The Business Observer Newspaper 24th March Issue

INTERVIEW

Issue 47

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March 24, 2016

Distributed with Times of Malta

Simon Zammit will take over as the CEO of the Malta Stock Exchange in September and believes that its next 25 years will be as challenging as its last. see pages 10 and 11 >

NEWS Shipowners entrust their highly valuable vessels and cargoes to companies. Shouldn’t ship agents finally be regulated, the Association of Ship Agents asks? see page 5 >

BOV reducing exposure to government Vanessa Macdonald Bank of Valletta is selling some of its holdings of government bonds and is even “drastically” reducing its lending to state-owned organisations, according to sources.

And it may have to sell even more Malta Government Stocks if the head of the Single Resolution Board Elke Koenig gets her way and sets a limit on the amount of sovereign debt that eurozone banks can hold.

Banks of systemic importance like BOV are now under the direct supervision of the ECB, which has pointed out concentration risks in balance sheets that were perceived to be too high.

“Concentration risk is distinct from credit risk. Put simply, concentration risk is the risk of ‘putting too many eggs in one basket’,” the sources said.

“BOV is effectively reducing its risk to the public sector by selling some of its bond

holdings (even as part of the Quantitative Easing programme promoted by the ECB) – the major part of its exposure – and reducing drastically its lending to state-owned organisations.”

BOV is spreading its risk by buying other assets, including sovereign debt of other reputable EU member states. However, this

“BOV is spreading its risk by buying other assets, including sovereign debt of other reputable EU member states”

diversification comes at a cost: “BOV will be a safer but a less profitable bank in future because its risk appetite has to take into consideration the greater regulatory emphasis on de-risking the business,” the source said.

“There are very few good investment opportunities in the present low interest rate scenario. The bank would not speculate by going in for low quality assets even if the returns were lower. Profitability may suffer, but the long term interest of depositors as well as shareholders is to de-risk its business.”

According to the European Banking Authority’s stress tests, in 2014, domestic banks held 92 per cent of all sovereign debt, the highest in the eurozone, and well above the eurozone average of 57 per cent.

However, the Central Bank of Malta Quarterly Review gives a very different picture, putting the amount at 43 per cent held Continued on page 3

NEWS So far, Vijay Mallya’s superyacht Indian Empress has not become embroiled in attempts by 17 banks in India to recoup €1 billion they are owed by his company. see page 6 >

OPINION Successive governments proclaim to be ‘pro-business’ but Beppe Zammit-Lucia warns that mollycoddling businesses might not be the best formula. see page 15 >

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NEWS

Domestic banks to reduce their investments in MGS Continued from page 1 by resident banks in the third quarter of 2015.

The European Commission, in a November 2015 report, gave an international context, saying that the US average was 45 per cent, and adding that the high figures for countries like Malta “reflect factors like the size of the existing stock of national public debt and its attractiveness to nonnational banks”.

The Finance Ministry, when questioned, analysed it from another point of view, looking at only core domestic banks, i.e. those banks that primarily operate to serve the domestic economy.

The percentage of local banks’ total assets invested in MGS has been consistently decreasing over the last five years. In 2011, the relative percentage was 11.1 per cent but by the end of 2015, this had fallen to 8.8 per cent.

“The relative 2015 figure for the eurozone is not yet available but for 2014 the average was 8.4 per cent,” the ministry spokesman said.

“Our banks were somewhat above the eurozone average but not necessarily the highest.

Obviously individual banks had different readings with the smallest having 0.5 per cent [in MGS] and the highest 13.4 per cent.”

The implications of domestic banks reducing their MGS uptake are not limited to the banks’ treasury operations, of course. It also means that the government will

need to find enough retail investors to take up that demand.

The Finance Ministry spokesman said that the timing of this change was auspicious.

“We are confident that retail investors can support government debt issues even if the banking sector, for regulatory reasons, has to reduce its exposure. This was amply demonstrated in the last MGS issue where the retail sector fully subscribed the issue even in its overallotment dimension and the auction process for the wholesale market had to be cancelled.

“Furthermore with government deficit reducing and approaching balanced Budget

“e percentage of local banks’ total assets invested in MGS has been consistently decreasing over the last five years”

status over the medium term, the need for new MGS financing beyond rollover of maturing debt will be limited.”

Of course, the MGS will not be limited to retail investors, and just as the domestic banks will be able to buy sovereign debt from other member states, their banks will be able to buy Malta’s. Is this is good thing – and would it be as easy as replacing local banks with foreign ones?

“There is no prohibition for other member states actors to participate in our capital market including MGS. Obviously, given the size of our market and the tendency for domestic investors to ‘buy and hold’ – thus offering limited liquidity on the secondary trading markets – few non-Maltese actors have so far participated.

“Given the highly liquid state of the Maltese financial sector the government would continue to prefer its issues being subscribed by ‘buy and hold’ investors,” the spokesman said.

HSBC Bank Malta politely deflected the questions, saying: “HSBC is committed to work with the European and local regulatory authorities to ensure that Malta continues to benefit from a strong and well-regulated financial sector.”

BOV also declined to comment.

Interestingly enough, the Central Bank of Malta also deflected questions, saying: “You may wish to approach the Malta Financial Services Authority since the Single Resolution Board falls within their responsibility”.

2014 Fixed Rate MGS

2015 Fixed Rate MGS

Nom. Individuals

33.36%

29.57%

Resident Credit Institutions

31.11%

28.54%

Other Resident Financial Institutions

9.39%

10.07%

Resident Insurance Company

8.91%

8.74%

Non-residents

4.80%

6.16%

Others

12.43%

16.92%

THE MALTA STOCK EXCHANGE PHOTO: DARRIN ZAMMIT LUPI

Investors turning from MGS to equities There was a sharp decrease in the trading of Malta Government Stocks in the first 10 weeks of this year – of around 60 per cent – although the same period in 2015 was characterised by higher interest than normal as the Quantitative Easing put into motion by the European Central Bank took effect.

The CEO designate of the Malta Stock Exchange, Simon Zammit, said that another effect noted last year was the higher interest from retail investors “The retail investor tends to be the one who buys to hold, whereas institutional investors look at the margins on the yields and participate in the secondary market.

“The market forces are changing. The ECB has increased Quantitative Easing, from €60 billion to €80 billion, and said it would continue. And there has been uncertainty on the rates of interest.

But the result is that we have seen a very steady increase in participation by the retail investor in the secondary market for equities, which is very advantageous to us.

“This probably ties in to the healthy performance shown by listed companies within the index. There are a number of very interesting companies which

have demonstrated that listing has actually made them grow.

“The corporate restructuring and investment that went on last year is now bearing fruit. I don’t need to mention names: the statistics are all public domain!”

IN FIGURES ■ As at the end of September 2015, the Central Bank of Malta reported that the government had €5.1 billion worth of Malta Government Stocks outstanding, of which €2.2 billion are held by financial institutions.

■ The coupon rate varies greatly, with several MGS issues – amounting to an aggregate of €47 million – offering seven per cent, and one dating back to 1998 for €163.1 million offering 7.8 per cent. The remainder go as low as two per cent.

■ The maturity dates extend up to 2040, with 37 per cent maturing between one and five years, and a further 20 per cent maturing in over 15 years’ time.

■ Since 2008, the amount of MGS has increased by 72 per cent.

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Ship agents should be regulated Ship agents should be regulated as had been suggested in a 2005 report, the Association of Ship Agents is urging.

Association president Ernest Sullivan explained that the government had commissioned a report on the proposal and that the draft Bill had actually been drawn up, but that no consultation was carried out and things stopped there.

Transport Malta said it was in favour of regulation – but has denied that there are any problems with the current ship agents.

The London-based Federation of National Associations of Ship Brokers and Agents (FONASBA) set up a quality standard in 2007.

“There is no international regulation governing who can and cannot be a ship agent or brokers, yet shipowners entrust their highly valuable vessels and cargoes to companies whose financial probity or expertise is unknown. By providing the maritime industry with a robust, enforceable and practical quality standard, FONASBA has helped ensure that the activities, responsibilities and liabilities of agents and brokers is subject to scrutiny,” the association said.

“e government has set up the Malta Maritime Forum which wants to turn the island into a centre of excellence for shipping and regulating the sector by making quality certification mandatory would be a huge step towards this” “The value of the quality standard was quickly recognised and around 70 per cent of ship agents in Malta have already attained

it,” Mr Sullivan said. Sixteen companies in Malta are listed on the FONASBA site. The standards cover various aspects of ship

agents’ work, from operations and robust financials, to insurance.

“The private sector is all in favour of this, as it would bring our

port operations up to date. The government has set up the Malta Maritime Forum which wants to turn the island into a centre of excellence for shipping and regulating the sector by making quality certification mandatory would be a huge step towards this,” Mr Sullivan said.

A Transport Malta spokesman denied that there were problems with any of the ship agents and acknowledged that there were efforts underway to push for higher standards.

“Transport Malta is aware that the Association of Ship Agents is interested in having a legal framework in place to recognise the profession and to establish minimum standards to operate as a ship agent.

“This would ascertain that quality standards are in place and that services rendered to clients meet industry and FONASBA standards. Transport Malta welcomes such an industry-led, proactive approach and is willing to work closely and support initiatives that enhance the Maritime Malta package and image,” he said.

The Transport Ministry was asked about the government’s intentions but no reply was forthcoming at the time of going to print.

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NEWS

All quiet on Indian superyacht

INDIAN EMPRESS HAS A CREW OF 20-30, LOOKING AFTER GUESTS IN 16 CABINS SPREAD ACROSS FIVE DECKS.

Crew on the Indian Empress were yesterday doing everyday chores, in spite of the fact that the superyacht’s owner is at the centre of an attempt by banks to recover €1 billion he owes them.

So far, the yacht has not been mentioned in any of the extensive international media reports on the colourful Indian tycoon Vijay Mallya.

Sources confirmed to The Business Observer that there was currently no court injunction preventing the superyacht’s departure from Malta.

The 95-metre Indian Empress – bought from a Qatari sheikh for a reported $113 million in 2006 – has been using a berth at Manoel

Island marina for years, replacing Mr Mallya’s previous 55-metre boat Indian Princess.

It is not clear whether he still owns the yacht as unconfirmed rumours circulated in the superyacht world in 2013 that he may have transferred ownership to another entity, chartering it for his personal use for three months a year. The yacht is registered in Douglas, in the Isle of Man.

Mr Mallya fled to the UK on March 2, leaving over €1 billion in unpaid loans from 17 banks.

The 60-year-old Mr Mallya left India just hours before the State Bank of India started proceedings to impound his passport to prevent him from leaving the country.

He is supposed to appear before the Indian Supreme Court on March 30.

“Indian tycoon Vijay Mallya made his fortune through Kingfisher beer but things went rapidly downhill after his airline with the same name collapsed in 2012” He is also wanted by the Enforcement Directorate in connection with money laundering charges, according to an Indian online news portal.

Mr Mallya made his fortune through Kingfisher beer but things went rapidly downhill after his airline with the same name collapsed in 2012. He still co-owns a For-

mula 1 racing team, as well as a home in the UK, and is a member of Parliament’s upper house.

Finance Minister Arun Jaitley told the Indian Parliament a week ago that the government had instructed banks to go “all out” in their efforts to recover the money owed by Kingfisher, pointing to cases of “wilful default bordering on fraud”.

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INDUSTRY FOCUS

A match made in heaven We regularly read about new business models taking root in sectors, such as software as a service in software companies and leasing packages for office equipment. It seems that the recruitment sector is no exception.

Jean Schaak, managing director of recruitment company Keepmeposted, explained that the company has come up with a different offering to the more standard arrangement: “Keepmeposted makes our online database and notification system available to employers for a minimum flat fee per vacancy published. This results in a far more cost-effective, fast and efficient recruitment process when compared to more traditional methods and allows clients to avoid paying substantial fees incurred when recruiting a single candidate.”

In the past, companies resorted to word of mouth or classified adverts to find the right staff but many things have changed over the past decade or two. Jobs require more specialised and technical skills and the security of a ‘job for life’ is viewed as boring by most young people. This is perhaps why even large companies with their own fully-fledged human resources departments still turn to recruitment companies.

“When HR departments – or any of our clients for that matter – make use of our services, they are not outsourcing their recruitment to us but rather making use of an additional cost-effective tool at their disposal,” Mr Schaak explained. “Our clients, both large and small enterprises, maintain control of the recruitment process at all times, from short listing to the final interviewing stage.

“But a client’s urgency to fill a vacancy within their organisation is of paramount importance. Requests are handled with the utmost expediency, meaning that they can expect to receive the

first candidate applications within a few hours or less of having provided us with their vacancy requirements.

“The only similarity with traditional recruitment companies is that we do not limit ourselves to posting a client’s vacancy.

Throughout the process, our customer care team is always on hand to offer advice on how to target the candidates best suited to their specific requirements,” he said.

Another thing which has changed the recruitment landscape is the presence of multinational companies, which has in turn created demand and openings for different nationalities.

Having a global affiliate means benefitting from the economies of scale, Claudia Jordan, the business manager at Reed Malta, explained.

“Reed benefits from having Europe’s largest candidate database and as a result we are

“When HR departments make use of our services, they are not outsourcing their recruitment to us but rather making use of an additional cost-effective tool at their disposal”

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INDUSTRY FOCUS

approached by millions of candidates worldwide who are seeking opportunities overseas,” she said.

With skill sets in short supply locally, particularly within the technology sector and executive level roles within financial services, Reed has registered a significant increase in EU professionals looking for work in Malta.

“If employers do not require Maltese language skills or local work experience, this widens the talent pool considerably,” Ms Jordan said.

However, the opportunities posed by global mobility are not limited to foreigners coming to Malta. There are also Maltese candidates looking to enhance their career internationally and she noted that Reed has seen an increase in Maltese candidates working overseas who are looking to return to their home country with excellent international exposure.

Recruitment companies are also rapidly expanding to do more than match candidates to vacancies. Many of them are branching out into training and other coaching skills. Sometimes candidates need help, starting with the most basic of things, like their CV. Kay Vella, the head of recruitment at Spot On, said an optimum

CV highlights all of the strengths and skills.

“It gives candidates the best chance at succeeding in getting that first interview!

“We don’t tell job seekers what to do or say but rather help coach candidates with advice and research tips, as well as providing information about the company that they are applying

“We help coach candidates with advice and research tips”

to, helping them demonstrate their skills and personality to get that job!” she said.

Another aspect that recruitment agencies have to deal with is the wide range of skills required in some of the new sectors, like mathematical skills for gaming companies.

“Unlocking new opportunities within so many different industries

– thanks to the broad knowledge within the team – is what makes us experts in what we do!” Ms Vella said.

“While most job seekers are aware of a variety of industries, as recruiters, we make it a point to give our candidates a clear view of what’s going on within the various industries and help them understand more about what’s available.”

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INTERVIEW

Moving to the top of the list Vanessa Macdonald Simon Zammit, the chief executive officer designate at the Malta Stock Exchange, is clearly proud of the fact that the MSE was one of the top performing indexes across the world – but he is very modest about the Exchange’s role: “We are there to make sure that the MSE is performing its duties in a regulated market, supplying investors and members with a very robust mechanism where they can trade.

“We do not have any control over whether prices go up or down, or whether the rates of interest go up or down. Borrowing from a football metaphor, we are here to supply a playing field but the players and the performance and results of the game are out of our hands. We make sure that the floodlights are switched on, the turf is cut to form a level playing field, the lines are clearly visible. But that is as far as we go,” he said.

Mr Zammit joined the Exchange in 1991, before its first day of trading, and will be taking over from Eileen Muscat as CEO in September. One of his challenges is how to grow the customer base.

“Over these 25 years the number of listed companies we could attract locally has peaked – or at

SIMON ZAMMIT

least reached a plateau – given the size of the market,” he said.

That does not mean that there are no other companies that could – or should – consider listing their

equity. It must rankle that some of the largest family-owned groups, like Gasan, Mizzi, Hili and Eden went mostly for bond issues rather than equity listings.

“We hoped that things would evolve and lead the companies to equity listings, once they got used to the discipline of the market and the corporate governance. We are still hoping that this will happen.

“Family-owned businesses would benefit from testing the waters with our SME product, Prospects, for their subsidiaries, even bigger companies that need to raise smaller amounts.

“We hope that they will participate when new companies start looking at expanding. There is still hope that they will come with an equity – rather than a bond – listing. But it is quite a challenge.

With equities, you need to see more of a cultural shift.”

Mr Zammit believes that the situation with regards to bonds is set for another wave of interest.

“Bonds are a cyclical market.

There are years when you get a number of new companies approaching for listing and years where you see a lull. The indication seems to be that we are coming out of the lull of the past three years. We already have indications that by the end of this year at least three more corporate bonds will come to the market; some will be listing for the first time,” he said.

With such low interest rates and such high excess bank liquidity, why would companies opt for bonds rather than bank financing?

“Companies make their assessment whether to finance through banks or through bonds

“e Sharia Equity Index ... is our way of trying to attract a particular niche of investors.

It is our way of saying the Malta Stock Exchange has Shariacompliant investments.

It is nothing more than an expression of ‘come and see what there is to invest in’’.”

at boardroom level. The fact that all bond issues are heavily oversubscribed is a big incentive for companies. Pegging your interest rate for five, 10, 15 or 20 years until maturity is very attractive when you see that you might

be faced with fluctuating interest rates in the long-term,” he pondered.

“We have been assuming for a number of months now that we reached the bottom when it comes to interest rates. However, the ECB’s recent [monetary policy] decision seems to have challenged that maxim and the lending rate dropped even further. There are also indications – even from the recent Bank of England statement – that again seem to indicate that interest rates have reached a minimum level.”

Another way of encouraging activity is looking beyond the ‘usual suspects’ when it comes to investors. This was behind the launch in early February of the Sharia Equity Index.

“The index is our way of trying to attract a particular niche of investors. It is our way of saying the Malta Stock Exchange has Sharia-compliant investments. It is nothing more than an expression of ‘come and see what there is to invest in’.

“We are not targeting it at either local or foreign specifically. I am sure that there are foreign investors already looking at it – and whether it is going up or down is really irrelevant at this stage.

“I would assume that there is interest in places like Dubai, where we have done a road show already. It is too early to say whether it has had an effect or not as it was only launched in early February. But it is a good start to attract Islamic Finance,” he said.

The size of the Malta Stock Exchange is what it is, and Mr Zammit sees ‘small as beautiful’ as it gives the Exchange agility.

“The exchanges in Italy or Spain are definitely much bigger than

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INTERVIEW

Good prospects for the future The CEO designate of the Malta Stock Exchange has hinted at the possibility of fiscal incentives for SMEs that use its Prospects product to raise financing, something that was described as a ‘make or break’ by some practitioners.

Practitioners asked at the launch whether secondary trading would benefit from the waiver of capital gains, among other things – but the MSE delegation was only able to say that this was the remit of Finance Minister Edward Scicluna, who – put on the spot – said he was “ready to consult”.

“Without the tax advantages, it would be a non-starter,” Louis Degabriele and Conrad Portanier had agreed.

But Mr Zammit hinted that there was reason to hope.

“The Finance Minister knows that we are actively looking into making sure that qualified investments and qualified companies are incentivised for investing. We have tax consultants working on this and we are being supported by the Finance Ministry. So watch this space!” he smiled.

Another aspect raised by practitioners was the recommended corporate adviser fee of between €25,000 and €35,000, which they felt would be too low even to justify taking on the liability. The Malta Stock Exchange is basing its marketing on competitiveness and wants to keep the total listing costs to below €50,000 to ensure that Malta is less expensive than jurisdictions like Ireland – even though member states like Poland will be cheaper.

It seems that the practitioners’ concerns may have been premature as the MSE has already received a steady stream of applications for corporate advisers.

“With all due respect to the industry, this is a new venture and a new business model

we are but they are also fragmented: pre-trading, post-trading, clearing and settlement are not under one roof like us. Our set-up means that we have minimal bureaucracy here, which is a key competitive advantage,” he said.

What about economies of scale though? Even enormous exchanges are seeing the benefits of being larger. The London Stock Exchange’s share-trading operation is making a third attempt to merge with the derivatives trading of Deutsche Boerse’s Eurex, and is quoting potential cost savings of €450 million per year for the combined company.

Mr Zammit smiles confidently: “That is our competitive advantage, being small. First of all, a stock exchange like us still can contribute to the national economy. And there is also a role for small exchanges to address particular niches. Our agility and quickness to market, our closeness to the regulator… Obviously

PHOTO: MATTHEW MIRABELLI

“We are actively looking into making sure that qualified investments and qualified companies are incentivised for investing” for all of us. There are new roles that the corporate adviser will be taking on board. As with all new things, it is only natural that there should be questions and concerns as to how this role will be taken on,” he said tactfully.

“We think it is only natural that the fees should reflect their role and responsibility.”

He sees the approval of advisers as a crucial first step as, without them, companies cannot start the application process.

“This gap is now being filled in. It is a very good indication that Prospects will work, irrespective of the concerns voiced,” he said.

Who will the companies be? Although Maltese SMEs interested in raising up to €5

we do not aspire to attract the multinationals of the world. But these things are attractive to small companies within the EU and outside.

“First of all, it would give them a foothold in the EU from other jurisdictions, which is a very attractive proposition. And it is of interest for companies in the EU which are looking for a more cost-effective and efficient market to list on, while still having passporting if they come to the regulated market.

“Closer to home, we are obviously interested as the Deutsche Bourse merger will change the globalised exchange landscape.

We are a partner exchange with Deutsche Bourse, so we are following the outcome with a great deal of interest. We hope that in the medium to long term, the economies of scale that they say will be garnered through this could trickle down to our exchange as well,” he concluded.

“A stock exchange like us can still contribute to the national economy.

And there is also a role for small exchanges to address particular niches”

million should see this as a golden opportunity, the biggest hurdle is cultural. However, the way that Prospects has been structured is aimed directly at overcoming this, as it falls below the threshold of the Prospectus Directive and therefore will not require the same levels of corporate governance from the company – as this is left to the corporate adviser to help with.

“We have structured the rules as an exchange-regulated market – rather than one regulated by the listing authority. But we hope that these companies will grow with us.

Prospects’ requirements are small in terms of finance and regulation, but it imposes a discipline which makes it much easier to

then transfer to the regular market. It will not happen overnight. But just as the MSE looks back on 25 years of experience, we also look 25 years ahead!” he said.

The new product has also been getting positive feedback from overseas – which had been identified by MSE chairman Joe Portelli as a key market – even though the fact that it is not covered by the directive means that it will not confer passporting rights.

“We are marketing Prospects by highlighting its cost-effectiveness and speed – 10 days for a reply once you have all the documentation in place.

“We have a one-stop shop infrastructure at the Exchange from pre-trading to posttrading clearance and settlement. So we are very quick to market and that is where our competitive advantage is.”

Roadshows have already been organised in Spain and Italy and others are planned. A team from the Exchange was in China last week to promote the Maltese capital market and Prospects – where substantial interest was shown – and Mr Zammit said that there should be no issues dealing with, for example, a Chinese corporate adviser, who would have to abide by the strict eligibility criteria across time zones and cultural differences.

“The fact that a Chinese company gets legal and financial and corporate advice from a Chinese adviser is only natural as they would know the company. But the corporate adviser will be an ongoing link between the company and the Exchange.

“That is another big selling point for us. It is not like in the regulated market where you get a sponsor who brings you to the market and then is gone. The corporate adviser has to be there for the duration of our relationship with that company.”

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CASE STUDY

Understanding the value of data Caroline Buhagiar, the head of analytics at Salariesinmalta.com has a cautionary tale about the importance of anaytics: the company has a customer in Germany which is thinking of growing its business in Malta. They clearly want to understand what this would cost in terms of human resources and they asked the company to provide insight.

“Data give you a snapshot of what you have today. But analytics interprets the data and goes beyond assumptions so you can make informed decisions,” she explained.

“We use that data to help our subscribers anticipate trends three to five years down the line.

That is what makes it sustainable.

“This sort of analysis is very important as the investment could be significant, particularly since there is a scarcity of talent in some sectors. It is important for businesses to know what the situation is as they may need to find different ways to bring in talent.”

Ms Buhagiar joined Salariesinmalta.com last October and was amazed at how much had changed in Malta since she last worked here 14 years ago.

“It is a completely different scenario. There is so much cultural diversity from so many nationalities. And there is a tendency to have turnover when you have expatriates who belong to an era of global mobility. You have to match their expectations as if they feel let down, they leave, which will cost the company a lot of money.

“There are many factors affecting retention – but you do need to differentiate, to have an employee value proposition. If I give prospective employees the same as other companies, I have is no edge.

“And the compensation expectation when people come to work in Malta is very different to what

“Human resources is not only an administrative function, as many companies still see it. It is not just about payroll! ere is a much bigger picture which is all about the organisational strategy”

locals expect. That needs to be taken into account,” she stressed.

She waxes lyrical about Salariesinmalta.com, seeing it as a research project, rather than a way to collect data on salaries.

She hopes that strong analytics will change the way that companies perceive human resources, making it a function strategic to the business.

“Human resources is not only an administrative function, as many companies still see it. It is

not just about payroll! There is a much bigger picture which is all about the organisational strategy,” she said.

“I sit with HR people and ask them where they think they will be in a few years and what competencies the company will need. If HR cannot answer those questions, no matter how successful you are now, there is a problem.”

The platform already has over 8,000 data points in the system,

growing steadily. Although it would probably be most relevant to companies that have over 100 employees, there are enough of those to keep interest flowing. It operates by subscription, allowing its members to access the analytical tools, filtered by age, job experience, educational background, gender and even by nationality.

Sharing their own content once a year is one of the conditions of

membership, and she was honest about the fact that they had to persuade some companies to overcome the inherent reluctance to share. But she is clearly winning the battle as companies soon realise that this is a win/win situation, helping their own ability to understand the trends in the market.

“Our target is very ambitious: to have data on 50 per cent of the total Maltese workforce of 187,000.

It is quite a challenge, but if it is not a challenge, there is no fun in it! The more data we have, the stronger its validity and reliability,” she stressed.

“The project has been running for three years and the more data we have, the more interesting it becomes and the more trend analysis we can conduct.”

Of course, data about Malta has limited value in such a global job marketplace, which is where her overseas experience comes into its own.

Her network of contacts around the world means that local data can be compared with that from Europe, US and Asia.

“When you move to a new country, you still benchmark it to what you know – even though the relevance is not comparable.

You have to be able to understand what sort of compensation they are used to and to take into account inflation and the standard of living of a country. Candidates do their homework and know what they are worth and what they could be paid,” she cautioned.

There is already enough data to raise a few red flags about compensation levels in particular sectors. She saw this first hand in Asia where people often moved to jobs in some sectors that paid anything from 30 to 70 per cent more. In Singapore, employee turnover across the country was 21 per cent in the finance sector.

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CASE STUDY / NEWS

“It is unbelievable – but also not sustainable. Companies do crazy things to keep talent.

“But we need to be very careful how we manage compensation.

In Asia we saw history repeating itself, a repetition of what happened in the US until 2007.

“When the bubble burst, people either lost their jobs or had to accept lower pay packages and found that they could no longer afford their lifestyles, their homes, their cars.

“When you increase salaries, you have to be able to sustain them as otherwise, as soon as there is a dip in the business, you are forced to restructure, or fire people.

“Malta is in a healthy economic position. We have high employment and a shortage of talent (which is healthy in this context).

We have to be very careful not to make the same mistakes as the US did in the past, and that Asia is making now. This is why salary information needs to be taken very seriously.”

“Our target is very ambitious: to have data on 50 per cent of the total Maltese workforce of 187,000.

It is quite a challenge, but if it is not a challenge, there is no fun in it! e more data we have, the stronger its validity and reliability”

St Publius: fresh warning

THE 25-YEAR JOURNEY Caroline Buhagiar’s 25-year journey to SalariesinMalta.com has been a steady progression, but human resources was not her original career path. She started her career at ST Microelectronics (STM) in 1991 as a machine operator and at first raised her eyebrows at the idea that she had left school merely to end up in another classroom, this time for induction.

“It was a very exciting time to be involved with semiconductors, and it was a period of substantial investment into total quality management. During my induction week, I listened to the trainer and was fascinated by his passion for the subject and thought: ‘What a cool job!’.”

Four years later, she was appointed an induction trainer herself – no mean achievement considering that the company had 2,500 employees and was the largest company in Malta at the time.

Keen to progress, she decided to go back to university on a part-time basis and got a degree, supported by the company. It was not long before she outgrew her role and STM – part of a global chain – moved her to Sicily in charge of training for managers and leaders for the Mediterranean region at the company’s corporate university.

“It was the first time I had ever been abroad so it was quite an eye opener, quite an adventure,” she smiled.

Her aptitude for the job meant STM once again decided to promote her, after just three years, this time to an even bigger corporate university in Provence, in the south of France, running the global leadership academy for all the senior leaders of the company.

It was an exciting time for Ms Buhagiar. She got married, had her first child, and even managed to complete her masters in business psychology.

But in 2007, things in France were quite difficult.

The company was restructuring and there were strikes across the country. Her boss, who she describes as “a real mentor”, offered her the chance to move to Singapore, a move that could not have come at a more dynamic time for this city-state.

But after a few years there, she realised that she had already spent 20 years with STM and that the only thing she knew was semi-conductors. After rejecting several head hunting attempts, she eventually accepted to join AXA, which had a headcount of 200,000, compared to STM’s 80,000.

“It was a quantum shift,” she admitted.

She spent four years as the director of AXA’s university there, working with some of the main business schools, and involved with several mergers and acquisitions.

“This required considerable input from the HR side as you have to integrate not only systems but also people. The largest challenge was when the company bought all the life insurance for the Singapore business from HSBC Group – a $23.5 million acquisition which was AXA’s largest in Singapore.”

By this time, she had a deep appreciation for the wealth of information that could be derived from data.

“When we came back to Malta, this project seemed to be the perfect way to channel all my experience – and to do something that could make a difference,” she said.

The Malta Financial Services Authority has issued a fresh warning about an unlicensed company and its German founder, three years after it first raised the alarm that they were offering unauthorised services.

In October 2013, the authority warned that St Publius Corporate Services, registered at an office in Strait Street, Valletta, was offering what appeared to be trustee and fiduciary services – without being licensed to do so by the MFSA. The man behind the company, Peter Knappersbusch, was also not licensed.

A few months later, the MFSA said that the company and Mr Knappersbusch were seeking to “make appropriate arrangements” to transfer the interests of any bone fide clients to authorised fiduciaries and financial service providers. However, the warning was never lifted.

In July 2014, the company changed its name to St Publius Malta Ltd. It now appears that the company – and Mr Knappersbusch – are still offering services, this time from an office in London.

“The warning [on March 21] is based on new information received by the authority … St Publius Corporate Services bearing a UK address, and Peter Knappertsbusch are not authorised by the authority to provide any corporate services in or from Malta in terms of the Company Services Providers Act,” an MFSA spokesman said.

Passporting rights do not exist for corporate services as there is no directive in force. However, the MFSA clarified that there was nothing to stop Mr Knappersbusch from applying to provide services here, but only subject to its approval.

e Business OBSERVER

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March 24, 2016

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

Editorial Vanessa Macdonald, Assistant editor, Times of Malta.

EDITORIAL

e difference between price and value The White Paper published by the government on the regulation of real estate agents should go a long way towards raising standards at a time when this superheated sector – over 15,000 sales a year, not to mention rentals – is vulnerable to those tempted to make a quick buck.

Like any other sector, there are serious players with a long tradition and recent entrants. There are large companies which can afford to hand-pick the best recruits (and train them) and small companies that can ill afford even the investment in IT that a reasonable database requires.

The White Paper will also look at consumer protection, and it also paves the way for dispute resolution between agencies. The interventions made during The Business Observer business breakfast on this topic on March 10 show that some aspects of it are clearly controversial, including the future of the traditional sensara (broker or intermediary) and their different approach to commissions – one per cent each from the buyer and seller, as opposed to the more standard five per cent that agents get from the seller.

However, there is one aspect that it shies away from completely: valuations. There are two poles in the argument. The first is that real estate agents have substantial databases, and are aware of not only supply but also demand at a micro level – and are in a position to assess market trends dynamically as they evolve. The second is that architects take a much deeper look, which encompasses not just supply and demand but also the building as a structure.

The former is ideal for the short-term nature of the transaction, the latter for the long-term nature of that very same transaction. The real estate agent is probably in the best position to pinpoint the best price for that month while the architect will be a better position to overlook bubbles and outliers to assess what the property will be worth in 20 or 30 years’ time.

Chris Mintoff, the president of the Chamber of Architects, summed it up in a pre-recorded video, when he explained that real estate agents look at price, while architects look at value.

Of course, the reality is that not all real estate agencies have a full understanding of all sections of the property market in all locations, just as not all architects are involved in valuations or may be drawing their knowledge from a small and therefore unrepresentative sample of the market.

At the business breakfast, the president of the Federation of Real Estate Agents, Douglas Salt, acknowledged the limitations. He said agencies would “be wise to restrict valuation to their more experienced personnel”, but added that there was no reason in principle why estate agents should be less qualified than architects.

Malta Developers’ Association president Sandro Chetcuti also added a less tangible aspect: the importance of day-to-day experience which gives irreplaceable street sense.

Mr Salt came up with a third option which would tick all the boxes: chartered surveyors, who would maintain an index of prices and have access to a national database, allowing them to give a more in-depth valuation.

Months ago, The Business Observer had highlighted the piecemeal approach towards compiling property price indexes and since then much has already been done to fill in missing gaps and to streamline the frameworks. In the meantime, the government has changed the requirement for a government architect.

There is definitely a need for a reliable and comprehensive system which brings together the undoubted expertise of both real estate agents and architects.

Chartered surveyors could turn out to be the sum that is greater than the parts.

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BUSINESS OPINION

Modernising the pro-business agenda

Beppe Zammit-Lucia Prime Minister Joseph Muscat recently commented that his government was firmly pro-business.

Yet he chose not to describe what that actually meant in policy terms. Politicians and leading business figures in all countries routinely bandy about ‘pro-business’ or ‘anti-business’ rhetoric.

Yet few choose to clarify what they mean by their preferred direction.

A hundred and fifty years ago, when people finally began organising to eliminate child labour in American factories, they were called anti-business. Businesses would be unable to survive, they claimed, without cheap labour.

Today, most businesses are looking for highly educated, skilled workers so they must be delighted that children now go to school rather than down the mines. In 1962, Rachel Carson published Silent Spring – the seminal work about industrial pollution of our environment. Business fought tooth and nail against the ensuing regulation, calling it anti-business. Today most welcome the improved health and

“e best way for governments and policy makers to be ‘probusiness’ … may be to create a progressively tougher business environment” well-being brought about by environmental regulation, the fact that London’s dense fogs have been eliminated and our ability to have access to clean water without the expense of having to extract all the pollutants emerging from an industrial complex.

So what does it really mean to be pro-business as opposed to anti-business?

Businesses claim they would like to improve their productivity. Unfortunately, when business encourages government policies to help them improve productivity, they tend to be policies that encourage a

race to the bottom: labour market flexibility, reducing social costs to lower expenditures, lower rates of corporate tax, subsidies, deregulation that allows more environmental pollution, and so on.

All this is a pointless race that more developed countries can never win. None of it encourages firms to increase productivity by engaging in a race to the top.

None of it encourages innovation, efficiency and meaningful differentiation in tomorrow’s world.

It used to be said that countries that try to compete through lowering exchange rates are doing

nothing but mollycoddling their firms rather than promoting management action to increase productivity. Such actions actually undermine rather than increase long-term competitiveness. The same can be said of any policies that create a soft business environment that does nothing but allow firms with lazy management teams to survive. It may seem paradoxical, but the best way for governments and policymakers to be ‘pro-business’ – to encourage increases in productivity and assure long-term competitiveness – may be to create a progressively

tougher business environment, thereby encouraging firms to invest, innovate and look to participate in new market areas that are still to emerge. Wrapping firms up in cotton wool is a sure way to slow but steady degeneration of the economy.

When politicians choose to describe themselves as ‘pro-business’ it would therefore be useful for them to clarify what they mean. Do they have a simplistic policy agenda that panders to the short-term profits of businesses run by lazy management? Do they mean that they are creating the conditions for socially and environmentally destructive businesses to survive and prosper no matter the extent of long-term damage that is being done? Is the focus solely on costs rather than quality? Or rather is the policy agenda more sophisticated and focused on the longer term? Is government creating a business environment that is tough enough to push businesses to innovate, become more productive and transform themselves into the best businesses in the world – businesses that will prosper for a long time yet to come?

Most businesses are laggards.

They are comfortable with the status quo and happy to go on making money in the way they’ve always made money. Only the best businesses thrive on change and on being best in class. A truly pro-business government would formulate its agenda on the practices of the latter rather than the former.

e Business OBSERVER

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March 24, 2016

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APPOINTMENTS

New CEO for Melita

Hili Properties CFO vacancy filled Albert Galea has been appointed chief financial officer for Hili Properties, replacing Daniel Mangion, who left at the end of January.

Mr Galea joins the company from General Soft Drinks and the Waterfront Hotel, where he held the post of chief financial officer.

New company secretary for BOV Catherine Formosa has resigned from the post of company secretary of Bank of Valletta and will be joining a law firm.

With effect from April 4, Ruth Spiteri Longhurst will take over as company secretary for Bank of Valletta and its subsidiaries, Valletta Fund Management Ltd and Valletta Fund Services Ltd. Dr Spiteri Longhurst will also serve as company secretary of the bank’s associate company MSV Life plc.

Dr Spiteri Longhurst has been employed with the bank for the past 14 years and at present holds the role of executive head for compliance.

Andrei Torriani will hand over the management of Melita after seven years following the completion of an acquisition process that has resulted in Apax France and Fortino Capital becoming Melita’s new shareholders.

His successor, Harald Rösch, brings a wealth of international experience to Melita, predominantly in digital products, broadband and building valuable customer relationships. Until recently, he was a board member and CEO of Blizoo Media and Broadband EAD, the largest operator in Bulgaria. Previously, Mr Rösch served as CEO of German operator Kabel BW GmbH and

ANDREI TORRIANI (LEFT) WELCOMING MELITA CEO HARALD RÖSCH.

HanseNet, managing director of the Internet Business Unit at Telecom Italia and member of the supervisory board at Sky Deutschland AG.

Food Chain appoints business manager

JOHN BONELLO GHIO, GROUP HEAD OF FOOD BUSINESS AT THE FARSONS GROUP, CONGRATULATING KURT MICALLEF, LEFT, ON HIS APPOINTMENT.

Food Chain Limited, a subsidiary of the Farsons Group which manages Pizza Hut, KFC and Burger King franchise restaurants in the Maltese market, has appointed Kurt Micallef as business manager.

Reporting to the group head of food business, John Bonello Ghio, Mr Micallef will be coordinating the implementation of key initiatives and projects while assuming responsibility for the daily operations of the company.

New general counsel for HSBC Joseph Sammut has been appointed as general counsel at HSBC Bank Malta, at a date still to be determined. He will be replacing Henry Firmstone who will be moving to a new senior position within the HSBC Group.

Dr Sammut joined the bank in 1981, then Mid-Med Bank, and since 1999 he was entrusted with leading the legal advice team at the bank’s legal office. Dr Sammut was appointed deputy general counsel in 2012.

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e Business OBSERVER

| March 24, 2016

STOCK MARKET REVIEW

Will the recent dollar weakness against the euro continue?

Edward Rizzo During the course of 2015, one of the most talked-about themes across international financial markets was the strength of the US

dollar against most currencies, especially the euro. The dollar strengthened by 10.2 per cent during 2015 from a rate of $1.21 per €1 in January to a year-end level of $1.086.

Some international economists and financial analysts were even projecting that the exchange rate would reach parity, i.e. the value of one euro would be equivalent to $1.

However, since the start of 2016, we have so far witnessed a movement in the opposite direction. In fact, the dollar has weakened by over 3.7 per cent against the euro, from a EUR/USD rate of around $1.085 at the start of the year to $1.13 last week.

Since currencies are valued against one another, the performance of a currency signifies relative strength or weakness against another currency. In this case, the movement of the EUR v USD exchange rate is dependent on

factors affecting the US economy as well as developments across the eurozone, and more importantly the monetary policy decisions and expectations by the Federal Reserve and the European Central Bank (ECB).

“e dollar has weakened by over 3.7 per cent against the euro, from a EUR/USD rate of around $1.085 at the start of the year to $1.13 last week”

Until a few months ago, general expectations were that the dollar would continue to strengthen against the euro driven by monetary policy divergence. The US Federal Reserve (Fed) was expected to raise interest rates while the ECB would, on the other hand, continue to increase its dose of monetary stimulus, thereby leading to a weaker euro.

In December 2015, the US central bank brought to an end the zero interest rate policy era as it embarked upon a 25 basis point increase – the first hike since 2006. At the time of the December 2015 rate decision, the Federal Reserve had indicated that

e Business OBSERVER

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March 24, 2016

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STOCK MARKET REVIEW

there would probably be four more quarter point increases during the course of 2016.

Over the past two weeks, both the ECB and the US Fed held their customary monetary policy meetings. As I explained in detail in last week’s article, on March 10 the ECB announced a comprehensive set of measures to address persistently low inflation and weak economic growth.

Some of these measures had been widely expected while others came as a surprise to many analysts. More importantly for the currency markets was the statement made by the ECB president Mario Draghi that it would be unlikely for interest rates to fall further. In fact, notwithstanding the scale of monetary stimulus that exceeded expectations which initially led to an immediate weakening of the euro against the dollar from around $1.10 to $1.08 within minutes after the ECB decision, the cautious tone of Mr Draghi on future interest rate cuts caused a jump in the EUR/USD rate to $1.12 very soon afterwards.

Meanwhile, last week, the US central bank drastically scaled back its interest rate projections and now foresees just two additional hikes of 25 basis points each in 2016. The Federal Reserve’s more cautious stance came despite a positive assessment of the US economy with a pick-up in inflation, a strengthening of the labour market and moderate economic growth despite the challenging circumstances across the globe.

However, the US Central Bank again remarked that global developments “continue to pose risks” and that “inflation is expected to remain low in the near term”, before rising to its two per cent target.

The shift in expectations by the Federal Reserve immediately led to a sell-off of the dollar last week as it breached $1.13 against the euro, its lowest level in a number of weeks.

The main argument that was being made a few months ago in favour of continued strengthening of the dollar against the euro was the monetary policy divergence between two of the major global central banks. The interest rate cuts and additional stimulus

SOURCE: THOMSON REUTERS

by the ECB as opposed to a series of interest rate increases in the US was widely expected to lead to a lower EUR/USD rate.

So why has the euro strengthened against the dollar since the start of the year? Although Central Bank policies are in fact diverging, as the ECB did indeed cut interest rates and the Fed is still intent on raising rates, more importantly, however, is that we are witnessing a convergence of market expectations.

The statement by Mr Draghi on future rate cuts lowered the probability of reduced interest rates across the eurozone going forward. Similarly, the more cautious tone from Fed chairperson Janet Yellen on future rate increases lowered the probability of multiple interest rate increases in the coming months. At the start of

the year, the market was expecting the Fed to be more aggressive with its outlook on rate hikes, while the comment by the ECB president on the low probability of additional interest rate cuts impacted expectations. Due to the latest remarks by the chiefs of two of the major central banks, interest rate expectations are in fact actually converging towards less aggressiveness on both paths.

Despite this sudden change in expectations, exchange rate volatility is likely to persist in the coming months. The major factors influencing currency movements will continue to be future decisions and statements by both the ECB and the Fed. Moreover, the publication of economic data will also play a key role as this may also lead to a change in market expectations.

Some international financial analysts continue to predict that the USD will strengthen and will breach the parity level against the euro by the end of 2016. These analysts claim that inflation will rise much quicker than expected forcing the Federal Reserve to adopt additional hikes apart from the two rate increases being projected.

On the other hand, other analysts forecast that the dollar will continue to weaken against the euro with the EUR/USD exchange rate at the end of this year rising to a high of $1.20 as the Fed remains uncertain on US economic activity as a result of global economic and financial market developments.

It is becoming increasingly difficult to predict how future developments will affect the value of the dollar and the euro. What is

“e shift in expectations by the Federal Reserve immediately led to a sell-off of the dollar last week as it breached $1.13 against the euro, its lowest level in a number of weeks”

Rizzo, Farrugia & Co. (Stockbrokers) Ltd (RFC) 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. RFC, its directors, the author of this report, other employees or RFC 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 RFC, 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. © 2016 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved

certain, however, is that high volatility is expected to continue to characterise the currency markets until the end of 2016 and beyond.

Although the underlying economic fundamentals are always very important gauges, changes in market expectations are likely to have an even larger impact.

Amid expectations of continued currency volatility, investors must be aware that this may have wide implications on the performance of their investment portfolios if they have considerable exposure to the dollar. Investors should therefore monitor developments closely and reconsider whether such foreign currency exposure is justified in the light of their overall investment objectives and their risk profile.

Edward Rizzo is a director at Rizzo, Farrugia & Co (Stockbrokers) Limited

e Business OBSERVER

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March 24, 2016

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BUSINESS UPDATES

Information session for businesses interested in supporting the arts During Budget 2016, the government announced a new measure to encourage further partnerships between Malta’s business community and the cultural sector.

Through this measure, companies giving donations to non-profit cultural organisations, public cultural organisations or to Arts Council Malta as an intermediary on behalf of a beneficiary may claim the amount donated at 150 per cent against the income for the year of assessment when the donation was made. The maximum tax deduction is capped at €50,000. This incentive is effective as of January 1, 2016.

An information session for businesses interested in supporting the arts will be held on March 30 at 2pm at Malta Enterprise, Pietà.

During this session, guest speaker Carl Watt (Arts & Business Scotland) will discuss why it’s important for businesses to support culture and the arts. A step-bystep walkthrough of how the incentive will be administered will

CARL WATT

also be delivered. Company managers and accountants are best positioned to benefit from this information session.

E-mail donateforarts@artscouncilmalta.org by Monday, March 28, to book your place. Attendance is free but places are limited and will be allocated on a firstcome first-served basis.

Incentive guidelines and application forms will be available following the official launch of the incentive on March 30. Visit www.artscouncilmalta.org for more info.

Gasco Energy meets latest quality and safety standards Gasco Energy Ltd, a company involved in the unloading, storage and filling of LPG gas in cylinders and road tankers, has raised its own bar on quality and safety by meeting the requirements of ISO 9001, which certification also covers its cylinder testing and refurbishment operations. Gasco Energy is contracted to fill and to test the green and yellow LPG cylinders for Liquigas Malta.

Gasco Energy was formally audited by SGS Italia, a leader in inspection and certification services, and found to meet the stringent quality standard attributed to ISO 9001 certification.

Among the activities audited were the filling, testing and maintenance of cylinders, specialised handling of bulk gases as well as cylinder delivery.

While receiving the ISO 9001 certificate from Paul Parnis, the Malta branch manager of SGS Italia Spa, Paul Agius Delicata, CEO of Gasco Energy Ltd, said: “This certification shows the continuous commitment under-

PAUL AGIUS DELICATA (LEFT), CEO OF GASCO ENERGY LTD, NEAR THE CYLINDER TESTING EQUIPMENT WITH PAUL PARNIS, SGS ITALIA’S MALTA BRANCH MANAGER

taken by Gasco Energy to meet and exceed the highest standards in industry and to deliver unsurpassed service to our customers.”

Based in Bengħajsa, Gasco En-

ergy operates a fully certified gas bottling and storage facility with an investment of €20 million, which has more than doubled the LPG storage facilities in Malta.

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e Business OBSERVER

| March 24, 2016

BUSINESS UPDATES

Seabourn celebrates float out of new Seabourn Encore Seabourn, the world’s finest ultra-luxury cruise line, celebrated another milestone in the construction of its new Seabourn Encore, with the ship touching water for the first time.

Following a traditional ceremony to commemorate this significant occasion, the ship will be “floated out” from its drydock to its outfitting dock at Fincantieri’s Marghera shipyard in Italy, where it will undergo final construction until the ship is delivered at the end of the year.

During the ceremony, the ship’s ‘godmother’ cut the cord to begin the water flow to the ship’s building dock. Marnie Tihany, the director of business development for Tihany Design, served as the madrina of Seabourn Encore. Her husband, Adam Tihany, is the visionary who will bring Seabourn’s bespoke aesthetic to life aboard Encore.

“Seeing Seabourn Encore in the water is a very special moment and represents another important step towards the completion of

Keepmeposted – recruitment simplified WAITING FOR THE CEREMONY: FR SERGIO, FINCANTIERI YARD CHAPLAIN; MARNIE TIHANY, SEABOURN ENCORE’S GODMOTHER; ANTONIO QUINTANO, DIRECTOR OF FINCANTIERI’S MARGHERA SHIPYARD; JOHN DELANEY, SEABOURN’S SENIOR VICE PRESIDENT OF GLOBAL MARKETING AND SALES; AND ELISA CALZAVARA, ASSISTANT TO THE YARD DIRECTOR

our highly-anticipated ship,” said Richard Meadows, Seabourn president. “We continue to hear from our guests and travel industry partners about their excitement for this incredible ship, and they are just as eager as we are to

welcome her to the Seabourn family later this year.”

For more information contact local Seabourn agents the Cruise & Travel group on 2122 2999 or cruise@cruiseandtravel. com.mt

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