.

all my colleagues for their commitment, as well as our clients, to whom we have shown once again that we are a reliable partner.

We still have a long and challenging journey ahead to achieve our goals but I believe that we have taken the steps in the right direction.

The biggest challenge is, without any doubt, all the regulatory changes we had to implement to comply with the European regula-

tions and I am proud to say that our team did a great job out of it.

GlobalCapital Life Insurance Ltd (C29086) is authorised by the MFSA to carry on long term business of insurance under the Insurance Business Act, Cap 403 of the Laws of Malta.

Tax treatment depends on personal circumstances and may be subject to change in the future.

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STOCK MARKET REVIEW

e ECB strategy review Christopher Mallia The European Central Bank (ECB) formally launched a wide-ranging review of its monetary policy strategy on 23rd January 2020. The last such review had been undertaken back in 2003.

The strategy review, which is expected to be completed by the end of this year, will evaluate everything that forms part of the Bank’s comprehensive framework used in achieving its mandate of price stability.

This follows a similar decision, in November 2018, by the US Federal Reserve to conduct a review of its own monetary policy strategy, which is expected to be completed by the end of the first half of this year.

So how does the ECB conduct monetary policy under its current strategy?

Firstly, the ECB had adopted a quantitative definition of price sta-

bility - inflation rates below, but close to, 2 per cent over the medium term. The quantification of the price stability target serves three purposes: (i) it makes the monetary policy decision process more transparent; (ii) the ECB can be more easily held accountable and (iii) it offers guidance to the public. Furthermore, the mediumterm timeframe is also an important consideration as it is impossible for any central bank to keep inflation always at a specific point or bring it back to a desired level within a very short period of time.

Therefore, it gives the ECB the flexibility required to respond in an appropriate manner.

The other aspect of the ECB’s current strategy is the two-pillar approach used to analyse economic developments.

The first pillar is the economic analysis whereby the ECB “assesses the short-to-mediumterm determinants of price developments” such as gross domestic product and labour market conditions. Moreover, based on the data available and developments across eurozone nations, the ECB also prepares economic projections which also form an integral part of any monetary policy decision.

The second pillar is the monetary analysis comprising “a detailed analysis of monetary and credit

developments with a view to assessing their implications for future inflation and economic growth”.

The ECB website explains that such a two-pillar system also provides a cross-check mechanism of its analyses.

Besides the importance of periodically reviewing any strategy by any institution, the ECB, under the leadership of the recently appointed President, Christine Lagarde, felt it necessary to undertake this review for a number of reasons.

Firstly, since the 2003 strategic review, both the euro area and the global economy have undergone profound structural changes including the 2008/09 financial crisis, changing demographics, various

geopolitical developments and the increasing protectionist measures in global trade that were mostly evident over the past two years.

Furthermore, monetary policy responses in recent years have driven interest rates into unprecedented low and negative levels.

This could hinder the effectiveness of monetary policy going forward and could give rise to harmful sideeffects such as elevated debt levels, particularly across corporates, higher risk taking in search of a higher yield, excessive mispricing, particularly in bond markets and the real-estate sector as well as creating income inequality.

Moreover, at the time of the 2003 review, the ECB challenge was to

counter rising levels of inflation whereas, nowadays, the main task of the ECB is to address low inflation. Also, the ECB needs to assess how other issues such as environmental sustainability, rapid digitalisation, further globalisation and evolving financial structures should be considered and tackled, if at all, in its monetary policy decisions.

Furthermore, as indicated in the press release issued by the ECB on 23rd January 2020 and subsequently emphasised by Ms Lagarde on more than one occasion, the ECB will also review the way it communicates with the public at large in order to enable the public to better undercontinued on page 24

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e ECB will not be standing idle continued from page 23 stand the workings of the ECB as good communication enhances the ECB’s credibility and will likely make the ECB’s monetary policy actions more effective.

Therefore, the strategy review will be very wide ranging as it will evaluate existing tools and procedures, the effectiveness of past monetary policy decisions and also consider alternative methods that best suit the eurozone economy going forward. In this respect, the ECB President noted in her statement to the Committee on Economic and Monetary Affairs of the European Parliament on 6th February 2020 that the strategy review “…will be a thorough and intense process”. Moreover, the whole process is being undertaken with an open mind as the ECB engages with all stakeholders.

Naturally, this exercise has spurred a lot of opinions on what the best course of action for the ECB should be and has also generated speculation on the ultimate outcome. One of the main considera-

tions is whether the ECB should change its quantitative definition of price stability. This topic is creating huge debate as the ECB is the only central bank among developed countries that adopted an asymmetric target of inflation – “below, but close to”. Given the state of the eurozone economy in recent years, various analysts are also questioning whether the quantum (2 per cent) is still appropriate.

Moreover, unlike the Bank of England or the Bank of Japan, the ECB has the added task of transmitting its monetary policy into 19 countries, which tend to have different economic situations and, hence, the economic data for the whole of the eurozone, including the inflation reading, might not reflect the reality in each and every country.

The ECB has not yet issued any further press releases regarding the strategy review as it undertakes this exercise. Ms Lagarde has also been very careful not to publicly air her own views in this regard in order not to influence the review process and also not hinder any

Rizzo, Farrugia & Co. (Stockbrokers) Ltd, “Rizzo Farrugia”, is a member of the Malta Stock Exchange and licensed by the Malta Financial Services Authority. This report has been prepared in accordance with legal requirements. It has not been disclosed to the company/s herein mentioned before its publication. It is based on public information only and is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The author and other relevant persons may not trade in the securities to which this report relates (other than executing unsolicited client orders) until such time as the recipients of this report have had a reasonable opportunity to act thereon. Rizzo Farrugia, its directors, the author of this report, other employees or Rizzo Farrugia on behalf of its clients, have holdings in the securities herein mentioned and may at any time make purchases and/or sales in them as principal or agent, and may also have other business relationships with the company/s. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Neither Rizzo Farrugia, nor any of its directors or employees accept any liability for any loss or damage arising out of the use of all or any part thereof and no representation or warranty is provided in respect of the reliability of the information contained in this report. © 2020 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved

future consensus building efforts that she will likely need to undertake to reach an agreement on the new way forward.

In the meantime, the ECB will continue to operate within the current framework that will determine the monetary policy decisions throughout 2020. On various occasions, including during the traditional press conference following the ECB Governing Council meeting held on 23rd January 2020, Ms Lagarde clearly stated that, during 2020, the ECB will not be standing

idle. In fact, she emphasised that the ECB Governing Council will continue to assess incoming data as described above and policy changes will be made throughout this year if deemed necessary.

Moreover, although Ms Lagarde acknowledged the importance of such a review, she reiterated that, to achieve the best outcome for European citizens, monetary policy decisions should be supported by fiscal measures and, hence, called on European governments to do their own part.

This article simply gives an overview of what the ECB has embarked upon. Nonetheless, this is a huge task for the ECB as not only is the exercise daunting in itself but the newly adopted framework will be the basis of future monetary policy decisions that will significantly influence economic developments across the eurozone going forward.

Christopher Mallia is the Head of Research at Rizzo, Farrugia & Co. (Stockbrokers) Limited.

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BUSINESS UPDATES

GO vPBX solution keeps your business connected, anywhere you are Say hello to simple, cost-effective communication, anywhere Since your team, suppliers and clients are always on the move, your business should be too. You never want to miss any important calls and updates, so a smooth connection is essential, wherever you are. That’s where GO’s Virtual PBX comes in.

With GO vPBX and an internet connection, you have full access to your office, anywhere you are. Not only is this reliable, but it’s also on the Cloud. This means that no hardware is necessary, and with a “pay per seat” subscription, you get the flexibility to add/remove lines as your business changes or grows.

Meanwhile you will avoid time and costs associated with additional setups, thus freeing up resources to let your business grow.

Get that professional edge with extensive features like call forwarding, hunting groups, auto attendant and free internal calls between col-

HSBC Bank Malta launches virtual assistant for business customers

leagues. You can easily get a costeffective, personalised vPBX solution, which is especially handy if you’re an organisation looking to scale up operations or even just starting out.

Interested? Get in touch with us today for more information about GO’s vPBX solutions! Email us on info@gobusiness.com.mt or visit www.go.com.mt/business/vpbx.

HSBC Bank Malta business customers, and the broader business community, can now use an online virtual assistant to have many of their enquiries dealt with more efficiently. Available at www.business.hsbc.com.mt, the new virtual assistant provides intuitive online support to help business owners and managers access relevant information and make the most of the bank’s online services. The introduction of the virtual assistant will not only help users to access the information they need more quickly and accurately but it will also allow HSBC’s Business Contact Centre agents more time to handle more complex requests, further improving customer experience.

Joyce Grech, Head of Commercial Banking at HSBC Malta, said, “HSBC is focused on delivering an unrivalled customer experience and is investing in the latest technology to deliver on this ambition. The new virtual assistant will answer questions ranging from basic questions, such as ‘how to register for telephone banking’ to more complex ones such as how to open a business account.

Over time, the virtual assistant will also learn from the questions being asked by customers and become more intelligent, further improving the service.”

The new virtual assistant is HSBC’s latest investment in digital technologies as the bank continues to increase the range of services available to customers 24/7 in order to help them better manage their banking needs.

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BUSINESS UPDATES

How cloud construction software can do the heavy lifting and transform your business Whereas in the past, a physical computer or server was necessary in order to run an application, cloud-based computing gives users access to software applications that run on the Internet. Businesses are increasingly moving to the cloud to increase efficiency, information flow, collaboration, and absolute flexibility. As exclusive resellers of Acumatica Cloud ERP in Malta, our team at Computime Software shares three key benefits of cloud-based accounting software built specifically for the construction industry.

1. Real-time access to your business applications Perhaps the major benefit cloud computing can offer is that it allows you to set up what is essentially a virtual office. This provides all back office and onsite construction workers the flexibility in their work practices by enabling immediate access

to current data. So, as long as you have access to an Internet connection, you can work efficiently.

Indeed, those working remotely, or in the field, can enter important data on their device and have it automatically synced within the ERP system, thus providing insights across an organisation without delay. When a team has full, up-to-date visibility and can access, share, and edit documents anytime, anywhere, it increases collaboration and improves decision making.

2. Mobility through a native app Modern cloud construction software such as the Acumatica Construction Edition provides secure remote access through a native mobile app. This empowers onsite workers in the construction industry with a single source of real-time data such as revenue and costs. It also gives them the

ability to check intuitive dashboards from their mobile device, manage contracts, view change orders, and exchange information with customers, suppliers, and contractors.

3. Reduced IT costs Managing and maintaining IT systems can be costly, so many construction companies are moving towards a Software as a Service (SaaS) model instead of purchasing software outright, thus moving to a cloud-based construction accounting software, which means paying much less upfront. Furthermore, rather than using a traditional per user pricing model, Acumatica has a unique, all-inclusive user licensing model which encourages usage of the system across the entire organisation.

Transform your construction business with remote access, real-

time data, and streamlined processes From accounting, project and field management to CRM, the Acumatica Construction Edition offers a full set of construction management functionality, which, coupled with the Acumatica mobile app, creates a seamless flow of data between the field and the back office. This allows you to run the entire construction cycle more efficiently and provides

your employees access to realtime insights for improved decision making.

For more information on how Computime Software can help your business improve margins and project control at all stages of home, multi-family, commercial, mixeduse, land development, and government projects, visit www.computimesoftware.com/acumatica-er p/construction-edition or email info@computimesoftware.com.

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BUSINESS UPDATES

FIMBank supports Beating Hearts FIMBank has sponsored Beating Hearts, an independent non-profit foundation established primarily to support the needs of parents whose children are born with a congenital heart defect.

In recognition of the bank’s continued support, the foundation presented FIMBank with a set of highquality prints, revolving around the Tale of Two Cities theme. These consist of collages in the form of photographic pairing of Malta with New York and with Manchester.

Foundation President Victor Grech signed the prints during an event organised by FIMBank.

“The noble work of the Beating Hearts foundation is indeed endorsed by FIMBank. Prof. Grech’s work and

consistent effort to make a direct and positive impact on people who suffer from a congenital heart defect is truly commendable. We look forward to supporting further initiatives undertaken by Beating Hearts,” Jason Zammit, the bank’s Senior Vice President and Head of Marketing, said.

“FIMBank’s consistent support and assistance in our mission is highly appreciated. We have found FIMBank to be very willing in helping us in our cause and it is thanks to such contributions that we can continue making inroads to help people with congenital heart defects,” Prof. Grech said.

Further information about FIMBank is available at www.fimbank.com.

PROF VICTOR GRECH

Enemed: a lifestyle brand Enemed’s campaign pushes the brand - and the lifestyle it offers - on land, sea and air, by collaborating with a mixture of individuals possessing various personal and professional backgrounds and who represent these three pillars, further reflecting on Enemed’s customers.

Representing ‘air’ is Clare Agius.

The Airborne TV Series’ star is a Mal-

tese personality, and a pilot, TV presenter, producer, and environmental advocate. It is not a coincidence that Enemed hand-picked Clare Agius as the ambassador for aviation. From jetsetting to a tropical island or flying first class, Enemed has been fuelling aircrafts for years and the firm has also been the official fuel provider for the Malta International Airport. These

collaborations do not only bring awareness and insight into the world of motors, but also reflect the lifestyle of the end user of Enemed Fuels.

About Enemed Enemed Company Ltd is a wholly owned subsidiary of the state owned Petromal Company Ltd. The

company is responsible for the importation, distribution and wholesale of petroleum products for the inland market including the aviation sector. It also offers its storage facilities to third parties.

Enemed is a major player in the Maltese market.

Visit enemed.com.mt or facebook.com/enemed.fuels