Business Agenda Spring

Agenda Business

The official publication of the Malta Business Bureau

Investment-based crowdfunding - the future of Maltese business?

In this issue: British High Commissioner Stuart Gill discusses post-Brexit Britain | President Emeritus Ugo Mifsud Bonnici shares memories AND experiences from his political career | Does Malta’s culinary scene deserve Michelin-star recognition? | Latest Business & EU News

ISSUE 30 Spring 2017 NEWSPAPER POST

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Cover Story

Is investment-based

crowdfunding the way forward for Maltese business?

Last January, ZAAR, Malta’s only local crowdfunding platform, held a workshop at the Malta Financial Services Authority exploring the potential introduction of investment-based crowdfunding in Malta, in addition to reward- and donation-based crowdfunding models that already exist, following the release of a discussion paper on the topic. Sarah Micallef speaks to Zaar manager Matthew Caruana and Grant Thornton director Michael Zarb about the key issues and considerations, as well as its potential within the local market.

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peaking of the importance of crowdfunding and its potential, ZAAR manager Matthew Caruana explains that as the first crowdfunding platform in Malta, ZAAR has been a catalyst in the sector and has advocated for the introduction of a regulatory framework for investment-based and lending-based crowdfunding. “To date, platforms in Malta can only offer rewardand donation-based crowdfunding,” he maintains, pointing out that this is creating a significant gap in terms of the size and type of projects and businesses that can be funded through crowdfunding.

“This has a serious, negative impact on how Maltese entrepreneurs can tap into additional resources when compared to their European counterparts,” he continues, making reference to the fact that in 2015 alone, over €2.3 billion were raised using crowdfunding in Europe. “Maltese businesses could be at a disadvantage if they are forced to turn to a foreign platform due to legal and logistical barriers, and also because of the fact that cross-border activity in this sphere is still low. Not to mention

the loss of business and talent from the Maltese economy to other jurisdictions where other platforms operate.”

to innovative, knowledge-based initiatives and start-ups which are initially deemed non-bankable,” he affirms.

Indeed, figures show that crowdfunding, in all its forms, is a fast growing alternative source of financing, and as Mr Caruana points out, is an excellent source of pre-seed and seed capital, loans, revenue and donations. “Crowdfunding has the real opportunity to cater for situations where other traditional financial instruments typically fail. This is especially true in relation

Mr Caruana and the team at ZAAR believe that crowdfunding has the potential to fill in the funding gap after personal and family funding, and before the business becomes bankable or attractive to business angels.

Other uses include supplementing government support funds, business angels and bank loans, while enabling entrepreneurs to either grow a business organically or scale it fast. “The economy at large will benefit by offering SMEs, start-ups, artists and social enterprises this additional access to the crucial funds that they need to finance their business and to invest in innovation and growth,” Mr Caruana states, quoting one of the European Commission’s country specific recommendations for Malta: “it seeks to ‘improve small and micro-enterprises' access to finance, in particular through non-bank instruments’ and it has, among other things, commented on the need of

Matthew Caruana

‘encouraging market uptake of crowdfunding’.”

The European Commission has also appealed for a swift implementation of legal instruments which would enable co-investment schemes between crowdfunding, business angels and venture capital – a recommendation that Mr Caruana believes is in line with the growing trend of institutional crowdfunding in Europe. “In light of this, we believe that investment crowdfunding in Malta could also develop into a mechanism to attract and organise a much needed community of business angels and promote the use of equity financing, thus giving entrepreneurs another source of finance outside the traditional banking system, and also reducing the reliance on government and EU funding,” he says.

In its consultation paper regarding the implementation of a framework for investment-based crowdfunding, the Malta Financial Services Authority highlighted various issues that require careful consideration. Michael Zarb, Director at Grant Thornton, breaks down the key issues of the proposed framework, stating, “in our view, the key matters relate to whether the existing Category 1a license is fit for purpose for investment-based crowdfunding; whether an online investor appropriateness test based solely on self-declarations could be deemed sufficient; and whether a private company is a suitable vehicle for accepting crowdfunded investments under the existing legislative framework.”

Maintaining that the operation of a typical investment-based crowd-

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Cover Story and over-regulate from the beginning could hinder the development of the industry. Alternatively, he suggests, establishing certification for best practices, standards and acceptable code of conduct could also be considered.

Finally, he stresses that education and training should be an integral part of the implementation of crowdfunding regulations. “Unlike more traditional sources of financing, individuals and entities tapping into equity crowdfunding do not necessarily have the benefit of guidance from professionals in the finance industry,” he maintains, asserting that this could be used as an opportunity to promote financial literacy in Malta. “Providing entrepreneurs with access to information on how to run a successful campaign, identifying which type of crowdfunding is best for their business, while educating investors on how to choose an opportunity

funding platform would be subject to MiFID (the Markets in Financial Instruments Directive), and the Investment Services Act, Chapter 370 of the laws of Malta (the ‘ISA’), Mr Zarb affirms that the existing Category 1a license appears well suited to the majority of the activities undertaken by a typical investment-based crowdfunding platform. “A regulatory framework that fits under MiFID would allow Maltesebased platforms to passport their services to other European countries. In our view, this represents an interesting opportunity, both in terms of ensuring that home-grown platforms are not limited to Malta’s boundaries, but also in terms of attracting existing US, and with Brexit also UK, platforms to utilise a Maltese license as a base for accessing the European market,” he says.

Michael Zarb According to Mr Zarb, Grant Thornton’s only concerns with regard to utilising a Category 1a license relate to the platform’s holding of client funds for the purposes of pooling many micro investments up to the point when the promoter’s investment target is met.

“We are of the view that the regulatory framework should dictate strict conditions, mainly concerning the use of a custody account through an association with a separate counterparty, for allowing platforms to undertake this activity within a category 1a licence.

This would limit capital adequacy requirements to an appropriate and sensible level,” he warns.

Meanwhile, with regards to the online appropriateness test, Mr Zarb notes that other European regulators have not found issue with relying on online self-declarations given the limited materiality associated with crowdfund-

ing investments, while some countries do utilise various caps in order to limit investors’ maximum exposure. “In our view, MFSA should consider allowing online appropriateness tests, in conjunction with a cap per investor per platform (as opposed to a cap cutting across all platforms), in order to avoid data sharing responsibilities across platforms,” he says, advising that this should also be viewed in conjunction with the overall governance environment that the regulatory framework will impose.

initial share capital of at least €46,588.

Other countries do not have these problems. In the UK, a limited liability company has no limit to the number of members. The French offer a mid-way solution called the ‘société par action simplifée’ (or simplified PLC). This structure requires only one person to act on behalf of the company (the ‘President’) and imposes certain additional corporate governance requirements over a private limited liability company. It however has no limit to the number of members.”

“In particular, we note that other European countries insist on the use of a ‘mini-prospectus’ and provide minimum standards for this document.

Such countries also impose the need for clear risk awareness statements, in order to further inform and protect investors. Proper KYC procedures, as already imposed by various legislations, are also key, both in terms of mitigating money laundering concerns, but also for added investor protection,” Mr Zarb adds.

In conclusion, Mr Zarb notes that although the MFSA paper specifically mentions investment-based crowdfunding, it is Grant Thornton’s belief that “it would be in Malta’s interest for all aspects of crowdfunding, including donation- and reward-based systems, to be subjected to at least some light touch regulation that enforces a certain quality standard. It is however crucial that proportionality is applied in any regulatory approach being considered.”

MFSA has also queried whether investment-based crowdfunding is a practical option for private companies within the current legislative framework. To this, Mr Zarb posits, “crowdfunding campaigns are normally structured to fall below the thresholds set out in the Prospectus Directive and therefore such activity is not deemed to be ‘an offer made to the public’, based on the understanding that reference in the Companies Act, Chapter 386 of the laws of Malta, to an ‘offer to the public’, ‘invitation to the public’ or similar terms, shall be interpreted and defined in accordance with Article 2(3)(b) of the said Act. Therefore, in theory, a private limited liability company could be used.” However, he continues, in Grant Thornton’s view, both the private company law framework, and that applicable to public companies, present serious disadvantages that act as a hurdle for the uptake of crowdfunding in Malta. He explains, “a private company cannot have more than 50 members.

In the context of crowdfunding, this would necessitate the involvement of other counterparties, such as a trustee that pulls the investment into one pot.

A PLC has no such limit on the number of members, however it requires an

Meanwhile, ZAAR’s Mr Caruana shares his own guiding principles for the legislative framework, stressing that, while clear regulations are crucial to the integrity of equity crowdfunding and an essential means of investor protection, it is also important that regulations are not unduly impractical or cumbersome. “The rules in place should aim to ensure operational and financial transparency, security of information and payments, customer protection and platform functionality,” he says, adding that at the same time, these rules need to be adequate and in line with the context of crowdfunding, its benefits, objectives and its innovative ways of working.

Secondly, Mr Caruana believes that a robust crowdfunding framework should also allow for ongoing and future developments in the field. “This is a fast changing and developing industry, therefore, one approach to consider could be the implementation of a lightweight regulatory structure which would cover the essential elements at the beginning, and allow for adjustments and developments as the market continues to develop,” he explains, warning that trying to restrict

and understand the risks, are just a few areas we believe are needed to ensure best practices and minimise investor risk,” Mr Caruana continues, adding that public authorities and stakeholders should have an interest in supporting the development of crowdfunding in order to reduce barriers to entrepreneurship and facilitate the implementation of a constructive legal framework.

In conclusion, Mr Caruana believes in giving the platforms the space and legal guidance to operate sustainably without undue bureaucracy in order to provide small and medium-sized businesses with the opportunity to raise capital and create jobs: “clear and simple regulations, a transparent code of conduct and an educational and awareness programme are essential to the future of the industry and its integrity.”

An Entrepreneur’s Experience Lewis Holland, CEO of Discountif in the UK, shares his views and personal experience of equity crowdfunding.

“I'm a firm believer in peer-to-peer (P2P) market places, so long as the market has enough liquidity to be sustainable. I see crowdfunding for equity as one of the most interesting subsets of P2P market places. I've had various touch points with P2P, mostly in the UK, having worked for the first peer-to-peer market in the betting industry (Betfair), successfully crowdfunded my own business on a crowdfunding for equity platform, and have also tried other consumer P2P platforms for property ownership, loans and other variants.

“In the UK, opening up regulated P2P market places has spun off a variety of new forms of investments and has also allowed businesses and individuals to seek investment outside of traditional sources. An initial structure in Malta, which is carefully measured to ensure enough liquidity for the platform, could allow new forms of investments.” BA

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Interview Photos: Inigo Taylor

A Global Nation

With UK Prime Minister Theresa May’s signing of the letter triggering Article 50 at the end of March, Britain is officially on its way out of the European Union. Marie-Claire Grima meets with British High Commissioner for Malta, Stuart Gill OBE, to talk about the unquestionable power of small nations, the EU’s drive to reach agreements and Britain’s place in the world at the end of it all.

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You feel and see the British connection in Malta all around,” says British High Commissioner Stuart Gill, who took up the role in September 2016. He and his wife, Maggie, had never visited Malta before his appointment, but felt immediately at home. “We’ve been welcomed warmly by the Maltese Government and the Maltese people. Malta is such an incredible place. History fascinates me hugely, and this is such an old place, from the ancient temples to Malta and World War II – it’s the most extraordinary story I’ve ever come across.”

Having worked in the British Foreign Office since 1994, Malta is Mr Gill’s fifth overseas posting. Before that, he held various positions in Chicago, Brussels, Melbourne and was most recently Her Majesty’s Ambassador to Iceland. I ask him to compare his experiences in Malta so far with his posting in Iceland, another comparatively small European country, and whether there’s anything that Malta can learn from it, and after a few quick quips about the difference in the roads and driving, as well as the quantity of open space, he speaks with great affection and respect about both.

“The thing you should always remember about small nations is they’re not insignificant just because they’re small.

They have the potential for great influence on the global stage. Look at Malta right now, halfway through its Presidency – it’s right at the centre stage of the European Union, at the forefront of so many important issues and driving some of the policies, whether it is migration or the digital single market.

The fact that it is the smallest nation in the EU doesn’t matter – it’s doing a great job nonetheless.”

Mr Gill remarks that it was clear to him that Malta prepared very well for the Presidency of the Council of the European Union. “By the time December came around, everyone was ready for it, eager for it to start. Speaking from my own experiences within the EU, smaller states tend to have better presidencies. They’re much more focused and have clearer ideas of what they can actually achieve, and I think Malta has fulfilled that so far. The same goes for Iceland – they’re not in the EU but

they’re members of a number of other international organisations such as NATO, the UN, and so on. In fact, they have a free trade deal with China, that’s quite an achievement for a small nation. The important thing is that a country shouldn’t consider itself small in a psychological way.”

Mr Gill’s remarks are quite poignant, considering that the interview takes place just a few days before Britain’s Prime Minister Theresa May wrote and sent a letter to Donald Tusk, President of the European Council, to trigger Article 50 of the Lisbon treaty, which will officially kick-start the two-year long negotiations between Britain and the European Union, culminating in Britain officially leaving the EU in March 2019. Much has been written about how the results of the 23rd June referendum were an isolationist move for

Continuing, he says that as per the EU’s way of doing things, the objective of the negotiations from its point of view will not be to punish the UK or make life more difficult for Britain, but to reach a deal as efficiently as possible. “[European Chief Negotiator for Brexit] Michel Barnier the other day was talking about partnership and that’s the way we need to look at this situation. After Brexit, Britain will be an independent, sovereign nation, not under the jurisdiction of the European Court of Justice, not interfering with the four freedoms, but forging a new partnership, including a comprehensive and brand-new free trade and customs agreement. It’s a completely new and unique situation.

Britain is the first country to leave the EU and negotiations will focus on what the relationship between the two in the future will be like.”

“The thing you should always remember about small nations is they’re not insignificant just because they’re small. They have the potential for great influence on the global stage.”

Britain, the small island mentality that won the vote to pull the country away from some of its closest allies instead of consolidating forces with them. I ask about how he expects negotiations to proceed.

“If there’s one thing that I’ve learned from working within the EU it’s that the member states of the EU are geared to reach agreements,” Mr Gill says. “Once the negotiations start, we’re going to get away from the high-level rhetoric and media speculation and who says this and who says that, and there will be a proper discussion and negotiation, which will focus the minds of everyone involved. The coverage on Brexit over the past few months has been a rehashing of the referendum campaign. The referendum was a democratic vote with a very simple question – do we wish to leave or not – and the answer was pretty clear, so that’s how we have to move forward.”

Mr Gill is reassured by the fact that the UK is striding into the Brexit negotiations with a fundamentally strong economy which he believes will see it through any disturbances that may arise during the negotiation process and even beyond that. “We’ve seen various movements in sterling and exchange rates for various reasons, but due to the strength of the UK economy, all the disturbances that will come about as a result of Brexit have already been priced into the markets.

The deficit is down, we’re one of the fastest-growing economies in Europe and employment is high.” Furthermore, he believes that the fact that Britain has been part of the EU for so long will work to its advantage. “In discussions about the free trade agreement, the length of the time it takes to reach one is often brought up. But no country has ever sought an agreement with the European Union after 40 odd years of membership, so many of our practices, regulations and laws are aligned already. As someone said to me, we no

longer have to define what a biscuit is.

The Great Repeal Bill will end the reign of European law in Britain, allowing us to decide which portions of EU law we will keep and which we will abolish. We will be in control of our own laws.”

Mr Gill is also adamant about the fact that Britain’s decision to leave the EU is not about turning inwards or curling up

into a ball to hide away from the rest of the world. “We’re confident about our place in the world. Britain is, and historically always has been, a global nation.

We’re leaving the EU and its institutions behind, but not Europe; we’re still very much a part of the European family.

We are the biggest defence power in the EU, and outside the United States, we’re one of very few countries

“As someone said to me, we no longer have to define what a biscuit is. The Great Repeal Bill will end the reign of European law in Britain, allowing us to decide which portions of EU law we will keep and which we will abolish. We will be in control of our own laws.”

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Interview “There are between 7,000 and 8,000 UK nationals living here, while others come for long holidays in winter; then there are of course the thousands of Maltese people living in the UK, so getting the bilateral relationship right is crucially important for the people with lives in both countries.” committed to spending two per cent of GDP on defence and 20 per cent of that on equipment and training, while at the same time committing 0.7 per cent to overseas development aid.

That underpins our global role and our position in the world, and the aspirations we have. We’ll be looking for free trade agreements across the world and we’re already doing a lot of work in that regard. We’ll be freeing ourselves and enabling ourselves to reach out to Asian countries, Australia and of course the US – when the Prime Minister met President Trump, it was made clear that a US-UK trade agreement would be one of the priorities. In summary, there will be a huge amount of global outreach. We will work hard to deepen our relationships, with the member states of the EU as well as the many countries outside it.”

When it comes to relations between the UK and Malta, the already-existing strength of the connection between the two nations means that he has a head start, Mr Gill says. “We will be doing a lot of work with the Maltese Government and the fact that we’ve got such a great relationship will help us. There are between 7,000 and 8,000 UK nationals living here, while others come for long holidays in winter; then there are of course the thousands of Maltese people living in the UK, so getting the bilateral relationship right is crucially important for the people with lives in both countries. We will be looking at some of the things which are relevant to the broader EU negotiations, such as health agreements and social

security, as well as reaching a deal as early on as possible about the acquired rights of EU citizens, something the member states said no to discussing before Article 50 was triggered.”

Losing access to the European Economic Area (EEA) is one of the most financially troubling aspects of the UK’s renunciation of its EU membership, and Mr Gill has pledged also to work with the Maltese Government to settle on an agreement which is as mutually beneficial as possible. “The UK is an important trading partner for Malta and vice versa, while the financial services companies that are based here need that connection to London as a financial hub.” He also adds that with 2018 around the corner, Valletta holding the title of Capital of Culture would be opening up plenty of scope for further close collaboration with the Maltese Government.

When I meet Mr Gill for this interview, it’s a few days after the terrorist attack in Westminster Bridge, where three people were killed and 50 injured. I comment that London’s reaction to

“We don’t curl up, we stand up, we work together, we collaborate.

Counter-terrorism is a multinational issue and there are many countries we need to collaborate with in order to fight it.”

the Westminster attacks was very defiant toward those who sought to sow division, be it through terrorist attacks or vitriolic social commentary. Mr Gill concurs. “If we were to be cowed, and turn inwards, then we lose to the terrorist. The Westminster attack was a terrible, shameful, cowardly act. The amount of sympathy and support we got from countries around the world was extraordinary, including a personal exchange I had with Malta’s own Prime Minister. Since 2013, security forces in the UK have thwarted 13 plots; unfor-

tunately, one got through. But we will continue with the efforts that we have made so far. We don’t curl up, we stand up, we work together, we collaborate.

Counter-terrorism is a multi-national issue and there are many countries we need to collaborate with in order to fight it.” BA

N.B. The interview with the British High Commissioner took place before the announcement of the general election in Britain.

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Editorial Publisher Content House Group Mallia Buildings 3, Level 2, Triq in-Negozju Mriehel BKR 3000 Tel: (+356) 2132 0713 Email: info@contenthouse.com.mt www.contenthouse.com.mt

Joe Tanti

Getting energy efficiency off the ground The deadline for the EU’s 2020 targets is just around the corner. At this point, several member states have reached their targets, and the others must either increase their efforts, or accept missing the targets altogether.

On the other hand, the time is perfect to start planning for the 2030 targets. In terms of energy efficiency, the European Council (the EU heads of states and governments) decided to increase the EU-wide energy efficiency up to 27 per cent or possibly 30 per cent for 2030 – from the originally proposed 20 per cent.

It is critical to keep implementation in mind, since although several member states have yet to reach the 2020 target of 20 per cent increase in energy efficiency, we are considering a more ambitious 30 per cent target. Achieving this target will depend on the action taken by power distribution and generation companies, industry, and households, amongst other consumers.

Industry is critical to reaching these targets – industry is the sector that develops, markets and maintains technology through which efficiency is possible. Industry is also a key global energy consumer. Therefore, industry has two important roles to play – to develop and make available improved energy technologies, and to consume more efficiently.

Business can be supported in achieving these goals. In fact, the more support business has, the more it can do in a shorter span of time. Support should focus on linking all the brilliant

minds within the business sector, to facilitate knowledge exchange and implementation of energy technologies and practices.

Such initiatives will not only result in businesses being able to take effective action bringing about tangible changes, but information coming out of such initiatives could also help inform policy measures aimed at mainstreaming innovation.

In line with this principle, the MBB partnered with the Energy and Water Agency in collaboration with the Malta Chamber to promote energy efficiency within industry. Through this collaboration, many non-SMEs signed an industry drafted voluntary agreement, committing to implement energy efficiency measures on an annual basis with the Energy and Water Agency, as the responsible Government department. Over 40 per cent of Malta’s non-SMEs have signed this agreement, having already adopted, or planning to adopt, measures representing a reduction of an estimated 8,500 tonnes of CO2 emissions annually. More businesses are expected to join the agreement over the coming years.

It is very significant that more than a third of the country's largest businesses have voluntarily signed an agreement declaring measures to

be taken to reduce their energy consumption. In fact, it highlights that not only is awareness of the importance of energy conservation present amongst the business sector, but so is motivation.

Industry is going a step further. The energy efficiency drive is not limited to non-SMEs. The MBB is leading the Investing in Energy Project and targeting the medium-sized enterprises within the manufacturing, wholesale and retail sectors that are larger energy consumers, supported by the Malta Chamber and the agency.

The Energy and Water Agency is also supporting, or partnering, with representatives of other business sectors to promote energy efficiency with their members, such as the MHRA’s White Certificate project for the hotel industry. This approach is to be lauded, as the agency is seeking to engage an audience through their representatives – a strategy which is likely to reap positive rewards.

The MBB has considerable experience in promoting resource efficiency within business. Through the EU LIFE+ Investing in Water and Investing in Energy projects, the MBB has acted as the coordinating body for over 150 businesses. Experience has proven that significant savings poten-

tial exists, and most of it remains untapped.

There is a suboptimal investment in energy and resource efficiency by industry. One reason is that knowledge on best practice management, planning and operations is still under-developed. Another is that businesses are forced to prioritise commercial related developments over resource efficiency upgrades, due to financing options forcing competition between the two.

Resolving these issues will ensure that energy efficiency becomes modus operandi for industry. The first is being tackled through demonstration projects targeting the different industrial sectors. Businesses are already participating in dialogue aimed at resolving the second. With continued effort, the next few years could see tangible changes in Malta’s energy use landscape.

The Investing in Energy Project is led by the Malta Business Bureau in partnership with the Energy and Water Agency and the Malta Chamber of Commerce, Enterprise and Industry, with co-financing from the Regulator for Energy and Water Services, and the Ministry for the Economy, Investment and Small Business.

Malta Business Bureau Cornerline, Level 1, Dun Karm Street, Birkirkara BKR 9039 Tel: (+356) 2125 1719 Email: info@mbb.org.mt infobrussels@mbb.org.mt www.mbb.org.mt

The Malta Business Bureau is a nonprofit making organisation acting as the European-Business Advisory and Support Office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The MBB has two offices, the Head Office in Malta and the Representation Office in Brussels.

Editor: Joe Tanti Deputy Editor: Martina Said Design: Nicholas Cutajar Editorial Team: Ana Vella, Daniel Debono, Sarah Micallef, Jo Caruana and Marie-Claire Grima Brand Sales Managers: Matthew Spiteri, Petra Urso Brand Sales Executive: Amy Schembri Advertising Sales Coordinator: Lindsey Napier Business Agenda is the quarterly publication of the Malta Business Bureau.

It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group.

Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

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Case Study Photos: Inigo Taylor

The Go-To Agents For Gaming In a short span of time, Malta’s thriving iGaming sector has brought in an influx of foreign workers who have made the island their home. Marie-Claire Grima meets RE/MAX Malta’s Chief Operating Officer Jeff Buttigieg and Regional Letting Manager Edward Agius to find out how they’ve managed to make their company invaluable to expats in the industry.

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eventeen years ago, when the iGaming industry was still emerging worldwide, few people could have imagined that someday it would turn into a roaring global industry, which locally comprises 12 per cent of Malta’s GDP – least of all two letting agents from RE/ MAX. “The first gaming company we provided property services for was an Irish company called Lovebet, in 2000,” recalls Edward Agius, RE/MAX’s

Regional Letting Manager. “When the representatives from the company walked into our office, we’re like ‘Online gaming? What’s that?’ We would never have guessed that it would have ended up being a good chunk of our business.”

Although it is now Malta’s biggest real estate agency, with more than 350 estate agents and 25 offices all over the islands, back then RE/MAX was a small company focusing exclusively

“As a company, we differentiate ourselves by providing exclusive added value all the time to our clients and this has helped us build strong and lasting relationships.”

Jeff Buttigieg

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Case Study on letting under the name of JK Properties. “We were there from the very beginning,” says RE/MAX’s Chief Operating Officer Jeff Buttigieg – so much so that they found a place to rent for Warwick Bartlett, the Chief Executive and founder of Global Betting & Gaming Consultancy (GBGC.com), who helped the Maltese Government draft the legislation that would help make Malta such an attractive location for the gaming industry. The gaming industry and RE/MAX grew up together, and nowadays, Jeff estimates that around 30/40 per cent of RE/MAX letting business either comes directly from gaming or is gaming-related, including payment companies, affiliates, corporate service firms and specialised recruitment agencies.

In Malta there’s no short supply of real estate agents, so how did RE/MAX manage to become the company to go to when a firm was looking to relocate to Malta? “Our agents know what the clients want,” says Edward.

“They’re mainly Scandinavian so for residential property, they’ll be mainly looking for bright, sunny apartments with terraces.” And the stereotype that all iGaming types live in Sliema and St Julian’s is gradually becoming less true.

“They do seek out places in Sliema and St Julian’s at the beginning, when they’ve just arrived here, but they’ve also started moving into more central areas,” says Jeff. “When they get used to living here, they realise that they don’t necessarily need to be based in this particular area,” Edward continues. “They can explore different towns, especially when they buy or rent a car, they get into relationships with Maltese people and they end up living in every corner of the island.”

Alternatives to the Sliema/St Julian’s area are also being sought for offices and commercial spaces, because there’s only so much space that can be taken up in a section that’s already so densely built up. “One of our biggest clients is moving to a more central area,” Edward reveals. “They want large amounts of space, because that

“Some companies’ main selling point is that they’re based in an exclusive area such as Portomaso, so others who choose to move away from there have to find different ways to stand out.”

Edward Agius

is one of the unique selling points for new hires. Some companies’ main selling point is that they’re based in an exclusive area such as Portomaso, so others who choose to move away from there have to find different ways to stand out.”

“Central areas can be cheaper,” says Edward. “What they save on rent in premium areas such as Sliema and St Julian’s frees up more money that can be invested in their people – a better working environment, recreational and chill out areas, football pitches, cinemas, canteens, transport – anything that will make it a more attractive place to work. One company requested a warehouse or hangar that could be converted into a commercial space.”

However, what sets RE/MAX apart from other estate agencies in Malta is the sheer amount of work that they put into becoming part of Malta’s gaming culture landscape, shaping it and participating in it. Jeff and Edward were the first Maltese estate agency to attend the annual ICE Totally Gaming in London back when no estate agencies even heard of the event. And around nine years ago, the company became one of the founding partners of the Malta iGaming Seminar (MiGS), a yearly conference that targets C-level professionals within the gaming industry.

The seminar is an important date in the global iGaming calendar, attended by around 420 delegates each year and closely followed by international media. With up to 50 speakers taking the stage in the seminar every year, previous editions have included iGam-

ing pioneer and expert Sue Schneider, iGaming Business Magazine’s editor-inchief Michael Caselli and even the legendary Bodog founder and entrepreneur Calvin Ayre.

RE/MAX also organises and sponsors numerous social events for the industry. It started out with something as simple as a five-a-side iGaming football tournament, which allowed the companies to compete against each other, with all proceeds from the tournament going to charity. Nowadays, RE/MAX hosts the iGaming social around five times a year, giving employees in Malta the chance to meet, mingle and network. There’s also iGaming iDol, which forms part of the MiGS, an awards ceremony dedicated to recognising and acknowledging individual efforts within the industry. And last but not least there’s Showers, the hugely popular summer parties which the company is the main sponsor. Jeff estimates that around 70 per cent of the attendance for Showers is made up of people from gaming. “As a company, we differentiate ourselves by providing exclusive added value all the time to our clients and this has helped us build strong and lasting relationships,” he says.

“We think of ourselves as a one-stopshop. Not only do we help people find a place to set up their company or work, but we also help out with internet installation, telephone networks, concierge, maid service; if they have people coming over and they don’t know where to put them up, we help them find a suitable hotel. We’ve nurtured our agents to understand what the clients need,” Edward says. They hope to grow the lettings team, which is currently made up of 37 fully-trained letting associates, up to 50 people.

“Malta remains a very desirable location for gaming companies, and with their arrival, there’s a domino effect on the whole economy. As long as legislation remains favourable and rent remains stable, demand is set to keep growing.” BA For more information, call Edward Agius, Regional Letting Manager, on M: 9942 5088 or visit letting.remax-malta.com

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Case Study

Support for SMEs & Start-Ups When it comes to support for start-ups and SMEs, Malta Enterprise provides a range of services designed specifically to get businesses off the ground. Jo Caruana meets Ing. Pierre Theuma to discover what advice can be expected.

T

he business world is more competitive than ever. From increased competition from similar local entities to the evolution of the internet and our ever-more-global markets, starting a business promises to be a minefield of potential challenges.

But the good news is that help is at hand in a number of forms – one of which is through the SME Support and Development Unit at Malta Enterprise, which provides guidance and support for small-to-medium enterprises (that is, companies with less than 250 members of staff and a turnover of less than €50 million).

Their support measures vary. Among the services they offer, entrepreneurs can expect advice on business advisory matters, innovative start-up support, investment aid, guidance on research and development, and help seeking new international markets.

Additionally, the SME Support and Development Unit also provides support via the Enterprise Europe Network, which is the world’s largest support network for SMEs and is active in more than 60 countries worldwide. The

network offers a targeted approach through which it supports international business and technology cooperation.

Ing Pierre Theuma is the chief officer for SME Support and Development at Malta Enterprise, and he has guided countless businesses through their development phases over the years.

But where do businesses begin? “Well,” he explains. “It all starts with an idea.

That idea is then developed by a person or a group of people and, through idea-testing, seed funding, planning and the setting up of activities, it is developed into a start-up.”

Once all that is done, the start-up then goes through the phase of entering the market with a particular product or service and, as time goes by, consolidates its market and further grows its share.

“Some enterprises also seek international markets, and this requires particular international development so as to address specific market needs,” adds Ing Theuma. “Still, throughout the different stages, the enterprise has to keep reinventing itself; it has to be innovative and be competitive as, eventually, new, improved and better-priced products or services will be introduced to the market by other

enterprises, which could lead the first company to fall into decline.”

To help stop that from happening, Malta Enterprise has put support measures in place that address different business activities that are defined in the schemes under consideration. “The schemes also define the sort of enterprises that are eligible,” he continues, adding that they also state the business activities that are not eligible , thus ensuring that State Aid regulations are adhered to.

When it comes to assessing business ideas that are brought to the table and the manner in which they might work, Ing Theuma explains that this begins with a discussion about the planned project. “Following that, an assess-

ment of the available support measures is made and, if suitable measures are identified, the enterprise is provided with the relevant information, enabling it to get started.”

Of course, there are a number of questions that any entrepreneur will need to ask themselves before venturing down the business road. For instance, does the idea match their skills, experience and interests? Does a market exist for the specific products or services it plans to deliver? And what sources will be used to finance the business? “Additionally, they will also need to assess if there are any particular legal, regulatory or tax aspects of the business to be considered,” Ing Theuma explains.

“It all starts with an idea. That idea is then developed by a person or a group of people and, through idea-testing, seed funding, planning and the setting up of activities, it is developed into a start-up.”

There’s also a research and development process to be undertaken, which is normally initiated following a technical feasibility assessment. “This initial phase can be supported through the R&D Feasibility Studies scheme, and it’s during this phase that the elements of a proposed research project are to be determined,” Ing Theuma explains, adding that R&D is either classified as Industrial Research or Experimental Development. The definitions are according to Commission Regulations.

“After this, and given that the enterprise wants to proceed with the undertaking of the R&D project, then the Research and Development scheme can be considered. Approved projects can then be supported with respect to specific costs such as qualified personnel wages and contractual research.”

Meanwhile, innovation also plays an important role. “Business innovation takes all sorts of forms – including the introduction of new products, processes, services, organisational forms, and the improvement of business models; these actions are all essential when it comes to ensuring business continuity and growth.

“We also offer support to SMEs in this respect through various measures

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Case Study

“Some enterprises also seek international markets, and this requires particular international development so as to address specific market needs.”

ranging from business advisory to business and technology cooperation through the Enterprise Europe Network, as well as through dedicated R&D programmes such as EUREKA and EUROSTARS, both of which encourage transnational collaboration. Currently, ERDF grants are also ongoing to support diversification and innovation,” Ing Theuma continues. The ERDF grants are administered by the Measures and Support Division within the Ministry for European Affairs and the Implementation of the Electoral Manifesto.

point of single contact through which enterprises can be informed about ongoing support, as well as the specific initiatives that are set up from time to time. It provides many interesting services, including providing assistance to start-ups when they are at the stage of initiating registration requirements with other Governmental entities, such as the VAT, IRD and Jobsplus departments, and it also has its own web portal (www.businessfirst.com.mt) which provides information relevant to the business life cycle.”

Start-up businesses may also consider the support of Business First, which is also managed by the SME Support and Development Unit. “BF is Malta’s

“Altogether, it works very well within the suite of services that Malta Enterprise is proud to offer SMEs and startups in the hope of helping them

develop into high-functioning businesses with a firm focus on the future,” Ing Theuma concludes. BA For more information about Malta Enterprise and Business First, visit www.maltaenterprise.com or call Business First on 144.

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Food & Drink

Is Malta ready for a

Michelin star?

There’s no straight answer to this question, it seems. Martina Said speaks to three accomplished chefs with an unquestionable passion for food and experience in Michelinstar eateries, to find out what it takes to earn that coveted star.

I

t is the most prominent accolade in the culinary industry, one that carries with it a certain reverence that no other award in this industry does. For more than a century, French tyre company Michelin has been publishing the Michelin Guide, also known as the Red Guide, considered the oldest hotels and restaurants reference guide in Europe, which awards stars of excellence to a

select number of establishments. Till this day, the acquisition or loss of a star can play a tremendous role in the success or failure of a restaurant.

While those who’ve visited Michelin-star restaurants can probably attest that it isn’t just the food that makes an impact on patrons, it begs the question: Why does Malta still not have a Michelin-star restaurant of its own? With an

ever-growing list of local eateries – some established, others still in their infancy – it’s fair to say that at least a handful of Maltese restaurants are deserving of such an award, so what’s missing?

Paul Buttigieg, head chef at Tmun Restaurant in Gozo, believes quite a few restaurants in Malta have the potential to obtain a Michelin star. “However, the Michelin Guide is not everywhere yet.

There aren’t any Michelin-star restaurants in Australia and South America either, for example, despite the fact that these two continents have some of the top restaurants in the world according to another highly coveted guide, the San Pellegrino Top 100. Therefore, in my opinion, for a restaurant in Malta to obtain a Michelin star is also partially dependent on commercial decisions taken by the Michelin Guide.”

Together with his brother Patrick, Paul was raised in his parents’ restaurant, located in Xlendi at the time, making this choice of career a natural one for him from the get-go, and one which he believes is worth all the hard work and long hours. “It’s not just a case of sourcing the best quality, local ingredients, cooking from your soul or making sure every single customer is happy. It’s a lifestyle, and when you enjoy what you do it’s very rewarding.”

He has recently worked alongside Luke Tipping and Nathan Eeads at Simpsons Restaurant by Andreas Antona in Birmingham, one of Britain’s foremost

“It’s not just about the food, service, expensive ingredients in your dish and rare wines in the cellar. Every plate is an artistic expression with an underlying story.”

Paul Buttigieg

restaurants which has retained its one Michelin star since 2000. “It’s a very precise operation and runs like clockwork. I learned that attention to detail is key to maintaining extremely high standards. Working in a restaurant of this calibre can be very demanding and outright stressful, but also very inspiring and rewarding,” says Paul, adding that, to him personally, a Michelin star symbolises a stamp of a guaranteed great experience, from the moment you walk through the front door until the second you walk out. “It’s not just about the food, service, expensive ingredients in your dish and rare wines

in the cellar. Every plate is an artistic expression with an underlying story.”

Chef Marvin Gauci, the mind behind acclaimed restaurants Tarragon, Caviar & Bull and Buddhamann, is in agreement that Malta’s culinary scene does boast a few contenders of its own. “The Michelin Guide is interesting, and while I cannot say much about the criteria for getting a star, I do know that I have eaten in Maltese restaurants that have what it takes to earn one. One Michelin star is mainly about the kitchen, the chef’s quality of ingredients and flavours – at least a few restaurants in Malta have that.”

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Food & Drink “I’ve had the opportunity to work in one-, two-, and three-Michelin-star restaurants, and although experiences vary between countries and continents, there are common factors: there’s passion, pride and soul in everything that’s offered, and it’s not just about the food, but about a complete experience that will be remembered by visitors for a lifetime,” says Kevin. “In the early years of my career, when I was working at the famous Le Bristol Hotel in Paris under the helm of chef Eric Frechon, I recall one of his sous chefs telling me that one can easily remember a bad dinner or experience, but to remember an excellent one, it has to be outstanding in every aspect.”

Marvin first got involved in the industry at the age of 13, and while many events have led to the success he enjoys today, he says that the whole experience has been a learning, rollercoaster journey – “food is my life,” he says. So what does this precious accolade mean to him, and what will it take for a Maltese restaurant to get the recognition? “The value of a Michelin star is significant, and it’s clear that people nowadays care about whether a restaurant has a star or not when searching for a place to dine,” he explains. “As for getting recognised, the guide itself needs to send food critics and representatives to Malta. I believe that, if it does, the Michelin Guide will find local restaurants with the quality they’re looking for.”

“One Michelin star is mainly about the kitchen, the chef’s quality of ingredients and flavours – at least a few restaurants in Malta have that.”

Marvin Gauci

Kevin Bonello, chef de cuisine at the Xara Palace Hotel, says one needs to distinguish between a fine-dining restaurant and what it entails to be equated with a Michelin-star restaurant, as, although he believes that lots of local restaurants have improved drastically over the years, Malta’s culinary scene is still lacking on many fronts.

“The main shortcomings are consistency; front-of-house personnel, which is a big issue as most of the service staff still regard this job as a way of making extra money rather than a career; and that many local chefs do not make the most of local produce,” he explains.

“A large number of clients that visit restaurants are foreign, and just as we expect to savour local produce when we travel, foreign patrons expect the same when they come to Malta. Copying dishes from famous chefs and serving them in a local restaurant is useless, and personally, it gives me no pride or passion as it is not something I would have created myself.”

Kevin has been in the industry for 23 years, 16 of which have been spent at the Xara Palace Hotel – an opportunity he took at the age of 22, and never looked back since. Prior to settling in Malta, he completed a six-month apprenticeship at the Berkeley Hotel in London, after which he spent twoand-a-half years working in renowned restaurants around the world, including Le Bristol in Paris and Charlie Trotters in Chicago.

Having a Michelin star, says Kevin, places a restaurant a cut above the rest, yet, the level of stress that a star brings to a restaurant is something that locally we know little or nothing about. “Getting a star is one thing, but retaining it is much more difficult as the expectations for that restaurant will continue to grow. Getting a Michelin star or two is a positively life-changing experience, both financially and in terms of reputation, but losing a star or a grading can be much worse, and there have been cases where restaurants closed down as a result.”

“There are only two restaurants currently that offer a Michelinstar experience, but one thing we certainly need to start working on is exposure by inviting press and Michelin inspectors to experience our cuisine.”

Kevin Bonello

Does he think a Maltese restaurant stands a chance of gaining this recognition and if so, what will it take? “I’ve been asking myself these questions for the last 15 years, and there are no easy answers. In my opinion, there are only two restaurants currently that offer a Michelin-star experience, but one thing we certainly need to start working on is exposure by inviting press and Michelin inspectors to experience our cuisine,” says Kevin. “It’s important for us to send the message that Malta can offer a Michelin-star experience in order to attract inspectors to our island, as that’s where it all starts. One might not get a star on the first or second inspection, but then it’s up to the establishment to make the necessary amendments to eventually get that star.” BA

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Events

Business Transfer Conference

O

n Friday 17th March 2017, the Ministry for the Economy, Investment and Small Business hosted over 250 registered delegates at the Grand Hotel Excelsior for a full-day conference focusing on Business Transfer. This event saw the participation of specialist delegates from across Europe, along with a keynote speech by Prime Minister Joseph Muscat, and the Minister for the Economy, Investment and Small Business, Christian Cardona, who opened and closed the conference. Other speakers included the EU Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, a number of MEPs, academics and experts.

The transfer of businesses from generation to generation, or from one entrepreneur to the next is key to creating a more supportive environment for entrepreneurs, and is therefore a topic which affects every economy and jurisdiction in Europe. In order to ensure that Europe reaches the goals set by the Entrepreneurship 2020 Action Plan, which aims to unleash Europe’s entrepreneurial potential, this conference provided a platform for discussions between member states relating to the implementation of actions that will decrease barriers to such transfers. Best practices were also shared among those present, so as to increase the take-up of successful strategies across Europe.

The discussion provided a platform for Commission delegates, business organisations, educational institutions

and entrepreneurs to discuss the work being carried out in different member states to provide support to businesses undergoing transfer and to ensure that the process is an efficient and a successful one for all those involved. Dr Nadine Lia, from the Ministry for the Economy, Investment and Small Business, spoke about Malta’s role in setting up legislation specifically focused on family businesses in order to facilitate this process which is common on the island due to the number of family-run businesses. Malta’s effort in this area was commended since the island’s legislation to support business transfers specifically for family businesses is the first of its kind within the European Union. More information on the Family Business Act, and the conference, can be obtained from businesstranfserconference.gov.mt.

The participation of all involved was central to the production of a comprehensive policy report which was presented in the Competitive Council, and will allow the recommendations that have emerged from this event to be presented to the relevant EU institutions.

This conference is part of the project ‘Conference on Transfer of Business’ which has received funding from the European Union’s COSME Programme (2014-2020) 2017 Maltese Presidency of the Council of the EU. Presidency Unit, The Grand Master’s Palace, Republic Street, Valletta. Get in touch on T: 2540 2700; E: infomail@eu2017.mt

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MBB News

Business Agenda News Updates 11th January ZAAR hosts Investment-Based Crowdfunding Discussion Workshop

and Consumers Affairs Authority, Malta Communications Authority, European Consumer Centre and MEUSAC.

A stakeholder workshop was held at MFSA to discuss the potential introduction of investment-based crowdfunding in Malta, in addition to the rewards-based crowdfunding and donation-based crowdfunding that already exist on the island. Coordinated by ZAAR, the workshop followed MFSA’s recent release of a discussion paper on the topic, and was based on the regulator’s responsibility to set up a regulatory framework to give SMEs the opportunity to use all possible alternatives to raise capital.

The workshop, open to the public, welcomed the input from ZAAR manager Matthew Caruana, Grant Thornton partner George Vella, director of the Regulatory Development Unit at the MFSA Dr Michael Xuereb, analyst within the Regulatory Development Unit at the MFSA Dr Emaliese Lofaro, and Malta Business Bureau CEO Joe Tanti, as well as comments from entrepreneurs and stakeholders. Legislation is to be introduced later this year.

12th January European Commissioner Cañete Meets Maltese Stakeholders The European Commissioner for Climate Action and Energy, Miguel Arias Cañete, met with Maltese stakeholders in Valletta to discuss the Energy Union and EU Climate Action. MBB was represented by CEO Joe Tanti and Investing in Energy Project Manager Geoffrey Saliba.

The session addressed the European Commission’s Clean Energy Package Proposal which has three main goals: putting energy efficiency first, achieving global leadership in renewable energies and providing a fair deal for consumers.

20th January How free is the internet? Discussion on Geo-blocking The geo-blocking phenomenon was discussed in a stakeholders’ dialogue with MEP Therese Comodini Cachia organised by the MBB and the European Parliament Information Office.

The discussion welcomed the participation of Erwan Bertrand from Eurochambres, Dr Greta Agius, currently leading negotiations on the subject on behalf of the Maltese Presidency, and representatives from business and consumer organisations.

At the time of the discussion, the European Parliament and the Council had begun negotiating new legislation to address geo-blocking and prohibit restrictions by traders and re-routing practices online. However, while it is meant to lead to a wider consumer choice, this Commission proposal is not without problems to businesses.

Erwan Bertrand in fact expressed the concern of European businesses as to the effectiveness of the proposed Commission measures in widening cross-border trade. Mr Bertrand pointed out that while Union legislation may try to prohibit certain commercial practices, a series of other limitations remain, including different technical requirements, language barriers and transport costs.

MEP Therese Comodini Cachia, rapporteur on the copyright Directive, presented her role in the European Parliament in relation to the e-commerce package and the ongoing negotiations in the European Parliament. She stressed that any legislative intervention should remain proportionate, in particular for SMEs which should not be subject to an obligation to sell in other member states. MEP Comodini Cachia also pointed out that while we need to unblock the internet’s potential in Europe, in Malta we need to take a closer look at the inherent inhibitions of companies to go online especially the prohibitive transport costs for these to offer their goods and services abroad.

The session included a round-table discussion with stakeholder representatives from the Malta Chamber of Commerce, GRTU, Malta IT Law Association, GVZH Advocates, Malta Competition

30th January ‘What Brexit means for Business’ Seminar MBB President at the time, Dr John Vassallo chaired a high-profile event organised by the Malta Chamber of Commerce on Brexit last January. The conference shed light on the future of trade and investment relations between the UK and the EU. “It is in the interest of both parties to quickly come to a fair agreement. Though there will be new challenges for business, there will also be new opportunities, if we act in a correct and constructive manner,” said Prime Minister Joseph Muscat.

“I want to make sure we focus on citizens’ needs and what affects them in their daily lives. Tackling these issues will help create much needed trust in the institutions. The social aspect is the essence of the EU if the Union wants to remain relevant,” Prime Minister Muscat continued.

Providing a European context to the debate, EESC Employers’ Group Vice President Stefano Mallia said that the four fundamental freedoms of the single market, namely the free movement of goods, services, capital and people, are inseparable and cannot be cherry-picked. “If we don’t take Brexit as the ultimate wake-up call, then we (the EU) do not deserve to exist any longer,” Mr Mallia said.

Moderating the seminar, Dr Vassallo questioned whether the UK should resort to multilateralism or bilateralism.

Former Malta Chamber President Anton Borg welcomed members to the well-attended event.

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MBB News 9th February MBB participates in Start-up Europe Week In the framework of the Start-up Week 2017, MBB, represented

by Executives Marija Elena Borg and Ana Vella, participated in the Women Web-entrepreneurship Stakeholders round-table discussion. This event, held on 9th February at the MITA Data Centre in Santa Venera, was organised by Ascend Consulting in collaboration with MITA Innovation Hub and Malta Communications Authority.

2nd February Maltese Stakeholders and Leaders Meet EP President Tajani European Parliament President Antonio Tajani visited Malta on the eve of the Informal European Council held in Valletta on 3rd February. Mr Tajani met representatives of Maltese civil society and the business community at Europe House in Valletta for an informal exchange of views on the challenges facing Europe today.

“Europe must be changed not killed,” said President Tajani in his address highlighting the imperative need for Europe today to explain better its work to the European citizens while striving to deliver more concrete solutions. “Less bureaucracy and more politics” is needed to make sure that Europe remains competitive with markets such as Russia, the United States and the Far East.

“At the same time, we must remain confident of our significant achievements and remain optimistic,” Mr Tajani declared.

The aim of the event was to bring together all Maltese stakeholders interested in or already involved in the promotion, facilitation, support or actual implementation of women web-entrepreneurship, to discuss the current situation in Malta. This event also raised awareness and an understanding of the role, the current activities and potential further contributions that various support organisations and stakeholders can make towards supporting women web-entrepreneurship.

This event brought together various business representatives of education communities, incubators, accelerators, co-working and networking spaces, current and aspiring women web-entrepreneurs, experienced ICT entrepreneurs and business owners and managers. The aim was to foster a closer working relationship between the individuals who can act as role models, mentors, business angels and other finance providers for female entrepreneurs.

During this meeting, the MBB recalled with pride its encounter with Mr Tajani in 2012, who was at the time European Commission Vice President for Industry and Entrepreneurship.

Following the general debate, Stefano Mallia, rapporteur of the Opinion, concluded that it is essential that all efforts to assist islands should give priority to providing access to public services, promoting sustainable growth, and fostering full employment, competitiveness and cohesion in European islands. Finally, it was also pointed out that islands and island regions often provide unique opportunities for clean energy solutions.

The winning ideas went on to represent Malta as part of the official launch of the next round of Ideas from Europe, held on 6th April.

The chosen theme for this year’s edition was ‘Hospitality of Tomorrow’, emphasising the potential of tourism in generating employment, economic growth and the stability in the Mediterranean region. This is in line with the UNWTO’s belief that tourism is a great opportunity to sustainably boost our economies further whilst creating the right foundations for peace and stability in the region.

The event was organised in the context of the EESC’s draft opinion on Inclusive Islands in the EU, one of the priorities of the 2017 Maltese Presidency, with the aim of identifying the challenges islands face and finding relevant solutions.

In the second half of the event, then-MBB President Dr John Vassallo, Gianfranco Fancello, Professor at the University of Cagliari, Caroline Buts, Professor of Economics at the Vrije Universiteit Brussel, and Luc Gobin, Director of ISTO Europe, discussed their experiences and the results of their work in their respective fields.

As part of Malta’s EU Presidency, Malta launched the next round of Ideas from Europe with the aim of searching for Maltese innovators to solve global challenges. MBB was invited to attend and vote during the event organised by the Ministry for the Economy, Investment and Small Business (MEIB) and Deborah Webster, the Founder of AMANI Circle. The event, held at the Le Meridien Hotel in St Julian’s, presented innovative ideas relating to access to power, water and housing to education, healthcare and finance, from Maltese and dual citizens, and innovators residing in Malta who are working on solutions for societal and environmental issues.

MBB participated in the fourth edition of the Mediterranean Tourism Forum organised by the MHRA which aims to bring together public and private sector stakeholders with an interest in tourism across the Mediterranean region. MBB was given a platform at the event to exhibit and promote its services, specifically the Enterprise Europe Network Service and also EU advisory services on current funding opportunities.

The European and Economic Social Committee (EESC) organised a public hearing on ‘What future for islands in the European Union’ in Malta in collaboration with the Malta Chamber of Commerce.

The results of the discussion clearly underlined that a greater effort must be undertaken by the EU to recognise the uniqueness of the challenges facing islands. Such challenges cannot be addressed only through Cohesion Policy. It was also highlighted that islands suffered from several structural handicaps which often resulted in difficult conditions for carrying out business.

Therefore, it was concluded that key policy areas such as the Single Market, Competition Policy, Transport Policy, Rural Development Policy and Fisheries Policy must be applied with a greater degree of flexibility when it comes to island economies.

7th March MBB INVITED TO ATTEND IDEAS FROM MALTA COMPETITION

16-17th March MBB participates in Mediterranean Tourism Forum, Malta

7th February Public Hearing: ‘What future for islands in the European Union’

During the first part, Nectarios Santorinios, Greek Vice Minister of Maritime Affairs and Insular Policy, Tonino Picula, Member of the European Parliament and Vice President of Seas, Rivers, Islands and Coastal Areas EP Intergroup, and Judit Torokne Rozsa, Head of Unit in the European Commission (DG Regio) discussed the role of the EU in this process.

testing their business idea. The event is a three-day idea hack in which participants pitch their ideas on Friday, develop them on Saturday and present them on Sunday. A team of professional mentors and experts in their areas offered mentorship support to the participants of the 54-hour marathon, helped them prepare for their pitch at the MITA YouStartIT accelerator programme, and also to eventually compete for the €22,000 seed fund.

14th February EU-Tunisia: Stakeholder Consultation The Malta Business Bureau and the Malta Chamber in collaboration with the Enterprise Europe Network organised a consultation session during which companies had the opportunity to share their views on a deep and comprehensive free trade area between the EU and Tunisia.

David Sammut, Director of International Economic Relations at the Economic Policy Department set the scene, followed by an informal consultation with companies that are engaged in trade and business activity in Tunisia.

Economic relations between the EU and Tunisia go back to the EEC-Tunisia Cooperation Agreement of 1978. It established cooperation between the two to contribute towards the economic and social development of Tunisia through measures and provisions in the field of economic, technical and financial cooperation, and in the trade and social fields. Cooperation with Tunisia evolved to an Association Agreement, following the entering into force of the first Euro-Mediterranean Agreement of Association (EMAA), that is currently in force. Since 2015, discussions for a Deep and Comprehensive Free Trade Area (DCFTA) have been underway to create new trade and investment opportunities, to support economic reforms in Tunisia, and bring Tunisian legislation closer to that of the EU in trade-related areas.

3rd-5th March MBB participates in Malta Start-up Weekend MBB Executive Ana Vella participated in the sixth edition of Malta Start-up Weekend held at Smart City between 3rd and 5th March.

Start-up Weekend is a not-for-profit inclusive event owned by TechStars which attracts investors, idea creators and like-minded individuals to work together and achieve the common goal of

17th March MBB CEO moderates Business Transfer Conference MBB CEO Joe Tanti was invited to moderate the Business Transfer Conference, organised by the Ministry for the Economy, Investment and Small Business as part of the Maltese Presidency of the Council of the EU. The conference was organised in view of the EU’s goal to ease the creation of new businesses and to create a more supportive environment for the growth of existing entrepreneurs. The transfer of businesses from generation to generation or from one entrepreneur to the next is key to this and therefore, it is important that

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MBB News member states implement actions that will decrease barriers on such transfers, and allow for the best practices to be shared across Europe. Malta, in fact, has worked incessantly to improve the environment for family businesses as these constitute a major portion of the enterprises in Malta, and has created the first known legislation to support business transfers specifically for family businesses.

This conference, which saw the participation of specialist delegates from across Europe was addressed by the Prime Minister of Malta and the Minister for the Economy. Other keynote speakers included the Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, and several MEPs.

Malta as well as the organisation’s involvement with EU funding and the implementation of EU projects in Malta. He also spoke about other national schemes and financial engineered instruments specifically created to help start-ups and SMEs raise financing for their entrepreneurial and commercial activities.

The two-day conference was also addressed by officials from the European Investment Fund, the European Bank for Reconstruction and Development, the Austrian Federal Chamber, and Croatian Chamber of Commerce. Delegates from Chambers of Commerce of Serbia, Bosnia and Herzegovina, Montenegro, Macedonia, Albania and Kosovo participated in the workshop.

See page 22 for more information.

7th April MBB Investing in Energy Project Manager moderates MT Presidency workshop Against the background of the Paris Agreement on climate change which entered into force on 4th November 2016, the joint meeting of the Chairpersons of Economic and Environmental Committees brought together chairpersons from the relevant parliamentary committees and representatives of European and international institutions to discuss the role of national parliaments in promoting the exploitation of the economic opportunities of climate change.

The meeting explored both the economic and social impact of climate change and the costs of doing nothing, as well as how to finance the cost of taking action and the opportunity that climate change presents for non-state actors.

27th-28th March VISIT TO EIB AND LUXINNOVATION MBB CEO Joe Tanti together with Senior Official at the European Commission Representation Office Malta, Ivan Ebejer, visited the European Investment Bank (EIB) advisory hub to explore ways to increase the take up of EFSI funding within the Maltese private sector. The European Commission Representation Office in Malta is supporting MBB on this initiative.

Mr Tanti and Mr Ebejer also had the opportunity to meet with Luxinnovation and learn more about the agency’s innovation services for SME support and growth. During the best practice visit, a thorough explanation of Luxinnovation’s services by the Head of International Affairs, the Director of Start-up support and SME performance and the Advisor for SME Performance, was delivered. Luxinnovation offers an integrated, personalised and free service offering, based on a sectoral approach, for companies of all sizes, innovative start-ups and researchers in public bodies.

The meeting also provided an opportunity to kick off the start of a fruitful partnership recently embarked upon through the H2020 Design Shots Project in collaboration with project leaders KEPA in Greece. Luxinnovation, the national agency for the promotion of innovation and research, is the umbrella agency for the Ministry of Economy, the Ministry of Higher Education and Research, Chamber of Commerce, Chamber of Crafts and Fedil – Business Federation Luxembourg. The agency is also a partner of the Enterprise Europe Network, a service also offered by MBB.

28th March EU Affairs Manager addresses Access to Finance conference in Podgorica, Montenegro MBB EU Affairs Manager Daniel Debono was invited by the European Commission’s TAIEX programme to address a Regional Workshop on support to the Western Balkan Chamber Investment Forum in the field of Access to Finance. Mr Debono interacted with the participants from Western Balkan Chambers and discussed the Malta Business Bureau’s experience in creating a public private partnership model to introduce crowdfunding in

MBB Investing in Energy Project Manager Geoffrey Saliba was invited to moderate the fourth session of the event entitled ‘Financing the cost of taking action – climate change as an exciting opportunity for non-state actors’. The session also welcomed speakers David Xuereb, CEO QP Management, and Ernest Agius, COO BOV to address the audience.

7th April MBB and University collaborate on educational visit to ICT start-ups and ZAAR Crowdfunding As part of the collaboration under the EU funded Go&Learn project, MBB and Malta University Consulting (MUC) organised an event open to University students. The event was held at TAKEOFF Business Incubator at the University of Malta. Participating students were given the opportunity to attend short presentations from founding members and managing directors of three successful local ICT start-ups – Mighty Box, Flatnumber and Trilith. ZAAR, Malta’s first and only crowdfunding platform, also delivered a presentation. The short addresses focused on operational and financial challenges faced by start-ups as well as industry critical success factors.

The objective of the Go&Learn Project is to bring academia closer to the business sector. On a local level MBB and MUC are giving priority to companies and students linked to Science, Technology, Engineering and Math (STEM).

Testing Design Support Programmes for SMEs KEPA, Luxinnovation and MBB launch H2020 project.

Design for Europe (DfE) partners KEPA (Business and Cultural Development Centre) and Luxinnovation, together with MBB, DfE Ambassador in Malta, have just launched a new Horizon 2020 project. The DesignShots project activities will focus on peer-learning exercises whereby the partners will review existing design-driven innovation programmes and also analyse the pros and cons as well as relevance and potential applicability in the project partner countries: Greece, Luxembourg and Malta. The project will focus on the use and uptake of design by business, particularly SMEs. Together, the partners will explore how innovation agencies and intermediary business organisations like the MBB can better support businesses to integrate design in their innovation processes.

The DesignShots concept is to tackle the challenges that European SMEs face to integrate design-driven innovation and become more resilient. Therefore, possibilities of using different support opportunities depending on the level of the design maturity of the company for competitiveness and growth, will be explored. To this end, the project consortium will use some of the already existing tools, available on the Design for Europe resource repository to diagnose the level of design used by SMEs. More importantly, the project will test this new DesignShots service, which will come about as a result of the various peer-learning exercises over the one year period. The tests will be run through a pilot together with five chosen SMEs in each country. The DesignShots service will entail a one-hour diagnosis for each company regarding the design need of the enterprise.

DesignShots will give KEPA, Luxinnovation and MBB the opportunity to further capitalise on the momentum gained through Design for Europe (see Capturing the Impact of Design for Europe by Dr Anna Whicher, Head of Design Policy, PDR Wales on www.designforeurope.eu). Through the Design for Europe project, new foundations for cooperation have been forged. This has created a solid foundation for the partners to continue supporting design-driven innovation among not just the private but also the public sector in their respective regions. The final output of the project will be a ‘Design Options Guide’ that will provide important tips and recommendations to other business support centres when putting in place new or improving existing design services.

This project has received funding from the European Union’s Horizon 2020 research and innovation programme.

For more information about this project contact Ana Vella on E: avella@mbb.org.mt

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de Valette’s dagger explored in Heritage Malta’s exhibition de Valette’s dagger is in Malta for the first time since 1798.

As part of the events marking Malta’s 2017 EU Presidency, Heritage Malta is hosting the exhibition, ‘de Valette’s dagger’ at the National Museum of Archaeology. This prestigious artefact is on loan from the Louvre Museum, Paris.

This much-awaited exhibition is another hallmark in the series of high standard exhibitions organised by Heritage Malta.

The exhibition explores different aspects of the dagger and the sword which were given as a gift to Grand Master Jean Parisot de Valette after the victory in the Great Siege.

The exhibition is divided in three sections.

The first part explains why these two weapons were presented to de Valette after the Great Siege. It also queries the direct relationship between the Order and the French, especially with General Napoleon Bonaparte, who kept the dagger to himself till his death.

The second part of the exhibition focuses solely on the dagger. Visitors also have the opportunity to appreciate a 3D model of the sword, exhibited in mid-air in the same room with the dagger. The sword is projected in its proper dimensions and is virtually rotated along its longest axis to show all its details.

In the last part of the exhibition visitors can read general information about the dagger and the sword, focusing mainly on Malta’s ties to these two ceremonial weapons.

A select number of other related exhibits from the national collection are also featuring in this exhibition.

A fully illustrated catalogue has also been published to accompany the display. ‘de Valette’s dagger’ will remain open at the National Museum of Archaeology every day till 9th July 2017. The opening hours are from 9am till 6pm, last admission is at 5.30pm. The admission is included in the museum’s regular ticket price.

More information about Heritage Malta’s activities can be obtained from www.heritagemalta.org

Photos: Heritage Malta

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Case Study Photos: Inigo Taylor

Staying ahead of the curve As one of the leading companies offering and implementing SAP products on the islands, DataTech’s CEO Paul Baldacchino knows a thing or two about the challenges of a company’s start-up phase, growing its list of services and beating the competition. He speaks to Martina Said about the achievements and prospects of DataTech Consulting Ltd.

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ince its early days as an IT risk consultancy firm, established in 2003, DataTech Consulting Ltd has come a long way. The company began providing on-boarding services to IT gaming companies looking to set up shop in Malta, and over a bit more than a decade, it has evolved its services profile, entering the IT solutions sector and offering ERP (Enterprise Resource Planning) implementations.

CEO at DataTech, Paul Baldacchino, says the company’s breakthrough came in 2012, when it won a major contract in Libya, and hasn’t stopped expanding since, specialising in the provision and implementation of SAP products and IT integration. The company is also a member of DataTech International, a global firm with offices in eight countries that offers services across three continents.

“SAP is a German software company based in Waldorf, a global leader in business software. Well known for its ERP software products in the 80s and 90s, today, SAP is leading in the provision of business applications, analytics software products, Cloud and mobile technology, with over 258,000 clients on its flagship SAP ERP (previously known as R/3) product and 24 vertical industry solutions. With over a billion users worldwide, SAP remains the number one business software choice for many businesses.”

Mr Baldacchino adds that, during DataTech’s start-up phase, the aim was to understand the company’s strengths and weaknesses, and subsequently capitalise on what it was good at. “This is exactly what DataTech did. 2012 was the eye opener for us, and since then, we have continued to provide a broader spectrum of services, while recognising our strengths and reputation as a SAP implementer.

Today, we specialise in a broad range of SAP products and services, and have also developed our own integration services to complement them.”

Proof of this is the range of sectors that DataTech operates in. “As an ERP implementer, you have the choice of either specialising in one industry or working as a general implementa-

tion company,” says Mr Baldacchino.

“The challenge is to secure on-board expertise in industry verticals as works evolve. SAP revolutionised the freelance contracting sector like no other company.”

He goes on to explain the various ways that SAP implementation may work.

“Teams for SAP implementation vary in numbers, depending on the client.

Work for one client may be completed with one consultant only for instance, and typical customers here are small businesses that require a straight-forward implementation known as ‘out of box’. Medium implementations vary in size and level of detail, and such projects may require the work of five to 10 consultants for out of box financials, materials and sales. Then, services for larger projects could require between 50 and 100 consultants.

“2012 was the eye opener for us, and since then, we have continued to provide a broader spectrum of services, while recognising our strengths and reputation as a SAP implementer.”

“Last year, DataTech implemented a SAP Business One (SAP B1) solution for a Government department – we assigned one person to the job and it took four days to install and operate. Around the same time, we implemented a project where we had 28 people from our company working with other consultant and client teams.

For many projects, you build teams according to the needs of the client – this not only provides added-value in the form of experience and knowledge transfer to your client and your own team, but it also balances the expense bill. DataTech has worked in several industries in this regard, and our portfolio includes FMCG (Fast-moving Consumer Goods), logistics and distribution, automotive, aerospace, oil and gas, utilities and financial sectors.”

Last year, the company witnessed a growing interest in its SME products, in line with the registered growth of Malta’s healthy economy, which led to discussions with several local SMEs and the subsequent securing of a num-

Paul Baldacchino, Chief Executive Officer

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Case Study “For the long term, our focus will be to expand our partnership network and create sustainable revenue growth from our current DataTech member firms in Europe, Middle East and Asia.”

Waylin Abdilla, Chief Operations Officer

ber of projects. “As for this year, we’ve developed a Maltese payroll system that integrates with SAP all-in-one platform, making it a great tool for international companies operating SAP HCM in Malta. Our SAP Hana business is also taking off, and we’re in the final stages of completing major SAP certification that will broaden our competence, expertise and recognition.”

“We believe we now have the experience and success stories to help us penetrate new markets and win larger projects.”

Mr Baldacchino’s vision for DataTech is clear – he wants the company to become the number one SAP partner, and a major player in the ERP market in both Malta and North Africa. “For the long term, our focus will be to expand our partnership network and create sustainable revenue growth from our current DataTech member firms in Europe, Middle East and Asia,” he adds.

“We believe we now have the experience and success stories to help us penetrate new markets and win larger projects. The next moves are very interesting – we’re looking to become more active in the integration and bespoke market, and entering the digital market is also on our to-do list.”

The fast-growing IT solutions sector is becoming increasingly competitive, and standing out among the competition requires a lot more than a list of major success stories. Mr Baldacchino says that DataTech has invested heavily in manpower and knowledge, which resulted in the acquisition of successful projects with some of the most complicated business setups imaginable.

“We have a very strong consulting team, with units dedicated to specific business areas. We follow quality processes very strictly to ensure that our

clients get what they paid for, and our staff is frequently exposed to new and upcoming technologies so that they’re well-equipped to face different challenges,” he explains.

“Our teams work on some of the most complex projects one can come across.

For instance, we are currently working with a client to consolidate the financials of over four large holding companies, as well as some companies under direct investment. We’re talking of over three billion US dollars in investment.

To be entrusted with such projects, you need to have reached a certain level of quality. We are also a very aggressive company in terms of ‘can do’ attitude.

We have taken on a few so-called ‘dead projects’, abandoned by other consulting firms for technical or logistical reasons, and brought them to life.”

Speaking of the main challenges and opportunities ahead, Mr Baldacchino asserts that SAP itself has presented DataTech with a big challenge. “For the last 40 years, SAP has developed and sold a product which is used by more than 258,000 clients worldwide. Now, SAP has come up with its next flagship product, which is based on Hana.

DataTech will be implementing its first

Hana-based ERP platform in Malta by the end of 2017, and our challenge here will be to train our consulting team on these new business products, in order for us to continue providing added-value to our current and future clients. DataTech is also embarking on some very exciting projects with its partners, which we hope to reveal in the coming months.” BA DataTech Consulting Ltd, Vaults 13-15, Valletta Waterfront. T: 2203 0000; E: info@datatech.com.mt; www.datatech.com.mt

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Society

A Tireless Mind President Emeritus Ugo Mifsud Bonnici has had a long and illustrious career in the public sphere. From his debut in the political scene as a young man in the 1960s through to his term in office as President of the Republic and beyond, he speaks to Sarah Micallef about his career, experiences and convictions.

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resident Emeritus Ugo Mifsud Bonnici comes from a distinguished family that has produced generations of politicians.

As he welcomes me into his stately family home in Cospicua – the one in which he was born and still resides – I mention reading somewhere that there has been at least one Mifsud Bonnici in the Maltese parliament ever since 1924. “My father was the first politician in the family, and I was the second,” he replies playfully, adding, “the others followed! That is, my two cousins, my son, and the daughter of one of my cousins.”

Well into his 80s, age seems to have had little effect on his sharpness and humour, and I proceed to take him back to the beginning. Did his father’s political career influence his own decision to go into politics? “I was born partially into politics,” he says, explaining that owing to his father, politics was very much in the house. However, despite there being an element of following in his father’s footsteps, Dr Mifsud Bonnici recalls a particular realisation – a realisation that “there were things to be done, which I could do.”

Elaborating on his primary motivations, he explains, “first of all, I thought that we should improve the level of education in this country. I saw that we had a very low participation rate in higher education, so I wanted to do something to change that. I was also feeling that the Nationalist Party was repeating itself and not looking towards a different future, so I thought I would contribute towards some innovation.”

Dr Ugo Mifsud Bonnici was first elected in 1966 as a Nationalist MP, after contesting the second district, known as a Labour stronghold. Was it tough?

“As a lawyer, I worked in this district, I knew the people and I knew what they needed most. I was very much aware of the social needs of the district and believed I would bring this knowledge into politics,” he affirms, adding that it

was not easy, but not extraordinarily difficult. “I was accepted as a person, but this does not mean that all my friends voted for me, or all of my clients for that matter,” he jokes.

He proceeded to make education one of his main missions, so I ask, what led him to dedicate himself to this cause?

“Firstly, I saw education as a noble thing, partly owing to my substitute grandfather, iz-ziju Guze Cordina, who I looked up to,” explaining that his father had lost his own father at a young age, and was brought up by his mother’s brother – a bachelor who dedicated his life to teaching. “I also saw what illiteracy prevailed in the country at that time, and realised that even secondary education was a rarity. Going back to 1966, very few people got into secondary schools, and the proportion between that and the general population was terribly low. To my mind as a younger man, I thought, how can we develop this country if we have such a small number of people with secondary education, let alone tertiary education?”

He was also a very nice man – I spent many long evenings with him, drinking whisky and discussing things.”

But while the party idolised him, the feeling among Dr Mifsud Bonnici and his peers was that Dr Borg Olivier had started to repeat himself. “We were

After his election in 1966, Dr Mifsud Bonnici immediately started moving on the idea of education for all. “I persuaded the then Minister, Dr Paulo Borg Olivier, that we should try to bring this about by changing certain things in schools. That’s where it began. During those first five years, secondary education for all was proclaimed to be a government policy.”

Dr Mifsud Bonnici went on to become one of the Nationalist Party’s leading figures in the 70s, and pushed for a reform of the party’s administrative set-up, leading to a number of changes to the party structure and eventually, a new leader: Eddie Fenech Adami. Looking back on this time, he explains that reforms started following the 1971 election loss, but it was a slow process. Referring to Dr Gorg Borg Olivier as a father figure in the party, he says, “he was almost a monument because he had negotiated for Independence.

“I saw education as a noble thing, partly owing to my substitute grandfather, iz-ziju Guze Cordina, who I looked up to”

Photos: Inigo Taylor

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Society much younger than he was, and I was not alone in this feeling. Thankfully, he knew that when I said certain things it was not because I had any animosity against him, or because of any self-interest.”

Apart from changes within the party structure, Dr Mifsud Bonnici also formed part of the Nationalist delegation (along with Dr Borg Olivier and Dr Fenech Adami) tasked with negotiating changes to the Constitution with the Mintoff government, which led to the adoption of a new Republican Constitution in 1974.

This was not to say that he ever abandoned his education mission. After being appointed Shadow Minister, Dr

“One of my first debates on television was against [Karmenu Mifsud Bonnici]. I still love him as my cousin, but I opposed his policies and those of Mr Mintoff at the time.”

Mifsud Bonnici began to criticise what was happening in the sector under the tenures of Agatha Barbara and Philip Muscat as successive Education Ministers. “Things had changed after the Labour government introduced trade schools – going into trade schools instead of secondary schools after just two years of secondary school reduced much of the benefit,” he explains. Another of his criticisms was directed at the policy reducing the University’s autonomy heralded by Mr Mintoff’s and then Dr Mifsud Bonnici’s own cousin Karmenu’s Government after he became Prime Minister and Labour Party leader in 1984.

What was that like, seeing that it was his cousin? “We were not and will never be enemies, but we did not agree,” Dr Mifsud Bonnici says. “In fact, one of my first debates on television was against him. I still love him as my cousin, but I opposed his policies and those of Mr Mintoff at the time.”

The 16 years he spent as Shadow Minister, leading up to the 1987 election, were busy, and ones in which Dr Mifsud Bonnici was in the thick of the fray, opposing a number of developments which he still considers “major blunders by the Labour government in the education sector”. These were also years in which political violence was very much a reality. The President Emeritus looks back on that time as “rough”, but counts himself lucky to have had few personal incidents. There were some brushes with violence, but mostly I was not involved and I was not the focus. There was an angry crowd waiting for me one time in Vittoriosa, and another time I was pelted with bottles in Birkirkara. Once or twice, people came banging on the windows at home,” he trails off, pointing to what I assumed was a decorative metal gate behind the window, adding with a smile, “why do you think I have that?”

When the Nationalist Party won the election in 1987, Dr Mifsud Bonnici became Minister of Education. One of the main challenges he faced was

restoring the University’s autonomy and making it accessible to a greater number of students. “After years of criticising what the Labour Government was doing, I had to perform,” he smiles.

“The seven years I was Minister were very hectic because I had to reform so many things. I had to change the setup within the Ministry itself, often working with people who had been under Labour for 16 years. I hope that I was successful in this,” he continues modestly, adding, “I think that many of them were convinced, during this time, that the policies I was introducing were beneficial for the country and not ideologically anti-working class – rather, they were in favour of the working class because I was trying to widen the availability of education.”

Among Dr Mifsud Bonnici’s major achievements during his tenure was the Education Act of 1988 – which still stands, with few amendments – and which paved the way for restoring order in the sector by giving teachers a professional status, ensuring the survival of church schools and essentially refounding the University of Malta. And while many may more readily recall his involvement when it came to secondary and tertiary education, Dr Mifsud Bonnici is also particularly proud of what he was able to achieve at kindergarten level – lowering kindergarten age from four to three, for all. “It gave a measure of equal opportunity to people who couldn’t pay for kindergarten in the private sector.”

Apart from education, Dr Mifsud Bonnici was also responsible for other portfolios, including environment, culture, youth, sport, and broadcasting.

“It was a busy seven years!” he laughs.

Meanwhile, a considerable burden he needed to shoulder were negotiations with the church regarding state subsidies to church schools and the acquisition of church property which was not needed for pastoral purposes so as to finance them. “This meant meeting the Papal Nuncio twice a week to see what property should be transferred, how much the Government should pay for it and in what way,” he explains.

Another in his list of notable achievements is restoring balance in state broadcasting via the Broadcasting Act of 1990, which ended the state monopoly. Speaking of this experience, Dr Mifsud Bonnici recalls that upon visiting the broadcasting house in Pieta for the first time, the then-head of broadcasting hid in the bathrooms so as not to meet him. “When I became Minister, we only had one broadcasting station, which was staffed by die-hard Labour supporters. They could not digest the fact that there was now a Nationalist government, so I had to try to change the mentality,” he recalls.

By the time Ċensu Tabone’s term as President of Malta was about to expire in 1994, Dr Mifsud Bonnici, who was still fighting the good fight as far as education was concerned, was approached to take over. He

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Society

“The seven years I was Minister were very hectic because I had to reform so many things. I had to change the setup within the [Education] Ministry itself, often working with people who had been under Labour for 16 years. I hope that I was successful in this.” made his thoughts on this very clear at the time, and reiterates them now. “I didn’t like it at all. I tried to combat it. I proposed another person to be appointed, but an agreement couldn’t be reached, so finally it was imposed upon me.”

But why was he so against it? “I was still young, and I still had things to do. I was in the process of setting up the Junior College for example, and was proposing extending secondary education from 16 to 18. It hasn’t been done, even after all these years. I wanted to stay to do it. I thought that Guido de Marco should become President before me, since he was older, but Dr Fenech Adami needed him for the negotiations with Europe, and insisted that I should become President, so I did.”

An eventful presidency was to follow, despite not being as operative as Dr Mifsud Bonnici had hoped. “After two years, in 1996, there was a new Prime Minister – I had to receive Fenech Adami’s resignation and appoint Alfred Sant,” he recalls, affirming that working with Dr Sant was not at all unpleasant, referring to him as intelligent and “a man of culture”. Shortly afterwards however, Dr Sant called an early election, which the Nationalist Party won

– an unusual situation for a President to deal with, but one Dr Mifsud Bonnici says was handled relatively smoothly.

His main concern was security, he explains. “Because the situation had to do with Mr Mintoff’s involvement, I thought that Labour supporters might turn against him, so I had to see that there was proper security in the country at large, but also personally on Mr Mintoff and his house. Unfortunately, what happened was that they profaned his wife’s grave – I hadn’t thought of that – it was a barbarous act.”

While all of this was happening, Dr Mifsud Bonnici experienced another layer of complication when he was diagnosed with colon cancer and had to undergo a serious operation. “This was when Mr Mintoff was not agreeing with Dr Sant, so it was a very bad time. The acting President was Dr Jimmy Farrugia, and he came to my hospital bed two days after I was operated on. He said, I think we’re going to have a crisis.

Dr Sant came to see me also, to tell me that he might have to ask me to hold an election,” he says, adding with a smile, “it became rather incongruous in St Luke’s, with so many people coming and going, so I was taken to San Anton

and continued to listen to the debate.

At one point, Dr Sant came to tell me he couldn’t continue, and I agreed to have an election.”

Never one to rest on his laurels, life post-Presidency has been busy for Dr Mifsud Bonnici, who served in the Venice Commission of the Council of Europe for 11 years, has given lectures on human rights and comparative law at the University of Malta and the International Maritime Law Institute, and written a number of books relating to the law of education, comparative law and cultural heritage law, as well as his own autobiography, released in 2015.

In his free time, the President Emeritus counts reading, writing and listening to records among his hobbies, as well as walking and travelling. But what is really occupying his time of late is transcribing notes by former professors on subjects ranging from civil law to forensic medicine, which are being published by the University. “We are actually working on one about the philosophy of law at the moment, and you’re interrupting!” he jokes, as the interview comes to a close – a tireless mind indeed. BA

“I thought that Guido de Marco should become President before me, since he was older, but Dr Fenech Adami needed him for the negotiations with Europe, and insisted that I should become President, so I did.”

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Business Update Transforming Eye Care

Five Years of BOV Investment Centres as they arise. Customers appreciate the privacy, muted atmosphere and the personal attention provided by the respective Financial Advisor.

The bank’s network of six Investment Centres across Malta and Gozo was set up to bridge the gap between the investment services offered at branches and the bank’s Wealth Management arm. From inception, the bank has looked upon the BOV Investment Centres as regional ‘centres of expertise’. The bank’s investment in these centres and the people deployed in them was consistent, and in line with the bank’s vision to provide tailored customer-driven service.

Five years after the opening of the first BOV Investment Centre, customers express high satisfaction with the service delivered as well as the working relationship built with their Financial Advisors.

Customer feedback is collated regarding different aspects of the service, including ease of access, professionalism of employees and timeliness of service. In this manner, Executive Management is able to address any issues

Strategically located across Malta and Gozo, the BOV Investment Centres are manned by highly qualified Financial Advisors who are licensed by the MFSA. The teams assist customers with the management of their investments, offering tailored financial advice built on thorough knowledge of the individual customer’s circumstances and financial objectives. By working closely with a nucleus of satellite branches, BOV Investment Centres provide an ideal blend of specialisation and convenience. The customer retains the working relationship with his preferred branch, with the added value of specialised professionals who monitor the investments according to the customer’s risk profile.

Anyone interested in discussing investment options offered by Bank of Valletta is invited to contact the bank’s Customer Service Centre on 2131 2020. Alternatively, they may contact the Branch or Investment Centre of their choice. Bank of Valletta’s Investment Centres are found at Bir-id-Deheb, Birkirkara, Gzira, Qormi, Valletta and Victoria-Gozo.

Bank of Valletta p.l.c. is a public limited company licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta). Registered Office: 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130-Malta Registration Number: C 2833

Since soft contact lenses were first introduced, there have been numerous incremental changes to materials to improve water retention and wearer comfort as well as the eye’s health. Alcon have now introduced a ground breaking contact lens DAILIES TOTAL1® which is the world’s first and only water gradient contact lens. Through its designed surface of over 80 per cent water content, nearly the same as the surface of your eye, DAILIES TOTAL1® produces superior lubricity which results in outstanding wearer comfort till end of day. Its innovative design features a unique water gradient, six times more breathable than any of the daily disposable contact lenses on the market, thus providing white, healthy-looking eyes.

DAILIES TOTAL1® addresses one of the major stumbling blocks that 50 per cent of contact lens wearers face, which is that contact lenses induce end-of-day dryness symptoms. This results in poor comfort for the last two to three hours which occurs in some 20-25 per cent of all patients who commence lens wear. In a clinical study with 104 subjects, cumulative comfort scores were superior for DAILIES TOTAL1® contact lenses in comparison with other silicone hydrogel daily disposable lenses. In a group of 53 symptomatic subjects, 100 per cent of them could wear DAILIES TOTAL1® contact lenses for at least eight hours and 85 per cent were able to wear them up to 12 hours. In comparison to their other lenses, the majority of the subjects were able to wear DAILIES TOTAL1® contact lenses for clinically significant longer periods of time and said they did not feel anything at all. Based on their clients’ feedback eye care professionals

rated DAILIES TOTAL1® contact lenses highest in overall performance.

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Lehmann Why Sudden Cardiac Peter – a legend in South Australia’s Arrest is so deadly Barossa zone Sudden cardiac arrest (SCA) is the most common cause of death from heart disease, accounting for more than 63 per cent of all cardiac deaths. In SCA, the heart suddenly stops beating normally.

Without a blood supply, oxygen-starved organs are irreversibly damaged and will quickly fail... within a few minutes.

The only effective treatment for SCA is defibrillation. External defibrillation provides a brief, effective therapeutic electric shock through the person’s chest to the heart, restoring the heart’s normal rhythm. While people with heart problems are at high risk of death from SCA, it can strike anyone, anywhere, at any time without warning and in some cases is the victim’s only symptom. Even young people, people who appear to be healthy, extremely fit athletes and people with no history of heart problems can be victims of this silent killer.

The definitive survival treatment for a SCA victim is a defibrillation shock. Cardio Pulmonary Resuscitation (CPR) or ‘chest compressions’ and ‘mouth-to-mouth’ breaths, only temporarily circulate blood to vital organs and on their own do not restore a patient’s heart into a healthy rhythm – a shock is needed… and fast!

The average national response time for the arrival of emergency personnel equipped with defibrillators is usually greater than 10-15 minutes – this is just too late! That is why immediate access to defibrillators on-site is extremely important. ■ Each minute of delay in delivering a defibrillation shock to a Cardiac Arrest victim reduces the chances of survival by 10 per cent – meaning that, if a casualty is not shocked within five min-

utes of collapse, he/she will have less than 50 per cent chance of survival!

When a sudden cardiac arrest strikes, the first few minutes are critical to survival. In the chaos and confusion surrounding the event, it can be challenging for the average rescuer, with only minimal training in CPR and AED use, to remember and follow the correct procedures. It’s during these critical minutes that the Powerheart AED G5 becomes priceless.

For further details, contact Technoline Ltd on T: 2134 4345.

The Barossa Zone in South Australia is world-renowned. It is by far the most famous wine region in Australia, producing top-quality wines from vines up to 150 years old which yield less fruit, but fruit of perfect phenolic and physiological ripeness.

This region has a strong Germanic influence due to 19th-century immigrants, which is still evident today in some town and family names, and also in significant plantings of the Riesling grape variety in Eden Valley (part of the Barossa Zone). In the Barossa Valley, however, Shiraz is the almighty ruler, and has built a strong reputation for producing big, concentrated, fruit-forward wines, ranging from great value-for-money wines to world-class reds worth tucking away in your cellar.

Peter Lehmann is regarded as a legend in the Barossa Zone and is arguably the most famous man in the Australian wine industry. His story is one of loyalty, bravery and commitment to independent wine growers of the Barossa. The Peter Lehmann brand was actually established in order to ‘save’ the growers, when the company that Peter worked for refused to purchase grapes from its contracted growers. Peter’s solution was to buy the grapes himself, with the original plan being to process the fruit and sell it off as bulk wine, but with an oversupply of bulk wine on the market at the time, they soon had to start bottling themselves, and so the Peter Lehmann brand was created. Till this day, the winery relies greatly on 140 growers in the Barossa, who understand that they are not simply growing grapes but making wine, hence adhering to strict quality standards, which translates into the great wines of Peter Lehmann that we know and love.

Of its many different labels and varieties, two must-try wines are: Layers Red, Barossa Valley 2014 The multi-layered character immediately answers any questions about its name. It is made from four grape varieties, with 75 per cent being Shiraz, supported by Mourvedre, Tempranillo and Grenache, offering the drinker a complex array of flavours and aromas at an incredible price.

8 songs Shiraz, Barossa Valley 2011 This is a pick of a high-end Barossa Shiraz without breaking the bank. The fruit is sourced from very low-yielding, old vines. This wine is inky black upon appearance, has ridiculously intense aromas of ripe blackberries, black plum, vanilla and subtle hints of chocolate and black pepper. Open one or two hours before and decant.

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EU Policy

Addressing

Business Insolvency

For the first time ever, the European Commission is presenting a set of rules to help prevent business insolvency and to provide honest entrepreneurs a second chance. Jo Caruana asks the experts how this could help reduce the number of 200,000 businesses that go bankrupt in the EU every year and how others could have a second chance at success.

O

ver 1.7 million people across the EU lose their jobs annually because the companies they work for go bankrupt.

This, of course, has huge repercussions across the entire region both on corporate and personal levels.

to bankruptcy, bringing more legal certainty for cross-border investors, turning bad debt into performing credit to facilitate lending, allowing honest entrepreneurs to restart business activities, keeping innovation going and, finally, creating an estimated additional three million jobs across the EU.

It is thus timely that the EU Commission has submitted a proposal to the member states’ governments and the European Parliament for a directive on preventive restructuring procedures, second chances and measures aimed at increasing the efficiency of insolvency procedures.

It is an exciting development, and one that is expected to have numerous key benefits should its implementation prove successful – including cutting down on the number of jobs lost due

Andreas Stein

“The main aim of this proposal is to contribute to the establishment of a Capital Markets Union, which would remove the obstacles standing in the way of foreign investment,” explains Andreas Stein, the head of the Civil Justice Policy Unit at the European Commission’s Directorate General for Justice and Consumers, responsible for this proposal. “Aligning the procedures available to parties to restructure a debtor’s business before it becomes insolvent will bring more legal certainty to such investors and will make the EU more attractive to foreign investors.

The availability of such procedures will help to turn companies facing financial difficulties around; currently they still end up in liquidation too, often even where they have a clear prospect for return to viability.”

The proposal also aims to give honest entrepreneurs an effective second chance after a first failure. “Our European single market needs to encourage entrepreneurship and innovation, and this cannot be done unless we change our attitude to failure,” continues Mr Stein. “Then, finally, the proposed measures will contribute towards preventing the accumulation of non-performing loans and will make

our economies more resilient to economic shocks.”

In June this year, the revised Insolvency Regulation – which harmonises the rules on jurisdiction, applicable law and recognition in cross-border situations for a wide range of insolvency proceedings – will enter into application across the EU. This new proposal for a directive complements that regulation

“This directive will bring more legal certainty to investors and will make the EU more attractive to foreign investors.”

Andreas Stein

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EU Policy by harmonising the substantive rules in the areas of preventive restructuring procedures and second chance.

“The proposal contains three clear sets of measures,” Mr Stein says, delving into further detail. “First, the proposal will give companies in financial difficulty, wherever they’re located in the EU, the chance to restructure at an early stage on the basis of a restructuring plan negotiated with creditors, and thus avoid insolvency which leads to an immediate sharp loss in the value of a company.”

The debtor then remains in control of his assets and affairs, which ensures minimum disruption of the operation of the business and can benefit from a court-ordered, temporary stay of enforcement actions – a ‘breathing space’ to facilitate negotiations with creditors. “Creditors’ interests are protected by means of a limited stay period and by the possibility of requesting that the stay be lifted,” Mr Stein says.

So, to ensure that creditors’ rights are properly reflected in the adoption of restructuring plans, they shall be treated in different classes reflecting their interests: as a minimum, secured creditors should be treated separately from unsecured creditors. In fact, a court confirmation will be necessary in certain well-defined circumstances, where there are dissenting creditors or where the plan provides for new financing.

“New financing provided in the implementation of a restructuring plan and interim financing during the negotiation of a restructuring plan will be protected from avoidance actions in subsequent insolvency procedures,” Mr Stein continues.

Then, as a second benefit, the proposal will give honest entrepreneurs a second chance by means of a discharge of debts after a maximum of three years following a first failure. “Member states will be able to put in place exemptions from this rule, to avoid abuses.

Disqualification orders should also be dis-applied after a similar period of time, provided the entrepreneurs act in good faith,” he says. “And, finally, the proposal will put in place more efficient restructuring, insolvency and second chance procedures, to ensure a swifter handling of such cases and to increase the overall recovery rates.

“Beyond that, the proposal harmonises minimum rules on training and specialisation of the judiciary, and on the training, appointment, supervision and remuneration of insolvency practitioners. It also introduces distance means of communication in court procedures, which will reduce the length of procedures and facilitate the higher participation of smaller and cross-border creditors for whom the costs of pursuing their claims are disproportionate,” Mr Stein adds.

Pedro Oliveira Speaking about how this directive could help a large range of businesses, Pedro Oliveira, senior advisor at

“We welcome the fact that the Commission proposal extends outside procedural law by focusing on the specialisation of courts and judges dealing with insolvency as well as promoting digitalisation in this area.”

Pedro Oliveira

The Council of the EU’s stance This proposal is seen as an important development by the Maltese Presidency. Early restructuring helps saves jobs, thus achieving lower unemployment rates. Second chances help trade and investment, which ultimately results in a healthier economy.

A business facing – or likely to face – financial difficulties needs to seriously consider its options and restructure, if possible at an early stage, in order to survive. Comprehensive national pre-insolvency and insolvency frameworks that support businesses during difficult times, with well-trained practitioners, as well as a specialised judiciary, need to be in place. At EU level, other issues come into play and, without going into the detail of the developments which led to this proposal, the conclusions of the European Commission on its recommendation of 12th March 2014 on restructuring and second chance, clearly indicate that this instrument had failed to achieve the necessary results in terms of the sufficient harmonisation of national insolvency regimes. This stems from the fact that member states take different approaches to rescue viable businesses. Such frameworks may be successful at national level, but differences among different national regimes create barriers to cross-border trade and when it comes to the creation of jobs within the single market.

This proposal is the first of its kind in the field of insolvency, in that it is the first instrument which deals with substantive law at EU – but also national – level. In broad terms, the proposal seeks to address certain important areas within this unfortunate phase of a company’s existence. The European Commission is confident that this directive would address certain areas of difficulty: - It would help companies identify a deteriorating business through early triggers, allowing them to restructure at an early stage through the implementation of a restructuring plan. Early warning could come in the form of a flag by accountants, tax and social security authorities.

- In worst-case scenarios, honest entrepreneurs will have access to efficient insolvency national frameworks, with

the possibility of a full discharge of their debts within a maximum period of three years following liquidation, and subject to certain requirements.

- Workers will directly benefit whenever jobs are saved, but also through the protection of existing EU labour legislation. They will have the possibility of enforcement of their wage claims notwithstanding any stay of proceedings, and this whenever their claims are not guaranteed through other measures by the member states.

- Creditors in general are also set to benefit through involvement in the procedures and plans, and hopefully through better recovery rates in cases of early detection, but also through the ‘no creditor worse off’ principle.

- All parties may benefit from an increase in the efficiency of restructuring, insolvency and second chance through interaction with trained practitioners and members of administrative authorities, and specialised judges.

The Maltese Presidency’s general objective with regards to the proposal is to achieve good progress and create a constructive environment for efficient negotiations in the working party meetings, and by scheduling a good number of working meetings in order to be able to make progress in the discussions of the proposal.

Our political objective is to hold a policy debate during the June Justice and Home Affairs Council Meeting, depending on the progress achieved on this file. It is acknowledged that we are still at an early stage of the discussions. However, we note that the objectives of the proposal were welcomed by member states. As the saying goes, the devil is in the detail, and it is here that we have to work to ensure that we achieve a good instrument which strikes an appropriate balance between the parties concerned. This needs to allow enough flexibility in order to not interfere extensively with well working national frameworks. This proposal is also of high interest to different sectors, such as the financial and banking sectors, which will closely follow the developments of this proposal.

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EU Policy BusinessEurope, says he is positive about the results it could have – especially in light of the unfortunate reality that half of the businesses in the EU do not survive the first five years. “This has an undeniable impact on growth and jobs,” he says. “Healthy companies, on the other hand, can also be impacted with surveys showing that one in six

“It is advisable that a quantitative threshold of paid debt is introduced as a minimum measure before discharge.”

Wayne Pisani

bounce back. “This is a settled practice in some member states and certainly in other parts of the world, like in the US with its famous Chapter 11,” he says.

Wayne Pisani insolvencies triggers other insolvencies. Then there’s the stigma linked to failure. Recent surveys show that 47 per cent of people are reluctant to do business with someone who previously went bankrupt. Of course, this proposal is just one among different measures needed to fight this stigma, but it is definitely a missing piece.”

Mr Oliviera also explains that, although insolvency is commonly seen as a synonym of liquidation, it does not always imply the end of the road. In fact, companies facing difficulties should be able to rely on pre-insolvency tools in the form of early warning systems and restructuring procedures to help them

“But beyond that we welcome the fact that the Commission proposal extends outside procedural law by focusing on the specialisation of courts and judges dealing with insolvency as well as promoting digitalisation in this area. Of course, because this is a complex area, deeply-rooted in national legal systems, it raises numerous challenges in terms of defining the right level of detail and safeguards against abuses.”

When it comes to the question of whether debtors remain in full control of operations during re-structuring phases, BusinessEurope generally agrees. “The debtor is normally best placed to make sure the business activity runs smoothly, which is a condition to successfully recover a company,” he says. “Nevertheless, this prerogative of the debtor must not be absolute. There should be an underpinning obligation to run the business in the best interest of the restructuring plan whilst safeguarding the interests of the creditors.

Some limitations to this full-control should also be considered. This could be achieved, for example, by requiring some form of oversight of the management by officially-appointed administrators (or insolvency practitioners) in cases that would ensure that creditors are well-informed and fairly treated throughout a transparent restructuring process.”

As for BusinessEurope’s suggestions on what could make the proposal better, a few points do come to mind. “We have recommended that it provides member states with some flexibility on the provisions on stay (moratorium), and that there should be additional conditions for the discharge of debtors.

We also suggested the introduction of check-points or oversight to avoid restructuring drags indefinitely, and highlighted the importance of clarifying that this proposal should be without prejudice to other existing recovery procedures of diverse nature (such as those of a contractual nature) which can be found in member states.”

When it comes to the changes that the Maltese insolvency regime can expect to make in the context of the original Commission proposal, Dr Wayne

Pisani, partner at Grant Thornton Malta, explains that the ramifications of the proposal go beyond the rules regulating insolvency in terms of the Companies Act and the Commercial Code.

“They will have civil and procedural law implications, particularly in so far as creditor rights are concerned within the ambit of the proposed stay of proceedings, and possibly precautionary warrants,” he says. “Furthermore, and depending on the final approved text of the proposal, employment regulations may also need to be aligned with the proposed EU Insolvency Framework.”

As for the proposed three-year discharge period and whether it should be tied to other conditions, Dr Pisani believes the proposal has already provided for extensive limitations and exclusions in case of dishonest behaviour or bad faith and abusive or recurrent use of discharge. “Neverthe-

less, it is advisable that a quantitative threshold of paid debt is introduced as a minimum measure before discharge, or alternatively provides for a percentage of discharged losses to be carried forward as a liability by the said entrepreneur to an eventual profitable enterprise (if any).”

All in all, it seems that – across the board – this proposal should achieve consistency among member states but, more crucially, will be a viable early warning procedure with concrete business recovery mechanisms. “This will help to ensure that any elements of a business which are salvageable would be commercialised in the interests of both the debtor business owners as well as the creditors, backed by an adequate cross-border anti-abuse enforcement mechanism,” Dr Pisani concludes. BA

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