Business Observer 22nd November 2018

ANALYSIS

Issue 92

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Distributed with Times of Malta

November 22, 2018

e European Union’s proposal to end the practice of switching between summer and wintertime has found support from the business community in Malta. see page 7, 8 >

NEWS With iGaming proving to be such an essential component of Malta’s economy, the annual Malta Gaming Week has become integral to the sector. see page 13, 15 >

PG Group CEO says company sees further scope for growth in shopping village model Maltese retail giant PG Group sees further scope for growth in the supermarket space and would consider a similar investment to PAMA and PAVI if the opportunity were to arise.

In an interview with this newspaper, Charles Borg, CEO of PG Group said that if an opportunity were to present itself for a third supermarket, the board would be open to investing in it, provided that it was a sustainable and responsible investment that matched the level of the Group’s existing establishments, and would allow the Group to continue providing adequate returns to its shareholders.

Mr Borg also said that the company had invested significantly in the PAVI supermarket village this year to bring it up to the level of PAMA, an investment programme which is expected to continue in 2019.

Mr Borg spoke about the Group’s recent purchase of the defunct Macaroni Factory in Marsa, saying that while it was a sensible prop-

erty investment, the Group was happy to hold on to it until the right moment presented itself, adding that the purchase was being financed easily through PG’s day-to-day cash flow.

Besides its thriving supermarket business, PG Group holds the franchise to the Inditexowned Zara and Zara Home brands in Malta, and Mr Borg discussed the expansion and refurbishment of the Zara flagship store in Sliema, which is set to become the largest and most modern store of its kind in Europe. The goal for the store to re-open, after closing in mid-July, has been set for 28th November. Mr Borg said the investment had been undertaken with the full support of the board, and that the company expects to quickly offset the impacts of the store’s temporary closure through the store’s improved returns.

Mr Borg also brought up the local popularity and success of the Zara e-commerce platform, which, in Malta, is also owned by PG Group,

stating that it complements the physical outlets, and was similar to having another brickand-mortar shop. He stressed the importance of e-commerce for retail outlets, saying that even major established retailers around the world would be facing difficulties if they did not cater to the growing demographic that preferred to shop online.

While noting that the Maltese economy is going through a boom period, which was likely to remain strong for at least the next three years, Mr Borg remarked that any cycle had ups and downs, with retail being the first sector to bear the brunt of an economic downturn.

However, he confidently stated that the Group, with its supermarket offering, was diversified, sustainable, and responsible enough to withstand any economic turnaround.

Read the full interview on pages 3 and 4

CASE STUDY RE/MAX Malta is working hard to change the public’s perception of estate agents through training and staff development. see page 18, 19 >

STOCK MARKET REVIEW Have the recent MiFID II rules created an uneven playing field for small retail investors? see page 23, 24 >

e Malta Business OBSERVER

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November 22, 2018

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NEWS

Board would consider third shopping village investment if opportunity knocks – PG Group CEO Marie-Claire Grima PG Group, which owns the PAMA shopping village in Mosta, and the PAVI shopping village in Qormi, sees further scope for growth in the supermarket space and would consider a similar investment if the opportunity were to arise, but never at the expense of its existing business. “The business model has been a success and we believe that there is continued scope for further growth,” said Charles Borg, CEO of PG Group. “If an opportunity presents itself for a third supermarket, we will evaluate it, make our costings and then take an informed decision on whether to go for it or otherwise.”

Speaking to this newspaper, Mr Borg said that the model the company has taken on is different to the norm. “We have created destinations. Our customers do not only come to us for their daily needs, but also because we provide a more holistic offering, including retail and catering services. This year, we have invested significantly in the PAVI supermarket to bring it to the level of the more modern PAMA, and this investment programme is expected to continue next year too.

However, I must again reiterate our philosophy. Every investment has to be sustainable and responsible. The board remains committed to the promise made to our shareholders that any future investment has to be made responsibly, and it has to be sustainable.

This effectively means that we are not prepared to invest at the ex-

pense of not distributing an adequate return to our shareholders.”

One such investment is the Group’s recent purchase of the defunct Macaroni Factory in Marsa, which seems like prime office property. But Mr Borg insisted that the Group is in no hurry to turn it into a money-spinner, and is happy to hold on to it until the opportune moment presents itself. “We bought it at a very good price. Paul Gauci – the founder of the Group and the main shareholder – has an eye for such deals.

Whenever he sees an opportunity, he’ll consult the board, and if we agree on the funding model, we’ll go for it. In fact, the purchase of the Macaroni Factory is being financed easily through our day-today cash flow. However, it is not in our plans to build this property and then look for tenants. The board decided that we shall consider this as a strategic investment and if an anchor tenant is interested in the property, then we will develop it. We can sell it tomorrow at a profit. It is not our core business, it is a peripheral – but it is a peripheral that will eventually yield handsome returns.”

PG Group also holds the franchise to the Inditex-owned Zara and Zara Home brands in Malta, and has been investing very heavily in growing it locally. In the past two years, the Group opened two new Zara Home outlets, and the flagship clothes shop in Sliema has been undergoing a full-scale refurbishment and expansion, which Mr Borg says will make it the largest and most modern store in Europe.

“Inditex’s new policy is to go for large stores, and to move away from the smaller ones. We were ‘encouraged’ to grow our sales – even though our sales growth figures were in the first quartile.

After some serious and detailed discussions both internally as well as with the top executives of Inditex, we decided to embark on a significant investment programme within the Alhambra Complex. Now, expanding in Sliema is no joke – you can hardly just buy up a few shops next to you – but the advantage we had is that we owned the Alhambra, and the back was still empty.”

“In January, we started building five new floors, which are almost finished. Then, we had to close in mid-July, to finalise works on the remaining two floors, the ground floor and the first floor. There will be seven floors in all, consisting of ladieswear, menswear, childrenswear, and Zara Home, as well as two floors of storage. We have had a lot of input from engineers and architects at Inditex.

All the technology in store will be new, with visuals beamed in directly from Spain. It will be a very modern store. I must also compliment our project team which worked tirelessly and within very tight deadlines to ensure that we open the new store before the Christmas season.”

Mr Borg said that the milliondollar question is the exact date when the shop will open, although the goal has been set for 28th November. “The challenges when it comes to working in Sliema have been significant – finding contrac-

CHARLES BORG, CEO, PG GROUP. PHOTOS: ALAN CARVILLE

“We are not prepared to invest at the expense of not distributing an adequate return to our shareholders.”

tors, abiding by authorities, regulations and restrictions, having to work during set hours because it’s a residential area, finding a place for the cranes, and so on. How-

ever, thank God, we are very near to the end and we should be meeting our targets.”

Continued on page 4

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e Malta Business OBSERVER

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November 22, 2018

NEWS

Sliema Zara complex to be largest and most modern store of its kind in Europe Continued from page 3 The Group also noted in its Annual Report that the closure of the shop for nearly five months would have an impact on its turnover and results in the current financial year. However, Mr Borg said that the company has full support from the board, and fully expects to reap the returns from its investment, quickly offsetting the impacts of the store’s temporary closure.

“In the long-term this is going to yield a positive return on investment, pay off the debts we incurred, and render a profit. It’s a win-win situation for us, for our clients, and for Inditex. The projections are in line with our investment. We’re jealously protective of our margins, because that is the way business remains profitable.”

When asked for specific figures and projections, Mr Borg said he was not in a position to divulge them – “we are a listed company and these are price-sensitive matters” – but affirmed his confidence in profitable returns, justifying the investment.

While the brick-and-mortar Zara shop has been closed since mid-summer, Maltese fans of the clothing brand have still been able to buy from the retailer through the local online shop. Mr Borg said the growing popularity of the online platform supports the physical outlet, rather than posing a threat to it. “Inditex weren’t early adopters of online shopping. We introduced the local e-commerce platform two years ago and we were one of the first franchisees worldwide to do so. It has been very successful, with a growth rate of over 75 per cent per year. Since we own the e-commerce platform, it complements the physical outlets. So whether you buy in store

or online makes no difference to us – while the transport costs nibble into our margins somewhat, essentially, it’s like we opened another shop.”

The CEO observed that worldwide, “former sacred cows” on the high street such as New Look in the UK and Sears in the US were having to restructure and re-organise their business operations, and in some cases – such as BHS’s – shutting down completely because they had failed to flourish in the new competitive environment fostered by online retail. “There will always be people who will

“In the long-term this is going to yield a positive return on investment, pay off the debts we incurred, and render a profit. It’s a winwin situation for us, for our clients, and for Inditex.”

want to try on a dress before they buy it, but nowadays, many people lead such busy lives that they just don’t have the time, so they revert to online. This demographic is growing, and the shops that don’t cater to them are likely to suffer.” This does not only apply to clothes or accessories – indeed, the Group has invested in a new ecommerce platform for the supermarket, which Mr Borg said “would tap into the market of people who don’t like supermarkets.

Slowly but surely, this line of work will increase our footfall.”

As the interview drew to a close, Mr Borg observed that the Maltese economy is going through a boom period. “And long may it last – everybody benefits in an economic boom. Consumption goes significantly up, and I think this will remain strong, at least for the next three years. That is why we have invested significantly in our new Zara store, because we believe it will continue to be profitable. If the economy is growing, we have to grow with it.”

But like any cycle, Mr Borg remarked, there are ups and downs.

“The danger is that the higher you go, the harder the recession will be. It’s natural. The role of the authorities is to limit the cycle, so that the drop is not so steep. In an economic downturn, retail is the first sector to suffer, but since food is a big part of our line of business, we should be well protected. Food is safe. Maybe you’ll eat less in quantity, or choose less-expensive foods, but one still needs to eat.

Since we have this balance, we believe our Group is diversified enough for any economic turnaround. And as I said at the beginning, we always make sure to grow sustainably and responsibly, never at the expense of our existing business.”

e Malta Business OBSERVER

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November 22, 2018

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ANALYSIS

Abolishing switch between summer and winter hours will improve business and tourist numbers Rebecca Anastasi The European Union’s proposal to end biannual time changes – the practice of changing the clocks between summer and winter-time – is finding substantial support in Malta, with representative bodies of the business community asserting that longer days will benefit trade and prove positive for the tourism industry.

The Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels & Restaurants Association (MHRA), in comments to this newspaper, have both outlined the productive ramifications of the initiative, saying that their members – consisting of leaders in the business community and the tourism sector – will profit from having summer-time all year round.

The issue has come to the fore in recent months following the results of an EU consultation which found that more than 80 per cent of citizen respondents in the bloc were

against the practice of changing the hour to mark summer and winter. This prompted EU Commission President Jean-Claude Juncker to say that millions “believe that in future, year-round should be year-round, and that’s what will happen”.

As a result, the Commission has committed to assessing the viability of “a harmonised regime” in either keeping the current EU year-round arrangements or discontinuing the current bi-annual time changes. Currently, EU legislation requires all member states to change the clock hour, pushing it an hour forward on the last Sunday in March, and switching back on the last Sunday in October.

However, for the proposal to be ratified into law, it would require the official support from each of the 28 national governments comprising the union, as well as representative MEPs. Brexit seems likely to complicate matters: according to Politico, in a no-deal Brexit scenario, clocks in Northern Ireland could end up being an

“e earlier the sunrise, the earlier the business day can begin.”

– Tony Zahra, President, MHRA

hour different to those in London, or Dublin, should the proposals be enacted.

Locally, MHRA President Tony Zahra stressed the favourable effects such a ratification would have on businesses in the tourism sector, calling the proposed change “extremely positive” due to the resultant increase in sunlight hours, which bolsters trade. “The earlier the sunrise, the earlier the business day can begin. And it is also beneficial for winter evenings - since these are cooler, longer daylight hours will encourage people to go out anyway,” Mr Zahra said.

He went on to call this “certainly productive for the tourism industry”. Indeed, while he did not see any problems currently arising from the practice of switching over to winter-time, he noted that while eradicating seasonal time changes would have a profitable effect on tourist numbers to Malta, staying on - summer-time would also be beneficial to locals.

Continued on page 8

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e Malta Business OBSERVER

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November 22, 2018

ANALYSIS

Alignment with other European countries in the CET zone is key Continued from page 7 Mr Zahra also emphasised that if the changes were to go ahead, it would be essential to maintain harmony across the entire bloc in order to ensure there are no adverse effects when conducting business with other countries in the EU. “At present all of Europe changes at the same time – and I think it should be maintained this way,” he asserted. Indeed, a European Parliament resolution says it is “crucial to maintain a unified EU time regime”, making it unlikely for countries not to ratify the change if other members of the bloc push ahead.

MHRA’s sentiments were corroborated by the Malta Chamber which made reference to a survey it conducted with its members on the issue. While asking businesses whether they preferred to have one fixed time-system in place, and to note their preference between summer or winter-time, the survey also asked them to determine how the proposal would affect their relationships with their European counterparts, partners and other companies in the EU zone.

The Malta Chamber noted that the results showed that “the most important thing

would be that Malta keeps its time alignment with the other European countries in the CET zone,” whatever the final decision.

Indeed, such alignment would ensure industries across the bloc maintain current operations and procedures, ensuring minimal disruptions if the decision goes ahead.

In its statement, the Malta Chamber also referred to the general results of the survey, in which 75 per cent of businesses stated it was in favour of remaining on summer-time through the entire year. Indeed, “longer days should lead to a more motivated workforce, which translates into more business activity especially amongst retail, hospitality and restaurant businesses,” the representative business body asserted, quoting previous reports.

Moreover, respondents also noted the psychological benefits the proposal would have on the Maltese workforce, which would lead to greater productivity.

“Longer days also means that workers will enjoy more daylight after their respective work shifts,” the the Malta Chamber said, going on to conclude that this would “lead to a wider feel-good factor amongst employees.”

“Longer days should lead to a more motivated workforce, which translates into more business activity especially amongst retail, hospitality and restaurant businesses.”

– Malta Chamber of Commerce

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November 22, 2018

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

Managing Editor Marie-Claire Grima

EDITORIAL

Publishers Allied Newspapers Ltd. Content House Group Ltd.

Talking shop Out of all the countries in the EU, Malta marked the largest annual decrease in retail trade this year. Retail figures for June 2018 were down by 1.5 per cent over the equivalent month in 2017, while the average volume of retail trade in the EU rose by 1.2 per cent, according to a Eurostat survey. The drop seems anomalous. The Maltese economy is going through a boom period, registering what we have been told over and over again is the highest growth in GDP in all of Europe. But people seem to be spending less of their money on the high street. If retail sales are down when there’s lots of money in the public’s pockets, what chance does the sector stand in the event of a downturn?

Although it is never easy to reverse trends, there are things that the retail sector in Malta can do to address this situation, perhaps in more than one way. First of all, shops in Malta need to significantly up their online shopping strategy. In our cover story, PG Group CEO Charles Borg spoke about the success of the company’s Zara e-commerce store in Malta, and how through its introduction, it’s as if the company opened another Zara shop. Its raison d’être is easy enough to see – many people lead busy lives and work long hours, and at the end of a long day of work, have little inclination to hit the high street, which is often quite an ordeal to reach in the first place. It’s small wonder then, that all around the world, high street giants are suffering because they’ve failed to keep up with the times, and that companies like Amazon and ASOS keep growing and growing.

An online shopping portal you can browse from the comfort of your own home, with search functions right at your fingertips and easy and efficient return policies, speaks directly to our frazzled and overworked age. However, few other shops in Malta offer the facility of online shopping. The demand for it is definitely there – a survey commissioned by the Malta Communications Authority last year found that more than three-quarters of consumers across all age cohorts in Malta and Gozo

are using the Internet to do their shopping. So why not give the people what they want?

The second arm of the survival strategy is making sure the physical shop has a unique offering. Convenience is good, but what does the business offer that’s different to all the others, that will keep people coming back for more? In an age where so many things have become faceless and cookie-cutter, having an outstanding product that’s hard to replicate will go a long way towards making sure your business survives. What makes your product better than all the others? Alternatively, what is there a demand for? Is there a niche that you can seize the opportunity to fill? Once you find that unique selling point and work hard to preserve it, you’ll be in much better shape to see it through difficult times. If you can’t identify it, your business might find it harder than others to weather the storm.

Finally, retail businesses have to work hard to make their brick-andmortar shopping experience as pleasant, rewarding and enjoyable as possible. Yes, online shopping is easy and convenient, but some people still enjoy the experience of going to the shops, and there are plenty of reasons for that. For instance, if you’re in the market for formalwear, and you walk into a shop selling suits, you can try different styles, colours and sizes on, buy matching accoutrements, and even get a tailor to make sure it all fits you perfectly – as long as there’s enough of your size in stock. Another is the element of serendipity – the idea that you might come across something that you weren’t necessarily looking for, but that you quickly realise is exactly what you were looking for. A third element is the chance to socialise – you can’t catch up with a friend for a cup of coffee when you’re doing your shopping online. All these are components of the shopping experience that PG Group has successfully identified and capitalised on with its shopping villages, with free parking, outlets that complement each other, and high volumes of stock. If the high street in Malta wants to survive, it would be in its best interest to pay attention and take notes.

Advertising Enquiries Tel: 2132 0713 Email: info@contenthouse.com.mt Advertising Sales Matthew Spiteri Director of Sales and Business Development Jean-Mark Meli Senior Brand Sales Executive Director of Sales and Operations Lindsey Napier

Printer Progress Press Ltd.

BUSINESS OPINION

Blockchain meets iGaming at the SiGMA conference

Eman Pulis

2018 has been a year of plenty for SiGMA. The premier purveyor of iGaming events has offered the gaming community a calendar bursting with activity, both locally and globally, cementing its position as an established influencer on the iGaming world stage.

The transformation from an intimate, local show to a global player in the iGaming sphere is testament to the company’s dedication to excellence and consistency – qualities which have lured companies to the fast-developing island.

With the winter months on the horizon, SiGMA 2018 is slated to close the year in style. A predicted record-breaking 12,500 guests are set to give 2017’s numbers a run for their money, with a deluge of delegates pouring in from all four corners of the globe.

To accommodate the demand, SiGMA has added an extra day to its dates – the show will run from the 28th to the 30th November. New foundations will expand the MFCC footprint in order to house the now fully soldout Expo floor.

The flagship show will host a carousel of conferences and workshops, several of which will focus on the evolution of the industry from a broader perspective, with highlights including a look at panAfrican regulation and sports betting in the USA. The SiGMA conferences will serve to carve out a space for thought leaders and popular influencers to contribute to the evolution of a thriving iGaming arena industry giants such as Brock Pierce, AI guru Angelo Dalli, and Malta Gaming Authority (MGA) CEO Heathcliff Farrugia, join a starstudded list of speakers who will add their know-how to the fray.

SiGMA will also make good on its commitment to playing its part in tackling the human resources deficit facing the gaming industry – allowing Malta’s new-found growth in this sector to continue flourishing unimpeded. In addition to a Careers Convention aimed at graduates, SiGMA will run a Careers and Women in Gaming Workshop.

From development to diversity, to talent acquisition and retention, the workshop will navigate Malta’s path to investment in talent and recruitment.

But that’s not all. Following through on the success of the recent Malta Blockchain Summit, SiGMA is ideally positioned as a meeting point for the well-established iGaming industry to integrate with digital ledger technology (DLT). Back in October, the MGA published its sandbox framework for the acceptance and wider adop-

tion of virtual financial assets and virtual tokens, and innovative technology arrangements, as part of the country’s strategy to embrace its position as a ‘blockchain island’ and strengthen the relationship between iGaming, DLTs and cryptocurrencies. The initiative, which is subject to feedback and revision, allows for gaming operators to be

“Following through on the success of the recent Malta Blockchain Summit, SiGMA is ideally positioned as a meeting point for the well-established iGaming industry to integrate with digital ledger technology (DLT).”

able to operate on DLTs in a test environment, and will mainly circle around established virtual currencies; however, operator-generated tokens will also be evaluated.

The first phase of the project will commence on 1st January 2019, when applications for the use of DLT assets as a method of payment will be accepted by the Authority.

Therefore, ahead of this, the Summit will be featuring a blockchainthemed conference, with the two spheres converging for a high-level discussion of the emerging tech and its huge implications for iGaming.

Meanwhile, other highlights in the Summit timetable include SiGMA Pitch, where start-ups go head-to-head in a shark-tank-like environment. Finalists will gain a unique opportunity to win a space on the expo floor, score invites to networking events and reel in potential funding and mentoring from industry veterans. Furthermore, a friendly-competitive Hackathon has also generated interest amongst developers, with a generous $50,000 prize pool making it an attractive lure, while lavish networking dinners will feature throughout SiGMA. The Summit will also host a crypto cruise, and a phenomenal closing night event.

SiGMA has continued to run parallel to the island’s economic boom, operating alongside the local industry as it continues to see sustainable growth. SiGMA 2018 is all set to emulate the success of previous years, bringing the high standards and quality it has deservedly become known for.

Eman Pulis is the Founder and CEO of SiGMA

e Malta Business OBSERVER

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November 22, 2018

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NEWS

Malta’s lucrative iGaming industry gears up for Malta Gaming Week The gaming industry in Malta in 2017 generated just over €1.1 billion in terms of gross value added to the Maltese economy, which translated into a staggering €2.74 million every day – 11 per cent of Malta’s economic value added as a whole, according to the Malta Gaming Authority’s annual report. It also directly accounted for over 6,600 fulltime jobs as at the end of 2017, representing 4 per cent of the entire increase in employment in Malta during the year. With iGaming proving to be such an essential component of Malta’s economy, the annual Malta Gaming Week has become integral to the sector.

The 2018 edition hopes to build on the momentum of previous years and will take place

over three days between the 28th and 30th November at the Malta Fairs and Conventions Centre (MFCC) in Ta’ Qali. It will play host to sponsors, exhibitors, industry speakers and stakeholders and offer a packed lineup of events, designed and coordinated by the main organisers, SiGMA, in collaboration with other partners such as KPMG and iGaming Academy.

“I think this year will be the biggest yet,” said Eman Pulis, CEO of SiGMA. “Malta Gaming Week has gone from strength to strength. Since 2014, it has established itself as a staple on the global iGaming calendar and every year we have seen a marked increase in interest.” Mr Pulis stated that the

goal is to bring people together and make connections, in hopes that the event will solidify and forge relationships, leading to further business opportunities. “Ultimately, we hope to start a conversation about some of the most important issues affecting the industry today. We also hope people enjoy themselves and that everything runs smoothly!”

The SiGMA iGaming Show is the leading part of the three-day event. Sponsors, remote gaming stakeholders, and industry participants will be able to meet and mingle in this large market hall at the MFCC. “This year SiGMA will welcome a record-breaking 12,500 attendees, host 400 sponsors and ex-

hibitors and provide a platform to 200 speakers. Because interest is so high, we’ve had to add an extra day to our conference dates, and we’ve also increased our floor space at the MFCC, in order to accommodate the numbers. If you’re looking to make lasting connections, our sold-out expo floor is the place to be,” Mr Pulis commented.

However, besides the main marketplace, there’s a jam-packed line-up of events including a StartUp Pitch – which gives small companies the opportunity to introduce their ideas to potential mentors and investors; the SiGMA Careers Convention and the iGaming Continued on page 15

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NEWS

SiGMA gives newcomers to gaming the perfect opportunity to discover Malta Continued from page 13 Academy Forum - which connects job seekers with employers in the sector and opens the doors to further learning; a Networking Poker Tournament – where the live and online poker industries converge; the GPI European Poker Conference, as well as the KPMG eSummit – a prestigious full-day, invite-only conference discussing various key topics related to the iGaming industry. It comes as no surprise, then, that most members of the industry in Malta consider this event to be an unmissable opportunity.

“Malta Gaming Week is a week where providers and suppliers get to meet on both a formal and informal basis,” said Irena Busic, Communications Director at LeoVegas. “Our employees and representatives can meet current and future clients, and it gives us the opportunity to promote our work within the industry. For example, at last year’s edition of Malta Gaming Week, we launched LeoSafePlay – a site fully dedicated to promoting responsible gaming, containing useful tools and resources, based on machine-learning and algorithms that helps us create a risk profile for customers who may be prone to developing unhealthy gaming behaviour.”

Ms Busic said that the company will make its presence felt at SiGMA, as well as a number of different workshops throughout the event. “For us, it is a great opportunity to get to know new talent out there, that can keep on helping LeoVegas Group grow. In terms of talent and acquisition, the industry in Malta is growing at an amazing pace and of course, the need for talent follows the same upward curve. Recruiting for certain roles has become easier due to the international workforce that the industry has managed to attract. Although there is a large talent pool on the island, we sometimes need to attract specialised talent from abroad to fill certain roles, which this gaming week can also offer.”

LeoVegas will also be attending the Malta Gaming Awards, where it has been nominated for the Casino award.

“Malta Gaming Week is certainly a calendar highlight for the international iGaming industry,” said Ben Pace Lehner, Director of Broadwing Ltd (Recruitment) & Rocksteady Digital Agency Ltd. “The various events shine a spotlight on Malta as one of the primary jurisdictions of establishment for an industry that has, without a doubt, been a major success story and continues to grow steadily. It gives potential newcomers an excellent opportunity to discover Malta and everything

that makes it the best place to be for the iGaming industry including the new regulations issued by the MGA, a good work-life balance, great lifestyle and company perks that will make you want to join in.”

“Although there is a large talent pool on the island, we sometimes need to attract specialised talent from abroad to fill certain roles, which this gaming week can also offer.”

– Irena Busic, Communications Director, LeoVegas

Mr Pace Lehner said his primary focus will be on scouting the SiGMA expo to touch base with existing clients, while encouraging the team to use the opportunity to build their professional network and better understand the trends of an industry which they work with very closely. “It’s safe to say that from a human resources perspective, the excellent employee benefits are the most talked-about industry trend, supported by the industry’s awesome events and activism, including Malta Pride and World Cleanup Day, allowing employees to truly feel proud of where they work. Couple this with the generous salaries offered in the industry and you’ve got a formula that continues to attract newcomers and gives the industry a competitive edge in recruitment. However it’s not all about attracting new talent, as is evident through the boomeranging phenomenon, where former iGaming employees return to their original employer after a period of absence. This is partially attributed to a fun working environment, and good opportunities for career progression.”

For tickets and more information, including a list of exhibitors and a detailed agenda, visit www.maltagamingweek.com and www.sigma.com.mt/events/sigma

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IGAMING

E&S Group advises and guides gaming companies to set up operations in Malta Over the years, Malta has continually remained ahead of the iGaming industry.

Thanks to the well-structured regulations introduced in 2004, Malta became the ideal jurisdiction for gaming companies to operate in. Recently, the Maltese Government enacted a new gaming regulatory framework which came into force on 1st August 2018. This framework brought together the gambling and iGaming sectors under one regulation and strengthened the MGA’s role with regards to compliance and enforcement, by achieving the regulatory objectives in line with recent developments in anti-money laundering (AML) as well as countering the financing of terrorism. This law represents a huge step in the right direction, safeguarding Malta’s reputation and allowing it to maintain its leading position, which is beneficial to the Maltese economy. In fact, the Gaming Act will provide a better and easier way for companies to operate in Malta, and in return increase the portion of the GDP generated by iGaming, which currently stands at 10 per cent.

Most gaming companies that set up or operate in Malta believe that the island brings numerous advantages to the industry. Over the past 14 years, Malta has secured its place as the largest jurisdiction as a result of the large number of gaming companies operating within it. In September 2018, the amount of gaming companies that have registered and obtained a licence from the MGA stood at 287, whereas the number of remote gaming licences under the MGA jurisdiction was 627. Additionally, when put into practice, the Malta Company Act, together with lower tax rates for foreign companies, has allowed Malta to gain significant competitive advantage over other jurisdictions.

E&S Group has long been at the forefront of the iGaming sector, advising numerous clients on how to prepare and apply for gaming licences with the respective authorities. When the set licences are in place, E&S Group continues to support these companies throughout their day-today operations. At E&S Group we also assist such companies with compliance

Most gaming companies are set to introduce cryptocurrencies and DLT-based technologies in their day-to-day operations within the foreseeable future.

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IGAMING

When the set licences are in place, E&S Group continues to support these companies throughout their day-to-day operations.

issues within three jurisdictions; namely Sweden, UK and Malta. We also provide tailor-made services in AML, AML risk assessments, accounting, as well as any legal and corporate services required.

Since 25th May 2018, the European Union has enforced the General Data Protection Regulation (GDPR), which needs to be adhered to by all organisations, including gaming companies. As a matter of fact, gaming companies now require specific GDPR compliance tax advice.

SiGMA – the biggest iGaming event in Malta November brings together the island’s entire gaming industry through the annual SiGMA conference. E&S Group will participate at this event, where meetings for consultations with our professional team can be set.

Starting out in 2014, SiGMA has grown from strength to strength, and today is one of the most influential gaming events in Malta. Its scope is to showcase a number of gaming companies which have set up shop in Malta, share knowledge amongst stakeholders through various networking events, offering a number of conferences allowing delegates and attendees to discuss advancements in the industry, and most importantly, allowing individual companies to set up stands and promote their services directly.

Due to its popularity, SiGMA has outgrown its previous location and is now held at the Malta Fairs and Conventions Centre in Ta’ Qali.

The MGA’s Sandbox Framework In Malta, it is predicted that the gaming industry, as well as distributed ledger technology (DLT), will grow exponentially over the next couple of years. In fact, most gaming companies are already making use of DLT in their daily operations. This new technology is intended to allow players to use cryptocurrencies to wager bets or win prizes. Malta’s set and progressive regulations on DLT, which were enforced earlier on this month, will provide an ideal framework for the gaming industry by preventing tampering and fraud-related cases that could have otherwise been avoided. Most gaming companies are set to introduce cryptocurrencies and DLT-based technologies in their day-to-day operations within the foreseeable future.

The DLT industry has also received attention from the MGA. Last October, the MGA issued a DLT sandbox for the use of innovative technology arrangements, and the ac-

ceptance of virtual financial assets (VFA) and virtual tokens by means of the implementation of a sandbox environment. This has set the ground for the issue of regulations for the combination of gaming and cryptocurrencies, ensuring that Malta retains its position at the forefront of the gaming legislation through constant innovation.

The Sandbox Framework is set to commence on 1st January 2019 and last till the end of October. This Sandbox is a space where DLT assets may be used within the context of a gaming operation in a secure manner. The first phase will allow VFAs and virtual tokens to be used as a means of payment. The second phase, which will commence at a later date to be decided by the MGA, will extend the Sandbox to include the use of innovative technology arrangements within a gaming operation.

In order to be eligible to participate in the Sandbox Framework, applicants must hold the relevant licence issued by the MGA, together with other regulatory requirements stemming from any other applicable regulatory Acts, such as the VFA Act. Before applying to take part in the Sandbox, all applicants must undertake the financial instrument test in order to identify the financial nature of the DLT asset. The result of this test should be submitted to the MGA, together with the required documents as part of the application, subject to approval.

The future of the industry Malta’s gaming industry has flourished over the last 14 years and it is expected to

continue to grow, thanks to its well-regulated industry. E&S Group is one of the dedicated firms which has contributed to Malta’s success in the industry.

Its involvement with ICOs, cryptocurrencies and blockchain technology will facilitate gaming companies to further their knowledge on what Malta has to offer.

Visit E&S Group at SiGMA from the 28th till the 30th November at the MFCC in Ta’ Qali. Our iGaming and DLT experts will be available to help you set up your company in Malta, providing you with the perfect consultancy tailored for your needs. Our motto is ‘making things happen’, and we look forward to working alongside you and getting your dream project set into motion.

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e Malta Business OBSERVER

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November 22, 2018

CASE STUDY

RE/MAX Malta seeks to change perception of estate agents through training, staff development Jo Caruana

RE/MAX Malta has long been at the forefront of the real estate sector in Malta. In fact it was RE/MAX – the international franchise – that first brought real estatespecific training to Malta almost 15 years ago – back when training wasn’t really considered important to a business operating within the property sector.

Looking back today, though, RE/MAX Malta COO Jeffrey Buttigieg recalls that, before the directors set out to launch the brand locally, they realised there was a major gap in education within the company, and they chose to build their organisation on the vital pillars of staff development and education.

Over a decade later, it is now RE/MAX Malta’s desire to keep upping the levels of its training and customer care standards and, as a result, drive over 80 per cent of real estate sales on the island through an estate agent (up from the 50 per cent that occur in that way today).

“Back in the early days of RE/MAX Malta, we were lucky enough to secure the best trainer on the island – Paul Vincenti – on an exclusive basis,” Mr Buttigieg explained. “We invested in a number of learning opportunities with our European counterparts and, over time, built up the most comprehensive real estate curriculum the Maltese islands had ever seen.”

In fact, such was the success of Mr Vincenti’s approach that RE/MAX companies from other regions started to request him for their training sessions so that he could help them emulate Malta’s success.

“That was a huge endorsement of the level that we had reached and we were proud to set that benchmark,” Mr Buttigieg continued.

In this way, it’s clear that RE/MAX Malta takes its customer service standards seriously. In fact, as part of its ongoing assessment processes, the company regularly commissions indepth market research to help it understand what the general public is experiencing through its service, so that

In 2016, data highlighted that, out of an average of the 10,000 to 12,000 transactions completed every year, estate agents are involved in just over 50 per cent of them. it may adjust its training to the trends and tendencies of the moment.

Interestingly, RE/MAX Malta’s June 2018 survey suggested that estate agents – although largely thought of in a very positive light – should be more in tune with clients’ needs, build better relationships,

provide more information about the properties being shown, and generally be more qualified. Meanwhile, in 2016, data highlighted that, out of an average of the 10,000 to 12,000 transactions completed every year, estate agents are involved in just over 50 per cent of them.

Now, besides having a regional trainer, the local franchisees of RE/MAX Central, RE/MAX Alliance and RE/MAX Affiliates have set up their own real estate academies to help the wider company cope with the consistent need for more professional services in the market. “The real academy function has been to deliver solid induction training, as well as leadership training, to the 370-plus agents working within our many branches,” Mr Buttigieg continued.

“The academy managers – Lawrence Kelly, Frank Borg and Mark Ellul respectively – work tirelessly, and use their unique expertise and years of research to create programmes that consistently improve the overall service that we offer,

e Malta Business OBSERVER

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November 22, 2018

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CASE STUDY

while also developing a set standard across the RE/MAX Malta network.”

Now, the company is continuing to invest in training and development as part of its overall vision. The aim is that, one day, real estate agencies will be known for their professionalism and not simply their commission-based drive, “which is an understandable trait,” Mr Buttigieg said. “We are well aware of the perception that exists out there on the island, and are planning to roll out a Service Standard Charter to the general public in line with our commitment to the industry.

“We want every customer to enjoy the same professional real estate service from us whether they are working with our office in Fgura, Tigné, St Julian’s or Tal-Ibragg; it is our duty as an international franchise to deliver a homogenous experience regardless of the branch. By defining our service, we are simply committing to what the buyer, seller, renter or a landlord should expect.”

RE/MAX believes that this ongoing investment in human capital will lead to greater things, not just for the company, but for the wider industry as a whole. It suggests that, by undertaking this sort of investment in people, coupled with the right technology tools that will also support its agents in the communication and management of their customers, it will succeed in building the necessary trust in real estate agents collectively.

“By leading the way, the benefits of more customers using an estate agent are numerous,” Mr Buttigieg said. “This cov-

“A truly professional agent will guide and educate the buyer and seller on the process, and be there for them in a way that will make the process so much better than it would be if they were out there on their own.” ers everything from agents helping to negotiate a price that works for both parties and helping to manage stressful procedures, to narrowing down lists of properties, accessing better data, and providing a more accurate comparative market analysis.

“A truly professional agent will guide and educate the buyer and seller on the process, and be there for them in a way that will make the process so much better than it would be if they were out there on their own. Good agents add immense value, and that is why it is so important to ensure our agents are the very best.”

JEFFREY BUTTIGIEG, COO, RE/MAX MALTA.

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e Malta Business OBSERVER

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November 22, 2018

CASE STUDY

FIMBank offers real estate financing solutions for established developers FIMBank provides financing solutions to established property developers for the acquisition and development of property at competitive terms and pricing.

“Our range of real estate facilities includes funding on a pro rata basis, the purchase of land for development into residential units, commercial buildings, and mixed utility properties,” said FIMBank’s Head of Real Estate Jason Zammit. “We offer competitive pricing and terms which vary depending on the project’s requirements. The repayment is typically structured to concur with the sale of the development, or from the proceeds of the rental and business activity.”

Mr Zammit said that the real estate finance business line of lending into selected real estate in Malta was launched around two years ago. “Within a relatively short period of time, we have formed a strong team with the right experience and skills, building a solid pipeline of transactions with significant promise for growth. Our goal is to capture market share through a range of products and services which have

been designed to effectively satisfy our clients’ current and future needs. On the other hand, we realise that there is strong potential for growth, and we are focused on building a firm foundation for long term success, which will ultimately benefit our clients.”

FIMBank clients who choose the bank’s real estate financing solutions benefit from its expertise, skills and in-depth knowledge of the local property market. “We have built a strong team capable of tailoring solutions that satisfy the needs of our various clients,” Mr Zammit explained.

“The cornerstone of our business model hinges on the personalised long-term relationships that we develop with our clientele. We offer quality banking with a specialised team, delivering a highly personalised level of customer service beyond the standard office hours.” Mr Zammit said that the bank views itself as a reliable partner working hand-in-hand with its clients to accomplish their business objectives.

“One of our main unique service propositions is our fast and efficient decision-making process, enabling timely execution.”

“We offer competitive pricing and terms which vary depending on the project’s requirements. e repayment is typically structured to concur with the sale of the development, or from the proceeds of the rental and business activity.”

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November 22, 2018

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CASE STUDY

The process of structuring a property development transaction starts with FIMBank performing a thorough due diligence exercise on the prospective borrower.

“This involves a review of their history in property development,” Mr Zammit said. “The following stage revolves around understanding our client’s project and identifying the related business objectives in order to create a tailored package focused on these specific requirements.” During this phase, the bank conducts a comprehensive analysis of the project’s valuations, projections and budgeted costings. “The scope is to maintain prudent lending standards while serving creditworthy borrowers.”

Developers can also benefit from FIMBank Direct’s secure digital banking platform, which allows customers to perform a range of corporate banking transactions online with peace of mind. “Through this platform, developers can open current accounts, savings accounts and fixed term deposits, and are able to conduct both local and multicurrency payments,” Mr Zammit stated. “FIMBank Direct is equipped with sophisticated security features, allowing clients to log in and perform payment transactions through the FIMBank CAM App, with no addi-

“Our positioning enables us to merge traditional banking with advanced technology, providing our clients with high value-added products and a quality service. Ultimately, this is our value proposition.”

tional hardware token being required. In this regard, the FIMBank Direct platform has also been equipped with a bulk payment upload functionality.”

Mr Zammit said that the bank’s approach to building new vertical lines of business is consistent with FIMBank’s overall strategy of creating innovative quality banking solutions that conform to changing market conditions and that continuously exceed client expectations. “Our positioning enables us to merge traditional banking with advanced technology, providing our clients with high valueadded products and a quality service. Ultimately, this is our value proposition.”

“We are fortunate in that we do not have any legacy issues; hence we can view real estate business with an open mind, being constantly receptive to innovative ideas. Notwithstanding, we are mindful of the fact that customers require easy access to their relationship officer.”

“At FIMBank, we pride ourselves on the fact that you can always talk to your banker, and that business is conducted on a oneto-one basis.”

For further information regarding FIMBank’s range of real estate financing solutions, contact realestate@fimbank.com or phone 2132 2100.

JASON ZAMMIT, HEAD OF REAL ESTATE, FIMBANK.

e Malta Business OBSERVER

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November 22, 2018

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STOCK MARKET REVIEW

e cost of regulation on small retail investors Vincent E. Rizzo In an article I penned and published last February titled “MiFID II – product governance and impact on primary market”, I aimed to highlight in a very basic manner the implications of the new Markets in Financial Instruments Directive (MiFID) regulations on consumers of investment services in the area of distribution and product governance. I questioned whether small retail investors will really see benefits from this new extensive regulation from a product distribution perspective.

In terms of transparency, I believe that the rules have indeed contributed to increased clarity.

All the information that investors may require before taking an investment decision is indeed available. Whether it is used effectively before the decision is taken remains something we will never really manage to clarify fully. A certain element of reliance on one’s advisor, depending on the level of trust garnered over the years will, in my opinion, always remain a favoured option.

To what extent is this still possible though?

Apart from transparency, one of the other main aims was to create enhanced protection. Only time will tell if this objective can really be increased through this new regulation. However, from a practical perspective, it would

seem that new protection rules have created an uneven playing field for financial advice. Ironically, small retail investors have, to my mind, been worst hit. Coming to terms with a new way of interacting with banks, stockbrokers and other intermediaries was never going to be easy as these licensed professionals ensure that they comply with the new stringent and sometimes very impractical regulations.

Under MiFID II, investment services licence holders authorised to provide advice may have to take a number of decisions that will reshape the way business is conducted, depending on the type of customer being serviced.

Whether it is related to deciding whether to position oneself as being independent or not independent, abolishing the receipt and/or payment of commissions, introducing specific fees for investment advice/assessments or assessing the feasibility of providing a particular service to a specific client profile in the context of these extensive new rules, the shake-up in the sector has only just started, in my opinion.

From my perspective, the domestic investment services market is taking on a new shape. In previous years, we had a relatively good spread of licence holders providing more or less the same service for the same products to the same customer type almost across the board. This is changing. Today and looking ahead, I

“Under MiFID II, investment services licence holders authorised to provide advice may have to take a number of decisions that will reshape the way business is conducted, depending on the type of customer being serviced.”

can see the players within the sector clearly differentiating themselves from one another, targeting different customer types with different products on the basis of the niche they seem to be creating for themselves.

The new regulations are ‘assisting’ this process as the cost of servicing customers from a regulatory perspective soars. We are now slowly witnessing a divergence in operators’ models – some going down the mass market route,

while others are becoming increasingly selective, by servicing customers of a certain size to ensure feasibility and the maintenance of a specific service quality.

There is a school of thought suggesting that it has become almost impossible to service small retail investors the way the market was accustomed to for many years. This category of investors, the largest by far (not only domestically), is fast becoming unserviceable. If intermediaries had to

carefully cost the time they are now required to spend with these customers as a result of the fine detail that these new regulations have gone into, it would seem logical to conclude that, relative to the size of a standard investment, passing on this cost to small retail customers in the form of advisory fees becomes totally unfeasible for them. These fees would sit over and above brokerage.

Continued on page 24

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e Malta Business OBSERVER

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November 22, 2018

STOCK MARKET REVIEW

Applying regulation appropriately to achieve stability Continued from page 23 From a protection perspective therefore, my concern is that regulation is pushing these small retail investors to an execution-only model. Given their overall general level of investment knowledge and experience, this would not really provide them with the ‘protection’ they require and wish to receive had they managed to obtain advice. By protection I am referring expressly to the comfort and guidance they would find had they obtained advice from their trusted intermediary or consultant prior to transacting. The modifications in the service levels and associated fee structures now being charged will inevitably push a large number of these small retail investors – principally pensioners – out of the market. What choice do they have at this point? Is this what they really want and need? Or are they now being steered towards the ‘cheapest’ route of least resistance?

A concern to me is that, rather than protecting investors, this new scenario could easily pave the way for this category of investor to go execution-only on products that do not match their risk profile but are perhaps easier

“We are now slowly witnessing a divergence in operators’ models – some going down the mass market route, while others are becoming increasingly selective.”

to access and more straightforward and less challenging for an intermediary to provide.

Domestically, small retail investors have been the backbone of the capital market since inception.

The concept of popularising new issuance by distributing it to a large, stable and sticky stakeholder base made sense from multiple viewpoints. We are now seeing an accelerated move towards different distribution styles where, principally as a result of these regulatory developments, targeting a different investor cluster and/or containing distribution seems to have taken on a more evident path. Gone are the days when investors could apply for bonds/shares en masse following a chat with their trusted advisor.

This is not necessarily a bad thing as we all know what happened in certain cases in the past, and misselling or target-oriented drivers had led to some unfortunate results. However, we are now witnessing the other extreme and, in both cases, the small retail investor is effectively paying the price. Regulation does not cater for the specifics of a particular market or custom, so it is the market that always has to adjust, irre-

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. © 2018 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved

spective of the nature of the market and the risks posed by the sale of more complex products, as opposed to plain vanilla mainstream financial instruments.

The impact of regulation on investing is a complex matter. The potential inhibiting effect of regulation is often difficult to see and quantify. In fact, regulating fairly without discouraging well-intended long-term investment and the creation of a savings culture is indeed challenging. Naturally, regulation is vitally important, but it

needs to be applied appropriately for it to effectively achieve stability and confidence. Regrettably, after any form of trouble or crisis, we witness extremes that may not necessarily create the desired long-term effects. One can only hope that over-regulation does not create unintended consequences which would in turn only result in further challenges down the line.

Vincent E. Rizzo is a Director at Rizzo, Farrugia & Co (Stockbrokers) Limited.

e Malta Business OBSERVER

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November 22, 2018

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BUSINESS UPDATES

e European Week for Waste Reduction – an international initiative and a local success Waste management – and more importantly, waste generation – is a matter of global concern. As we become more conscious of the detrimental effects of poor waste management, it becomes increasingly more evident that serious action needs to be taken urgently.

The European Week for Waste Reduction (EWWR) opens a portal of opportunities and potential actions for those interested. The EWWR is an international initiative, aiming to increase awareness about sustainable ways of managing resources and waste through various environmentally-friendly activities, concentrated during a whole period of one week on an annual basis.

The EWWR aims to engage a large range of audiences, including public authorities, companies, civil society and individual citizens, to become active and get involved in programmes involving sustainable changes towards more sound waste reduction practises.

The core objectives of the EWWR are raising awareness on waste reduction, the importance of reusing products wherever possible, and proper recycling methods. The EWWR is steered by various

member participants, including Malta’s Wasteserv, which is part of the EWWR steering committee. The EWWR aims to highlight the important work undertaken by its various participants.

How can I get involved?

At its core, the European Week for Waste Reduction has the function of promoting the waste hierarchy in the composition of waste management strategies – that is,

to first reduce waste, followed by reusing, and ultimately recycling and recovering what cannot be reused.

The last resort option is to dispose correctly waste that cannot be recycled.

This is the way to consume as few resources as possible.

Private organisations and individual citizens are both encouraged to take part in this movement. One can participate as follows: As an organised body or an individual citizen who is interested in carrying out some sort of awareness-raising action on waste management and the waste hierarchy. You are invited to register on the EWWR website as an action developer, or; As an individual or group who wishes to participate in an already organised action taking place during the EWWR – you can view a list of local actions to which you can contribute as a participant on the EWWR website – www.ewwr.eu The European Week for Waste Reduction 2018 is taking place between 17th and 25th November. More can be found on www.ewwr.eu or www.wasteservmalta.com/ euroweekforwastereduction for specific local activities.

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e Malta Business OBSERVER

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November 22, 2018

BUSINESS UPDATES

TradeMalta re-opens applications for ‘Go Global’ exporters programme H.E. MARIE-LOUISE COLEIRO PRECA, PRESIDENT OF MALTA, AND HSBC BANK MALTA PLC CEO ANDREW BEANE ANNOUNCING THE MALTA BUSINESSWOMAN OF THE YEAR AWARDS.

Malta’s first businesswoman awards launched for trailblazing female leaders President of Malta Marie-Louise Coleiro Preca presided over the launch of the Malta Businesswoman of the Year Awards, of which she is Patron. These awards, aimed at recognising and encouraging excellence amongst businesswomen in the country, are supported by HSBC Bank Malta plc.

The inaugural Malta Businesswoman of the Year Awards will honour the accomplishments of women in two main categories:

Businesswoman of the Year, and Young Businesswoman of the Year. A third recognition, Company Award for Excellence, will be presented to a company which demonstrates promotion of women in business.

Applications are invited from businesswomen who with their foresight, creativity, and talent have opened the path for other women in the country to take on the enduring female-entrepreneurial spirit. Entry to the Awards is free

and can be made at the dedicated website www.mbwya.com.mt. Applications can be submitted until 26th November at noon.

Nominations will be judged by a panel comprised of some of Malta’s leading business personalities. A ceremony to announce the winners will be held at the Verdala Palace in February 2019.

More information on the terms and conditions of the event, as well as online entry forms can be found on www.mbwya.com.mt

When looking to internationalise their operations, enterprises must think strategically and acquire all the necessary skills and knowledge to take the first steps in their overseas target market. TradeMalta has recently re-opened the application process for its ‘Go Global’ training course, which is purposely designed to enable SMEs to take their products and services overseas.

In fact, this successful Internationalisation & Export Management Course is now on its fifth intake, and it has been further honed to provide all the strategies and skills businesses need to become truly international. As a result, many past participants of this course have gone on to enjoy a much more structured approach to taking their activities abroad and have experienced more success when they got there.

The Go Global training course is supported by HSBC Bank Malta p.l.c. and accredited under the University of Malta’s programme in the Liberal Arts and Sciences.

Interested in signing up? The next Go Global course starts on 23rd January 2019 and runs until 3rd April 2019. Lectures are held every Wednesday from 4pm till 7.30pm. Applications are now being accepted online at www.trademalta.org

e Malta Business OBSERVER

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November 22, 2018

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BUSINESS UPDATES

iGaming and the property market Dhalia’s Letting Manager Benji Psaila has been working in real estate for 30 years, and says the market has changed with the arrival and success of the iGaming industry in Malta. “The impact has been huge, on both residential and commercial letting markets. 80 per cent of the iGaming workforce is foreign, and they need places to live.

The companies themselves require office spaces suitable for a large number of employees. Even today, the demand created by the iGaming industry for residential and commercial lets still outstrips supply. To give you an example, 90 per cent of business centres that are currently on-plan or under construction have already been snapped up by iGaming companies, two to three years before their completion date.”

Mr Psaila says iGaming companies are incredibly employee-focused and tend to have a very young workforce.

“They look for large, bright open-plan spaces that can be developed into fun, stylish, interactive environments, with areas or even whole floors specifically designed as ‘chill-out’ zones and social spaces for employees. Back-up generators are also a must for iGaming companies; with their entire businesses based on an online 24/7 service, going offline is not an option. In addition, since landing in Malta, the iGaming industry set up its roots in Sliema and St Julian’s, and this is where they continue to want their offices and staff to be based.”

Dhalia Real Estate Services, Dhalia Head Office, Cobalt House, 1st Floor, Notabile Road, Mriehel. T: 2149 0681; E: info@dhalia.com; www.dhalia.com

Achieve peace of mind with Cloud ERP With the commercial landscape gravitating more and more towards being data-centric, the larger a business grows, the greater the need for software solutions to manage data and information.

If you’re constantly struggling to obtain business-critical data in real-time, then you’re probably falling behind in the race against your competition.

Through seamless integration, automated processes, and unhindered mobility, implementing a modern Cloud ERP solution will go a long way in bringing efficiency to the workplace, thus allowing everyone to focus on what’s important. From the way you manage and access data to the way you work, here are some distinct advantages of modern Cloud ERP systems.

Full system integration provides instant performance visibility The beauty of most Cloud ERP solutions is their integration capabilities. It puts your core business processes and data in a single place, covering all functions such as finance, sales and marketing, project accounting, distribution, and manufacturing. This empowers users across the organisation to work more efficiently with the same up-todate information, whilst also providing an on-demand 360-degree view of business performance in a single dashboard.

Business process automation removes human error With legacy ERP systems, certain everyday processes will still include manual tasks. Other than the potential for costly human error, this hands-on data management is inefficient and presents a high opportunity cost when you consider that all such processes can be automated by Cloud ERP software. When your employees are not inundated with

spreadsheets and manual processes, they can focus more on strategic tasks and problem-solving without the need to constantly call IT for assistance.

On-the-go access anytime, anywhere In the past, significant amounts of information came in the form of paper documents, but nowadays the majority of data is transferred digitally. Likewise, processing capacity and availability wasn’t as demanding as it is presently.

This is why modern ERP solutions are

built for the cloud – enabling users to tap into their business documents, customer data, product or service information, reporting, and more from any connected computer or device, no matter where they are.

Cloud ERP has the added benefits of being faster, more cost-effective, and easily scalable. To find out more about Acumatica Cloud ERP and how it can take your business to the next level, visit www.computimesoftware.com/acuma tica-erp or email info@computimesoftware.com

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e Malta Business OBSERVER

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November 22, 2018

BUSINESS UPDATES

Improved decision-making and safer trading with Creditinfo Malta Creditinfo is a leading service provider for credit information and risk management solutions worldwide. Through its multiple subsidiaries in more than 20 countries, employing over 400 people, it has developed numerous innovative products and services from official and customer information sources to facilitate best practices in credit risk management.

Founded in 2002, Creditinfo Malta has become a household name, supporting businesses in trading safely and securely, locally and internationally, by minimising financial risk. Our local online database provides customers with live information, which enables them to access the financial risk levels of potential and existing clients. Our ready-to-use credit reports are accessible online, 24/7, and contain different types of information required by modern-day businesses.

Creditinfo Malta customers can comply with the 4th AntiMoney Laundering Directive through KYC watch/due diligence, international and local company credit reports, individual reports and debt collection. By having access to information when needed most, clients can gain more insight, resulting in improved decision-making and safer trading.

Other products and services such as pressure letters, monitoring of clients and others, enable improved cash flow and maximise the benefits of business relationships.

For further information, contact Creditinfo Malta Limited, 199, Eucharistic Congress Road, Mosta. T: 2131 2344; E: info@creditinfo.com.mt; www.creditinfo.com.mt

Enjoy the festive season in comfort and style with ECCO Celebrate the festive season in style without having to compromise on comfort with ECCO. ECCO shoes are renowned for offering comfort in every style, be it for your day-to-day errands or for special events. e brand is available in four shops locally, as well as online, and a new website – mt.ecco.com – has just recently been launched, allowing you the comfort of shopping online at a convenient time and place. e website caters for the local market and offers free deliveries and free returns on every pair. Enjoy the festive season and every party that it brings with it with ECCO.

FinanceMalta tackles the topic of blockchain across different industries With the legal and regulatory framework applicable to cryptocurrencies, ICOs and blockchain technology in place, Malta is fast becoming the leader in this innovative sector. There is a strong momentum to radically and rapidly change the way we live and operate our businesses, thereby aligning businesses with the challenges and opportunities of DLT legislation.

FinanceMalta, in collaboration with the Malta Blockchain Association, is organising a series of events consisting of informal breakfast briefings run under the Chatham House Rule to encourage dialogue by all professions about issues arising from any aspect of DLT. Through these BlockFinance seminars, FinanceMalta aims to help delegates understand the concept of blockchain and provide general guidelines as to how to go about applying it to different sectors.

“As DLT continues to disrupt the business world, we are doing our utmost to provide a forum of discussion where our members and industry specialist can share their experience and how to tap into this technology,” said FinanceMalta Chairman, Kenneth Farrugia.

The next BlockFinance seminar in the series will be held on Tuesday 4th December at the Corinthia Palace Hotel, Attard and will focus on Clearing and Settlement. The conference will be chaired and moderated by Patrick L. Young, Chairman of the Malta Blockchain Association.

The seminar will kick off at 8.15am with registration and breakfast, followed by a welcome address by Mr Farrugia. Mr Young will then discuss the impact on all transactions as the changing space of clearing and settlement from asset management through banking and capital markets to insurance and securitisation. A panel discussion on clearing, settlement and smart contracts, will follow.

The second part of the seminar will commence with a presentation by Godwin Schembri from KnowMeNow, followed by a panel discussion on the impact of DLT on traditional ‘plumbing’. The seminar, which is sponsored

by KnowMeNow, will come to an end with closing remarks from Mr Young. Registrations can be made online at www.financemalta.org