The Malta Business Observer, 28th February 2019

INTERVIEW

Issue 95

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Distributed with Times of Malta

February 28, 2019

Malta well-positioned as co-location for UK firms after Brexit

Frank V. Farrugia, President of the Malta Chamber of Commerce, says that Malta’s economic success has also brought with it a number of challenges for the island and its various business sectors. see pages 5, 6 >

Marie-Claire Grima Malta is using its long-standing history and positive relationship with the UK to position itself as a viable co-location for companies based in Britain which still want to operate within the EU after Britain exits the bloc. The fact that Malta has been presenting itself as a partner to the UK within the EU, rather than a challenger seeking to steal away its businesses, has been yielding successful results, according to a number of industry bodies which spoke to this newspaper.

“Malta clearly positioned itself as a co-location jurisdiction to support those UK-based financial services operators wishing to set up an operation in a European jurisdiction alongside their existing operation in the UK, which would in tandem be used to service their European-based business,” said Kenneth Farrugia, Chairman of FinanceMalta. “From the moment the Brexit referendum result was announced, FinanceMalta organised or participated in a significant number of initiatives in the UK across the asset management, insurance and private wealth space to provide information in the various financial services operations that could be set up in Malta and how co-location models in these sectors could be set up and operated.”

“Similar events were also organised in a number of non-EU countries to address the requirements of non-EU financial services operators that were planning to set up operations in the UK to tap European business but had to

NEWS e number of local and foreign companies being registered in Malta has continued to increase for the fourth consecutive year. see page 9 >

ANALYSIS

reconsider their options given the outcome of the UK referendum.

Just by way of numbers, from the third quarter of 2016 and including the initiatives planned for this current year, FinanceMalta would have been involved in no less than 66 initiatives pertaining or relating to Brexit. And that excludes the numerous one-to-one meetings we have organised on the side of these initiatives, throughout these months.”

He confirmed that Malta had experienced interest from a number of UK financial services firms operating in the insurance and asset management space that were seeking to sustain their ability to passport financial services business to Europe while

“I would say the months following Brexit would see a scurry of firms looking at ensuring they retain their passporting rights.” – Kenneth Farrugia, Chairman, FinanceMalta the UK and the EU hammered out the details of the framework which would allow the UK to sustain its business with the EU and vice-versa.

“It is understandable that whilst these discussions were taken forward, a number of UK-based op-

erators started evaluating various strategic and operational options to sustain their business from the UK into Europe. While it is today clear that UK-based operators will be unable to passport their finanContinued on page 3

Why is the number of Maltese teenagers pursuing a career in engineering falling, and what can be done to turn the tide? see pages 13, 15 >

STOCK MARKET REVIEW Malta continues to outperform most of the other euro area countries in economic terms, but getting complacent could be dangerous. see pages 23, 24 >

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NEWS

Number of firms choosing to co-locate expected to increase in coming months Continued from page 1 cial services and products in the EU, as this is a benefit that is only afforded to operators in EU member states, the finite details of the EU-UK agreement at this stage of the negotiations are still unclear.”

Mr Farrugia said that the number of UKbased financial services firms choosing to co-locate would increase in the months ahead, particularly as small- and mediumsized companies – those most likely to be interested in a jurisdiction like Malta – came to terms with what Brexit really meant for their business.

“I would say the months following Brexit would see a scurry of firms looking at ensuring they retain their passporting rights. Remember that larger financial services operators are already operating in multiple jurisdictions within the EU, and therefore it is easier for them to transfer certain operations across their existing European operations.”

Malta Enterprise also confirmed that after the Brexit referendum, it had seen an increase in requests for information on opportunities in doing business in Malta.

“Keeping in mind that Malta is one of the few countries in the EU which are Englishspeaking, investment interest is coming from different fields including the life sciences sector, aviation, advanced manufacturing, digital media, as well as education and training,” said CEO Mario Galea.

However, Mr Galea also stressed that Malta’s approach to businesses in the UK has been to offer the option of co-location as a solution to companies which need to plan for the unknown. “In such a way, companies can put their mind at rest that they will still have access to the EU market, irrespective of the Brexit outcome.

Malta Enterprise has an office in London from where investment promotion activities are carried out. This office is also supported from head office, especially in terms of research and identifying key opportunities. Malta Enterprise is now also working closely with the Malta-UK Business Promotion Taskforce, which is responsible for attracting business to Malta in different sectors.”

Meanwhile, the Malta Chamber of Commerce, Enterprise and Industry added that given its long-standing ties with the UK, which include direct communication with the Confederation of British Industry (CBI), Malta had been “very cautious” in its approach. “In fact, Malta has been pushing the notion of co-location, which would mean that the businesses would retain their operations in the UK, while opening shop in Malta to regain access to EU markets.

This idea which has also been promoted publicly by the Prime Minister, provides a win-win scenario from the situation,” Chamber President Frank V. Farrugia said.

“The solution of co-location is even more realistic when one considers Malta’s attractiveness to companies seeking to remain with a foothold in the EU after Brexit.

Malta’s limitations cannot be ignored.

Malta must focus on quality rather than quantity, as the economy continues to grow, and the country needs to grow more selective about the economic activity it decides to attract. This, together with the idea of co-location, has been a major point proposed by the Chamber in the past months.”

The Malta Chamber added that throughout the Brexit process, businesses from a number of sectors, particularly IT, training and education centres; financial services (especially insurance), remote and online gaming, had shown interest in relocating to Malta. “Matters remain uncertain at this juncture, as businesses seem to prefer to hold their cards close to their chests, especially given the current state of affairs, and timings increasingly seeming to become fluid. In fact, very few UK-based companies have formally and publicly expressed where they will domicile their business and in what way this will be organised.”

“The key lesson learnt from this whole saga is to be prepared for any eventuality, especially given the constant changes and fluid situation. As a Chamber, we encourage our members to keep in constant contact with their suppliers or business partners in the UK and seek alternatives to their normal import and export routes,” Mr Farrugia advised. “We also advise that businesses keep in touch with the Cham-

ber for the latest news, as well as the Customs Department and other relevant authorities to keep abreast of developments.

Businesses may also consider seeking assistance from entities such as Malta Enterprise, through the purposely set-up scheme which was launched by ME last year to assist companies in their preparations for Brexit.”

FinanceMalta’s Mr Farrugia added that while Brexit was “an interesting use case”, he expected other developments of the same ilk to take place in future, which would impact businesses. “Suffice to also mention the trade war that is emerging between the US and China which is impacting global commerce as trade barriers are being gradually introduced across a number of sectors.

It is therefore imperative for the board of directors of a business to keep under constant review the economic and political environment their company is operating in. Being lethargic is not an option in today’s environment, and in doing so, this may threaten the survival of their business.”

“Malta must focus on quality rather than quantity, as the economy continues to grow, and the country needs to grow more selective about the economic activity it decides to attract.” – Frank V. Farrugia, President, Malta Chamber of Commerce

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INTERVIEW

“Not everybody is benefitting from economic expansion in the same way” Martina Said The current feel-good climate for doing business in Malta is undeniable, but Malta’s economic success has also brought with it a number of challenges for the island and its various business sectors, which are expected to persist in the coming years, according to Frank V. Farrugia, President of the Malta Chamber of Commerce, Enterprise and Industry.

“While economic growth gives the impression that all sectors and industries are doing well, this is not the case,” said Mr Farrugia, who is approaching the end of his two-year Presidency of the Malta Chamber.

“We have been saying that we are satisfied with the recent track record of economic expansion, but this in itself is creating problems within certain sectors.”

“Such rapid expansion is leading to a rise in operating costs. With resources being limited, prices go up.

Those sectors which, according to national statistics, are growing at far lower rates than the average, such as manufacturing and retail, are having to pay a price much higher than they can afford for the resources that they need, most notably human resources. This may also hinder their future growth.

Therefore, not everybody is benefitting from economic expansion in the same way.”

Other pressing problems relate to the cost of housing and its impact on wage increases, as well as increased construction and its impact on the environment. “It is quite clear that, long-term, while the good feeling among businesses in Malta will likely remain, we have to ask, at what price?” Mr Farrugia mused.

Under Mr Farrugia’s tenure, the Chamber has made strides in a

number of areas, including the agreement reached on the increase to the minimum wage, following long discussions and negotiations between the Chamber and other employers’ representative organisations.

The agreement stipulates that minimum wage earners would receive an increment of €3 per week following the completion of a year’s employment with the same employer, with a further €3 weekly to be added upon completion of a second year. “It was an issue that had been in negotiations for a long time,” said the President, “but which we believe was agreed upon with a positive outcome for all.”

While he is optimistic that 2019 will bring with it a number of opportunities for certain sectors, primarily in the area of innovative technologies, Mr Farrugia added a caveat to his forecast. “This is a positive development which the country needs in order to stay ahead of the curve and to develop further.

But here, again, there will only be a few local companies able to cope with this development.”

One of the first highlights of Mr Farrugia’s Presidency was the Council of Presidents of BusinessEurope (COPRES) event in 2017, which was hosted by Malta during the time it held the Presidency of the Council of the EU. “The delegates became aware of what Malta could offer and changed their perception of the islands. Our views became more sought-after, and we continued to make in-roads even after the Presidency was over,” he said.

The Chamber also hosted a national conference about family business as part of its 170th anniversary celebrations last year, headlined by Ferrero R&D Chief Briano Olivares, Buffa Founder

FRANK V. FARRUGIA, PRESIDENT, MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY

“Long-term, while the good feeling among businesses in Malta will likely remain, we have to ask, at what price?”

Paolo Buffa, and Grimaldi Lines Director Eugenio Grimaldi.

“Following the conference, we forged an agreement with the national Family Business Office, through which we formed a tangi-

ble link, so that family businesses can now come to the Chamber if they require support in the succession of their family business,” said Mr Farrugia. “A committee was also set up with the participation of

the Head of the Family Business Office, which will continue to research and look into new and innovative ways of helping family Continued on page 6

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INTERVIEW

Public-private partnership Tech.MT is in the pipeline Continued from page 5

“ose sectors which are growing at far lower rates than the average are having to pay a price much higher than they can afford for the resources that they need, most notably human resources.”

businesses in Malta. The event was a sell-out on the day, and many of our members have requested a repeat seminar next October, which we’re working on.”

The Chamber also published a flagship policy last year to propose solutions to the current labour market challenges affecting the day-today operations of local businesses.

“The solutions were presented to Cabinet and included reforms to the country’s education curricula, further incentivising active ageing, skills audits, facilitation of recruitment of foreign nationals, and an international marketing campaign showcasing employment opportunities in Malta. We’re pleased to say that some of the recommendations are being taken on board.”

Additionally, following the launch of Trade Malta and Education Malta, the third publicprivate partnership (PPP) between Government and the Malta Chamber, Tech.MT, is now in the pipeline. “Tech.MT, which was originally ICT Malta, took a longer time to get off the ground due to the rapid developments in the innovation sector, namely in fintech, blockchain and artificial intelligence (AI),” said the President.

“We proposed to widen the scope for this PPP, and the foundations have since been laid, including an established board of directors. In its essence, the aim of Tech.MT will be to promote Malta as a hub for innovative technologies, especially blockchain, AI and robotics.”

Looking ahead beyond the end of his term as President, Mr Farrugia said he is satisfied with the Chamber’s achievements under his leadership, but added that a two-year term as President of the Chamber is not long enough to achieve all the priorities set out at the start of one’s term.

“The time is up as soon as you start finding your feet,” he said. “I also believe the outgoing President should form an integral part of the new administration, to ensure a smooth handover and a continuation between one Presidency and another. In the future, the Chamber will also need to invest even more in its own human resources, to help it keep up a strong presence as the leading voice for industry, commerce, importation and services in Malta.”

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NEWS

More than 25 new companies registered in Malta every day Rebecca Anastasi The number of local and foreign companies being registered in Malta has continued to increase for the fourth consecutive year, with the current average standing at 25.5 registrations a day, according to Joseph Caruana, Registrar at the Registry of Companies Agency (RoC Malta).

The recent data points to a 15 per cent growth in company registrations per day since 2016. But while the average number of new firms remained consistent between that year (at 22.2 per day) and 2017 (at 22.7 per day), the figures started to spike in earnest from 2018, which reported 25.3 new company registrations per day, 99 per cent of these being private limited liability companies.

This surge was accompanied by a decrease in the rate of company dissolutions. A total of 1,232 companies were dissolved in 2018, down from 1,603 in 2016 – a difference of nearly one in four within the space of two years.

Moreover, the figures released by the Registrar confirmed that foreign-owned companies are now nearly on a par with Malteseowned enterprises. At 26,762, the latter comprise only a slim majority of companies currently registered in Malta, compared to 23,405 foreign or partly-foreign owned firms, with at least one non-Maltese shareholder.

Malta Chamber of Commerce, Enterprise and Industry Deputy President David Xuereb said that the local legislative framework, which provides a ‘safe and competitive’ corporate climate, is the key

to this surge in successful applications. “Maltese business legislation and regulatory environments are among the most proactive and business-friendly in Europe,” he said.

According to current regulations, firms interested in opening operations on the island can be established within two to three days, on application to the Malta Financial Services Authority (MFSA) and RoC Malta, provided that all the requirements, as established by the Company Act, have been satisfied.

e number of foreign-owned companies is now nearly on a par with Maltese-owned enterprises.

The process is also inexpensive: a minimum share capital for private limited liability companies of €1,165 is decreed, of which only 20 per cent has to be paid up front. This can be

denominated in any currency and there are no exchange control restrictions, thus encouraging the use of Maltese corporate vehicles for businesses trading internationally.

Indeed, the regulatory structure means that businesses coming from the European mainland will find a familiar system and legal framework they are able to operate in, according to Mr Xuereb, who noted that this has also encouraged a solid servicing and international corporate sector.

“The introduction of the financial services industry in the 1990s, as well as the ICT revolution in the new millennium, is now being followed by blockchain and AI, all of which are supported by the Companies Act,” Mr Xuereb said. In light of these new industries, and quoting the recent forecasts published by the European Commission and credit agencies, the Malta Chamber Deputy President said that he was optimistic that a healthy momentum will be retained.

“We might see emerging segments in the economy attracting new investments and companies to Malta, especially in the fields of fintech, blockchain and distributed ledger technologies (DLTs) and, eventually, artificial intelligence,” he said. “The motivation and energy seem to be coming from the services industry at this moment.”

Yet, he underline the necessity of ensuring sustainable growth in this area, “while also strengthening our regulatory framework and institutions.” To this end, he sees the Malta Chamber’s role as central, in “its mission to be vigilant with Government and propose improvements to legislation in areas which are important to businesses. This is the result of the Chamber’s strong links to the determinate sectors, through its wide membership,” he stressed.

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

Managing Editor Marie-Claire Grima

EDITORIAL

In the eye of the storm The Maltese islands are still reeling after the tremendous storm last weekend which left untold amounts of damage in its wake. The level of havoc that the storm wrought had rarely been seen in Malta before – trees were uprooted, cars were totalled, seafront properties were flooded and damaged, billboards knocked over, boats unmoored and capsized, and parts of buildings collapsed completely. The police, the civil protection department, the armed forces, as well as the NGOs and volunteers who pitched in, certainly had their work cut out for them over these disastrous two days, which cost a great deal in material damage, but luckily claimed no lives, and their efforts are to be saluted.

The brutal February weekend recalled the heavy storms and flooding of 15th September 2003, which had caused severe disruption to economic activity, including to fish farming installations at sea and damage to infrastructure and the natural environment. Such scenes, particularly the former, played out again this weekend, much to the delight of those on social media who were lucky enough to be tucked away safely indoors. Yet, it is no laughing matter. Following the storm in 2003, with total direct damage estimated at over €30 million, and millions of euro in insurance payouts made, the European Commission had ruled that the disaster qualified for aid under the ‘major disaster’ criterion of the European Union Solidarity Fund (EUSF) regulation. The EUSF, which was founded as a reaction to the severe floods in Central Europe in the summer of 2002, and since then has been used following 80 disasters, including floods, forest fires, earthquakes, storms and drought, had granted Malta nearly €1 million in compensation for costs linked to emergency operations.

Indeed, Government confirmed earlier this week that it has been in touch with the European Commission to formally trigger the process of tapping into the EUSF, and all Government departments have officially commenced studies in order to cost the extent of all damages. It is not yet known how the damage wrought in the storm last weekend matches up to the catastrophic weather incident 16 years ago, and it may take some

time before an official picture emerges. But if the photos, reports, and footage that emerged in the past few days are anything to go by, it certainly won’t be a pretty one.

This leads me to my next point. While Malta has every right and entitlement to access disaster funds through the EUSF, a storm like last weekend’s certainly puts a few things into perspective. While that storm was a rather extreme example, flash floods in Malta during winter happen with monotonous regularity. Why is Malta, a tiny, highly-exposed island, not more prepared for such weather events? Why are we now scrambling to pick up the pieces, quite literally, instead of having implemented systems that would have scaled back the impact of the adverse weather? Back in 2003, perhaps we could have been forgiven for not having the resources to properly prepare ourselves, but 16 years later, with surplus funds burning a hole in our pocket, how is it possible that nothing has changed? Why do so many roads, after any bout of poor weather, let alone a monster storm like last weekend’s, immediately start resembling sinkholes? And why is it so often a case of cure over prevention on this island, instead of the other way around?

The storm that happened last weekend was not the first of its kind, and it won’t be the last. Weather conditions will only get more extreme, unpredictable and dangerous as climate change caused by human activities continues to tamper with the natural systems of the earth. We’re currently in the eye of the storm, the false calm where the terrifying projections of where our planet is headed aren’t news anymore, but are instead a low, persistent buzz, layered between the everyday politics and entertainment news we consume on an hourly basis. Individual, worthy efforts to reduce the impact of items such as single-use plastics have to be solidly backed by a wholesale effort from governments all over the world, in order to slow down the steady trudge we’re on towards the destruction of civilisation as we know it. From phasing out fossil fuels to placing heavy taxes on the most harmful environmental practices, time is running out to turn back the clock. And if action isn’t taken immediately, there will be precious little left to save.

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BUSINESS OPINION

Over 37,000 clients served by Business 1st during 2018

Paul Baldacchino

Business 1st, a one-stop shop for entrepreneurs offering information, guidance and support on the various Governmental services available for the business sector, made over 37,000 client contacts during 2018, the first full calendar year of operations from the Mriehel offices. Visitor levels have been increasing ever since the Mriehel offices were officially opened on 5th October 2017.

Business 1st started off as a department run by Malta Enterprise, a Government-owned entity, with the aim of providing a single point of contact for SMEs. In 2017, the project was revamped and included members of the private

sector as active partners. The new Business 1st is now an active partnership involving Malta Enterprise, the GRTU, servizz.gov, the Ministry for the Economy, Investment and Small Business, and the Office of the Prime Minister. Business 1st is delivering its services across a mix of channels, including counter service at the Mriehel Centre, call centre services, email, and the Business 1st app. In 2018, 15,646 clients visited the Mriehel centre, 17,881 calls were answered through the call centre, 3,607 enquiries were assisted on official email, and 418 entrepreneurs received training, amounting to over 37,000 clients.

Business 1st provides support for start-ups, facilitating the registration processes for all businesses and particularly for the self-employed, sharing information on Government services and incentives for business, including applications, permits and registrations, and promoting online services and the simplification of business processes. The full service centre for entrepreneurs being developed at Business 1st already encompasses a number of Governmental entities, including the Malta Tourism Authority, the Measures and Support Division,

the Environmental Health Directorate, Malta Enterprise, Identity Malta, Jobsplus, and the Commissioner for Revenue, which now have a presence in Mriehel and offer customer care services from Business 1st. Various other entities also serve through Business 1st by prior appointment.

Jobsplus and Identity Malta are the latest Government entities to start providing services from Business 1st. Employers can meet officials from Jobsplus at the Mriehel offices to learn more about the optimisation of usage of their Jobsplus website accounts and find out about relevant services and schemes offered by the agency. Furthermore, officials from Identity Malta support entrepreneurs by offering information and advice to employers seeking to engage workers from outside the European Union. Identity Malta offer their services from the Business 1st office every Wednesday, which will be eventually increased according to demand.

The VAT customer care services have now been fully integrated within the Business 1st set-up at Mriehel, after the customer care services at Birkirkara were closed down in May 2018. The Inland Revenue Department now also has a permanent presence, after

“Business 1st is aiming to set new standards for Government agencies in the delivery of customer care services.” the VAT Department and Inland Revenue Services were merged into the Integrated Revenue Services, in order to improve synergies in the administration of the collection of revenue streams. The presence of these two important entities at the Business 1st office is crucial in order to build the onestop concept.

Business 1st is aiming to set new standards for Government agencies in the delivery of customer care services. The staff are smart, efficient, and undergo an ongoing training programme. The centre’s opening hours are convenient for working people, with longer opening hours on Wednesdays. Business 1st saves SMEs a lot of time and reduces bureaucracy significantly, but most importantly, it allows SMEs to receive better information and faster service. It also supports the national initiative for the simplification of processes for business. A unit focused on simplification is

housed in the same offices and works with Business 1st to promote the use of online applications.

Business 1st will continue expanding in 2019. The next entity to enrich our ranks will be the Customs Department. Initially, the Department will commence with a weekly presence on Thursdays.

The timing of this addition is crucial since the coming months will be witnessing the necessary adjustments required in processing trade flows with the United Kingdom. Since the details of Brexit are still being ironed out, the officials from Customs will be glad to help entrepreneurs adapt to any changes in procedures.

Business 1st can be reached by calling 144 from Monday to Friday between 8am and 4pm, or by emailing info@businessfirst.com.mt Paul Baldacchino is Chief Officer at Business 1st

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ANALYSIS

Misconceptions about engineering careers may be behind falling number of graduates Vanessa Conneely

DR ING DANIEL MICALLEF, ENGINEERING LECTURER, UNIVERSITY OF MALTA

“e perception of a career to teenagers is very important and does play a factor in future figures.”

It’s a reality that needs to be addressed with urgency. Why are so few Maltese teenagers interested in pursuing a career in engineering, especially at a time when the country is experiencing a construction boom, meaning jobs are plentiful and there’s money to be made?

Somehow, this attractive scenario doesn’t seem to be enough to entice.

Last month the European Union released figures showing that fewer than 10 per cent of graduates in Malta completed a degree in engineering. It’s a statistic that came as no surprise to those working in the industry.

Dr Ing Daniel Micallef, an engineering lecturer at the University of Malta, was one of the first to raise the alarm, when he noticed student numbers flagging. “In 2014 the number of graduates was 111, but by 2017 it fell to 66. While it rose again to 75 last year, based on the numbers who enrolled this year, it’s expected to drop again in 2019, so we wanted to find out why.”

Dr Micallef chairs the sub-committee set up by the Chamber of Engineers last year, partly funded by the Voluntary Organisations Project Scheme and the Ministry for Education and Employment, whose aim is to try and understand why the number of graduates is dropping. He and his team began their research in June. “The study started with secondary school students,” he continued. “We surveyed pupils and asked them about their reasons for choosing certain subjects over others for their O-levels and onto sixth form.”

While the final results won’t be released until April, the findings are already pointing to some key factors. “Some of the students surveyed said they didn’t choose engineering

as it was too difficult to get a place in the course – which is a classic urban myth we’ve repeatedly come across.

Others suggested they were influenced by their parents or career guidance teachers, while some responded that they didn’t think engineering is a job that pays well. While none of these misconceptions are the absolute reason numbers are falling, the perception of a career to teenagers is very important and does play a factor in future figures.”

Dr Micallef said that while both mechanical and electrical engineering courses are experiencing drops in student numbers, electrical is being hit harder. Not only does this affect Malta’s engineering sector, but IT as well. Indeed, part of the research being carried out by the sub-committee includes the short and long-term effects the lack of graduates is having on the country as a whole.

“Local engineers are becoming hard to find,” continued Dr Micallef. “There is a huge demand that is not being met in Malta. When we spoke to companies, their main concern was that people weren’t skilled enough, either because their background was not aligned with the needs of the employer or because there were barriers such as not having enough practical experience on the job. Because of the lack of graduates, companies are looking abroad for foreign professionals, but this also has its challenges. For example, you need a special warrant or licence to practice engineering in Malta, which takes time to get. Another obstacle is language. A lot of potential recruits apply from Eastern Europe and don’t speak a lot of English, which can lead to communication problems.”

Dr Micallef warned that if the problem isn’t addressed, it won’t only be the construction and IT sectors feeling the squeeze. “We have

to start thinking about other areas that Malta can excel in. While we are experiencing a boom now, we need to start planning for the future and preparing for the challenges that we may face. We need to diversify our economy and can’t just rely on building and iGaming.”

The ongoing study is also revealing that, once again, there is a lack of female students choosing a career in engineering – but this is not just an issue in Malta. Research carried out by Eurostat in 2017, showed that out of almost 18 million scientists and engineers in Europe, 59 per cent were men and 41 per cent were women. While on the surface this does not look too bad, these figures dramatically fluctuate when broken down into sectors – such as manufacturing – where 83 per cent of employees are male.

On a positive note, the same report showed that in five EU countries there are more women working as scientists and engineers than men.

These included Lithuania (57 per cent), Bulgaria and Latvia (both 53 per cent), Portugal (51 per cent) and Denmark (just over 50 per cent).

Malta stood at number 21 – just 38 per cent of its scientists and engineers are women.

Dr Micallef said that he still sees the gender divide play out in his classroom. “We haven’t studied this issue specifically, but from my experience there is still a complete imbalance when it comes to boys and girls taking up engineering. While things have slowly improved since I was a student myself, I have always seen an imbalance in my seven years as a lecturer.”

But it’s not all doom and gloom.

Dr Micallef said the research carried out by his team only focused on the number of students taking up engineering at University and not at Continued on page 15

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ANALYSIS

e gender divide is still playing out in engineering courses Continued from page 13 Malta College of Arts, Science and Technology (MCAST).

“The reason we didn’t include the figures of those graduating from MCAST was because at that time, these students were not eligible to apply for the warrant or licence needed to work as an engineer in Malta. Now we understand there are courses which help students to bridge that gap and begin their career.”

For anyone still questioning whether or not to become an engineer, Dr Micallef had a strong message. “One of my own professors at University used to say that engineering is one of the most important jobs in society, and he’s right, it’s behind everything. It’s a career

with a lot to offer. While it might be hard work, it’s a job that gives a lot of satisfaction and provides knowledge and flexibility. A lot of graduates I know are not working in what are deemed to be classical engineering jobs. Some work in the financial or insurance industries, so there’s a lot of scope, which I believe makes it a unique profession.”

Dr Micallef concluded by saying that finding a solution to the falling numbers will only benefit Malta in the future, adding: “if we want to be competitive, then we need to look at how engineers are treated in other countries. For example, in France and Germany they have a solid workforce and it’s a respected profession. Here the idea of engineering is distorted, and that’s something that needs to be addressed.”

“We need to diversify our economy and can’t just rely on building and iGaming.”

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TECHNOLOGY

DIMITRIS LITSIKAKIS, REVOLUT COUNTRY MANAGER, GREECE, CYPRUS AND MALTA

Revolut sets sights on on hundred million users w Marie-Claire Grima Fintech phenomenon Revolut, which acquired its European banking licence in December, is now set to launch in a number of major markets, including the US, Canada, Singapore, Australia, New Zealand, and Japan, while gearing up to take on Hong Kong, Brazil and Russia.

“Our ambitious five-year plan is to become the largest financial firm, reaching 100,000,000 users worldwide,” said Dimitris Litsikakis, Revolut Country Manager for Greece, Cyprus and Malta.

The company has just launched its Revolut for Business App, which is available for the company’s Revolut Business users. “About a year ago, we launched Revolut for Business to shake up banking for the better, and that’s exactly what we’re doing. And while initial feedback has been awesome, our customers

pointed out that having a business app would take things to the next level,” Mr Litsikakis said.

“With Revolut Business, your team gets their own prepaid cards tied to your company’s current account. You can track your whole team’s business expenses instantly, set spend limits for each employee and easily block cards if they are lost. You can also sync transactions into your favorite accounting platform, receive realtime notifications and more – using Revolut Connect.”

Revolut’s Open API also allows businesses to seamlessly integrate their Revolut business accounts into their workflow, which means that it can be used to automate cross-border business payments, send payouts to clients or employees and monitor transactions according to what each business needs.

Revolut, which was founded in London in 2015, currently has

“Revolut Business is ideal to serve companies that want to save money and time.

We are expecting high growth in this segment as business banking is broken.”

70,000 corporate accounts in Europe, each with multiple sub-accounts for the company’s employees. “Malta is an international hub that does a lot of trading worldwide, so Revolut Business is ideal to serve companies that want to save money and time. We are expecting high growth in this segment as business banking is broken,” Mr Litsikakis said.

“Business owners can spend hundreds if not thousands of euros just for bank account opening and associated account management fees.

Sending money abroad to suppliers worldwide or receiving payments from international clients also incur significant fees. And if these clients are outside the eurozone, business owners are forced to pay rubbish currency exchange fees.”

He explained that Revolut understood the importance of saving on transfer costs and sending global payments in as little time as

possible. “Our multi-currency business account lets you hold, receive and exchange 24 currencies using the real interbank exchange rate. This means fast transfers with zero fees from us, unlike your bank! There’s still a lot of work to be done, but we couldn’t wait to get this out and into your hands.

Our team is already hard at work on features including attaching receipts, categorised payments, and way more.”

Mr Litsikakis revealed that Revolut, which obtained its banking licence in December, had reached 80,000 clients in Malta, smashing its expectations of signing up 60,000 customers by the end of 2018.

“That’s more than 20 per cent penetration at the addressable market, a truly remarkable growth milestone that we don’t come across very often. Since Malta is a relatively small country, news about a new digital bank that offered a cheaper

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TECHNOLOGY

MR LITSIKAKIS AT THE MALTA DELTA SUMMIT

ne worldwide and faster alternative to the incumbents spread like fire.”

“With the help of our local ambassadors, we executed a carefully planned launch during Delta Summit in October, quickly becoming the talk of the town. Revolut climbed to the top of the App Store, claiming the number one spot on all App Store categories, beating Facebook, WhatsApp, YouTube and other popular apps. And there are no signs of stopping! The rate of growth is actually accelerating since Revolut works best when your friends are also on it, as you can split bills, send or request money instantly without fees. So, it works like a network, with users inviting more and more users, a textbook case study of growth based on word of mouth.”

Mr Litsikakis added that the company’s south-east region, which consists of Greece, Cyprus and Malta, had exceeded 200,000

users and was currently the number four market for Revolut in Europe, coming ahead of much larger countries including Germany, Italy and Spain. He said that this showed that the southern Mediterranean countries were embracing technology faster than expected, and seemed ready to take the plunge into a cashless society.

“Cash is not transparent. It is untraceable and as we all know, it’s often associated with corruption, tax evasion and money laundering. Revolut is fighting back with a 100 per cent digital solution built on a safe network of transactions that are monitored to prevent fraudulent behaviour. A plastic card is also much safer than cash since you will never lose your emoney stored on a digital wallet like Revolut, even if it gets lost or stolen, unlike cash that can hardly ever be retrieved after such an unfortunate event.”

“Revolut is fighting back with a 100 per cent digital solution built on a safe network of transactions that are monitored to prevent fraudulent behaviour.”

In December, Revolut acquired its European banking licence from Lithuania. “This is a pretty huge milestone for us. This licence will help us towards our goal to build an account where you can manage every aspect of your financial life, with the best value and using the best available technologies,” Mr Litsikakis said.

“Now, it’s worth pointing out that nothing is going to change right away. Despite being granted a licence, this does not automatically turn us into a bank. In the coming months, we’ll be doing a lot of building and testing behind the scenes and working closely with the regulators to have any restrictions on our licence removed, so that we can launch full current accounts, over-

drafts and everything else you’d expect from a bank.”

And just as the company set out to fix banking, it also plans to leave its own mark on the world of trading. “We’re going to ditch the commissions and demystify the process of being able to invest in the stock market, and the only way to do this is with clarity, clever tech, zero commissions and a no-nonsense approach,” Mr Litsikakis explained.

“The commission-free Revolut trading model aims to make life so much easier and smoother for any would-be investor. And, if you’re already a Revolut user, signing up will be a whole lot quicker and easier than it would be to sign up with a traditional broker. With a

user-friendly interface, our mission is for you to be able to see, at a glance, exactly where you want to put your money.”

Another project in the pipeline is Revolut Youth, which the company hopes will help improve children’s financial literacy. “Initially, the app will be for children over seven years old, with another version for teenagers around 16 years old. We believe that taking control over your finances is a lifetime of work, and starting to learn about financial literacy and how to manage your money is vital from a young age. The long-term goal is focused on allowing children to earn the trust to have more financial freedom.”

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CASE STUDY

Mariner sees drive towards ever-increasing automation in international logistics Jo Caruana

MARINER TERMINAL IN VENICE, ITALY

There’s no denying that in today’s world, time is money – a fact that features heavily in the operations of Malta-based ports management specialist Mariner.

The company, which is the terminals and logistics arm of Hili Company, was set up with the specific objective of developing and managing medium-sized seaport container terminals, and it has made major investments in terminals in Riga, Latvia, and Venice, Italy.

These terminals act as vital gatekeepers to logistics networks on which international, regional and local economies depend.

“Timeliness is a critical factor in ensuring that local, regional and global supply chains are linked together efficiently and effectively,” explained Edward Hili, one of the company’s Directors. “Quite simply, our clients’ requirements dictate the manner in which we invest and operate.”

As a critical node in the logistics chain, Mariner’s container terminals must deliver a highly-efficient service. This applies to both their operational productivity – the speed with which they handle containers – as well as communications with key stakeholders.

To do so, they maintain a key focus on crucial factors – optimising their operations, investing in the right equipment and, perhaps most importantly, state-of-the-art technology. After all, the company’s overarching goal is to meet the constantly-changing needs of the container shipping industry on both shore-side and land-side operations, so that it can build greater efficiencies for its customers.

At Mariner, technology has always been viewed as a key enabler and source of competitive advantage, and the company has invested heavily over the years in staying ahead of the game. “Thanks to the advanced technologies in use in our terminals, operational data is always available in real-time,” Mr Hili said. “This allows us to take critical decisions in the shortest possible timeframes and thereby drive seamless operational processes.”

Beyond that, the business intelligence and data analysis systems in use at their ter-

EDWARD HILI, DIRECTOR, MARINER

“Demands in terms of data availability are constantly growing and we fulfil them through the further development of existing information systems and the implementation of new ones.” minals give their management powerful tools for monitoring performance and resource planning. This helps to drive the optimal deployment of their resources, both when it comes to personnel and equipment. “We have also ensured that communication with state authorities and tight integration with their information systems always remain at the forefront of our vision,” continued Mr Hili. “This makes administrative processes like customs

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clearance and cargo release approvals seamless for our terminals and our clients.”

In fact, the Mariner team constantly works in close collaboration with its clients to identify and understand their particular – and sometimes unique – requirements.

“Their demands in terms of data availability are constantly growing and we fulfil them through the further development of existing information systems and the implementation of new ones,” Mr Hili said.

“Moreover, the broad range of integration mechanisms with external IT systems allows our terminals to perform real-time data exchange with our clients and, similarly, with state authorities. Our clients’ needs are key to everything we do and, as a core part of this strategy, we invest constantly to remain at the forefront of technology in the regions where we operate and thereby ensure optimal service.”

Technologically speaking, numerous developments are planned for the future of the company. As with many other industries, there is a drive towards ever-increasing automation, data gathering and analytics in the terminals business. “Automation possibilities are expanding and the cost to implement that technology is falling,” Mr Hili said. “Going forward, we foresee that more elements of the operational process will be automated and will increasingly play a role in terminals. We will continue to refine this process and optimise its execution.”

That said, the implementation of cuttingedge technology must, of course, be balanced with the economics of a terminal and

MARINER TERMINAL IN RIGA, LATVIA

with the necessity to remain flexible, given that automation is most naturally predisposed to standardised processes.

Similarly, as data gathering and the tools to analyse it constantly expand, terminals will improve their planning and seek out more operational efficiencies. “The bottom line is that technological developments definitely give birth to new opportunities for terminals to enhance all aspects of their service,” he continued. “Having said this, the basic principles of terminal operations will remain unchanged.”

Of course, much of the knowledge and experience required to achieve all of this is down to Hili Company’s incredible longevity in the business world – dating back to 1923. Nevertheless, Mr Hili admitted that there are both upsides and potential hazards to long-established companies, compared to the agility of start-ups.

“Naturally, having been around for almost a century, our company has built a wealth of knowledge and experience, with the obvious advantages that this brings,” he explained.

“The challenge is to match this with the

“Technological developments definitely give birth to new opportunities for terminals to enhance all aspects of their service.” speed and flexibility of a start-up. There are many sad examples of well-established companies becoming lumbering giants.”

“We are avoiding this fate by maintaining a lean organisational structure and remaining hands-on in all our operations. We also work hard to cultivate a dynamic corporate culture which permeates the entire group.”

Looking to the future, Mr Hili highlighted the vision that has been created to make sure every individual feels an intrinsic part of the team, with the ability to directly contribute towards achieving that vision. “We strongly believe that it is essential to give individuals the space to learn and grow in order to exercise their drive and fulfil their ambitions. As a result, we also tend to see that members of our team remain loyal for the long haul, which is reflected in the low turnover of our personnel. At the same time, our experienced team remains nimble and proactive in driving the growth of the company,” he concluded.

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CASE STUDY

As Brexit looms, AE promises firms a seamless transition Vanessa Conneely With a strong presence in both Valletta and London, the members of AE – Human Capital believe they can provide the perfect solution to help businesses adjust to life after Brexit.

Practice leader Michael Spiteri Bailey describes himself and his team as ‘sequential advisors’. “By this we mean that we are engaging in the different stages of the business process a client requires,” he said. “We are either providing the different services in-house, or we are working very closely with colleagues outside the firm whom we know can come up with a seamless offering. Our aim is to make the client feel that they have remained inhouse at all times, dealing with the same service culture, the same values and the same sort of approach to billing.”

And with one of the most challenging times ahead for anyone trading with or in the UK, Mr Spiteri Bailey has some strong advice. “You need to work with the market. Nobody succeeds by going against it. We have simply recognised that clients don’t want to run all over town looking for the different people who can provide the different services they need. That just does not work anymore.”

As Malta continues to attract iGaming companies, it’s no surprise that the sector is one of AE’s biggest clients. “It is a huge industry with different actors at all levels. When a business looks at Malta, it wants to first understand the rules,” he explained. “It asks about the tax it will pay, and the

“Our aim is to make the client feel that they have remained in-house at all times, dealing with the same service culture, the same values and the same sort of approach to billing.” tax its employees will pay. Companies need to register for VAT and will want to engage accountants. They need help with hiring new staff and help with finding office space.”

On some occasions, Mr Spiteri Bailey said, the clients might already have the office space but need help with management of the office move. “Other clients might want to apply for a gaming licence in Malta first, and then in the UK. Once obtained, they need help with their compliance and anti-money laundering.

Startups sometimes need somebody with a lot of experience in the industry to help them sell their products and need consultancy in that area.”

Like every business owner, Mr Spiteri Bailey is constantly trying to predict the future. And while acknowledging that the iGaming industry continues to grow here, he feels Malta could also become a hub for cybersecurity. “It is too early to call, but distributed ledger technology (DLT) could change the way we do business worldwide, if the technology remains robust and succeeds in offering very high levels of security. One of the principal attractions of DLT or

blockchain is that it is hackproof. If that does not change with time, the impact of this technology could be as widespread as the Internet itself when you consider its applications.”

Mr Spiteri Bailey said that the effects of technologies such as blockchain and DLT are already visible, principally in their ability to move ‘a new kind of money’ around the world very quickly.

“These so-called virtual financial assets move outside the traditional banking system, hence their ability to move very quickly between counterparties. Think of how long it takes you to receive compensation from an insurer for, say, a delayed flight.

Once an insured party accepts to pay for that insurance with a non-traditional financial asset, however, he can receive compensation in an electronic wallet rather than a bank account. As soon as the flight is delayed, the smart contract regulating the insurance kicks in. At the simplest level this works like a yes/no flow chart, eliminates discretion or debate, and starts a process – flight delayed equals compensation in cryptocurrency from Insurer A to the electronic wallet of Insured Party B. All of which can

MICHAEL SPITERI BAILEY, PRACTICE LEADER, AE – HUMAN CAPITAL

happen pretty much in real time.

A whole new paradigm is being created here.”

Mr Spiteri Bailey said that the ability to provide the market with

the assurance that the information being delivered is real and unhacked is powerful and exciting. “Malta is one of the first countries to have acknowledged

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CASE STUDY

the potential of this technology and has enacted a framework that will allow businesses around the world to come here and launch their virtual financial assets or their new applications of this technology.”

AE also has the human capital available, both in Malta as well as in London, to structure these futuristic products. Mr Spiteri Bailey gives the following example. “An engineering company comes up with a way of saving energy. It can monetise its invention in two ways, by either selling its system for a fee, or installing it for a fee and taking part of the money saved as a result of the new energy efficiency.

Both the engineering company and its clients would normally prefer the second, for obvious reasons, but the engineering company does not have the capital required to be able to do that. So, it goes to market. It tells investors that it has the means of measuring the energy being saved and the means to report that energy saving in a manner that is safe and immutable; for example, that the reporting can’t be hacked. Those who want to share in the money being saved, agree to becoming part of the project and finance it via the purchase of security tokens.”

“One of the principal attractions of DLT or blockchain is that it is hackproof. If that does not change with time, the impact of this technology could be as widespread as the Internet itself.”

Security tokens and utility tokens are among the main areas of future activity and growth for AE, Mr Spiteri Bailey explained. “The former permits the promoter of a project to

raise finance towards it, the other allows a vendor of a product or service to make sales and receive payment outside of the traditional financial system, like the flight in-

surance discussed above. Malta has the regulatory regime, but the place to raise finance for a project is not here. It has to be London or another major financial centre.”

However, he added that after Brexit, a security token that is regulated in the UK will not have the motility of one regulated in the EU. “So, a security token that is regulated in Malta but structured in a way that can be offered to investors in the UK and elsewhere in the EU could, in a sense, represent the best of both worlds.”

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STOCK MARKET REVIEW

A review of Malta’s economic progress Christopher Mallia

Earlier this month, the European Commission (EC) published its updated economic forecasts for all eurozone countries covering the three-year period from 2018 to 2020. The data provided interesting findings, particularly with respect to Malta, as it continues to outperform most of the other euro area countries.

The EC noted that “Malta’s economy maintained a strong growth trajectory in 2018.” In fact, the EC expects Malta’s gross domestic product (GDP) to have grown by 6.2 per cent in real terms during 2018, compared to 6.6 per cent in the previous year and only second to Ireland’s 6.8 per cent.

The EC’s report further explained that this growth was achieved on the back of an increase in domestic demand which, in turn, was spurred by strong employment growth, increasing disposable income. The large accumulation of savings in recent years also contributed to buoyant private consumption. The EC also explained that domestic demand is now Malta’s main driver of economic growth as opposed to net exports in previous years, as the latter has been adversely impacted by a weaker external environment which also resulted in a drop in the exports of goods.

Looking ahead, the EC anticipates further growth for Malta both in 2019 and 2020. Malta is projected to register a further 5.2 per cent growth in GDP this year and an additional 4.6 per cent expansion in 2020. Specifically, for 2019, the EC explains that the onset of large-scale projects in the health, tourism and real estate sectors are expected to boost private investment whilst private consumption is set to remain healthy on the back of higher disposable incomes. It is also noteworthy to highlight that the forecasted GDP growth rates for Malta in 2019 and 2020 are the highest amongst eurozone countries. Moreover, although the EC’s latest projections for

Domestic demand is now Malta’s main driver of economic growth as opposed to net exports in previous years.

Malta indicate that growth for the Maltese economy will somewhat ease from the 6.6 per cent in 2017 and 6.2 per cent in 2018, the latest figures are still better than the previous growth forecasts of 4.9 per cent and 4.4 per cent respectively published by the EC in November 2018.

This contrasts sharply with the projected figures for the whole euro area, which have been revised downwards in the latest EC publication. The 19-country currency union is now expected to expand by just 1.3 per cent in 2019, compared to the previous estimate of 1.9 per cent as most of the countries’ projections, excluding Malta, Greece and Slovakia, have been revised lower by the EC. These include significant downward revisions in the growth projections for Germany, Europe’s largest economy, from 1.8

per cent to 1.1 per cent, Italy from 1.2 per cent to 0.2 per cent and the Netherlands from 2.4 per cent to 1.7 per cent. Disruptions in car production (which mainly affects Germany’s economy given that the country is a major automobile exporter), social tensions, and political uncertainty, particularly in France and Spain, as well as fiscal policy fragility, with Italy in the limelight in this respect given its aggressive budget measures for 2019, are some of the challenges cited by the EC as the reasons for the aforementioned downward revisions.

Furthermore, the EC noted that the economic slowdown in the eurozone during the second half of 2018 was more pronounced than expected and the downward momentum was also evident during the month of January. The EC also

opined that risks in the euro area remain to the downside, which could ultimately have a lasting adverse effect throughout the whole year. This view is also shared by the European Central Bank (ECB) as evidenced in the January 2019 Economic Bulletin. Both institutions have identified the challenges related to global trade (particularly between the US and China), Brexit and volatility across emerging markets as potential pitfalls for the eurozone economy.

Malta has weathered these risks unscathed so far. Moreover, although Malta is expected to continue outperforming its fellow euro nation states, inflation remained within the ECB target of close to, but below 2 per cent and should remain so at least until 2020. In fact, the EC projections indicate that Malta’s inflation rate reached 1.7 per cent in 2018 (partly due to a technical amendment in the calculation) and is expected to gradually increase to 1.9 per cent by 2020, largely on the back of pressures from continued wage growth. This Continued on page 24

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STOCK MARKET REVIEW

Prospects are encouraging but Malta must not get complacent Continued from page 23 is truly comforting especially in view of the low interest environment and other expansionary measures being taken by the ECB to support the economies of other European countries which are registering much weaker growth.

Malta has also registered a substantial improvement in its budgetary and debt metrics. In this respect, a country’s economic health is measured by its budgetary deficit or surplus as a percentage of GDP and by the ratio of national debt to GDP. In the case of Malta, the Government has returned a budget surplus every year since 2016, following 32 years of successive annual deficits.

In 2016, the surplus stood at 0.9 per cent of GDP, whilst in 2017 this was 3.5 per cent. Additionally, in each of the first three quarters of 2018, Malta registered a budget surplus in excess of 3 per cent which should lead to a surplus for the whole year. As anticipated in the budget speech deliv-

ered by the Finance Minister in October 2018, Malta is also expected to continue registering a fiscal surplus in the years ahead at the rate of 1.3 per cent in 2019, 1.5 per cent in 2020 and 1.8 per cent in 2021.

As a result, Malta’s debt levels have stabilised around the €5.7 billion level in recent years as no additional debt was required to finance budget deficits. Coupled with the improvement in GDP, Malta’s debtto-GDP ratio has fallen from 72 per cent in 2014 to below the 50 per cent mark for the first time since the late 1990s. As at the end of the third quarter of 2018, Eurostat figures show Malta’s debt-to-GDP ratio at 45.9 per cent which ranks as the fifth lowest within the eurozone. Only four other countries within the single currency area have a debt-toGDP ratio of less than 50 per cent (namely Estonia, Latvia, Lithuania and Luxembourg). The other 14 countries all have higher ratios including 61 per cent for Germany, 68 per cent for Ireland, 98.3 per cent

for Spain, 99.5 per cent for France and more than 100 per cent for Italy, Cyprus, Portugal and Greece.

Malta’s economic progress has also been recognised by the international rating agencies which in recent years have either confirmed Malta’s credit rating or awarded a better one. Naturally, the international rating agencies also identified a number of challenges, both internal, including those related to the labour market, property, infrastructure and bureaucracy, and external, which the Government needs to remain cognisant of and take action where possible.

Therefore, while Malta’s economic progress is commendable and the economic prospects for the smallest eurozone member state are encouraging, Malta must not become complacent and should continue to seek to sustain the more important economic sectors whilst cultivating new ones. This would enable Malta to achieve a truly diversified economy to strengthen the

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. © 2019 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved.

sustainability of the positive momentum currently being registered.

Additionally, in the prevailing buoyant scenario, it must continue to manage its economic resources in a balanced manner to sustain competitiveness and avoid an overshoot

of inflation which could ultimately lead to a derailment of the positive economic trends mentioned above.

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

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BUSINESS UPDATES

Scalable Cloud ERP solutions are built for your growing business The faster your business expands, the more important it becomes to have an ERP solution which can accommodate an increasing amount of operational procedures. The right ERP solution can shape the growth of your business by maximising productivity and streamlining operations. Acumatica Cloud ERP is a connected business platform which empowers you to transform your business by putting customer success at the heart of your operations.

Take care of your company’s organisational growing pains Your list of clients will grow as your business expands, which means that your ERP solution needs to be ready to handle common bumps on the road such as heavy workloads, potential costly oversights, and data inaccuracies. Acumatica Cloud ERP is designed to provide on-demand insights for decision makers,

as well as automating key processes, and the digitalisation of your data. This leaves your employees with more time to focus on more critical tasks, such as customer relationship building and day-to-day operations.

Top class, manageable software Small and mid-sized businesses no longer have to settle for lower quality software solutions. The Acumatica SaaS (Software as a Service) model has made ERP more accessible due to lower hardware, software, and personnel costs. The latter three factors are a result of: Costs of data storage, supplier support services, and software tools are spread across multiple companies, resulting in more affordability.

Service is not priced on the number of users but on resources required, doing away with the need for user licenses.

Employees and server rooms don’t need new hardware, because

cloud-based ERP systems can be used across various devices that support an internet browser.

Software maintenance and support can be managed by your SaaS provider and support partner, so your IT team can focus on revenue generating projects.

A feature for every function Start small and build your way up with Acumatica Cloud ERP which grows along with your business. Begin by implementing tools to optimise financial management and CRM. As your business expands, you can add on relevant modules such distribution management, manufacturing management, service management, and project accounting.

Work from anywhere, at any time Access important information whenever you want, wherever you are, from any mobile device. The mobile-friendly nature of

Acumatica Cloud ERP is perfectly suited for growing business in today’s fast-paced world where everyone is on-the-go.

For more information on how Acumatica Cloud ERP can help

accelerate your business growth by maximising productivity and streamlining operations, visit www.computimesoftware.com/ acumatica-erp or email info@computimesoftware.com

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BUSINESS UPDATES

HSBC ushers in 2019 with great offers and discounts HSBC Bank Malta plc has kicked off 2019 with some great offers on home loans and personal loans, as well as rewards for new customers joining its unique Premier or Advance propositions.

On offer are packages tailored for customers buying their first or second home, with competitive interest rates on HSBC’s classic home loan, with rates fixed until 30th June 2022. Home loan customers will enjoy personalised attention from specialised lending managers who will guide

them throughout the whole lending process and ascertain that customers seize the best opportunities.

When it comes to personal loans, apart from offering the possibility of applying for such a loan online, HSBC is again offering fixed competitive rates combined with the possibility to repay the loan over a period of seven years. For the first time, HSBC is also providing a furniture loan at a highly competitive interest rate to those customers who have taken a home loan from

the bank in the past two years. This deal is available until 30th June 2019.

The bank is offering those customers who meet the eligibility criteria for HSBC Premier and HSBC Advance and join by today (28th February), a cash reward of €75 and €50 respectively as a thank you for choosing HSBC as their bank of choice.

Customers interested in learning more about these offers can visit hsbc.com.mt, call 2380 2380, or visit their nearest branch.

Legendary filmmaker Ridley Scott directs cinematic Turkish Airlines advert Acclaimed filmmaker Ridley Scott teamed up with Turkish Airlines to direct a cinematic short film set in Istanbul, where East and West meet.

The Journey, the story of a chase across the city’s iconic landmarks, was shown at Super Bowl LIII on February 3rd. The Journey pays homage to the ancient city of Istanbul, which has been the airline’s hub for 85 years, and spans the continents of Europe and Asia.

The 30-second commercial was featured in the first quarter of the most-watched sporting event on the global calendar, while the six-

minute short film version launched simultaneously via Turkish Airlines’ YouTube channel.

“When viewers tuned into the Super Bowl on Sunday they were treated to a stunning portrayal of Istanbul in this thrilling film from Ridley Scott,” said M. İlker Aycı, Turkish Airlines’ Chairman of the Board and the Executive Committee. “We invite travellers around the world to join us on our journey and experience true Turkish hospitality at our brand new home, Istanbul Airport.”

Director and Producer Ridley Scott added, “Istanbul is an inspiring city to build a story

around with its beautiful topography surrounded by water. The city is a powerful backdrop to the story that brings together the main characters in an exciting and spectacular way, much as Istanbul has done for generations.”

Flying to more countries than any other airline, Turkish Airlines currently connects 306 destinations in 124 countries, which will expand as it moves its hub from the current Istanbul Ataturk Airport to the newly-opened Istanbul Airport.

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GO launches new and improved roaming plans for clients travelling outside the EU GO’s post-paid customers’ roaming experience in non-EU countries is about to get a whole lot better, simpler and cheaper as of 1st March with GO’s new and improved packages and super discounts.

“Our customers’ roaming experience and peace of mind are our top priorities,” said Nikhil Patil, CEO, GO plc. “In addition to ensuring that we are on point from a technical perspective, we have undertaken every effort to improve our partnerships with foreign providers to ensure that we can indeed deliver the best service possible to our esteemed customers.”

“Not only has this allowed us to improve our pricing, but we have revised our zone distribution based on data we have gathered over the past months on the countries our clients visit most regularly.”

“We strongly believe that these new packages and new zone distribution truly reflect the needs of our customers. We have listened

to and processed their feedback, and are essentially delivering higher value to them,” added newly-appointed Chief of GO Business, Arthur Azzopardi.

All customers subscribed to Infinity 3 and Freedom Beyond mo-

bile plans will benefit from a 50 per cent discount on the roaming rates in in non-EU countries.

For further information on these revised plans visit www.go.com.mt/roaming or call on 8007 2121.

omas Smith strengthens portfolio by expanding shipping networks in the Far East Thomas Smith, an international household name in the business of shipping and logistics services, is now offering a stronger and wider shipping network from the Far East.

The existing container groupage service is now available to an even wider network from numerous Asian countries. Together with trailer and container services operating from European destinations, Thomas Smith now has a hub in Singapore to cater for clients’ growing shipping needs.

Thomas Smith is now able to offer clients groupage services to Malta through the Indian Ocean and the Middle East shipping routes. Through this avenue, extensive alternatives have been made available for cargo imports originating from Bangladesh, Cambodia, China, Hong Kong,

India, Indonesia, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam and the United Arab Emirates.

This wider network also allows Thomas Smith to handle FOB and ex-works shipments from all over Asia, and ensure product quality control. Merchandise from all the above territories is consolidated through Thomas Smith’s hub in Singapore. Transit times range from 16 days to 30 days depending on the cargo’s origin.

Groupage export is now also possible from various countries and places in Africa, including Angola, Nigeria, Djibouti and the Congo.

For a complete solution to your logistics business, contact Thomas Smith’s Business Development manager on 2205 8134.