MBB Annual Report 2012

Annual Report 2012

Contents 1 Foreword from the President > page 2

2 Introduction by the CEO > page 4

3 Policy Overview and EU Funded Projects > page 6

4 MBB Events and Participation in International Conferences > page 14

5 Board Members and Executive Team > page 30

Foreword from the President

1 Foreword from the President

It is my pleasure to present the first Annual Report of my presidency. In recent years I had followed closely MBB’s activities and consider it a privilege to be given an opportunity to share my ideas and experience in steering this organisation forward.

Following last year’s commemorations of its 15th anniversary, the MBB has sought to build on its strong foundations and continue to improve its relevance to business. This publication provides a short summary of the work carried out by the MBB throughout the past year. The Bureau’s role today is indeed different from the one it was originally set up for in 1996. While the organisation was founded with the purpose of assisting Maltese businesses prepare for EU membership, the experience acquired in past years has equipped the Bureau with the expertise required to guide local firms in making the best of EU opportunities.

In this respect it is the Bureau’s aim to become a more effective lobby organisation at EU-level. To this end we are focusing our efforts on obtaining the skills needed in order to achieve this goal. In fact over the past year our team was internally re-structured to focus its work on three pillars: Business Competitiveness, Employment and Environment Sustainability.

We believe that these key areas are essential for the future stability of our businesses and the economy. Specific actions from the European Commission’s work programme for 2013 have been identified and will serve as the basis for the MBB’s work in the coming months.

It is our intention to work closely with various stakeholders from different sectors in a combined effort to safeguard Maltese business with EU officials that are the ultimate policy makers.

For instance, as a case in point, we are following developments on the Revision of the Insurance Mediation. With the support and expertise of insurance leaders in Malta, we will be presenting our case to the rapporteur who is drafting a report for the European Parliament, and to Government, which will take a position at the Council of Ministers.

conducted a number of focus group sessions, which included the participation of key Maltese SMEs and micro-enterprises, to share their experiences and challenges of being part of the Single Market since Malta’s EU accession.

This exercise served as a basis for the MBB to draw up a number of recommendations on how the Single Market can work more effectively. These were presented to the Prime Minister and to the Leader of the Opposition. We are also proud of the opportunity we were given to present the findings of this report officially to the European Commission Vice-President responsible for Internal Market and Services, Michel Barnier earlier this year.

Throughout 2012 I was pleased to note the progress in the implementation of MBB-led EU-funded projects. We believe that this is one of the best ways of disseminating information on EU-related issues, as well as of promoting EU opportunities with local businesses. A detailed section in this report highlights the progress achieved so far in the EU LIFE+ Investing in Water and the Leonardo Mobility SHIFT Projects.

Looking ahead, I reiterate the MBB’s commitment to continue monitoring the developments in EU legislation and continue to support our businesses in tapping into opportunities offered by the European Single Market.

In conclusion, I would like to thank the members on the Board, for their support and sterling advice on steering this organisation forward. My sincere thanks also go to the executive team, led by CEO Joe Tanti, which supports the local business community by implementing the vision and strategy as set by the Board.

The MBB has a reputation for the organisation of high profile conferences, bringing together entrepreneurs and policy makers to debate and understand what could be improved in the local business environment. And this year I was particularly pleased with an international conference that brought local entrepreneurs, policy advisors from the European Commission and business advisors from North Africa together. This created an important platform for discussion on the business opportunities that exist in the south Mediterranean following the Arab Spring.

This year, I was also pleased to note that the MBB introduced a very effective way of consulting local businesses. Consultation is crucial for an organisation like ours because it serves as a basis for the formulation of recommendations on a number of policy issues which are of interest to Malta and its business community. In fact, while commemorating the 20th anniversary since the inception of the European Single Market, the MBB

George Vella PRESIDENT Malta Business Bureau

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Introduction by the CEO

2 Introduction by the CEO

2012 marked another important and fruitful year for the Malta Business Bureau. Yet again the MBB continued to grow and earn wider respect from politicians, social partners and civil society.

During these challenging economic times, now more than ever, the MBB is seeking to work hand in hand with all partners that have goodwill and the interest of Maltese businesses at heart. We pride ourselves on being of service to the local business community; in particular to the members of our parent organisations – the Malta Chamber of Commerce, Enterprise and Industry and the Malta Hotels and Restaurants Association.

The MBB’s role is to serve as the voice of Maltese business in the EU. Following Malta’s accession eight years ago, we believe that Maltese enterprises can exploit better the opportunities offered by EU membership. For instance, we would like to see more companies tapping into the European Single Market.

This is the largest global trading market, which caters for 500 million consumers, and therefore we encourage our businesses to regard it as an opportunity, not a threat. In this respect, throughout this year the MBB has kept its members abreast with information on ongoing developments on EU policies and legislation related to the Single Market.

In addition to the provision of information, in the last few years the Bureau has sought other means of supporting the Maltese business community. Our participation in EU-funded projects extended the services offered to local businesses and to the Maltese economy in general. During the year under review the MBB continued with the implementation of two important projects: namely ‘SHIFT’, which promotes flexible work arrangements and family-friendly measures in the private sector – and the EU LIFE+ Investing in Water project, aimed to help the local business community reduce the consumption of service water by 10 per cent by March 2014. It is our aim that with the support given through these projects Maltese enterprises become more competitive and sustainable, in order to be in a better position to face current economic challenges.

Furthermore, we believe that a healthy SME base can eventually contribute towards a stronger economy. Another important motive underpinning these projects is that of continuously supporting the Maltese Government in achieving the targets as set by the Europe 2020 Strategy.

I also thank his predecessor, John A Huber, whom I had the pleasure of working with for the previous two years. A special recognition goes to all members of the Board of Trustees, to the Director General of the Malta Chamber and the Chief Executive Officer of MHRA, whose support ensures the continuity that the Bureau requires to continue serving the Maltese business community.

I would also like to acknowledge the hard work carried out by our Permanent Delegate in Brussels and the Executive team at the Head Office in Malta. Thank you Omar, Mariella, Daniel, Geoffrey and Mark, for your loyalty and determination in helping the MBB become a stronger organisation. A special recognition also goes to all University students who have undergone a traineeship throughout this year at our Malta and Brussels offices. Their valuable contribution has also helped the team in the successful implementation of our projects.

Finally, on behalf of the MBB I would also like to thank Martin Bugelli, Head of the European Commission Representation, as well as Dr Peter Agius, Head of the European Parliament Information Office, for their support towards our activities.

Undoubtedly, this helps the MBB in reaching out towards the business community in a more effective manner.

We will now be looking ahead at yet another challenging year for business. In spite of the difficult international economic climate surrounding us and the gloomy outlook presented by a number of political analysts, we look forward with optimism.

And we do so because we believe that Maltese enterprises have what it takes to thrive and keep contributing towards economic growth and the generation of jobs. We just need our firms to keep investing in becoming more innovative and receptive to new business models, by making use of tools that will render them even more capable of making the best of cross-border commercial opportunities.

I would like to thank George Vella, who took over as President of the MBB in April 2012 for a two-year term, for his strong commitment and vision to see this organisation move forward.

Joe Tanti Chief Executive Officer Malta Business Bureau

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3 Policy Overview and Eu Funded Projects

Policy Overview and Eu Funded Projects

Business Competitiveness 2012 was a notable year for the EU, particularly with the celebrations of the 20th anniversary since the creation of the European Single Market. Over the past years, several efforts have been undertaken to reinvigorate and deepen economic integration by enhancing the four principles of freedom of movement of goods, capital, services and people.

Since 1992, the Single Market has brought about innumerable benefits along with the creation of new opportunities through the so-called four freedoms. However, reality shows that the European market is not as integrated as one hoped it would be especially in the services sector, mostly due to the fact that missing legislation, administrative obstacles and lack of enforcement are hindering the Single Market from achieving its full potential. To correct this, in June 2012, the European Commission adopted a Communication on ’Better Governance for the Single Market’,

which proposed to focus efforts and priorities on sectors with the largest growth potential.

At this time of economic and financial turmoil, Europe must act in a united manner very urgently to create more prosperity whilst creating employment.

In this regard, the Commission adopted the ‘Single Market Act’ in April 2011.

This so-called ‘Re-launching of the Single Market’ consisted of a set of 12 legislative and policy measures to boost the European economy through

increased cross-border business cooperation, greater economies of scale and job creation. This deepening and strengthening of the Single Market is envisaged to stimulate the European economy back to growth, while maintaining consumer confidence.

The ’Single Market Act’ was followed up by a second set of proposed actions in October 2012, labelled ’Single Market Act II’, in order to further develop the Single Market in yet another quest to exploit its yet untapped potential as a driver for growth.

MBB Recommendations on the European Single Market

In 2012, the MBB has followed closely the developments in relation to the European Single Market legislation.

Following a detailed consultation with Maltese businesses, the MBB presented Government and the Opposition with a set of policy recommendations on how to facilitate the transposition of EU internal market legislation without incepting undue administrative burdens. This had the ultimate aim of ensuring the best regulatory working environment for Maltese enterprise.

The recommendations were also presented at a national conference held on the 16th October, organised with the support of the European Commission’s Representation in Malta. The MBB recommendations were presented in a user-friendly publication released to commemorate the 20th anniversary of the European Single Market.

The recommendations are extensive and cover a wide cross-section of Maltese business. One such recommendation suggested the creation of an official policy on business clusters,that would be particularly useful for small enterprises in periphery member states such as Malta. Costs can be cut through shared logistics and customer service support, as well as combined negotiating power in purchasing, at lower cost, the imported goods and raw materials.

The MBB is also requesting the Commission to consider practical difficulties generated by poor and belated national implementation of EU legislation, and urges it to consider putting common commencement dates in place to decrease uncertainty and ease coststaggering. The Commission should also put forward initiatives to ensure

minimal gold plating of directives, as has been seen locally with the IPPC Directive, the WEEE Directive and the Energy Tax Directive.

Small businesses’ accessibility to crossborder public procurement is also vital to stimulate growth and jobs, and such a framework would also require the inception and maintaining of dedicated e-procurement services. With regard to identifying business opportunities, the Enterprise Europe Network plays an important role in addressing queries on administrative procedures, posting of workers, access to public procurement, and inter-business facilitation of the four freedoms. However, this must be facilitated further to alleviate frustrations in business networking opportunities between and among enterprises established in different member states.

Moreover, the provision of relevant contacts is all well and good; however businesses require guided and informed introductions to set the ball of businessrelations rolling.

The MBB is proud to have had the opportunity of presenting its detailed recommendations to the European Commission Vice-President for Internal and Consumer Affairs, Michel Barnier, in a high profile meeting held in Strasbourg in early 2013.

A copy of the MBB’s publication can be requested on info@mbb.org.mt

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Policy Overview and Eu Funded Projects

Employment In 2012, the MBB followed closely the European Commission’s programme in the field of employment and social affairs, focusing on the fulfilment of the Europe 2020 Strategy targets. One of the most important aims is to increase the

EU-wide employment rate of people aged between 20 and 64 to 75 per cent, while ensuring a high level of employability among youths, females and seniors.

Actions to ensure that this ambitious target is reached are outlined in one of

Flexible-work arrangements

the Strategy’s seven flagship initiatives; namely, ‘An Agenda for New Skills and Jobs’.

Entrepreneurship

The MBB believes that entrepreneurship can be an effective means of reducing idle resources within the labour market, and thus increases employment, and in turn this will also contribute towards economic growth.

guides and girls’ secondary schools. Such actions ensure that a change in culture and mindset are instilled in younger generations. The project also targeted both employed and unemployed women via conferences and other fora.

In Malta, the MBB led the way on this subject matter through its partnership in the AMIE (Ambassadors in Malta for Increasing Women Entrepreneurs) project, aimed at increasing female entrepreneurship. Some of the activities that have been carried out throughout this project (that came to an end in November 2012) include talks with girl

The MBB welcomes the European Commission’s proposed initiatives in the field, laid out in the Entrepreneurship 2020 Act which, in particular, boost youth, female and senior entrepreneurship.

Some of the recommendations in this Act include the creation of a service set-up specifically for the facilitation of business transfers – either integrated or

MBB ANNUAL REPORT 2012

Two separate delegations of HR managers have been given the opportunity to go on a two-week visit to Denmark and Germany and learn about measures adopted by companies in these two best-practice countries.

Towards the end of the year the second phase of the project commenced. The MBB launched a study that aims to document both the current take-up of flexible work and family-friendly measures by the private sector, as well

as the difficulties faced by the local industries to adopt such measures. In this respect, a number of workshops were organised with various stakeholders which sought to help the MBB better understand the needs and aspirations of local companies in this regard. The results of the study are expected to be published in 2013.

running in parallel with the successful ‘Business First’ service, which would be of considerable assistance to entrepreneurs.

In reaction to this Act, the MBB further recommended that a tailor-made support service addressing business transfers and business acquisitions should be adequately set up to provide the necessary legal, audit and mentoring support during such transitions. The Bureau also recommended the support of the internationalisation of SMEs as a very important step for their development and to tap into larger markets, thus increasing their economies of scale.

The MBB also welcomed and agreed with instilling the right entrepreneurship mentality in Maltese youth, together with the added value accruing from the promotion of female and senior entrepreneurship.

A consolidated position was prepared and presented to the Minister for Fair Competition, Small Business, and Consumers, Jason Azzopardi. This position was also submitted to the European Commission as part of their public consultation process.

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Another significant aspect of the Europe 2020 flagship initiative on ’An Agenda for New Skills and Jobs’ is the aspect of flexicurity and flexible-work arrangements at the workplace. In light of this, the MBB is spearheading an EU funded Leonardo da Vinci Mobility (PLM) Project called SHIFT (Supporting Human Resources in Family Friendly Training).

This project looks to identify and subsequently disseminate best practice examples of flexible-work arrangements in the private sector in Malta.

Working Time Directive

The MBB is closely following the proceedings on the controversial Working Time Directive and has committed to keep local enterprises abreast with developments on the matter. The social partner negotiations have stalled in

December 2012 with the withdrawal of trade unions representatives. The most controversial issues dealt with on-call time and compensatory rest, as well as other proposals refining the effective monitoring of the use of the opt-out

provisions. The Commission has now taken over the responsibility of concluding this Directive and new developments in this area are expected in the second quarter of 2013.

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Policy Overview and Eu Funded Projects

Environment In 2012, the MBB led the EU LIFE+ Investing in Water Project which took significant strides to reach its targets for March 2014. The project is at its half-way point, and has registered an excellent level of interest from local businesses and hotels. This can certainly be attributed to the high level of activity that has taken place since the project’s inception in November 2011, and particularly throughout the 2012 calendar year.

The project was officially launched at the Exchange Buildings in Valletta by Minister for Tourism, Culture, and the Environment, Mario de Marco. This officially kick-started a project that offered promise, yet continuously keeps

exceeding expectations. The project aims to support at least 50 companies and hotels to adopt water savings solutions and achieve a 10 per cent reduction in water consumption among the target audience of 250 hotels and businesses

by March 2014.

The project website, www.investinginwater.org, was launched in April, providing a one-stop shop in information concerning water savings. The website is constantly updated with the latest news on the project.

February saw the release of the Project Portfolio, which outlined the reasons behind the project’s undertaking, as well as its targets and aims, along with any information relevant to the subject of water scarcity and conservation. The portfolio, presented in both Maltese and English was very well received by stakeholders and interested parties.

In June, the Radisson Blu Resort in St Julian’s hosted the project’s National Water Conference. The conference played a key role in highlighting the project’s messages to a large audience comprising representatives from the local business spectrum.

In the latter half of 2012, the project sought to export best practice water saving methods to a wide variety of enterprises. For this reason, a programme of Water Saving workshops has been launched in conjunction with APS Bank for technical and non-technical staff. The workshops will allow for employees to gain knowledge on the water scarcity situation in Malta, the water saving solutions already adopted in their work place, and also on how they can contribute to an increased drive in saving water. The project will also discuss domestic water saving solutions during the workshops, in order to raise awareness outside of the business environment and aid employees in cutting their domestic utility bills. The Water Saving workshops are being offered throughout 2013 and are free of charge.

In order to empower enterprises further and give them the knowledge they need to take informed decisions and manage a sustainable water consumption policy, the MBB has published a list of water saving solutions on its website. Complementing this is an interactive and user-friendly self-assessment application, which will help companies in immediately identifying tailor made water saving solutions through an on-the-spot analysis. The application will also generate a situationspecific report for the user’s convenience.

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MBB ANNUAL REPORT 2012

2012 also saw the MBB conduct over 60 water audits among businesses and hotels. These audits allow the project to provide free expert consultation and make recommendations of water saving solutions, which cater for individual enterprises’ specific circumstances.

These audits have highlighted the valuable contribution that staff can make to an enterprise. In several of the locations audited, employees played an influential role in spotting leaks which would have otherwise gone undetected, while also identifying faulty machines and recommending more efficient machines in the process. The financial savings have proved to be significant; it is not uncommon for an enterprise to be able to save circa €10,000 per annum through minimal capital injection.

The MBB and its project partners, the Malta Chamber and the MHRA strongly encourage interested businesses and hotels to take advantage of the EU LIFE+ Investing in Water Project. Should you be interested in saving water and reducing your utility bills, contact the MBB to book a free water audit or water saving workshops or even to see which water saving solutions are right for you and your company.

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MBB Events and Participation in International Conferences

4 MBB Events and Participation in International Conferences

MBB Events

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January

MBB hosts European Commission official for Enterprise Experience Programme

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January

Launch of the EU LIFE+ Investing in Water project

The Malta Business Bureau (MBB) had the pleasure of hosting Alan Van Raek, Administrator of Industrial Politics and Economic Analysis (European Commission) for a week in Malta as part of the Enterprise Experience Programme (EEP).

EEP is a unique action to give civil servants working in the European Commission’s Directorate General for Enterprise and Industry a practical and hands-on experience of running a small or medium-sized enterprise (SME).

During his stay Mr Van Raek held meetings with the MBB, the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. He was also introduced to the Enterprise Europe Network officials within Malta Enterprise.

The highlight of the EEP visit was the enterprise experience with four Maltese enterprises – namely Island Caterers, Mirabelle Enterprises, Maypole and Greenskips Malta – who participated in the programme by sharing the respective day-to-day running of their business with Mr Van Raek.

MBB’s EU LIFE+ Investing in Water Project was launched by Minister Mario de Marco at the Exchange Buildings in Valletta, during an event attended by representatives from many businesses and hotels which are being offered help to save water.

This is the first national initiative of this scale addressing the sustainable use of water in Malta to be carried out by a local partnership. The project will run until March 2014 and aims to help businesses and hotels reduce their service water consumption by at least 10 per cent.

Minister de Marco thanked the project partners for managing to secure EU funding support from the Life + programme. This, he remarked, was a particularly challenging endeavour in its own right, since this project competed with over 700 other proposals from other countries, of which only a quarter were actually selected for funding last year.

Then MBB President John A Huber explained that: “The project partnership looks forward to helping these enterprises and many more reduce water consumption. This will also reduce pressure on Malta’s scarce freshwater reserves.”

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MBB Events and Participation in International Conferences

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March

BUSINESS MEETS COMMISSION VICE-PRESIDENT ANTONIO TAJANI

March

The conference was also addressed

by Finance Minister Tonio Fenech, who gave a presentation about the need for innovation to spur industrial competitiveness in Malta. Impulse interventions in reaction to Commissioner Tajani’s addresses on small business and tourism were given by Minister for Small Business Jason Azzopardi and Tourism Minister Mario de Marco.

Subsequently, a panel debate took place with the participation of Commissioner Tajani, MBB Outgoing President John A. Huber, Malta Chamber President Tancred Tabone and MHRA President Tony Zahra.

The session was moderated by Stefano Mallia – an Employers’ representative at the European Economic and Social Committee (EESC).

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MBB ANNUAL REPORT 2012

March

MBB and European Commission Representation Office issue a publication on the EU Budget

MBB conducts a two-week visit for HR Managers in Denmark as part of the SHIFT Project

Maltese businesses need to be wellequipped to further tap the potential of the European Single Market as part of their quest to internationalise their operations.

‘Supporting Human resources In Familyfriendly Training’ (SHIFT) is a project which seeks to contribute towards enhancing expertise on innovative measures required within the human resources field. Through this project the MBB intends to gather best practices from other EU member states in order to raise awareness about flexible work arrangements and family-friendly measures within private sector in Malta. This is crucial to help increase productivity, female participation rate in the labour market and ensure equal opportunities.

The MBB and the European Commission Representation in Malta believe that it is their role to communicate the EU budget as an exercise that makes business sense, in that it supports the effective implementation of policies that are conceived to facilitate things for enterprises, provide businesses with opportunities to expand their operations overseas, as well as to enhance their operational set-ups.

Leading Maltese entrepreneurs had a unique opportunity to meet with the European Commission Vice-President Antonio Tajani during a high profile business breakfast debate organised by the MBB.

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For this reason, both organisations have joined forces to improve the visibility of the debate on the future EU budget with the publication of an informative leaflet entitled ‘Why the EU budget makes business sense?’

The publication can be viewed on www.mbb.org.mt

The first group composed of eight human resource managers from a cross-section of Maltese enterprises visited Denmark, where they had the opportunity to do onsite visits within Danish companies that are well-established and have advanced policies in this field.

Later in the year the MBB coordinated a similar visit to Germany, another EU best practice in this field. The scope of the SHIFT project is for participating HR managers to act as envoys by promoting the knowledge acquired through this experience.

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March

EU LIFE+ Investing in Water Project celebrates World Water Day In reaction to threats faced by natural freshwater resources worldwide, in 1992 the United Nations declared the 22nd March World Water Day, to advocate the sustainable management of freshwater reserves.

To celebrate this day, the Malta Business Bureau and MSV Life teamed up to identify water saving opportunities through a Water Audit of the MSV premises carried out by the EU LIFE+ Investing in Water Project. MSV Life committed to implementing the recommendations, in line with its ethic as an environmentally responsible organisation.

EU LIFE+ Investing in Water Project launches website On the same day, the Malta Business Bureau launched its EU LIFE+ Investing in Water Project website. The new project website acts as a one-stop reference point for anyone interested in finding out about the key issues relating to water scarcity in Malta. The website also goes a step further and provides detailed information on water saving solutions, and testimonies of best practice examples from the local industry.

For more information visit www.investinginwater.org

SHIFT is a Leonardo Mobility Programme (PLM) Funded Action No: LLP/LDV/MT/ MOB/PLM/13/2011

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MBB Events and Participation in International Conferences

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April

Business Seminar on Fostering e-Skills for Growth This was a good opportunity for employers from all sectors of the local business community to better understand how the need for eSkills is important for all types of business, big and small, and at various levels of a company’s structure.

The MBB, in collaboration with the Malta Chamber ICT Business Section and eSkills Alliance Malta, organised a business seminar on ‘Fostering eSkills for Growth’.

In the opening address eSkills Alliance Malta Chairman John Ambrogio gave a presentation on the Alliance’s role in fostering eSkills and the work being done on a national level. This was followed by a key-note speech by Martin Bugelli, Head of the European Commission Representation Office, who discussed the European Agenda for eSkills.

May

MBB project manager invited to address annual general conference of the Chamber of Engineers In concluding the event, George Vella, in his first address since being appointed MBB President, stated that “developing and retaining skills is a necessity to ensure that enterprises have employees with the right skills set in the right jobs at the right time.” “The presentation of the EU’s work in this ambit shed considerable light on the scale of the challenges ahead. It is imperative for Malta to be proactive and remain at the forefront in this field by implementing initiatives that will ultimately benefit our industries and economy,” he concluded.

Geoffrey Saliba was invited by the Chamber of Engineers to present the results of water audits carried out earlier this year during the Annual Conference entitled: ‘Water, a 21st Century Challenge’. Mr Saliba presented benchmarks in water consumption

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by businesses and hotels, as well as recommended standard flow rates for service water facilities through which enterprises could reduce their consumption by as much as 10 per cent.

May

AMIE STAKEHOLDERS’ CONFERENCE The MBB, along with the consortium responsible for the coordination of the AMIE project which aims to promote female entrepreneurship in Malta, held a stakeholders’ conference with the participation of European counterparts from Serbia and Croatia.

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April

PRESNTATION OF CCCTB IMPACT ASSESSMENT REPORT TO MINISTER TONIO FENECH An MBB delegation led by John A. Huber presented an impact assessment on the Commission’s proposals for a Common Consolidated Corporate Tax Base (CCCTB) to Finance Minister Tonio Fenech. Also present were BOV representatives as collaborating partners of the Bureau and PwC officials who were commissioned to conduct the report on behalf of the MBB.

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MBB ANNUAL REPORT 2012

While addressing the media Mr Huber said; “the MBB welcomes in principle the rationale underpinning the Commission’s CCCTB proposal, in so far that the legislative initiative is conceived to tackle cross-border obstacles in corporate

taxation within the internal market.

However, after meticulously analyzing all aspects of the report, the Board of Trustees concluded that the proposed Directive is detrimental to the Maltese economy and its business community.”

The opening address was delivered

by Minister for Small Business Jason Azzopardi who stressed the importance of SME’s and microcompanies for the local economy.

He urged women to be proactive and start up their own business.

In a separate address Anna Danti, an official representing DG Enterprise and Industry, highlighted the importance of female entrepreneurship for the future of Europe.

The conference welcomed ten Maltese female entrepreneurial ambassadors who shared their experience with the participants on the experience and achievements of the first eighteen months into the project. Dr Katie Birch led a session on “Intuition in Entrepreneurship”. The conference was brought to a close by Anna Maria Darmanin, Vice-President of the European Economic Social Committee (EESC).

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General, Agency for Promotion of Industry and Innovation, Tunisia. The speakers offered an insight into the economic trends as a result of the ongoing political change in their respective countries and the business opportunities that may stem from these developments.

May

PRESENTATION OF CCCTB IMPACT ASSESSMENT REPORT TO PARTIT LABURISTA The MBB Board met a delegation from Partit Laburista, composed of Hon. Karmenu Vella, Hon. Charles Mangion

and MEP Edward Scicluna, whereby it also presented the CCCTB report to the Opposition.

Newly appointed MBB President George Vella stated that “this harmonised tax system removes the competitive edge of EU-member states that use their corporate tax system to attract investment.” “The EU as a whole could also possibly witness an exodus of mobile business that would start looking for a better fiscal treatment,” he added.

The Labour Party officials concurred with the MBB’s position and confirmed Labour’s opposition to the proposed CCCTB Directive on behalf of the party, claiming that this goes against Malta’s economic interests.

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June

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MBB International Conference on Bridging Business Opportunities for SMEs in the North African Region In light of the upheavals that have characterised the political landscape in the Arab countries, a new approach to conducting business and a new economic reality are unfolding in the Southern Mediterranean region, is unveiling new business opportunities for Maltese and European enterprises.

In this respect, a high-profile international conference was organised jointly by the MBB and the Ministry for Fair Competition, Small Business and

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A second panel debate, moderated by MBB CEO Joe Tanti, saw the participation of Wojciech Sopinski and Antonios Fysekidis – officials from DG Enterprise and Industry, European Commission.

They highlighted the various aspects of EU policy, specifically aimed at supporting SMEs in view of the EU-MED Industrial Co-operation. Other aspects included an outline of the Commission’s strategy to support SME internationalization efforts and the facilitation of business contacts through the Enterprise Europe Network. Dirk Vantyghem – Director of International Affairs at Eurochambres, also participated in the debate and focused his intervention on the EU’s support programmes which aim at strengthening Euromed business-tobusiness cooperation.

MBB ANNUAL REPORT 2012

June

MBB hosts second European Commission official as part of the Enterprise Experience Programme

Consumers. The conference was mostly attended by entrepreneurs and provided a unique platform for a technical and business discussion on the opportunities that exist in Libya, Tunisia and Egypt for Maltese businesses, as well as for European enterprises in general.

A panel debate, moderated by journalist Vanessa MacDonald, included the participation of investment experts including: Hanaa El Hilely – Director General, Social Fund for Development, Egypt; Dr Razak Grady – Director General, National SMEs Programme, Libya; and Nouredine Taktak – Deputy Director

For a second time this year, the MBB was responsible for hosting a week-long visit by a DG Enterprise and Industry official, who visited Malta to undergo an experience with local SMEs operating specifically in the pharmaceutical sector.

Malta Chamber’s Healthcare and the Pharmaceutical and Manufacturing Business Sections. Another key encounter was with officials from Malta Enterprise to discuss Malta’s role in the Enterprise Europe Network.

Gérald Petit had the opportunity to meet and learn more about the operations of the MBB and Malta Chamber.

He also held official meetings with

During the rest of his stay in Malta, Mr Petit had the opportunity to visit Crystals Pharma Ltd, Amino Chemicals, VJ Salamone, Pharmasal and Multigas Ltd.

These visits served for Mr Petit to get a first-hand experience of SME operations in Malta and get a direct understanding of the challenges faced by these firms on a daily basis. Such experiences help European Commission officials, while developing business-related policies at EU-level.

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June

CCCTB Business Seminar in collaboration with Bank of Valletta The MBB, in collaboration with Bank of Valletta, held a business seminar to inform the business community of the impact the CCCTB could have on Malta.

A great number of financial controllers, auditors, accountants, general managers, CEOs, tax consultants and other stakeholders participated in the event.

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June

MBB National Water Conference As part of its EU LIFE+ Investing in Water Project, the MBB organised a national water conference with the collaboration of the Malta Hotels and Restaurants Association as project partner. The event was sponsored by Island Hotels Group, and supported by Pantalesco and FM Environmental. Over 120 persons, mainly from business and hotels, participated in the conference. Other special guests included Peter Gammeltoft from DG

MBB meets Minister Jason Azzopardi on Entrepreneurship Act Enterprise; officials from the Ministry for Resources and Rural Affairs and the Ministry for Tourism, Culture and the Environment; the Environmental Health Directorate, the European Commission representation office, MEUSAC, Malta Enterprise, University of Malta, and various representatives from private industries.

The MBB met Minister for Small Business Jason Azzopardi to share its views on the draft ‘Entrepreneurship 2020 Act’ that was issued by the European Commission’s DG Enterprise and Industry.

MBB President George Vella confirmed how the MBB welcomed the draft Entrepreneurship Act and referred to it as a supplementary set of measures to the Small Business Act (SBA). Among other aspects, the Entrepreneurship Act aims to bring about the inception of innovative support measures in favour of entrepreneurship.

In relation to the aims of the Entrepreneurship Act to foster an entrepreneurial spirit, the MBB agrees that this should be a key element in Malta’s plan to reduce the number of

The seminar was addressed by MBB President George Vella and BOV CEO Charles Borg. They were followed by detailed presentations by Neville Gatt – Tax Partner PriceWaterhouse Coopers, who presented the results derived from the CCCTB study; Austin Demajo – Tax Partner Grant Thornton and Member of the Taxation Committee Malta Institute of Accountants, who discussed the practicality of adopting a CCCTB system in Malta; and Juanita Brockdorff – Tax Partner KPMG, who on behalf of Finance Malta delivered a presentation on the prospective effects of the draft CCCTB directive on the financial services industry.

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July

early-school leavers. The fostering of an entrepreneurial mentality could serve as a means of instilling self-responsibility amongst youth, thereby encouraging them to venture into their own entrepreneurial activity. Consequently, the MBB is fully in favour of the implementation of measures instilling the idea that an entrepreneurial career is both feasible and attractive.

The MBB also agrees with the added value coming from the promotion of female and senior entrepreneurship.

Female entrepreneurship is an important goal of the Europe 2020 Strategy and the Bureau is in fact contributing to this sphere as a strategic partner in AMIE, an EU-funded project promoting female entrepreneurship in Malta.

September

MBB launches study on Access to Finance Following the successful completion of the impact assessment on the European Commission proposals for a Common Consolidated Corporate Tax Base (CCCTB), the MBB and Bank of Valletta have joined forces again on another critical study, which will focus its efforts specifically on businesses and their access to finance.

While launching this study, MBB President George Vella highlighted how in recent years MBB has been very active on issues related to the European Single Market and how legislation may impact Maltese business. Mr Vella stated that “This assessment study will strengthen and consolidate the MBB’s work related to the European Single Market, by presenting solid recommendations to both Government and the local credit institutions on the real financial requirements of our businesses, in order for them to continue to contribute towards growth and employment in the Maltese economy.”

Following a call for Expressions of Interest and the receipt of numerous submissions by various consultancy companies, the MBB Board selected Ernst & Young to conduct the assessment study. This will be entitled: “Market gaps in access to finance and the feasibility of new financing instruments in the EU, addressing the credit needs of Maltese business.”

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MBB Events and Participation in International Conferences

MBB Events — continued

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October

MBB launches a study on flexible work arrangements in the private sector

October

Female Business Cafe at the President’s Kitchen Garden As part of SME week 2012, a Female Business Café was organised at the President’s Kitchen Garden in Attard under the patronage of the First Lady.

The MBB launched a study on flexible work and family-friendly measures in the private sector during a Master Class organised for participants attending the annual national conference of the Foundation for Human Resources Development (FHRD). The study will be conducted with the support of MISCO International.

When launching the study, MBB CEO Joe Tanti stressed the importance of this project. He stated that “this study will help businesses gain a better understanding of the take-up of flexible work and family friendly measures amongst Maltese businesses, what lacunas exist in our private sector and what can be done to decrease this discrepancy. With MISCO’s support, the MBB will determine an accurate representation of what measures are implemented by local enterprises,” he continued.

MBB SHIFT Project Manager Mariella Scicluna stated that “establishing a system of family-friendly work

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environments strengthens society across the board. Flexible work-arrangements and family-friendly measures allow employees to strike a balance between work commitments and family responsibilities, allowing more people to work and be financially independent. In turn, the human resource is protected as it would be able to retain experienced employees who can continue to contribute to the labour force.”

The Master Class was addressed by Cæsar Szwebs - an expert from AMU Nordjylland (a vocational education and training centre in Denmark), who discussed Denmark’s successful adoption of flexible work arrangements and presented best practices of Danish companies. During his presentation Mr Szwebs also highlighted how the adoption of such measures by the local private sector could help boost their human capital, contribute to a better work environment and bring about an increased level of productivity.

The Malta Business Bureau along with the Foundation for Women Entrepreneurs, Reach Beyond Foundation, the National Council of Women, the Malta Association of Women in Business, along with all AMIE Ambassadors had the opportunity to discuss and advise women on entrepreneurship. Advice on company registration and required licenses was also given. In fact representatives of Business First, SOLVIT Department and the Employment and Training Corporation (ETC), offered individual advice to women visiting the café. Workshops were also held for women who wished to acquire more entrepreneurial skills, and who were still undecided on their business path.

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November

MBB conducts a two-week visit for a second group of HR Managers in Germany as part of the SHIFT Project Following a successful visit to Denmark in March, a second group, composed of eight HR Managers coming from a crosssection of Maltese enterprises along with Mariella Scicluna, MBB Executive – SHIFT Project Manager, visited Germany where they had the opportunity to carry out onsite visits within German companies.

These are well established, have advanced policies in the field of flexible work arrangements, and form part of

the ‘Success Factor Family’ network.

During the training experience the group also had very positive meetings with employer organisations; namely, the Central German Chamber of Commerce, the Central Trade Union, as well with Prof. Gesine Schwan – a political science professor and member of the Social Democratic Party of Germany.

Prof. Schwan was also nominated twice as a candidate for the German federal presidential elections.

MBB Single Market Activities As part of its activities to commemorate the 20th anniversary of the European Single Market, the MBB took the task of conducting a study in order to assess the Maltese business’ experience of operating in the Single Market. To date, the Single Market has developed into the world’s largest market, catering for 500 million consumers. In August, a number of focus group sessions were organised with Maltese SMEs and micro-enterprises representing the Services, Import/ Distribution, Manufacturing/Exportation, Hospitality and Tourism Services sectors, who all contributed towards the study.

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MBB Events and Participation in International Conferences

MBB participation in International Conferences

MBB Events — continued

Upon completion of the study, in October an MBB delegation led by President George Vella met the Prime Minister and the Opposition Leader, whereby it presented them with the business study highlighting the challenges and opportunities of Maltese SMEs operating in the European Single Market.

Recommendations were made for a number of local issues that could help the business environment of companies in Malta. It is also the MBB’s intention to communicate the findings and recommendations to a number of top officials at the European institutions in Brussels in the coming weeks.

As part of the Single Market Week activities, the MBB organised a half-day conference whereby it launched a special publication in collaboration with the European Commission Representation in Malta to commemorate the twentieth anniversary of the European Single Market. Apart from showcasing the pathway from the creation of the

European Economic Community’s initial customs union to the eventual EU internal market and the subsequent monetary union, the publication analyses in more depth the results of this business study, whilst conveying the MBB’s detailed policy recommendations on how to support Maltese businesses to better operate in the European Single Market.

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In a separate event during Single Market Week, MBB President George Vella was invited to participate in a panel debate alongside MEP Louis Grech and Odette Vella, who represented the Malta Competition and Consumer Affairs Authority. The panel was moderated by Martin Bugelli, Head of the European Commission Representation in Malta.

During this debate, Mr Vella had the opportunity to discuss the findings and recommendations emanating from the Single Market business study that was published by the MBB that same week.

MBB CEO Joe Tanti was invited by the European Parliament Information Office in Malta to participate in an Industry, Research and Energy (ITRE) Committee hearing on ‘SMEs: competitiveness and business opportunities’ in Brussels.

May

MBB CEO participates in a European Parliament Industry, Research and Energy Committee (ITREC) Hearing

The hearing examined SMEs, as an essential part of the EU’s business fabric, and the various ways that can be used to support them in order to boost growth, which is of particular importance in this time of crisis. The first part focused on how to strengthen the competitiveness of SMEs through the ‘Competitiveness of Enterprises and SMEs’ (COSME) programme.

The second part of the hearing concentrated on ways of reducing the administrative burden. The hearing also featured a panel debate on how to help SMEs in the EU seize global opportunities for growth.

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June

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September

MBB Executive participates in e-procurement conference in Brussels

MBB Executive participates in a training programme on EU lobbying in Brussels

MBB Executive Daniel Debono participated in an e-procurement conference in Brussels, bringing together various stakeholders, including the European Commission, procurement officials from all member states, business representatives and firms from all across Europe.

MBB Executive Daniel Debono participated in a training programme on EU lobbying in Brussels that was organised by HOTREC (the association which represents the hotel, restaurant and café industry at European level) and the European Hospitality Foundation (EHF).

The European Commission intends to support the transition towards full e-procurement in the EU, believing that this will significantly simplify the way procurement is conducted, reduces waste and delivers better procurement outcome (i.e. lower price and better quality) by stimulating greater competition across the Single Market.

The training programme entitled, ‘Understanding and Lobbying the EU decision-making process’, served to provide members with ad hoc lectures and practical guidance on how the EU institutions work and on how to carry out good and effective lobbying at theEU and national levels. The training included a guided tour of the European Parliament, during which participants had the opportunity to follow live sessions of a number of standing committees, including the Committee on Transport and Tourism (TRAN) and the Committee on Employment and Social Affairs (EMPL).

The conference was addressed by various regional practitioners of e-procurement across the EU as well as key best practices from Korea and the World Bank Institute. EU Commissioner for the Internal Market and Services Michel Barnier closed the conference.

Mr Tanti’s visit was supported by the European Parliament Information Office in Malta.

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MBB Events and Participation in International Conferences

MBB participation in International Conferences — continued

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September

MBB CEO participates in a conference on Employers’ Practices for Active Ageing in Brussels

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The conference highlighted the fact that entrepreneurs are indispensable to Europe’s economic growth, employment and prosperity; especially during the current turbulent economic times in Europe. The conference was also addressed by Androulla Vassiliou, European Commissioner for Education, Culture, Multilingualism and Youth.

October

MBB Project Manager participates in an EU climate change conference in London

MBB CEO Joe Tanti participated in a conference on employers’ practices for active ageing in Brussels. This conference served as a closing session to ‘Age management policies in enterprises in Europe’ – a joint project of BUSINESSEUROPE, European Centre for Employers and Enterprises (CEEP) and the European Association for Craft, Small and Medium Sized Enterprises (EURAPME).

During the conference, important topics such as policies and practices to extend working lives, flexible working and maintaining work ability, among others, were discussed.

Mr Tanti’s visit was sponsored by BUSINESSEUROPE.

Women entrepreneurs represent the biggest untapped potential for entrepreneurship in Europe and are a potential resource for economic growth, thus should be encouraged.

Ms Scicluna’s visit was funded by the CIP Programme via the AMIE Project.

MBB Project Manager Geoffrey Saliba participated in the launch of DG CLIMA’s latest campaign ‘A World You Like, with a Climate You Like’ – another important effort by the European Commission to beat climate change. The campaign brings together entities from all over Europe in a drive against climate change. It aims to create a showcase of creative initiatives to reduce greenhouse gas emissions and pressure on the environment.

One of the more serious impacts of climate change is the expected decrease in rainfall in the Mediterranean. Through the EU LIFE+ Investing in Water Project the MBB is supporting DG CLIMA’s campaign by showcasing initiatives taken by local enterprises to consume water more efficiently. The MBB remains committed to support local enterprises in their environmental sustainability efforts.

Mr Saliba’s visit was sponsored by the European Commission.

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16-18

October

AMIE Project manager participates in European SME Week 2012 summit conference in Brussels MBB Executive and AMIE Project Manager Mariella Scicluna represented the MBB at a summit entitled ‘Women’s entrepreneurship makes business sense’.

This conference saw the participation of female entrepreneurs who took part in the AMIE project as ambassadors and mentors promoting female entrepreneurship in Europe. National consortia running network projects in the individual member states were also present.

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November

MBB CEO participates in a training programme on ‘Mobilising citizens for Europe’ in Brussels MBB CEO Joe Tanti, who forms part of ‘Team Europe Malta’, was invited by the European Commission Representation to participate in a training programme on ‘Mobilising citizens for Europe’ in Brussels. This was also a good networking opportunity to meet other stakeholders from all member states.

Throughout the training programme, a number of important topics were addressed. These included subjects relating to the implications that a closer economic and monetary union will have on national sovereignty; the European

Central Bank’s role during the financial crisis; and the main concerns that EU citizens face today.

Mr Tanti’s visit was sponsored by the European Commission Representation in Malta.

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November

MBB participates in a conference dealing with long term unemployment in Europe, held in Brussels MBB Projects Administrator Mark Seychell participated in a conference under the auspices of the Commission’s Mutual Learning Programme. The conference discussed various strategies and tools in the addressing and tackling of long-term unemployment.

EU trends in long-term unemployment were discussed, as well as the policies undertaken by member states to counter such trends, including collective labour market reform. The conference then moved on to discuss the Europe 2020 overall target of an employment rate of 75per cent and its relevance. Key speakers at this event included Herwig Immervoll, Senior Social Protection Specialist – World Bank; and Rebekah Smith from BUSINESSEUROPE.

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December

MBB CEO participates in a workshop on International Cluster Cooperation for SMEs, held in Brussels MBB CEO Joe Tanti participated in a high profile workshop in Brussels, discussing in particular how to promote the development of European Cluster Export Consortia by encouraging new forms of cooperation and shaping European Strategic Cluster Partnerships to lead international cluster cooperation in key strategic new fields for EU competitiveness.

Clusters can play an important role in helping SMEs to cooperate with strategic partners from other countries and thus become more internationally oriented. To this end, a variety of activities have been developed at the European level, namely the European Cluster Collaboration Platform; Memoranda of Understanding; international cluster matchmaking events; and pilot actions called ‘European Cluster Consortia.’ Nevertheless, European cluster cooperation needs to be further reinforced and developed more strategically in the perspectives of future actions to be implemented under the new COSME programme.

Mr Seychell’s visit was sponsored by the European Commission.

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Board Menmbers and Executive team

5 Board Members and Executive Team

Board Members George Vella (President) John A. Huber George Micallef Anton Borg Charles Brincat Mario Spiteri

Executive Team

Joe Tanti

Omar Cutajar

Mariella Scicluna

Chief Executive Officer

Permanent Delegate in Brussels

Executive

Daniel Debono

Mark Seychell

Geoffrey Saliba

Executive

Projects Administrator

EU LIFE+ Investing in Water Project Manager

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Representing

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Head Office

Brussels Office

Cornerline, Level 1 Dun Karm Street Birkirkara BKR 9039 Malta

La Valette Business Centre 289, Avenue d’Auderghem Brussels B-1040 Belgium

Tel: +356 2125 1719 info@mbb.org.mt www.mbb.org.mt

Tel: +32 485 981 124 infobrussels@mbb.org.mt www.mbb.org.mt