Sunday, September 27, 2026
www.timesofmalta.com
Sweden’s capital market model offers lessons for Malta – page 3
‘Malta’s financial services sector needs a shift in perspective’ – page 10
APS Bank managed assets near €1bn APS Bank is taking its banking and asset management proposition to international markets as assets under management across the group approach €1bn, with London set to be its first target for overseas highnet-worth clients. Assets under management rose from €692m in June 2025 to €784m at the end of December and €907m by June 2026, an increase of about 31% in a year. The bank said the growth has been accompanied by increasing interest from international high-net-worth individuals and families, prompting it to take its banking, private-banking and asset-management offerings directly to selected international markets. London will be the first, with APS due to co-host a private discussion at Malta House on September 29 on Malta’s potential role as a hub for international wealth planning. Josef Portelli, Managing Director of ReAPS Asset Management and Head of Investment Management at APS Bank, and Kenneth Genovese, Head of Investment Distribution, will lead the discussion. The event, titled “Managing Wealth Across Jurisdictions – Exploring Malta as a Hub”, will examine how changing international dynamics are affecting decisions by wealthy
individuals and families on where to locate and manage their financial interests. It will also showcase APS’s banking, investment-management and broader financial-services capabilities. Portelli said Malta had much to offer families and investors looking to manage and preserve their financial affairs, adding that the initiative would allow APS to present its proposition directly to an international audience. APS said London was chosen because of its position as an es-
tablished international financial centre and its familiarity to the bank’s clients, business partners and investment executives. The initiative is being supported by the Malta Business Network (UK), the Malta High Commission and professional intermediaries. The bank has left open the possibility of holding similar events elsewhere in the UK and in other European cities, potentially making London the first step in a broader international expansion of its banking and asset-management activities.
Epic’s price could help gauge GO’s valuation The proposed acquisition of Epic by Melita could provide Malta’s financial markets with a rare benchmark for valuing the country’s telecommunications assets, with the eventual purchase price potentially helping investors assess GO. Commenting on the transaction which would see Melita acquire 100 per cent of Epic from Monaco Telecom, one market commentator said the eventual price paid for Epic could help “gauge GO’s valuation” on the Malta Stock Exchange but cautioned that the comparison should not be treated as a direct valuation of GO. According to Dr Mariosa Vella Cardona, a lawyer specialising in consumer and competition law, the proposed transaction would face scrutiny over its potential impact on local competition saying that “the MCCAA would assess whether the concentration could substantially lessen competition, create a dominant market position or significantly impede effective competition.” “Key considerations would include its potential impact on consumers through prices, quality and choice, as well as whether it could create or increase barriers to entry for competitors,” she added, noting that regulators must also assess substantiated efficiency claims made by the parties, including lower prices, improved products or other consumer benefits. “This transaction could be approved if evidence showed that these efficiencies would encourage pro-competitive behaviour and offset any restrictive effects on competition.” An M&A legal expert said the transaction could face a steep regulatory test, noting the failed Melita-Vodafone Malta merger in 2017. “The last attempt to bring together Melita and Vodafone Malta in 2017 was deeply investigated by the Office for Competition and was abandoned when the parties could not meet its concerns. Little has changed structurally since then, except that Epic is now the largest mobile operator,” he said. On the latest MCA figures, the combined entity would hold roughly 64 per cent of mobile subscriptions, leaving GO as the only other network. “Such a deal in a small island market is what competition authorities are most reluctant to clear because the competitive impact would extend beyond mobile and even remove the main challenger in home internet,” pointing out last year’s proposed sale of HSBC Malta to APS which “fell away amid reported official concern that combining two of the largest banks would further reduce competition in an already concentrated sector.” “Without far-reaching remedies, such as divesting spectrum or network assets to create a credible third operator, it is hard to see this transaction being approved,” he said.
2 | September 27, 2026
tHe SUNDAY timeS of mAltA
NEWS
PHOTO: SHUTTERSTOCK.COM
65% of publicly listed company directors now regard AI as a key issue facing their boards Artificial intelligence is rapidly moving up the boardroom agenda, raising an important question for non-executive directors: are boards equipped to oversee the transformation AI is bringing to businesses? This and other issues will be explored at Zampa Partners’ forthcoming NED Forum, a halfday event taking place on October 15 at the Verdala Wellness Hotel in Rabat. The forum will bring together non-executive directors, board and committee members, chairs and company secretaries for a practical programme focused on some of the key challenges facing today’s boardrooms. AI is just one of the issues placing new demands on directors. A survey published last April by the National Association of Corporate Directors found that 65% of directors at publicly listed companies now regard AI as one of the key issues facing their boards, up sharply from 27% just over a year earlier. Cybersecurity threats have also climbed the
agenda, cited by 43% of directors. At the same time, corporate governance expectations around AI are still developing. More than six in 10 large-cap European companies had no formal AI policy disclosed in 2025, according to Glass Lewis, a leading provider of global governance and proxy advisory services to institutional investors. Against this backdrop, the NED Forum will examine a range of issues increasingly
central to effective corporate governance. These will include directors’ responsibilities in listed companies, oversight of tax returns, the use of artificial intelligence in the boardroom, regulatory investigations, antimoney laundering obligations, cyberattacks, and the role of non-executive directors in mergers and acquisitions. The programme will combine panel discussions with focused keynote presentations from professionals across the legal,
“The NED Forum will examine a range of issues increasingly central to effective corporate governance”
financial, regulatory and business sectors. “The role of the non-executive director continues to evolve, and with it comes a broader range of responsibilities and challenges,” explains Michael Agius Vadala, Partner at Zampa Partners, who will also address how directors can ensure their companies are prepared to reduce the risk of a cyberattack. “From cyber risk and AI to regulatory scrutiny and transactions, directors are increasingly expected to understand issues that extend well beyond traditional governance. We chose these themes for our forthcoming NED Forum because they reflect the realities boards are dealing with today, and we wanted to create a practical forum where directors can exchange perspectives and gain insights that are directly relevant to their role.” The programme reflects the changing role of the non-executive director. As boards face increasingly complex regulatory and technological risks, directors are
expected not only to provide effective oversight, but also to contribute meaningfully to strategic decision-making. The forum will run from 8.30am to 1.30pm, concluding with a networking lunch. Registration is €50 per attendee via www.zampapartners.com/even ts/the-ned-forum-2026.
Corporate Times is a joint collaboration between Times of Malta and Corporate ID Group. For advertising contact Edmund Vassallo on edmund.vassallo@ timesofmalta.com / 9944 4726
september 27, 2026 | 3
the sunday times of malta
CAPITAL MARKETS
Sweden’s capital market model offers lessons for Malta “Going public does not mean giving up family ownership” Sweden has built one of Europe’s most vibrant capital markets. During FinanceMalta’s forthcoming annual conference on the 11 and 12 of November, Jimmy Kvarnström Executive Director of Markets at Sweden’s Financial Supervisory Authority and a member of the Board of Supervisors of the European Securities and Markets Authority will be delivering a keynote speech on the Swedish experience and the elements that may be relevant to Malta as it seeks to deepen its own market. The Swedish experience is particularly relevant at a time when Europe is trying to mobilise more of its substantial household savings towards productive investment. Much of that wealth remains in bank deposits, while European businesses continue to rely heavily on bank financing. However, Kvarnström sees no single explanation for the gap. “It is a combination. Europe has substantial savings, but the channels connecting them with productive investment remain underdeveloped. Fragmentation, taxation and market structures all play a role, but so does the supply of companies capable and willing to raise capital through public equity markets. A successful capital market requires investors, investible companies and an ecosystem that connects them.” For Europe’s Savings and Investments Union, he argues that the priorities should address both sides of that equation. “First, strengthen long-term household investment through funded pensions and simple, cost-effective investment products. Second, remove the barriers that make it difficult for European companies to grow, raise equity and reach investors across borders.” That does not necessarily mean deregulation. Kvarnström regards rules covering material disclosure, market abuse, conflicts of interest, governance and the safeguarding of client assets as fundamental to market confidence. The problem, he suggests, is more often cumulative complexity: overlapping reporting requirements, frequent changes and inconsistent implementation. “I would start by asking what information investors and supervisors actually use and remove duplication without weakening the protections that support confidence in markets.” That principle of proportionality is particularly important for smaller jurisdictions. European supervision, he argues, should pursue common outcomes and consistent standards without demanding identical approaches everywhere.
Jimmy Kvarnström “Supervision should remain riskbased and reflect the scale, complexity and cross-border footprint of the activity. European cooperation can provide consistency, while national authorities contribute the market knowledge and proximity needed to supervise effectively.” For smaller markets, greater European integration may also require accepting that they cannot, and need not, replicate the infrastructure of the largest financial centres. “Smaller markets do not need to maintain every element of the market infrastructure domestically,” Mr Kvarnström pointed out. “Instead, they can specialise in areas where local expertise and proximity provide an advantage, while connecting those capabilities to European markets and pools of capital.” For Malta, he points to its experience in fund and investment services and its work on digital finance as possible foundations for such specialisation. “The opportunity is to develop selected areas with genuine expertise and market demand. Attempting to reproduce the full infrastructure of a much
larger financial centre is unlikely to be necessary or efficient,” he cautions. Sweden’s own equity culture also offers lessons, although Mr Kvarnström stresses that not everything can simply be transplanted. Funded pension arrangements, simple investment accounts and markets capable of serving companies at different stages of development were deliberate policy choices. Other features are more deeply rooted in Swedish institutional history, including the role of employers and trade unions, its entrepreneurial culture and longstanding public confidence in markets. For Malta, he identifies stable and simple incentives for long-term investment and a proportionate route to public mar-
“Other features are more deeply rooted in Swedish institutional history”
kets for smaller companies as potentially transferable ideas. For Malta’s closely held businesses, the Swedish example demonstrates that access to public capital need not come at the expense of family or founder control. “The Swedish experience shows that accessing public markets does not necessarily mean abandoning long-term or family ownership. The balance is between effective long-term ownership and the responsibilities that accompany outside capital, supported by disclosure, accountability and minority-shareholder protection.” For companies to view listing as a natural stage of growth rather than a last resort, however, the wider ecosystem matters. Investors, advisers and trading venues need to help companies prepare for life as public businesses, while markets must offer tangible benefits: growth capital, liquidity, visibility and access to a broader investor base. “Listing should be a natural option for a well-prepared company at the right stage, without requiring founders to give up their long-term commitment to the business.” Technology can reinforce that ecosystem, particularly in a small market, by lowering fixed costs, enabling cross-border distribution and improving reporting, compliance and supervision. However, Kvarnström is clear about its limits, noting that “technology cannot compensate for weak governance, a limited pipeline of investable companies or insufficient investor demand, and it does not create liquidity by itself.” The challenge, he states, is to encourage participation without confusing investor protection with protection from investment risk. “We need to distinguish clearly between protection from misconduct and protection from risk. Regulators can address fraud, misleading information, conflicts and unsuitable products, but ordinary market losses cannot be eliminated. Participation should instead be encouraged through understandable products, diversification and a longterm perspective.” Five years from now, Kvarnström says, the test of Europe’s reforms should be visible in practical outcomes: less fragmentation, lower cross-border friction, deeper markets, more companies raising equity and scaling across Europe, greater cross-border investment and broader household participation. For Malta, success would be similarly tangible. “A broader range of companies using its capital-market ecosystem to raise growth capital, including through public equity, and connecting more effectively with investors across Europe,” he concluded.
4 | September 27, 2026
tHe SUNDAY timeS of mAltA
INTERVIEW
Express Trailers seeking scale beyond Malta as logistics pressures mount Three years after taking the helm of Express Trailers as CEO, ETIENNE ATTARD reflects on a period of investment, transformation and growing challenges not only for the company, but for Malta’s transport and logistics industry as a whole. “It is a period in which growth is becoming more challeging and expensive to sustain.” Before assuming the role of CEO in May 2023, Attard always viewed the company with great respect. “Its prominent orange trucks on Malta’s roads reflected the scale of its operation and the strength of the brand. However, it was only when I joined the company that I realised the complexity, coordination and discipline behind the entire operation.” He particularly highlights the structure of Express Trailers as a family-owned organisation noting how the company is guided by strong values, clear governance and a deep sense of responsibility towards its customers, people and stakeholders. “I think these qualities will best define the company’s legacy,” he says. Since his appointment as CEO, Express Trailers continued to grow its revenue and market share while expanding its international operations, particularly through its Genoa base. Beneath that progress, however, lies a challenging operating environment dominated by geopolitical tensions, rising fuel, maritime and transportation costs, environmental charges and increasingly complex regulation. “The company’s strong position today explains why rather than chasing growth for its own sake, the company had opted to build a resilient operation based on efficiency, training, modernisation and digitalisation, with further investment planned in technology, infrastructure and international connectivity.” One of the clearest expressions of Express Trailers’ ambition was its €6 million logistics hub in Genoa launched in 2023 which from an investment designed primarily to support the consolidation of cargo and more efficient freight movements, the facility became an “extended arm” of the group. The Genoa hub has now started attracting interest from customers beyond the company’s traditional Malta-Italy routes, including potential business other continents. “Expanding our operation beyond Europe and operating in larger international markets will demand greater reliability, coordination and operational discipline. Our lesson from Genoa is not simply that Express Trailers can invest abroad, but that international growth
must be supported by the right people, systems and controls.” Technology is increasingly central to that equation. A few years ago, the company undertook a major ERP project and is developing further digital services, including eCMR and eFTI-related projects. Its Track and Trace system will soon start giving customers visibility of their cargo from collection through to delivery. A subsequent phase is expected to explore online quotations and an e-commerce solution, alongside a new website. “The objective is not technology for its own sake, but greater efficiency, visibility and scalability across the business.” While investment in technology and infrastructure may create opportunities for further growth, the economic backdrop is becoming less forgiving. “Higher maritime costs, European road tolls, fuel prices and quarterly revisions to the EU’s Emissions Trading System, and soon, ETS2 will continue to add further pressures. There is also a structural challenge arising from the imbalance between Malta’s imports and exports where roughly 70 per cent of the company’s export trailers are shipped empty.” “All this is creating additional costs and limiting the extent to which operators can absorb further increases and there’s a limit to how much a Maltese logistics operator can realistically absorb,” he added, warning that sustained cost inflation could eventually affect Malta’s competitiveness as a distribution and trading hub. Sustainability, which has always been high on Attard’s agenda, presents a similar balancing act. “Environmental responsibility remains integral to our strategy, but greener logistics must also be commercially viable and any transition towards greener logistics
“Specialised logistics continues to be another strong source of growth for Express Trailers”
needs to be approached alongside the commercial realities of operating in a highly competitive industry.” He noted Express Trailers’ continued investment in renewing its international tractor fleet which now has an average age of around three years and how the company is now planning to start replacing all its local fleet with newer and more efficient units. Specialised logistics continues to be another strong source of growth for Express Trailers. The company entered the pharmaceutical sector in 2012 becoming the first transport and logistics operator in Malta to be listed on the European Medicines Agency’s Eudra GMDP database for Good Distribution Practice compliance and Wholesale Distribution Authorisation covering medicinal products. It has since invested in temperature-controlled warehouses, refrigerated trailers and the systems required to meet the sector’s demanding requirements for traceability, reliability and compliance. “The pharma sector will remain an important part of the business but at the same time, we do recognise the limitations of Malta’s domestic market. Exporting the expertise developed locally into a wider international specialised-logistics business could be an opportunity.” For a family-owned company, expansion also raises questions about governance.
“The distinction between ownership, board oversight and management must remain clear. Family shareholders entrust management with more than capital. They entrust it with a name, history and legacy. That makes professional governance and objective decision-making particularly important when commercial choices conflict with tradition or established practice.” For the CEO, that responsibility can sometimes be a lonely one. “There are moments when difficult decisions have to be taken, and ultimately accountability sits with you. You can seek advice, discuss, consult and listen, but ultimately, the responsibility to decide remains with the CEO.” Looking ahead, Attard identifies five priorities for Express Trailers: digitalisation, network expansion, sustainability, investment in people, and continued local and international growth. “The challenge will be to pursue those objectives without losing sight of the principles that have shaped the company. As CEO, I want to leave Express Trailers stronger, more modern, more resilient and more future-ready while preserving the values and reputation on which the family business was built. “Our next phase should not be measured by how much further we can travel but by how efficiently and sustainably we can bring more growth.”
september 27, 2026 | 5
the sunday times of malta
LEGAL
A question of interpretation A court need not accept an official agency’s interpretation DAVID FABRI
Today’s column makes reference to two very different cases decided under two different laws which somehow cross paths. The Proceeds of Crime Act 2021 On the 16th of September 2026, the Civil Court presided by Mr Justice Dr Henri Mizzi rebuffed an attempt by the Asset Recovery Bureau and the Commissioner of Police to confiscate in favour of the State an amount exceeding 500,000 euros on the grounds that they represented funds originating from an illegal source. (Application No.9/2024) The facts of the case are rather complex, and for reasons of space and better focus, this note is a very shortened, partial and subjective review of this decision. The case involved a non-convictionbased confiscation by local authorities under the 2021 Act. The Bureau claimed that since the funds had been involved in tax evasion, not having been declared to the French fiscal authority, they now qualify as proceeds of crime. As the funds were eventually transmitted to Malta to set up a legitimate trust to a local licence-holder, the authorities also considered them as funds tainted by money-laundering. Three important circumstances, which were not contested, stood out in my view. First, the Maltese trust was legitimate and was being set up for a proper purpose. Second, the funds had a legitimate origin as they represented lifelong earn-
ings from employment with Renault. Third, the French fiscal authorities had officially declared that the tax evasion issue had been settled and resolved through the payment of a considerable administrative fine and that it had no interest in pursuing the matter further. Yet the local authorities thought it fit to pursue the matter further and attempted to seize the funds as proceeds of crime. The court correctly held that the funds could not be considered as proceeds of crime and the claim of money-laundering did not alter their status: It rebuffed the reasoning and interpretation of the statutory administering authority in this respect, and explained (in translation): “Tax evasion is unlike theft. In the case of theft, the thief acquires something new which he did not previously have. In tax evasion, the person who had evaded the tax kept the funds which were his own to himself. The evasion did not give rise to a new asset. The conclusion must therefore be that the funds in question were not subject to forfeiture.” The court did not accept the agency’s interpretation of the law. The court also pointed out that it was not its job to repair or correct any deficiency in the application as drawn up. The case was dismissed with costs. The Trade Descriptions Act 1986 The Trade Descriptions Act of 1986 was a shameless copy of the UK original with the same name which had been passed in 1968. It was an early consumer law which set out and punished the offence of making false trade descriptions in the sale of
goods to buyers. It proved ineffective, was hardly ever enforced and was repealed in 2014, when nobody even noticed. I have already written about this law on several occasions. The use of criminal law to protect consumer rights in Malta has generally proved a failure. The police are not trained to pursue such ‘crimes’, and they have neither the time nor the willingness to go down that road. However, on one occasion, many years ago, I was excitedly informed that an important criminal prosecution under the Trade Descriptions Act was imminent. Someone from the relevant Department came to let me know and presumably secure my enthusiastic endorsement. I was assured that it was an open and shut case. A shopper visiting a supermarket found an item that had passed its stated bestbuy date which was clearly marked. The shopper reported the matter to the authorities. There was no suggestion that the item presented any danger or was injurious to health. Nor was there any suggestion that the expiry date itself had been tampered with or concealed in order to falsely extend the lifetime of the product. After some consideration, I expressed my view that the facts were insufficient to prosecute under the 1986 Act, as the information affixed by the manufacturer on the item was authentic, correct and clearly visible. To my eyes, no trade description offence in terms of the 1986 Act had been committed. The government official contended that the mere fact of retaining the incriminating item on the shelf should be deemed to imply that the supermarket was guaranteeing that the goods on display were not past their expiry date. Interesting
thought, but the Act said nothing of the sort and did not create any such presumption. As the product did not present any health hazard, it also did not fall foul of the health laws of the time. The official insisted that even the Police had agreed with him and they would initiate criminal proceedings. Of course, the prosecution’s case eventually did fail as no offence had been committed under the Act. The court rightly rebuffed the Department’s fanciful interpretation. A law must apply as it is, and not as an administering authority may instead wish it to mean, even if it may have written the law itself. David Fabri LL.D, Ph.D. lectures in law and business ethics. He is currently a Visiting Senior Lecturer at the University of Malta. This column is intended for information and educational purposes in the fields of law and governance.
6 | September 27, 2026
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PEOPLE & WORK
43% of Maltese workers open “Episodes of mis to new jobs despite not looking Employer branding enters new era as Malta’s talent market tightens Recruitment, retention and workforce planning have become increasingly challenging, making employer reputation not just an HR function but a strategic imperative. “The recruitment market is heading towards a crisis, with higher job turnover and skills shortages which do not seem to be abating, and candidates taking a passive approach to job opportunities. This is why employers must build a reputation for investing in talent,” says Josianne Avellino from misco. The warning comes with the launch of misco’s latest study, Employer Branding in Malta 2026, coauthored by Josianne Avellino and Andrew Zammit Manduca. Based on surveys of employers and employees, the research suggests Malta’s recruitment battleground has moved beyond salaries, with reputation, workplace culture, flexibility, transparency and career opportunities becoming increasingly important. Almost two-thirds of employers surveyed, 63%, said they invest in developing and communicating their employer brand, while 46% identified becoming an “employer of choice” as a strategic HR objective. Yet 37% said they do not currently invest in employer branding, highlighting a gap between recognising its importance and taking action. That gap is becoming more significant as candidates become harder to reach. Only one in three employees surveyed said they were actively looking for a job. A further 43% were not actively searching but would consider an opportunity if one arose, while 24% were not interested in moving. For employers, this means traditional recruitment campaigns may increasingly fail to reach the people they most want to attract. Potential candidates are often already employed and need to be convinced that moving is worthwhile. The research also shows growing alignment between what employers promote and what candidates expect. Culture, values, fairness and career development feature prominently in employers’ employee value propositions, while candidates cite fairness and transparency, organisational culture and values, and salary among the strongest influences on their willingness to apply. More than nine in 10 respondents said a fair and transparent recruitment process and a clear statement of organisational values would make them more likely to apply. Salary, however, remains a powerful force, with employers reporting significant upward pressure on wages. Some 83% of respondents identified voluntary exits as the main category of staff turnover. The leading reason employees leave is a better remuneration package elsewhere (39.7%), followed by better career prospects (21.4%), movement to the public sector (11.1%), more flexible working con-
“Salary remains a powerful force, with employers reporting significant upward pressure on wages”
ditions (9.5%) and a more stable environment (5.6%). “I believe this reality creates a credibility test for employer branding. Employer branding cannot simply be a communications exercise. A polished careers page or social media campaign will have limited credibility if employees encounter weaker pay, limited career progression or inflexible working conditions once they join,” adds Ms Avellino. Flexibility has also become a defining element of the employment proposition. Hybrid working dominates among surveyed employers, with 69% reporting a combination of remote and workplace-based work. Two-thirds of employees expressed a preference for hybrid arrangements, compared with 18% who preferred fully remote work and 12% who wanted to work entirely from the workplace. “Flexibility, however, also requires trust. Employers need confidence in managing distributed teams while employees need to show integrity, collaboration and accountability,” commented Andrew Zammit Manduca. The candidate experience remains another weak point. Lengthy and repetitive application processes were the most frequently cited frustration, followed by a lack of feedback and insufficient information in job advertisements. Age discrimination was the most frequently mentioned challenge when searching for work, alongside long hours, inflexible schedules, commuting difficulties and misleading or limited information about roles. “Such frustrations matter because employer branding starts before an employee is hired. Every interaction, be it a vacancy advertisement, an interview, an application process or a rejection email, contributes to an organisation’s reputation.” Ms Avellino also noted the important role employees play in an employer’s brand. Referrals and word of mouth were the most cited sources for finding job opportunities, ahead of recruitment agencies and social media. “Interestingly, only three in 10 employees surveyed said they would recommend their employer to a friend or family member. Besides suggesting that employee advocacy remains an underused asset, what is this saying about today’s employers?” misco’s study outlines how employers are responding to labour shortages by raising pay, recruiting foreign workers and improving flexibility and work-life balance. Training is also gaining importance, with on-the-job learning identified as the most effective development practice, alongside coaching and mentoring. “The central message from this year’s research findings is that employer branding is no longer primarily a marketing exercise but a workforce strategy. Competitive rewards, transparent recruitment, credible career pathways, flexible working, inclusive practices and a simpler candidate journey all point to the same proposition: whether an organisation delivers what it promises.” “There is no doubt that Malta’s labour market is set to continue becoming more competitive,” added Mr Zammit Manduca. “However, the strongest employer brands will be those that require the least explanation; because their employees, their candidates and their former employees will be the ones already doing the talking,” concluded Ms Avellino.
regulation” – Ch Newly elected Chamber of Advocates President DR LOUIS DE GABRIELE takes over at a time when Malta’s legal profession is facing questions over regulation, professional standards, public confidence, and the balance between independence and accountability. “Comprehensive reform of the legal profession is long overdue, and we have done our part. Will Government finally do its part?” asks Dr de Gabriele. The Chamber of Advocates has been calling for reform, particularly through the proposal for a Lawyers Act, for almost two decades. Its first White Paper on the need to overhaul the profession’s regulatory framework was published in 2008. “This is not a recent awakening but a sustained, principled campaign that has outlasted multiple ministers,” calling the situation “profoundly ironic and almost paradoxical.” “Ordinarily it is the State that seeks to impose regulation while the profession resists. But in Malta, it is the profession itself, through the Chamber, that has been urging the State to act,” adding that the Chamber had already prepared the groundwork. “We have detailed proposals and legislative frameworks ready drafted. We have presented successive governments with workable bills, and no government ever told us there is no political will for reform. On the contrary, successive governments have engaged with us and expressed agreement and support for our proposals. But when it comes to the decisive moment, none has taken the final step of piloting those proposals into law.” “We are simply calling for a regulatory framework that reflects the realities of the twenty-first century rather than the nineteenth.” Dr de Gabriele describes the current regulation of the profession as “fragmented and outdated”. “The legal profession in Malta today remains largely unregulated by statute. The regulation that exists is fragmented, outdated and scattered across disparate instruments such as the Code of Police Laws and the Code of Ethics promulgated under the Commission for the Administration of Justice Act.” He is particularly critical of amendments introduced in 2021 through amendments to the Code of Organisation and Civil Procedure. “Frankly, these were half-baked and they create more problems than they resolve, leaving fundamental gaps unaddressed.”
“The profession itself has changed considerably, has grown in size, diversified in specialisation, and now operates in an environment that bears little resemblance to the one in which the existing rules were conceived.” The need for reform is also linked to what de Gabriele acknowledges has been a decline in professional standards. “The Chamber is painfully aware that the profession has, over the years, experienced a decline in the standards and values that were once its hallmark. Episodes of professional misconduct in recent years have not only damaged the reputation of the individuals concerned but have cast a long shadow over the public’s perception of the profession. This is a reality we neither deny nor minimise.” “The episodes of misconduct that have tarnished the profession’s reputation are not evidence that regulation is unnecessary but that it is desperately needed.” Dr de Gabriele also challenges the assumption that lawyers already have extensive statutory powers to regulate themselves through the Chamber. “The Chamber of Advocates is recognised by law as the profes-
september 27, 2026 | 7
the sunday times of malta
INTERVIEW
sconduct confirm the need for urgent hamber of Advocates president
sional body for advocates. But that is precisely what it is, a professional body, not a regulatory authority. The Chamber has no statutory power to regulate the profession,” noting that membership of the Chamber is not mandatory. At the same time, Dr de Gabriele argues that stronger regulation must not mean putting the profession under political control.
“Stronger regulation must not mean putting the profession under political control”
“Safeguards already exist outside the Chamber. The Committee for Advocates and Legal Procurators and ultimately the Commission for the Administration of Justice, over which the Chamber exercises no control, is precisely that independent check. These are constitutional safeguards that are already embedded in our system.” For Dr de Gabriele, the challenge is therefore to strengthen regulation without undermining the independence lawyers require to represent their clients. “Independence and accountability are not opposing forces but complementary and inseparable. The independence of the legal profession is not a privilege for lawyers’ personal benefit but a constitutional safeguard that protects their client, the citizen.” “That independence cannot become immunity. Independence without accountability is a pathway to impunity. And while lawyers must never be punished for what they advocate, they must always be answerable for how they practise.” That accountability, he says, must be exercised through institutions independent of political influence. “What we must resist, and what the Chamber will always resist, is the substitution of institutional accountability with political control dressed up as oversight.” The issue is particularly relevant in Malta’s small professional community, where lawyers may have personal or institutional relationships with politicians and public officials. “Our professional, political, and commercial circles are
closely interwoven. The safeguard against it is not the elimination of relationships, which is neither possible nor desirable, but the rigorous application of professional and ethical obligations, namely the duty of loyalty to the client, the duty to avoid conflicts of interest, and the duty to recuse oneself where a conflict cannot be managed.” “It is, simply put, acting with integrity.” Just this week, the Chamber announced the appointment of its first Ethics Officer who will be tasked with reviewing and handling ethics complaints received by the Chamber in compliance with the Code of Ethics for lawyers. Dr de Gabriele also rejected calls for the Chamber to distance itself from government.
“Our advocacy is only issue driven. We are not a political organisation, and we have no partisan allegiance. When it comes to the Chamber’s relations with government, we are open to any mechanism that enhances public confidence, provided the same standards were applied consistently and proportionately to all professional bodies and stakeholders engaging with Government on policy.” On the profession’s public standing, de Gabriele was blunt: “Yes, the legal profession in Malta does not enjoy the standing in public opinion that it once did, and this is also partly self-inflicted. This perception can only be improved by the daily conduct of every practising advocate, and by the institutional willingness to confront and address misconduct when it occurs.” Ultimately, he says, responsibility begins before a lawyer enters practice. “Rigorous academic knowledge alone is not enough. The profession requires ethical formation, practical competence and true understanding of the responsibilities that come with the warrant.” The challenge, argues the Chamber’s President, is to secure the modern regulatory framework he says successive governments have failed to deliver, while ensuring that the profession itself lives up to the standards it demands. “The public has a right to expect that when a complaint is made against a lawyer, it will be dealt with thoroughly, fairly, and within a reasonable time. We share that expectation entirely.”
8 | September 27, 2026
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INTERVIEW
The Malta Chamber calls for a decisive budget 2027 That Malta’s current economic model is under increasing strain is no news. Two years ago, The Malta Chamber of Commerce, Enterprise and Industry had already warned that Malta’s economy needed “CPR”, that the country was overheating and that “the time for incremental changes has passed”. Now, with the Malta Budget set to be presented on 26 October, the message is more urgent than ever: “Budget 2027 must mark a decisive shift towards productivity, innovation and higher-value growth,” says The Malta Chamber’s CEO Marthese Portelli. In a 2024 interview Dr Portelli had called for Government to “connect, plan and reform”, with the Chamber advocating a shift towards high-value industries, stronger governance, better management of public resources, digitalisation and automation, and a more strategic approach to foreign workers. Two years on, the Chamber continues to sound the same alarm. Therefore, the question persists: why has Malta’s economic model not changed more substantially since then? The Malta Chamber’s latest pre-Budget presented earlier this month implies that most structural problems remain unresolved. “This is the time when Malta must move decisively away from a growth model based predominantly on expanding its workforce and towards one driven by productivity, innovation and higher-value investment. Acknowledging the need to transition from ‘volume to value’ is no longer enough.” “The country’s infrastructure, public services, and quality of life are strain-tested to their limit,” asserted Dr Portelli.
Her assessment comes despite Malta recording real GDP growth of 4% in 2025. The Chamber points to the composition of that growth as a key concern: between 2015 and 2025, gross value added increased by 81.9%, but 68.9% of that increase was attributed to employment growth, compared with just 3.1% to productivity gains. According to Dr Portelli, the figures underline the need for a fundamental change in how Government allocates resources. “Policy measures and fiscal support should increasingly reward productivity, automation, digitalisation, R&I, skills development, internationalisation and high-value investment rather than continuing to facilitate expansion in low-margin, labour-intensive sectors,” she says. The competitiveness challenge is compounded by rising costs. Compensation per employee is projected to increase by 4.4% in 2026, while labour productivity is expected to grow by only 0.1%.
“The competitiveness challenge is compounded by rising costs”
“If labour costs continue increasing significantly faster than output, Malta’s cost competitiveness will inevitably come under greater pressure.” She argues that the problem extends well beyond wages. Businesses investing in automation and more efficient internal processes can see those gains eroded when employees are stuck in traffic, deliveries are delayed, energy infrastructure is constrained or public administration processes take too long. Government’s National Transport Master Plan estimates that congestion cost Malta €770 million in 2025, with the figure projected to rise to €917 million by 2030. “Competitiveness therefore cannot be reduced only to tax rates or wage costs. It is also about the efficiency of the country in which businesses operate.” The Malta Chamber is also calling for a reassessment of Malta’s tax framework. It continues to advocate reducing the corporate tax rate from 35% to 25% for all businesses and to 20% for compliant businesses, alongside targeted incentives for high-potential, export-oriented activities, stressing however, that tax reform cannot be separated from fiscal discipline. “The answer cannot simply be lower taxation accompanied by unchecked recurrent expenditure but a more productive economy together with more disciplined and effective public spending,” she says. That same principle applies to subsidies. The Malta Chamber is proposing a gradual shift away from broad conventional-energy subsidies towards renewable infrastructure, grid reinforcement and long-term energy resilience. “Subsidising the symptoms without addressing the root causes ultimately results in
PHOTO: SHUTTERSTOCK.COM
higher costs to taxpayers, postpones tackling the problem efficiently and creates long-term structural inefficiencies,” she adds. The Malta Chamber also believes Malta cannot continue relying predominantly on imported labour to sustain growth. Portelli supports greater investment in upskilling and retention, while recognising the need to attract highly skilled foreign workers for specialised roles. The Malta Fiscal Advisory Council estimates that maintaining the current growth model could require around 14,000 additional workers every year if productivity remains close to current levels. A 3% productivity improvement would reduce that requirement to around 6,000. “The objective should be to increase output per worker rather than assuming that economic growth always requires proportionately more workers.” Technology is central to that transition. While 83.5% of Maltese SMEs have achieved basic digital intensity, only 21.5% of enterprises are adopting AI and 38.9% are using data analytics. The Malta Chamber wants Budget 2027 to build on the €100 million allocated for business digitalisation in Budget 2026,
while ensuring schemes are operational from the beginning of the budget year and increasingly tied to measurable productivity gains. It is also proposing a National Digital and AI Readiness Framework for 2027-2031 and a National AI Lab. “However, technology alone will not solve Malta’s structural problems. Government itself must become more efficient, including through a “One-TimeOnly” principle preventing businesses and citizens from repeatedly submitting information already held by public authorities.” On procurement, The Malta Chamber is calling for greater transparency, a public Contract Register and stronger scrutiny of major public contracts. “Budget 2027 should be judged by a simple question: are we getting more value from the people, capital, infrastructure and land we already have, or are we simply adding more people, vehicles and pressure on already constrained systems?” According to Dr Portelli, the answer requires difficult decisions on mobility, subsidies, procurement, enforcement, planning and governance. “Postponing structural reforms simply allows the economic and social cost of those
september 27, 2026 | 9
the sunday times of malta
NEWS
Corporate blood drive grows as more companies join second edition What began last year as a blood donation initiative involving six companies is expanding into a broader corporate effort, with three additional companies joining this year’s edition of The Heartbeat Drive. Organised by Salvo Grima Group, the initiative will return on October 14, 15 and 16, bringing together companies from Marsa and beyond to support Malta’s National Blood Donation Centre. Last year’s first edition brought together employees from Salvo Grima Group, Alf Mizzi & Sons Marketing Group, Hili Ventures, M&Z p.l.c, Burmarrad Group and MMGH Ltd. This year, those six companies will be joined by Vivian Corporation, BNF Bank and A.M. Mangion, further expanding the number of organisations taking part in the initiative and strengthening its potential to become an annual fixture.
weaknesses to accumulate. The objective, is ultimately clear: an economy that grows through “productivity, innovation, standards and higher value rather than continually expanding volume.” “We’re calling for greater transparency in public con-
tracts, independent and consistent enforcement, stronger institutional accountability, restrictions on positions of trust, greater professional independence in the public service and implementation of outstanding governance reforms,” concluded Dr Portelli.
“Organisers also see the initiative as a way of giving corporate sustainability efforts a more collective dimension”
The main sponsors are Salvo Grima Group, Alf Mizzi & Sons Marketing Group, Hili Ventures, M&Z p.l.c., BNF Bank, MMGH Ltd, A.M. Mangion and Vivian Corporation, with Burmarrad Group also joining the initiative through the participation of its employees. “Last year we started this initiative as a project because we wanted to establish an annual tradition of giving blood, where corporate companies could join forces to create meaningful community impact beyond the workplace. This year, we are proud to have managed to bring more companies on board,” said Michael Psaila Debono, Marketing and Promotions Manager at Salvo Grima Group. The participating companies will have access to the Blood Donation Centre’s mobile unit, which will be stationed at MMGH’s central Marsa location during the three-day drive. The arrangement is intended to make it easier for employees across the participating organisations to donate during the working day. The organisers also see the initiative as a way of giving corporate sustainability efforts a more collective dimension. Rather than companies running separate campaigns, The Heartbeat Drive brings employees from different organisations together around a single cause, allowing individual contributions to form part of a wider effort. “If we talk in terms of sustainability, rather than running separate campaigns, the companies are pooling their participation around a single initiative, creating a larger collective effort,” added Mr Psaila Debono. Companies wishing for more information about The Heartbeat Drive initiative may contact mpdebono@salvogrima.com.mt
10 | September 27, 2026
tHe SUNDAY timeS of mAltA
FINANCE
‘Malta’s financial services sector needs a shift in perspective’
PHOTO: SHUTTERSTOCK.COM Malta has reached a point where attracting financial services activity for its own sake is no longer enough. “The next stage requires a clearer connection between finance and the productive economy,” stated Bernice Buttigieg, Chief Strategy Officer at FinanceMalta, in the run up to this year’s 19th Annual Conference. For years, Malta’s financial services story was largely one of growth, as the sector sought more licences, more firms, more international business and a bigger contribution to the economy. “Today, the conversation has changed. The crucial question we need to answer is not simply how much financial services business Malta can attract, but what kind of economy our financial sector can help finance,” explains Dr Buttigieg. This thinking lies behind FinanceMalta’s forthcoming conference, whose theme, Financing the Next Generation Economy, reflects what she describes as a necessary shift in perspective. “We know that scale, on its own, is no longer an adequate measure of success. Malta needs greater depth, quality and resilience, while focusing
on areas where it can credibly differentiate itself,” she says. For Dr Buttigieg, the value of financial services should increasingly be assessed not simply by the size of the sector itself, but by its ability to channel capital towards the businesses, technologies and industries capable of generating Malta’s next phase of growth. That ambition, however, brings its own challenges. Malta is seeking to develop opportunities across areas including capital markets, family offices, fintech, tokenisation, digital assets, gaming, maritime and aviation, transport finance and the emerging space economy. “Regulatory frameworks alone do not create successful industries,” Dr Buttigieg points out. “They require capital, specialised skills, credible institutions, appropriate infrastructure and access to international markets.” The central question, therefore, is whether Malta can turn its economic ambitions into investable opportunities. The answer will depend partly on whether the financial ecosystem can mobilise capital differently, with greater emphasis on long-term invest-
ment, specialised financing and the development of a stronger domestic capital market. This is reflected in the programme for FinanceMalta’s annual conference, which will take place at the Hilton Malta on 11 and 12 November 2026. Sessions will examine areas including tokenisation, crowdfunding, occupational pensions, creativeindustry finance, transport finance and family offices. “These subjects may appear disparate but in reality, they share a common thread because they all raise the question of how Malta can mobilise more capital, for longer periods and into more productive and specialised areas of the economy,” says Dr Buttigieg. The shift also has implications beyond capital allocation. Discussions around artificial intelligence, skills and digital resilience form part of the same wider debate. “Capital and technology are necessary, but neither is sufficient,” she says. “A next-generation economy also needs people with the right expertise, institutions capable of managing emerging risks and regulation that provides confidence without unnecessarily constraining innovation.”
That combination will become increasingly important as Malta operates in a more demanding international environment. Financial centres are competing more intensely for investment, expertise and talent, while regulatory expectations continue to evolve and investors place greater emphasis on quality, stability and credibility. For Malta, this makes the question of what kind of growth it wants to attract increasingly important. The objective is not simply to maintain the momentum of previous decades, but to ensure that future activity creates sustainable economic value. Dr Buttigieg argues that this requires a more deliberate approach to identifying where Malta can genuinely compete and then building the financial architecture necessary to support those opportunities. This also means recognising that the success of individual financial services activities cannot be separated from the wider economic ecosystem. Access to capital needs to be matched by the right skills, infrastructure, institutional capacity and international connections.
Ultimately, this is why the theme of this year’s FinanceMalta conference matters. Malta has built a substantial financial services sector, but the next stage requires a different measure of success. “The sector’s real value should increasingly be measured by its ability to channel capital towards the businesses, technologies and industries capable of generating Malta’s next phase of growth.” The challenge now is to translate ambition into investable opportunities and ensure that finance plays a more direct role in developing the productive economy. As Dr Buttigieg puts it, Malta has reached a point where attracting financial services activity for its own sake is no longer enough. The future lies in identifying where the country can genuinely compete and creating the conditions for sustainable, scalable and realistic growth. FinanceMalta’s Annual Conference will be held on the 11th and 12th of November 2026 at Hilton Malta. More details and for registration, visit https://financemalta.org/fmconf
september 27, 2026 | 11
the sunday times of malta
FAMILY BUSINESS
Capital without compromise In this article, NICK CURMI, Partner at Ganado Advocates and head of the firm’s capital markets practice, discusses why Maltese family businesses should view going public not as giving up control, but as an opportunity to strengthen governance, facilitate succession, unlock capital and build a business capable of lasting across generations. Ganado Advocates, together with Zampa Partners, will be hosting the Family Business Forum on November 4, 2026 at Villa Arrigo in Naxxar. Ask a Maltese family business owner why they have never considered the Malta Stock Exchange, and the answer is rarely cost or paperwork. More often, it is the fear of losing control of a business built over years, sometimes generations. That concern is understandable but often misplaced. Raising money from the public and listing on the Malta Stock Exchange does not mean giving up the keys. It means embracing greater visibility, stronger governance and the discipline that can help businesses endure. The real question is what Maltese family businesses stand to gain, not give up, by going public. The capital markets offer two main financing options, debt and equity, each with different implications for ownership and control. A bond is essentially a loan from the public. Bondholders are given a transferable debt instrument with a coupon but they generally have no vote, board position or say in strategy. The growth of the Maltese Stock Exchange over the years has largely been built on this particular instrument, with companies in various sectors raising tens of millions of euros without giving up a single share. Selling shares is where an owner’s concerns may have more substance, although less than many founders assume. Historically, one of the biggest deterrents to an initial public offering (IPO) of shares has been the 25% minimum free-float, requiring at least 25% of a company’s shares to be made available to the public as a condition for listing. From a control perspective, however, a 25% dilution does not necessarily mean losing control. Unless special
“The capital markets offer two main financing options”
rights are granted to minority shareholders in the company’s memorandum and articles of association, a shareholder retaining 75% will still effectively control the business, being able to pass all shareholder resolutions (even those requiring a supermajority vote). New shareholders are entitled to transparency, can vote on shareholder matters and have various rights under Maltese and EU law. However, holding a minority stake does not, by itself, give them the ability to appoint directors, block shareholder resolutions or directly manage the business, which remains the responsibility of the board and senior management. There is also an important recent development. The EU Listing Act reduced the minimum public float to 10%, while allowing member states to impose alternative requirements to ensure adequate distribution among public shareholders. In Malta, the MFSA has proposed a reduced 10% free float subject to additional requirements aimed at addressing liquidity concerns. Although this proposal still requires transposition into Maltese law, it is expected to allow many equity issuers to list with a public float below the existing 25% and closer to the new 10% minimum. The free-float requirement is not only about control. Some family owners simply do not want to sell a large portion of an asset they have spent decades building. That is understandable, but it must be balanced against what they receive in return: compensation when existing shareholders sell, or capital for future growth when the company issues new shares. The family’s remaining stake may ultimately represent a smaller percentage of a larger, better-run and more profitable business. Another common concern is privacy. Family business owners may fear that listing means disclosing confidential information. In reality, disclosure requirements focus on disclosing material information investors need to make informed decisions, not every commercially sensitive detail. Ultimately, the concerns surrounding dilution, control and disclosure need to be considered alongside the broader benefits of becoming a publicly listed company. For a family business, perhaps the more important question is not “How will these changes hurt the business?” but “How can I make this business capable of thriving when I am no longer the one holding it together?” What may initially feel like a concession can become part of the solution. Independent directors can guide the next generation, while a public market valu-
ation can provide liquidity for family members who want to exit without disrupting the involvement of those who wish to remain long-term owners and managers of the business. Stronger governance can also help a company survive beyond two or three generations, strengthening continuity, credibility and resilience over the longer term. The free float, disclosure and independent directors are not simply the price
paid for capital; they are the infrastructure a family business needs to endure. The real prize is not the capital a listing brings in the door, but the opportunity created for effective succession planning. If financing is the only objective, there is always the bank, which depending on the circumstances might sometimes be a better option, but that is another discussion altogether.
12 | September 27, 2026
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NEWS
BOV Club returns to freshers’ week Interactive experiences and student-focused initiatives await on campus Bank of Valletta will bring BOV Club closer to students during this year’s Freshers’ Week, offering practical financial information, career conversations and interactive campus activities designed around students’ academic and financial journey. BOV will be present at ITS, Junior College, Sir M. A. Refalo Sixth Form, Giovanni Curmi Higher Secondary School, MCAST and the University of Malta, where representatives will meet students, discuss their needs and introduce BOV Club products and services relevant to their studies and wider financial journey. Students will also be able to explore career opportunities with the Bank, including its Graduates Programme, through direct conversations with representatives from BOV’s People and Culture function. Students visiting the BOV Club stand will be able to take part in a quiz focused on the features and benefits of BOV Club, while also being invited to share feedback on the package and their broader student experience. The feedback gathered will help the Bank continue shaping its student proposition around students’
evolving needs. Three participants will be in chance to win one iPhone 17 each. Students taking part in the quiz will also receive a Scratch & Win card, with every card revealing
an item of BOV promotional merchandise that can be redeemed immediately at the stand. This year’s activity will also introduce a new Reflex Chal-
lenge at Giovanni Curmi Higher Secondary School, the University of Malta and MCAST Paola. Participants will have 30 seconds to touch as many illuminated sensors as possible, with the highestscoring participant at each institution receiving a €150 One4All voucher, the student placing second will get €100 One4All voucher and student placing third a €50 One4All voucher. Previous stand-based challenges attracted more than 2,000 participants across two years. In addition, to continue raising awareness about scams, students will have the opportunity to participate in a scam-awareness quiz. Three participants will be in with a chance of winning a gaming package consisting of an ASUS TUF A16” FHD Gaming Laptop and JBL Tune 670NC Noise-Cancelling Headphones. The Bank will also be collaborating with Andrew’s Snack Bar to officially launch the BOV Club Ftira during the Freshers’ Week period. The BOV Club Ftira will also be available as part of Andrew’s menu throughout this period.
Also part of this year’s initiative, the Bank will be offering a limited number of complimentary six-month Times of Malta subscription to help students stay informed about current affairs throughout their academic year. Students can access the offer on a first-come-firstserved basis by scanning a QR code at the BOV stand and completing a short registration form, after which they will receive redemption instructions. Through BOV Club, the Bank continues to invest in long-term relationships with Malta’s student community, combining day-to-day banking support with access to information, digital tools and opportunities that can help young people take confident steps into the next stage of their lives. BOV Club is designed for eligible students aged between 16 and 30, offering banking products, digital services and financing options that support them through their studies and beyond. Further information about the package, including eligibility criteria and applicable terms and conditions, is available at www.bov.com/bov-club.