The Malta Business Observer, 27th June 2019

NEWS

Issue 99

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Distributed with Times of Malta

June 27, 2019

“e industry is in crisis” – President of the Chamber of Architects and Civil Engineers Helena Grech The President of the Chamber of Architects and Civil Engineers, Perit Simone Vella Lenicker, has not minced her words in reaction to the traumatic construction incidents of the last few weeks, saying that “the industry is in crisis” when contacted for comment by The Malta Business Observer.

“We have a complete lack of regulation of contractors, a complete lack of adequate competencies among the workforce, confusion about the various roles and responsibilities on construction sites, building regulations which date back to the 19th century, as well as a serious lack of enforcement. Unless we take immediate action, matters will only get worse,” she said, in no uncertain terms.

Revisions to construction laws came into effect on Tuesday but failed to address some of these concerns. Under the new regulations, each site would need a Site Technical Officer, who must be an architect and civil engineer, and who, as a warranted professional, would need to be on site and ensure that the contractor is following the method statements and construction drawings prepared by the architect and civil engineer in charge of the project. This new role replaces the Site Manager, who did not need a warrant or any particular technical knowledge. Moreover, the new regulations state that the site’s method statement would need to be uploaded onto the Planning Au-

PERIT SIMONE VELLA LENICKER

“It is also evident that costs of construction will now go up in no uncertain way, and this will have an impact on property prices if developers continue to expect the same rates of return they’ve enjoyed so far.” thority’s map server, and be accessible to the public, with a 15-day window for concerns to be raised.

Based on what the Infrastructure Minister Ian Borg stated in Parliament, Perit Vella Lenicker noted

that it was “clear that these new regulations will have a wide impact on the construction industry, which will need its time to adjust to the new requirements.” Those immediately affected will be the present

site managers, the President continued, since they “will not be able to continue their work in this role, despite having contracts with their employers.”

Moreover, the changes are set to affect ancillary services and sectors as well. “It is also evident that costs of construction will now go up in no uncertain way, and this will have an impact on property prices if developers continue to expect the same rates of return they’ve enjoyed so far. It is also a fact that shocking the market with the sudden imposition of new, and more onerous requirements, will affect all those involved in the industry, their families and all other consultants.” She noted that this included “the legal profession” since “new contractual agreements will need to be drawn up to reflect the changes.”

In parallel, the President of the Malta Chamber of Commerce, Enterprise and Industry, Perit David Xuereb, emphasised the importance of regulating the industry and improving the quality of its product, saying that this will have a “significant positive influence on most industries in Malta”. He noted that the amended Legal Notice is planned to be only part of a spate of new initiatives and updated legislation, saying that “the Chamber looks forward to all necessary initiatives that will raise the bar of ethical standards, quality of construction, safety to all parties and respect to all affected parties.”

The revisions come after a turbulent period in the sector. A series of Continued on page 3

Government transport policy should disincentivise the use, rather than the ownership, of higher-polluting vehicles, in the face of rising emissions, environmental economist says. see pages 5, 6 >

ANALYSIS Should citizen well-being – rather than GDP and growth – be the primary focus of the Maltese economy? e Malta Business Observer asks the experts. see pages 9, 13 >

BUSINESS OPINION Prof. Alex Torpiano gives his views on the recent changes to Legal Notice 72, Avoidance of Damage to ird Party Property, stating that problems in the construction sector need to be tackled holistically. see page 11 >

CASE STUDY MaltaPost’s recently-unveiled eSeller service has given participating local companies the chance to substantially boost their online sales, with some indicating that their international orders have doubled, if not tripled, since the facility was introduced. see pages 18, 19 >

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NEWS

“Regulating the industry will have a positive influence on other industries” – Malta Chamber President Continued from page 1 recent incidents resulting in the collapse of either blocks or walls within a block have tipped public anger against the construction industry beyond breaking point. In March 2019, the roof of a Sliema building collapsed, injuring a 19-year-old worker. Some days later a wall collapsed in Tower Road, Sliema. In April of this year a block of flats in Guardamangia collapsed, with four families ending up homeless. On 8th June, a four-storey block of flats in Mellieha collapsed, leaving a 77-year-old woman trapped inside the building. Less than a week later, a wall collapsed in a Pieta apartment block, very close to the building collapse in Guardamangia.

Anger against the construction industry had been mounting for some time. Changes in the law such as building height increases

and an increase in investment projects for hotels, boutique hotels and luxury apartments have led to a mammoth amount of construction happening across the island concurrently. Reports show that there are five new cases of chronic asthma registered daily and the public have long complained about the unprecedented levels of dust and noise in the air as a result of such heavy construction. In 2013, a total of 12,887 building permits were approved by the Planning Authority (PA), breaking previous records for the number of dwellings approved annually, according to its own statistics.

The spate of incidents led Prime Minister Joseph Muscat to stop all excavation and demolition works across Malta and Gozo on the same day of the Pieta wall collapse. From 15th June, such works in predefined touristic areas were no longer permitted. However,

complaints have emerged of non-compliance. In addition to the ban, the Government also quickly issued new guidelines for demolition, excavation and construction, followed by a short public consultation period of five days. The consultation period ended officially on Friday 21st June, with the new regulations coming into force last Tuesday and the Legal Notice was also published that evening.

Perit Vella Lenicker, after being contacted for comment, argued that the Chamber has been “calling for a complete overhaul of our [Malta’s] regulatory systems since 2007, yet very little has materialised to date.” She added that “at the end of 2018, Government proposed the establishment of a Building and Construction Authority, a proposal which the Kamra [the Chamber] fully supports, however this is still in the early stages of for-

mulation and is not envisaged to be established before the end of the year.”

Perit Vella Lenicker highlighted detailed proposals “for a modern building and construction regulation framework, which it has already presented to various stakeholders, including the Government.” Encouragingly, she added that “these proposals were endorsed by the profession, and we [the Chamber] have received very positive feedback so far.”

She revealed that the Chamber of Architects held an Extraordinary General Meeting last Friday, “wherein the profession endorsed a clear and focused way forward for both the profession as well as the industry. The Council was empowered by warrant holders to take these proposals forward and to ensure that they are implemented as soon as possible,” she added. “We hope that Government will listen to what the profession has to say.”

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Usage of higher-polluting vehicles should be disincentivised, environmental economist says Helena Grech Government transport policy should disincentivise the use, rather than the ownership, of higher-polluting vehicles, including classic and vintage cars, in the face of rising emissions, environmental economist, Dr Marie Briguglio, said in comments to this newspaper.

Recent media reports have raised concerns that the vintage car scheme – instituted between 2013 and 2015, establishing that all certified classic vehicles were exempt from road tax and were only required to pay an annual €8 administrative fee for the renewal of the licence – was being abused to save vehicle owners hundreds of euro in licence fees. Currently, there are 11,457 vehicles registered under the vintage scheme, which was first introduced back in 2003, yet 70 per cent of vintage-registered cars inspected in the last three years by Transport Malta (TM) fell short of the required standards, according to the authority.

Dr Briguglio shed light on the potential flaws in the current incentives, drawing attention to the fact that they did not tackle the issue of car use. Indeed, while “it was not ideal for incentives to be given for the use of cars that traditionally have higher emissions than their modern counterparts”, from an environmental standpoint, this was not the crux of the matter, she said. “Owning a vehicle is not a

“Owning a vehicle is not a polluting activity in and of itself. It is the use of that car that causes pollution.”

– Dr Marie Briguglio, Environmental Economist

polluting activity in and of itself. It is the use of that car that causes pollution. So, while it is not advisable to make higher-polluting cars even cheaper to own, the policy direction should be to create disincentives on the use of cars rather than car ownership.”

Even though vintage and classic cars in Malta are not permitted for commercial reasons, there are no restrictions associated with their private use. In 2015, the Government accidentally uploaded a Budget document stating that vintage cars would only be permitted to be used on weekends due to traffic congestion and vehicle emission considerations. An uproar ensued and the Government promptly

stated that this was a working document that was in no way set in stone. The measure was never brought into force.

Yet, it would appear this would have gone some way to mitigating against the polluting effects of these vehicles, which frequently have larger engines. In this regard, Dr Briguglio said that policies such as imposing parking fees and strict enforcement of the highway code are all methods that have been used by foreign governments to curb the daily use of private vehicles, even more modern ones. “No tools are being employed by the state to disincentivise the use of cars. Unless disincentives are put in place, such as paying

tolls in highly congested areas, it will be difficult to curb car usage, and thus emissions from transportation.”

According to Eurostat figures released last month, Malta has the second highest increase in carbon dioxide emissions from 2017 to 2018, registering a rise of 6.7 per cent, second only to Latvia, which registered a surge of 8.5 per cent. And, data from the National Statistics Office (NSO) showed that, in 2017, greenhouse gas emissions originating from the transport sector were almost equivalent to emissions generated by the energy sector.

Continued on page 6

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NEWS

TM spokesperson insists vigorous checks are carried out on classic cars Continued from page 5 Reports highlighted that emissions from the energy sector amounted to 34 per cent of total emissions, while the transport sector contributed 30 per cent. This may, in part, be the result of the stock of licensed motor vehicles on the road – commercial and noncommercial – which reached 387,775, as of March 2019, an increase of 3.4 per cent over the same quarter in 2018, according to the NSO. A TM representative insisted that rigorous checks are carried out on certified classic and vintage cars when asked about the role they play in rising emissions being generated by vehicles in Malta. This follows recent media reports stating that few inspections on vintage cars are being carried out by TM – only 25 per month.

“Certified vintage vehicles can only be used for private use; they cannot be used for any activity for

hire, reward or financial gain, and they must undergo the same rigorous VRT test as any other vehicle.

The Vintage Vehicle Classification Committee randomly checks and inspects a number of vintage vehicles on a monthly basis.

They ensure that the vehicles are still in line with the guidelines and regulations.”

Moreover, the Authority receives reports on vehicles bearing black plates which are shabby, dirty or seem to have some inconformity, the spokesperson said. “The owners of disqualified vehicles have to bring the vehicle in line, to avail themselves of the scheme once more, after going through the application process and having the vehicle inspected.”

Cars certified to be vintage by the Vintage Vehicle Classification Committee (VVCC) are “authentic and genuine vehicle[s] manufactured over 30 years ago… and kept in a state which is as close as possible to that produced by the manufac-

turer,” said a spokesperson for TM. “The vehicle must respect the spirit of classic and vintage vehicle preservation,” he added.

Car enthusiasts contend that the issue is not as straightforward. An owner of a car rental company, who preferred not to be named, argued that there are many more factors which must be taken into consideration when discussing this issue. He said that one must consider Malta’s substantial increase in population over the past five years.

He went on to say that while taxes and fees associated with classic and vintage cars are, indeed, lower, the amount spent on fuel and maintenance would not make it a more feasible option for daily use than a modern car. He did, however, note that he has observed a few cases where an old car, and not one which falls within the definition of a classic or vintage car, has been granted the certification simply on the basis that it is old.

“e Vintage Vehicle Classification Committee randomly checks and inspects a number of vintage vehicles on a monthly basis. ey ensure that the vehicles are still in line with the guidelines and regulations.”

– TM Spokesperson

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ANALYSIS

Should an‘economics of happiness’ replace the current GDP focus?

Jo Caruana There is a fast-growing school of thought that believes citizen well-being – rather than economic growth – should be the primary focus of government spending.

In New Zealand, for instance, Prime Minister Jacinda Ardern said she wanted to prove that she could govern the country on an approach based on kindness and empathy, and not one that focuses solely on GDP growth.

With that in mind, she has just published the world’s first-ever ‘well-being budget’. In it, her government focuses its spending explicitly on certain social outcomes and inter-generational issues.

Within that, it has set five clear goals: to support mental health (particularly among young people); to reduce child poverty; to increase support for its Maori and Pacific Islander peoples; to transform the economy for a low-carbon future; and to boost productivity and digital innovation. “Spending should be about more than just trying to achieve higher levels of GDP,” a New Zealand government spokesperson had

said. As a result, bids to the Treasury will not only need a cost-benefit analysis, but an assessment of their well-being impact.

Over in the UK, the move to a well-being focused spending budget has also been on the agenda. In Wales, the government’s innovative Well-Being of Future Generations Act places a legal requirement on public bodies to think about the long-term social, cultural, environmental and economic well-being impact of their decisions.

This activity led one of Britain’s past cabinet ministers, Gus O’Donnell, to launch a report that urges a “sea change in thinking”, and through which he believes the UK could lead the world by making well-being the goal of government policy. His paper calls on the government to use the spending review to boost its funding for mental health services, teaching in schools and social care by an extra £10 billion (€11.1 billionn) within five years to raise the well-being of its citizens. Interestingly (particularly for politicians), it found that happiness, fulfilment and the reduction of anxiety, (rather than growth or jobs) were the main determinants of whether voters were satisfied with

their governments. “We have an opportunity to focus on all the things that we haven’t been focusing on over the past three years, to set a new direction and a new vision,” Mr O’Donnell had said.

Speaking about the ‘economy of happiness’, local economist Gordon Cordina, Executive Director of E-Cubed Consultants, said that the idea is fast gaining traction in international policy debates. “Some academics claim that income explains only one per cent of happiness,” he stated. “This, of course, does not mean that we can live happily without income, but that income seems to not really affect the differences between happiness in different countries.”

For instance, he explained, people in Scandinavia are often quoted as being among the happiest, due to protective social networks and enabling environments for individuals.

“Malta also typically fares well, placing in 22nd place, having advanced over 25 places in the past five years. Our climate plays a role in this no doubt, but improved social inclusion, economic prospects and performance also play a part.”

Sustainability is an important factor, according to the economist. “But the fundamental question is whether this is sustainable into the future, within the context of a rising and more diverse population, a more congested environment and, potentially, an erosion of traditional networks and arrangements that we typically associate with a Maltese identity,” he noted.

Agreeing with the fact that well-being should be a major focus of the Maltese economy, Marie Briguglio, a lecturer in behavioural economics, economic research methods, environmental economics and social marketing at the University of Malta, said there is, arguably, no human quest more important than that of improving well-being. “A large (and growing) body of scholarly research – research conducted in Malta, with works by international and national governmental and non-governmental bodies around the world – has made it possible to identify some of the key issues which can help improve well-being in Malta.

These include health and exercise, lifelong education, togetherness, active participation, the Continued on page 13

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

Acting Managing Editor Rebecca Anastasi

EDITORIAL

Incentivising high-powered polluters?

In 2003, Government introduced favourable vintage vehicle policies to encourage their use and preservation, with the additional aim of assisting the promotion of Malta’s transport heritage. Over the years, these were updated and, today, following changes instituted between 2013 and 2015, all certified classic vehicles are exempt from paying the annual circulation licence fee and are only required to pay an annual €8 administrative fee, for the renewal of the licence. And, as explained in our story on page 5 and 6, currently, there are 11,457 vehicles already registered under the vintage scheme.

Indeed, vehicles which are over 30 years can be certified as vintage and can acquire certification from the Vintage Vehicle Classification Committee. However, many of these vehicles are high-powered fuel guzzlers, built during a time when concerns over high emissions and pollution were far on the horizon, and when larger engines dominated. What this ultimately translates to is that Government is incentivising vehicles known to contribute to an increase in CO2 emissions and greenhouse gases. And, this is especially worrying when one considers the level of gas emissions coming from the transport sector in Malta – 30 per cent of total emissions, comparable to those in the energy sector, at 34 per cent, according to the National Statistics Office.

Could the large number of vintage and classic cars on the roads be the result of vehicle owners getting their hands on high performance and highpowered cars, without paying the necessary registration or road tax? In other words, is there a loophole in the regulations which is being exploited by those who are not truly concerned with safeguarding Malta’s transport heritage? And, are owners of more modern, lithe and fuel-efficient vehicles being over-taxed and punished? Of course, we cannot paint everyone who owns a vintage or classic car with the same brush. There are true connoisseurs and enthusiasts, who lovingly restore some of these spectacular relics of historical culture and whose passion for the art and craft of

motor maintenance is inspiring. But, should regulations be changed to safeguard the interests of truly passionate devotees of vintage motoring, as well as the environment?

In this edition, we pose some of these questions to environmental economist, Dr Marie Briguglio, who has, for years, advocated for more ecofriendly transport measures and policies. In her comments, she raised the flag on the use of high-polluting vehicles, stating that Government should disincentivise excessive usage – not ownership – of cars known to contribute to higher CO2 emissions. This will, indeed, go some way towards safeguarding the rights of those who dedicate much time, energy and resources to taking care of their vintage vehicles – and who keep them in pristine condition – as well as limit the environmental degradation and health issues associated with pollution in the air we breathe.

Disincentivising excessive use of high-polluting cars seems to have been on Government’s mind a few years ago when, in 2015, a Budget document limiting vintage cars use to weekends was uploaded in error. However, following an uproar, the Government retracted, saying this was a working document and nothing to this effect was ever brought into force. It would be interesting to see whether the authorities have changed their stance on this and whether plans are afoot to institute tools to mitigate the polluting effects of older vehicles, with larger engines.

Ultimately, popular ideas, such as the rules surrounding the certification of vintage cars, need to be tempered with long-term sustainable policies.

As Gordon Cordina explains on page 13 Malta’s unique selling proposition – from an economic standpoint – also rests on creating an attractive lifestyle where people can relax and keep healthy. For it is this combination of factors which has attracted thousands to our shores to work and who contribute to the smooth running of our economy. Transport policies must, thus, also be enacted to ensure what happens on our road doesn’t end up being the weakest link in that chain.

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BUSINESS OPINION

Construction industry problems should be “tackled holistically”

Prof. Alex Torpiano It is difficult to assess the long-term impact of the proposed changes to Legal Notice 72, Avoidance of Damage to Third Party Property, because the text of the Legal Notice, and the Schedules that are referred to in it, have just been published. The Legal Notice, together with the Ministerial Statement made in Parliament on the 24th June, and the Minister’s subsequent clarifications, raise more questions than they give answers. The impact on the day after the publication is clearly one of confusion, with a crippled BRO, and demolition and excavation works which can be observed proceeding uninterrupted, ignoring completely the new legal requirements.

The Legal Notice fails to make a distinction between the Civil Code responsibility for structural integrity of the completed building, that both perit and contractor carry, (currently for a period 15 years), and the responsibilities during construction – which, in theory, is what this particular Legal Notice proposes to address. The role of what is now to be called Site Technical Officer, (previously, the Site Manager), is not

clear, other than to “enforce” the “method statement” prepared by the project perit. He seems to be conceived as some sort of “knowledgeable policeman”, who has to make sure that the contractor, who commissioned him, fulfils the technical instructions given by the project perit. His involvement is logically limited to the construction process, including, possibly, the design of the temporary works that may be required for the construction, but not beyond. This is normal practice abroad, particularly for the larger projects; a professional is responsible for the engineering design, as well as a resident engineer – normally appointed by the contractor.

The liabilities of the former are for the period defined by legislation, (15 years in Malta), whilst the responsibilities of the latter terminate with the completion of the project.

The Legal Notice insists that the role of Site Technical Officer has to be undertaken by a perit – implying that he has to be capable of understanding technical instructions – and, presumably, of diligently following such instructions, but without interpreting them, or changing them, even if he, as a professional

person, feels that such change is warranted. This is bound to create confusion on relative roles and responsibilities on site. Furthermore, the Minister added to the confusion because, whilst the Legal Notice insists that such “enforcement” has to be carried out by a perit, the Minister stated that in future this could be done by other professions, including, it seems, mechanical or electrical engineers. It is not clear why the latter professionals are deemed to be capable of “enforcing” method statements, more than, for example, site foremen, with years of experience.

The Legal Notice also does not make a distinction between different scales of project, or different scales of contractor set-up. Whilst it is normal for major contractors to have their own site management personnel, which normally include senior and experienced periti, it will become very onerous for the smaller contractors – even the diligent ones, who are certainly capable of understanding the perit’s instructions – to engage a perit simply to relay to him the instructions of the project perit. In this sense, the Legal Notice seems to favour large established contractors and pe-

nalise the smaller ones. And at the same time, in the absence of a proper licensing system for contractors, which is based on expertise, experience and resources, there is no guidance for a prospective owner on which to base his choice.

The people drafting the Legal Notice have put considerable importance on the “method statement”.

Once again, however, there is considerable confusion. It is legitimate to expect that the project perit assess the context of the proposed project, whether it is the geotechnical situation under his building, or the existing building, on which he has been asked to design additional floors; or the existing buildings adjacent to a site where a deep excavation is proposed. It is also legitimate to expect that the project perit undertake a risk assessment and propose mitigation measures. It is finally also legitimate to expect that the project perit specify, for particular contexts, a required sequence of operations, or a timeline to follow, or even limits of, say, vibration or deflection, that the works have to conform to. However, these are more of a works specification rather than a method statement. In most other countries,

“e Legal Notice also does not make a distinction between different scales of project, or different scales of contractor set-up.”

a properly qualified contractor would use the risk assessment and works specifications prepared by the project perit, to propose a method of working that, in his experience, would achieve the performance required. Only the contractor can do a good job in preparing this method statement; if nothing else, getting the contractor to prepare a method statement, forces him to think carefully about the risks of the project, and of how to best undertake it to minimise these risks. The concept of the method statement that appears through the Legal Notice that is on its way, misses all of this, and the net result is bound to be more confusion on site.

The Kamra tal-Periti has been very clear about its recommendations: retain, and support, the current division of responsibilities between perit and contractor, and make sure that the contractor and his operatives, at every level, are properly trained to undertake the works specified.

It would be nice to say that the proposed changes will have a positive impact on the construction industry, such as increased safety for third parties. Unfortunately, what I expect in the future is more confusion, recrimination, and liability court cases. We are already seeing confusion, as everybody is meant to conform to a Legal Notice which has not been thought through properly.

The construction industry will continue to remain in a sad place, unless problems are tackled holistically.

Prof. Alex Torpiano is Dean, Faculty for the Built Environment, and past president of Kamra tal-Periti.

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ANALYSIS

‘Economy of happiness’ fast gaining traction Continued from page 9 environment and working for better governance,” she asserted. “There is also a role for spirituality, religiosity, mindfulness and gratitude.”

In fact, at the first National Conference on Well-being in Malta, held in October 2015 and conducted under the auspices of Marie Louise Coleiro Preca by the then-President’s Foundation for the Well-being of Society, Dr Briguglio presented measurements of wellbeing across the world, as well as key socioeconomic factors of well-being and their implications on policy. “The conference concluded that regular and robust national wellbeing statistics and research are required in Malta to be able to compare the well-being of different segments of Maltese society, over time, and with other countries, so as to evaluate policy performance in well-being terms and to identify policy priorities,” she said.

With much of this in mind, Mr Cordina went on to explain that the international academic debate typically focuses on a conflict between growth in production and the happiness of its population. “So, the government can either direct its budget towards expanding the productive base, or to sustaining social and welfare services,” he said. “I believe that this conflict only exists if we make it so, and that the fundamental mission of the study of economics has always been to optimise production to generate the resources that will enable social welfare and happiness, and definitely not to destroy it.”

“Should Malta lose its ‘happiness’ proposition, I believe that this would be of significant detriment to the economic performance of the country” – Gordon Cordina, Economist And this is especially evident in Malta, he said, where he believes that economic success is itself dependent on the happiness of the population. “When analysing the bare essentials of Malta’s competitive advantage, it often boils down to offering investors and business partners a number of factors, such as a cost-efficient operating environment, coupled with our distinctive selling proposition as a Mediterranean archipelago with an attractive lifestyle where people can work, relax, heal, learn and be creative. This combination of factors has attracted tourism activity, foreign direct investment and the new

economy based on jobs in financial services and iGaming. Should Malta lose its ‘happiness’ proposition, I believe that this would be of significant detriment to the economic performance of the country.”

So, as countries around the world assess how best to balance the role of the state and business when it comes to creating prosperity, governments – including our own here in Malta – will doubtlessly be watching how New Zealand’s new priorities fare as the world enters an economic slowdown, as well as whether the UK makes headway in this respect too.

“Looking to the future, I do believe that Malta should invest in ‘happiness’ projects and activities, and to ensure that projects with a major impact are future-proofed in terms of their happiness impact – whether that’s in terms of the natural and physical environment, social relationships, or physical and mental health. This will likely be the major challenge facing us in our next phase of economic development and growth, and it will mark our welfare as a nation for generations to come,” Mr Cordina added.

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CASE STUDY

Family Business Office plans new initiatives, aims to extend services to Gozo Jillian Mallia The Family Business Office (FBO) has announced plans for new initiatives to support companies by extending the entity’s services to Gozo, increasing study opportunities in the sector and exploring EU funding, a spokesperson has said.

This follows consultation with a wide range of businesses on how the original legislation – the Family Business Act, ratified in 2017 – could be fine-tuned to cater more specifically to the day-to-day challenges being experienced by family firms.

To this end, the spokesperson confirmed that “a focus on Gozitan businesses will be introduced”, with discussions on opening an FBO branch on the island underway.

Moreover, the Office confirmed that it is about to embark on a dialogue with the Faculty of Economics, Management and Accountancy at the University of Malta to offer and develop study units for students to acquire further knowledge in the area by offering “tertiary-level subject options in the specific field of family businesses.”

Collaboration with foreign universities, as well as other entities, is also being planned, the spokesperson said, with the intention of exploring EU funding in relation to knowledge sharing, with the aim of embarking on an ambitious threeyear initiative providing additional resources to family businesses across the EU. “During 2019, the FBO is endeavouring to collaborate with Advenio eAcademy (Malta), European Family Business (Belgium), University of Ioannina (Greece) and Vilnius University (Lithuania) to submit a joint application for funding, which will also be submitted for Erasmus+ cofunding,” he said.

The new initiatives will boost the support available to family firms

“By the end of 2018, over 1,000 people transferred their business to family members, representing one of the largest amounts of business transfers that took place in any one year across Malta and Gozo.”

through the FBO and its legislation, the spokesperson underlined, thus adding to the aid already established through the much-used fiscal and governance incentives, as well as the existing tax credits as delineated in the Family Business Act. This is in line with the entity’s drive to “work directly with family businesses, representing them, promoting and working towards new policies and incentives, as well as registering family businesses so that

they may benefit from the numerous incentives and schemes available to help them sustain their business and carry out successful business transfer,” the spokesperson said.

Indeed, helping firms plan for the future through strong succession planning is high on the Office’s priority list, and a mission which has taken priority over the past year, made easier through the extension – up until the end of this year – of

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CASE STUDY

“e legislation regulates family businesses, and, in turn, this encourages and assists them to enhance their internal organisation and structure with the aim of effectively operating the businesses towards succession.”

Legal Notice 131 of 2017, which allows “family businesses to transfer their company to family members and benefit from a reduced stamp duty rate from 5 per cent to 1.5 per cent on the uncapped value of the business.”

This incentive has motivated family firms to think ahead, the

spokesperson said, and to make plans to transfer their business to the next generation, allowing them to make “significant savings” and also “encouraging the new generation to step in and the founding generation to plan their succession and retirement, also allowing a smooth inter vivos business transfer.” The scheme has proved to be

so popular that “by the end of 2018, over 1,000 people transferred their business to family members, representing one of the largest amounts of business transfers that took place in any one year across Malta and Gozo.”

The Family Business Act is the foundation of such incentives and initiatives, the spokesperson

stressed, with companies registered as a family business being encouraged and assisted through the, sometimes, fraught process of planning for the future by giving them an identity and structure. “The legislation regulates family businesses, and, in turn, this encourages and assists them to enhance their internal organisation and structure with

the aim of effectively operating the businesses towards succession.”

To this effect, the law “seeks to regulate and establish parameters within which family businesses are to govern and operate, to help them pursue an effective transfer,” and it is also “intended to establish operational benchmarks so that family businesses can further achieve their aims,” the spokesperson outlined.

And, as a result of the FBO’s focus on encouraging “sustainability, longevity and continuity”, the entity has seen a tremendous response from family firms wishing to avail themselves of the benefits enshrined in the legislation. “In the process, the FBO received approximately 2,000 emails requesting assistance and support and registered over 4,600 visits to its newly-set up website,” the spokesperson said. This has enabled the Office to work towards its “aim of providing a platform for family businesses to come together and provide a comprehensive service to family businesses,” he said.

“Through education, incentives and awareness, we may assist those who have been in business for all their life to let go and make space for the new generation. Reluctance to do so is one of the most important factors in the failure of succession in family businesses and needs to be avoided to reduce the risk of the generational shadow,” the spokesperson cautioned.

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CASE STUDY

MaltaPost outlines eSeller success for online retailers Jo Caruana MaltaPost’s recently-unveiled eSeller platform for business has given local companies the chance to substantially boost their online sales, with some indicating that their international orders have doubled, if not tripled, since the facility was introduced.

The platform offers services primarily designed to help businesses overcome the logistical challenges of sending goods overseas, and it was crafted with SMEs in mind, although some larger companies are also benefiting, Charles Cilia, Mal-

“Tourists often come into our shops and see things they like but won’t be able to take back with them because of size or weight restrictions, so a good postal service is vital to us.”

– Mark Warner, Marketing Manager, Mdina Glass

MARK WARNER, MARKETING MANAGER, MDINA GLASS. PHOTOS: ALAN CARVILLE

taPost plc’s Head of Logistics and eCommerce Services said.

“The choice of services found in the eSeller platform gives businesses the ability to reach a global target audience and deliver their products to consumers in Malta or abroad,” explained Mr Cilia. “It uses a harmonised system that facilitates the process of delivering products to their customers, both locally and abroad, without them worrying about how much they are sending and how often.”

This extremely convenient service uses a labelling system that reduces the time for compa-

nies to label each product. Beyond that, all of the related administrative tasks can be carried out online from each business’ base or office, using the MaltaPost dashboard. Once any product is ready for delivery, the company can simply drop its items at a post office in bulk, or order a courier pick-up at a time to suit its needs. Pick-up fees remain the same whether there is one or more packages to be collected, and MaltaPost handles everything from the pick-up point onwards, while keeping the sender in the loop continuously.

“We have found that eSeller allows our customers to focus on their true business priorities, since we can handle the packing, labelling and delivery of products,” continued Mr Cilia, who added that the service was launched around two years ago. “On top of this, through our international tracking system, customers can gain full visibility of the progress of their shipped item as it moves to its final destination, which gives them much-needed peace of mind,” he said.

“The entity even offers email notifications”, the Head of Logistics and e-Commerce Services asserted,

with pick-ups organised to “ensure a streamlined and hassle-free selling process, as well as insurance coverage against damage and loss.”

Among the businesses successfully using eSeller is Mediterranean Ceramics, a company that produces a wide array of earthenware and ceramic products, and which sells them locally and ships them abroad.

“We have definitely noticed an increase in foreign sales since we started using eSeller,” said Jessica Grima, Mediterranean Ceramics’ Brand Manager. “It all started when Mario Giordimaina, who handles our logistics, got in touch with the

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team at MaltaPost to explain how the existing system could be improved. Immediately, MaltaPost took it all on board and their team was thrilled to have feedback that they could work with. It wasn’t long before they got back to us with the idea for eSeller, and we jumped on board as the first client.”

Ms Grima explained that eSeller has since transformed the way Mediterranean Ceramics can service its international clients. “Just this morning we sent 15 big boxes off all over the world – to New Zealand, Australia, the US and across Europe,” she stated. “This would never have been possible without eSeller, because we wouldn’t have been able to manage that logistically, or provide our

clients with an exact timeframe for delivery. Now all that is taken care of, and I feel so much more confident about being able to accept orders from online clients or even tourists visiting Malta who are unable to take their goods with them in their suitcases.”

Talking through the many benefits of the service, Ms Grima highlighted the fact that she now knows exactly the amount of postage that an international client will need to be charged – even before the package is collected. In addition, the fact that she is immediately given a tracking number ensures her clients don’t have to be in the dark about where in the world their goods have reached, and they can monitor their whereabouts themselves.

“I really think it’s the convenience that makes the services so fantastic overall; it’s ideal for small businesses because you can expand without having to invest a cent.”

– Jessica Grima, Brand Manager, Mediterranean Ceramics

“I really think it’s the convenience that makes the services so fantastic overall; it’s ideal for small businesses because you can expand without having to invest a cent,” she said. “We have gone from sending one package a month before eSeller to around 15 a month now, so business has definitely increased dramatically. Best of all, we haven’t had a single breakage or had anything go missing, so the reliability of the service matches the convenience aspect too.”

Agreeing that eSeller has helped with their international trade too, Mark Warner, Marketing Manager for Mdina Glass, explained that the service has been both cost-effective and logistically sensible.

“Tourists often come into our shops and see things they like but won’t be able to take back with them because of size or weight restrictions, so a good postal service is vital to us,” he said. “Plus, our ecommerce site ships across the world too, so it’s equally important that we know how much things are going to cost to ship and how long they will take to reach their destination.”

Mr Warner explained that, in the past, Mdina Glass’ logistics team would pack a number of items and have them on standby, before asking their driver to take them to the post office in Rabat or to the MaltaPost headquarters in Qormi. This meant that a number of people

JESSICA GRIMA, BRAND MANAGER, MEDITERRANEAN CERAMIC.

needed to be involved. “We would even cause a backlog in the post office when we got there with our 20or-so boxes,” Mr Warner said.

“Now, we just let our contact at MaltaPost know when we have packages to be picked up, and they courier them for us. This means our driver is free to do other things, while the packages get on their way far quicker than they would have in the past, and we even have the tracking numbers in-hand immediately,” he asserted.

“With all of this in mind, we have certainly found eSeller to be very well streamlined, and it has improved both our efficiency and our international profitability. We now feel very confident about sending shipments all over the world – safe in the knowledge that they will arrive in good condition, for a reasonable amount of money, and in a predictable amount of time. We would highly recommend it to other businesses eager to boost their international output,” he added.

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e Malta Business OBSERVER

| June 27, 2019

CASE STUDY

Recently launched Tech.mt foundation to promote drive in tech human resources Jillian Mallia Public-private partnership Tech.mt, a foundation launched in March of this year to work towards promoting Malta as a tech centre for innovative technologies, will place a special focus on human resources in order to aid growth in the IT and technology industries, Chairman Mark Bugeja said.

The entity, which was set up by the Government, together with the Malta Chamber of Commerce, Enterprise and Industry, will “endeavour to help out with promoting the industry in order to attract human resources to Malta and, indeed, to individual companies,” Mr Bugeja asserted, stating that “without human resources we will struggle to get the sector off the ground at the desired pace.”

Tech.mt was announced in the last Budget and was set up at the beginning of this year.

One of its principal aims is to promote “Malta as a suitable set-up for Foreign Direct Investment (FDI), whilst also promoting the local technological industries to open business paths with foreign investors in this sector,” Mr Bugeja explained. He also went on to assert that the Government’s drive to innovation through disruptive technologies – which saw it forging “new legislation in various sectors of this new industry” – will now be funnelled “through this new marketing channel.”

To encourage human resources, the foundation plans to participate “in education and university fairs that will give us the opportunity to showcase the Maltese islands as one of the best overall living experiences and therefore attract the relocation of talent.”

The foundation, he added, will encourage more companies to set up shop on the

Maltese islands, giving Malta a great opportunity to flourish, while also creating a number of job opportunities for locals.

Moreover, on the local front, companies can go through Tech.mt to help them “achieve goals beyond our shores, giving them the opportunity to latch onto this marketing arm through local and foreign fairs and conferences,” thus also increasing their business profile, Mr Bugeja said.

Francois Grech, Deputy Chairman of the foundation added that “one of the greatest challenges faced by local tech companies is to expand beyond Malta,” he said. “Our aim is to position Malta as a reputable tech centre and to assist local tech companies to reach beyond our shores through a number of initiatives.”

Mr Grech also noted that to ensure that companies achieve these goals, Tech.mt will consolidate Malta as a “technology brand” and provide a springboard for local tech companies to establish a relationship with international partners.

“Talent is at the core of any tech company, and this will definitely stimulate the need for skilled resources locally. We need to position Malta as a vibrant location for tech talent, as we are competing with other European locations to attract the best people,” Mr Grech said. To this end, and among other initiatives, Tech.mt is working closely with academic institutions to offer local courses aimed at training local and foreign talent, with the ultimate objective of maintaining and increasing employment rates, he said.

In relation to this, the entity has also focused its energies on engaging the youth community. “One of our pillars is youth engagement and encouraging their participation in the transformation of our digital

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CASE STUDY

economy,” Dana Farrugia, CEO of Tech.mt, said. “Youths are a focal point; they are major stakeholders who are constantly using digital technology and they are fundamental to providing us with feedback. We believe that in order to encourage them to educate themselves in the field, we need to primarily listen and then act on the feedback provided.”

The CEO, reflecting much of what her colleagues stated, is a firm believer that Malta provides the perfect ecosystem for growth in the sector. “Our major focus is putting Malta on the map as the island of choice for tech-

“Talent is at the core of any tech company, and this will definitely stimulate the need for skilled resources locally.”

MARK BUGEJA, CHAIRMAN, TECH.MT

DANA FARRUGIA, CEO, TECH.MT

nology. Our country has recently topped a report by the EU Commission, rating it first in nationwide connectivity of fast broadband. We also boast a highly-skilled workforce and we enjoy facilitated communication worldwide since almost our whole island is capable of communicating in English. By reducing communication barriers, Malta is a key player in attracting foreign direct investment or exporting technology skills abroad,” Ms Farrugia said. She also emphasised that the majority of companies that have opened in Malta have remained in

Malta and continue to choose Malta as their hub for technology and business growth.

“For us at Tech.mt, there is no better certificate of trust than this.”

To achieve its stated aims, Tech.mt is also seeking funding from the European Union to help finance its initiatives and to “target various facets of the community, focusing efforts on reducing the digital divide and gender gap in the sector,” Ms Farrugia continued. “Statistically we also see that women are under-represented in the digital world. We need to identify why this is happening. Tech.mt is tak-

FRANCOIS GRECH, DEPUTY CHAIRMAN, TECH.MT

ing the approach of providing training and job opportunities by partnering with the private sector, so that women and young girls are truly allowed to decide about their future and take their destiny in their own hands.”

This will, indeed, allow everyone to benefit from the technological innovations, Ms Farrugia concluded. “Due to the fast evolution of our digital economy, we are seeing a trend whereby certain strata of society are not catching up as swiftly. We do not want anyone to remain on the outside looking in on technological evolution.”

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e Malta Business OBSERVER

| June 27, 2019

STOCK MARKET REVIEW

Complex financial instruments revisited

Christopher Mallia Back in 2015, local investors were taken by surprise by new procedures being implemented by local financial intermediaries with respect to the subordinated bond issue by Bank of Valletta plc (BOV).

This was one of the first instances whereby the notion of complex financial instruments was publicly discussed. Almost four years down the line, BOV issued another bond that is also categorised as a complex financial instrument. It is, therefore, appropriate to revisit the factors that determine whether a financial instrument is classified as complex or non-complex, and the applicable procedures to be followed when subscribing to such complex securities.

The 3.75 per cent BOV subordinated bonds which mature between 2026 and 2031 are classified as complex on various counts, namely the callability feature; their subordinated nature; and also their being subject to the Bank Recovery and Resolution Directive (BRRD) regime. The callability feature gives the issuer of the bond, in this case BOV, the right to redeem the bond prior to the final maturity date. This is probably the most widely known complexity feature among local investors given the numerous callable bonds issued over the years in the local market, with some eventually being redeemed early in recent years as a result of the prevailing low interest rate scenario.

Subordination, in essence, means that the rights and claims of any holders of such bonds, or notes in respect of the payment of capital and interest, will, in the event of financial difficulties being faced by the issuer in question, rank after the claims of all senior and unsubordinated indebtedness, and will not be repaid until all other senior and unsubordinated indebtedness, outstanding at the time, has been settled. Local investors might also be familiar with this term since, in the past, some bond issues were ranked as subordinated. Subordinated instruments are mainly issued by banking institutions.

Meanwhile, the concept of BRRD is probably the least known among local investors. The BRRD regime was introduced by the European Commission back in July 2014 with the aim of ensuring that, in the future, governments will not use taxpayers’ money to ‘bail out’ any financial institution as happened in various jurisdictions, such as Greece and Cyprus, during the global financial crises. The concept is now on ‘bail ins’ whereby the risk is placed on shareholders, bondholders and depositors, rather than taxpayers. All European bank bonds are subject to the BRRD regime.

These complexities must also be considered within the context of

BOV’s capital structure. Like all other banks, BOV’s capital base is split into Tier 1 and Tier 2 capital.

Tier 1 capital is largely composed of shareholders’ equity and retained earnings, hence the primary source of funding for its operations, also serving as the main source of loss absorption in case of financial difficulties. Tier 2 capital is also referred to as supplementary capital as it presents an additional support to the bank’s main capital base. The new €50 million bond from BOV will form part of BOV’s Tier 2 Capital and will replace the bond of an equivalent nominal amount that matured earlier this month.

In this respect, it is also noteworthy to highlight that BOV’s total capital ratio of 21.1 per cent, as of 31st December 2018, already exceeds the minimum regulatory capital requirements. However, BOV is further strengthening its capital base in view of the litigation cases it is currently facing, namely the Deiulemar case, as well as in anticipation of new capital requirements coming into force in the months and years ahead. In fact, in the coming months, BOV is also planning to issue €150 million in additional Tier 1 capital which, as its name implies, will be added to BOV’s Tier 1 capital given its loss absorbing capabilities, although it will not be an equity

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issue. Details in this regard have been limited as the bank is still assessing the appetite for such offering which will only be available to institutional investors.

It is also important to review the salient steps in the application process applicable in such circumstances in line with the Conduct of Business Rulebook published by the Malta Financial Services Authority (MFSA). Investors may apply for such complex instruments either on a non-advisory basis, where the investor makes the investment decisions without seeking investment advice, or under an advisory service where the investor seeks personal investment advice from a licensed investment advisor.

Under a non-advisory service mandate, an appropriateness test needs to be carried out by the licence holder to assess whether the investor possesses the necessary knowledge and experience to invest in the proposed instrument and to understand its complex features as well as related risks. In this case, applicants should be asked to provide certain information including their level of education, their knowledge of bond markets and the features of complex debt instruments, as well as their experience in investing in similar complex instruments.

Meanwhile, when providing investment advice, apart from assessing the client’s knowledge and

“Furthermore, investors need to continuously absorb information about how the markets work and how to evaluate financial instruments, also keeping abreast of all investment topics in order to broaden their skills and ensure that their portfolios are well structured to meet their objectives without taking undue risks.” experience, an investment services licence holder must also assess whether the instrument is indeed suitable for that particular client.

This assessment of suitability, which is a requirement on licence holders in terms of MFSA rules to enable the licence holder to act in the client’s best interests, entails understanding the person’s knowledge and experience in relation to the instrument being discussed, as well as that instrument’s suitability in the context of the person’s financial standing, investment objectives, investment horizon and risk appetite.

Irrespective of the advice given to the client, the licence holder must

issue and hand over a copy of the suitability report to the client who, in turn, is generally asked to countersign this document.

The main difference compared to the application procedure at the time of the last bond issue by BOV in late 2015 is that under rule R.4.4.61 of the MFSA’s Conduct of Business Rulebook (as last revised by the MFSA on 2nd April 2019), before providing a service to a client, with respect to a complex financial instrument, the financial intermediary must consider whether that complex financial instrument is to be provided to such client on an advisory or non-advisory basis. There-

fore, the type of service under which complex financial instruments may be transacted is to be considered by the licence holder on the back of a number of considerations including (as indicated in the guidance note G.4.4.68 of the Conduct of Business Rulebook) the level of complexity of the financial instrument in question; the categorisation of the client as retail or professional; and the level of sophistication of retail investors, as well as any aspects of vulnerability which they may have.

Investors should be aware of these lengthy procedures when transacting in any financial instrument classified as complex and must collaborate accordingly to ensure that the financial intermediary captures all the information required to act in their best interests while performing the duties expected of them by the regulators.

Furthermore, investors need to continuously absorb information about how the markets work and how to evaluate financial instruments, also keeping abreast of all investment topics in order to broaden their skills and ensure that their portfolios are well structured to meet their objectives without taking undue risks.

Christopher Mallia is the Head of Research and Investment Advisor at Rizzo, Farrugia & Co (Stockbrokers) Ltd.

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

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BUSINESS UPDATES

IT IS NOW SIMPLER, BETTER AND FASTER FOR NEW CUSTOMERS TO OPEN AN HSBC MALTA BANK ACCOUNT

Opening a bank account just became easier at HSBC Malta Now it is possible to open a bank account, receive a personalised debit card, access your internet banking, following a short welcome meeting, and sign just once. HSBC Malta has just launched a brand-new experience that starts online, meaning prospective customers can apply any time of the day or night.

A simple online application enables images of documents to be sent directly to the bank without having to queue up in a branch. The bank does all the work to meet compliance standards, before applicants are invited for a short welcome meeting in a branch. Customers leave as an HSBC customer with a fully functional new card, an account number and access to internet banking, apart from other benefits.

HSBC Malta Head of Retail Banking and Wealth Management, Daniel Robinson, said: “We listened to our customers’ feedback. This brand-new experience will change the way people feel about opening bank accounts in Malta and Gozo. I welcome new customers to HSBC as I believe the changes will make this experience simpler, better and faster for them.”

For more information, call 2380 2380 or visit hsbc.com.mt

Turkish Airlines Corporate Club As a leading global airline for business travelers, Turkish Airlines offers award-winning services and products to corporate passengers with the Turkish Airlines Corporate Club.

The Turkish Airlines Corporate Club was set up to provide time-saving benefits to corporate clients to ensure travel is made easier and more profitable. Companies benefit from exclusive fare discounts, flexible ticketing, exclusive and generous baggage allowance, as well as other pre-boarding benefits including access to the Business Class lounge.

EXCLUSIVE FARE DISCOUNTS

Turkish Airlines Corporate Club allows corporate passengers to save money on every Turkish Airlines flight booked with special fares in Business or Economy Class.

FLEXIBILITY

Turkish Airlines Corporate Club fares allow added flexibility to rebook, reroute and refund tickets to suit passengers’ business needs.

This major benefit lets companies save money and respond to everchanging business requirements.

EXCLUSIVE BAGGAGE ALLOWANCE

A very generous baggage allowance is open to Economy and Business Class passengers allowing corpo-

rate colleagues to travel with more business essentials on international flights.

PRE-BOARDING BENEFITS

Turkish Airlines Corporate Club Card travellers receive priority check-in and pre-boarding benefits.

Economy Class passengers are able to check-in at FFP (Frequent-Flyer Program) counters and enter lounges prior to boarding international flights at Istanbul Airport.

Members of the Miles&Smiles programme will continue to earn miles as a Turkish Airlines Corporate Club member, which can be spent with Turkish Airlines or any other Star Alliance partner airline.

Earned miles are easily tracked via passengers’ Miles&Smiles account.

BUSINESS CLASS LOUNGE ACCESS

Being a member of Turkish Airlines Corporate Club means access to the luxury and exclusivity of Turkish Airlines’ Business Class Lounges.

Here passengers can savour gourmet meals and freshen up or relax before business meetings with access to showers and private rooms and other top class products and services.

Membership is simple for companies to sign up, with no registration fees. Interested organisations are requested to send an email to marketingmalta@thy.com for further information. * Turkish Airlines Corporate Club rights may vary due to contract terms and conditions.

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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.

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

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

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 real-time 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, mixed-use, land development, and government projects, visit www.computimesoftware.com/acumatica-erp/construction-edition/ or email info@computimesoftware.com

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e Malta Business OBSERVER

| June 27, 2019

BUSINESS UPDATES

Grimaldi Group announces innovative, eco-friendly vessels at their annual Malta summer event Ernest Sullivan, Managing Director of Malta Motorways of the Sea and CEO of Sullivan Maritime Ltd, welcomed guests to the annual Grimaldi Group summer event in Malta held at the Hilton Quarterdeck on 18th June 2019. Mr Sullivan introduced Dr Eugenio Grimaldi, Line Manager Italy for the Malta Short Sea Services of Grimaldi Group, who addressed the clients, service providers and local authorities present at the event. The Minister of Transport, Infrastructure and Capital Projects, Dr Ian Borg as well as His Excellency Mario Sammartino, Italian Ambassador to Malta, were amongst the distinguished guests. The Grimaldi Group are focused on creating shared value for the communities in which it operates, whilst reducing any environmental impact, and ensuring it operates in a sustainable way. This is attainable through the development of long, stable and positive relationships with the Group’s partners.

Malta Motorways of the Sea/Grimaldi Group are very proud to have served the Maltese maritime industry and the country’s economy for 14 years through their EU – Regular Liner Shipping service which is backed by a fleet of modern ro-ro vessels that guarantee a just-in-time service all year round. The Grimaldi Group registered an incredible growth of more than 50 per cent in volumes during the last five years.

Today, MMOS/Grimaldi Group offer very competitive freight rates, and the highest quality of maritime services to and from Malta through its network of

short sea shipping services and weekly maritime connections with its daily service from and to Genoa, Livorno, Salerno, Catania, Brindisi and Ravenna, amongst several other ports.

The Grimaldi Group have recently undertaken a massive investment programme in retrofits for their vessels. Such works give the Group a yearly saving of almost one million tons of CO2.

In addition to the aforementioned retrofitting programme, the Grimaldi Group has also invested in new buildings. From May 2020, the Grimaldi Group will take delivery of 12 giant hybrid-roro vessels, equipped with large lithium-ion batteries to guarantee zero emissions in port. Apart from the great advantage of zero emissions at port, these new vessels will also have double the load capacity of the existing vessels in service, being able to take in over 500 trailer units. In this way, vessels will double their revenue intake whilst maintaining the same running costs.

The Group exceeded a turnover of three billion euro in 2018. This was an incredible result achieved thanks to long-term investments, and the Group’s corporate belief encapsulated in the maxim that “together we are better”, as a result of the continued support and trust from their clients and local operators.

The Grimaldi Group, Naples is represented in Malta

by Sullivan Maritime Ltd. Should you require any further information visit www.sullivanmaritime.com or call on 2299 5110.

Your business, all-in-one pack, with GO’s Business Infinity GO is offering a value-packed Internet package for its business clients, with Internet speeds up to 1GB, helping them to stay connected when it truly matters to their business through the Business Infinity Pack.

The most competitive package on the market, the Business Infinity Pack offers improved internet speeds, free telephony, as well as a refreshed TV offering making it the ‘go-to’ product for businesses of any size.

“Our aim was to simplify our products, whilst packing in additional value for our customers. We wanted to make their decision as easy as possible.

Our streamlined products are the result of extensive analysis of our client feedback, as well as of the operational demands of businesses today. We looked at what businesses need, what they expect, and set an ambition of delivering exactly this and more,” said Nikhil Patil, Chief Executive Officer.

The Business Infinity pack is offered in three different tiers, at three different Internet download speeds – 75Mbps, 300Mbps and 1Gbps – ensuring that the right tier is available for every business set up, no matter what stage of business they are in.

Let GO handle your connections, while you get down to business!

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e Malta Business OBSERVER

| June 27, 2019

BUSINESS UPDATES

ICT professionalism and digital competences Digital, information and communication technologies are critical components of the continued progress and welfare of the business and social aspects of Europe. Europe is strongly challenged to develop sufficient appropriate skills and competences of its citizens and employees in all sectors and levels, from beginner to ICT professional, to boost the digital economy and society as a whole.

Looking at ICT professional skills and competences, in particular, demand continues to exceed the supply of skilled professionals who design, build, implement and manage new digital technologies.

It is estimated that there will be up to 500,000 unfilled core ICT vacancies in Europe by 2020. At the same time, there is high unemployment in some parts of Europe, particularly in southern and eastern Europe, and especially among young people. As always, it is the newer skills at a senior professional level that are most in demand, currently cybersecurity, data analytics (cloud), robotics and artificial intelligence.

Establishing standards to guide the maturing of the IT profession will be of enormous benefit to the IT professional stakeholder commu-

nity across all sectors of business and economics. The recognition of the ICT profession as a mature, selfconfident profession, requires the standardisation of

the key pillars that characterise a profession: competences, a body of knowledge, education and training, and professional ethics. These four pillars were amply introduced

through the Framework of IT Professionalism launched in 2016, and also in the conference organised locally in the same year by the eSkills Malta Foundation. A wider aspect

of IT professionalism must also include alignment with European Union strategies, policies, social needs, or innovation trends.

CEN, the European Standardisation body, set up a Technical Committee (TC428) in 2014, initially as a Project Committee, with the initial task of establishing the European eCompetence Framework (e-CF) standard. This objective was achieved in April 2016. Subsequently, in 2016 the remit of CEN/TC 428 was defined as responsibility for the standardisation of a common language of professional digital and IT competences, skills and knowledge applied in all domains. And finally, in 2018, the mission was extended by giving the TC428 responsibility for all aspects of standardization related to the maturing of the IT Profession in all sectors, public and private. TC 428 is complemented by the Council of Professional Informatics Societies (CEPIS) expert group IT Professionalism Europe (ITPE), as a consultative role. The eSkills Malta Foundation, who is also a member of the TC428, will be hosting the Technical Committee for their next meeting in Malta in October 2019, back-to-back with an IT Professionalism conference.