MBB Annual Report 2017-2018

2017-2018

Malta Business Bureau Annual Report A Special Commemorative Edition to mark Valletta 2018 – European Capital of Culture

Official Sponsors of the MBB Annual Report

Malta Business Bureau 2017-2018 Annual Report

Contents 09 13 21 29

A Message by the CEO Of New Challenges and Opportunities Malta’s Burgeoning Cultural Economy Tourism and the European Capital of Culture

Publisher

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EU Policy and Lobbying MBB European Projects Calendar of Events MBB Board and Executive Team

Editor: Joe Tanti EditorIAL COORDINATORS: Sarah Abdilla, Martina Said

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The Annual Report of the Malta Business Bureau 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 leading public and private institutions in Malta and Brussels.

BRUSSELS OFFICE: Malta Business Bureau, Rond-Point Schuman 6 Level 5, 1040 Brussels, Belgium Tel: +32 485 469 737

REPRESENTING

Malta Business Bureau 2017-2018 Annual Report

A Message by the CEO

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Malta Business Bureau 2017-2018 Annual Report

As CEO of the Malta Business Bureau, I am delighted to present our Annual Report for 2017/2018 which this year commemorates Valletta 2018 – the European Capital of Culture. The annual report reflects and documents the work undertaken by the organisation over the past 12 months, whilst simultaneously featuring exclusive interviews with business leaders and experts from the cultural sphere in recognition of Valletta 2018.

t is evident that the past 12 months have been busy and enormously fruitful, both on the policy front as well as in the implementation of EUfunded projects, for the benefit of the Maltese business community.

Throughout the period under review, the MBB has continued to bring forward the regulatory issues impacting Maltese businesses onto the national and EU political debate. The EU agenda was earmarked with landmark proposals for legislations particularly in consolidating the single and digital single markets, completing an Energy Union, putting the EU at the forefront of combatting climate change, building a fair and sustainable social market economy, and in upgrading the current tax regime. The MBB has also continued to follow the process of the UK’s withdrawal from the EU and the ongoing reflection on the future of Europe.

To further strengthen our policy work and pro-activeness in this regard, the MBB has engaged in a number of EU-funded projects and initiatives covering different policy areas. The ‘Investing in Energy’ project supports industry-related obligations under the Energy Efficiency Directive and Malta’s 2020 Energy Efficiency Targets. ‘INVEST’ supports the EU’s efforts to increase financial education as an important driver for entrepreneurial success. ‘DesignShots‘ contributes to the EU’s Innovation Union which aims to accelerate the take-up of design in industrial and innovation activities.

‘VITA’ contributes contributestotothe theEUEU New New SkillsSkills Agenda Agenda whichwhich calls on callsmember on member statesstates to develop to develop a comprehensive a comprehensive digitaldigital skills strategy. skills strategy.

‘INCOME’ ‘INCOME’ and the ‘Go&Learn and the ‘Go&Learn Network’ contribute Network’ to contribute the Commission’s to the Commission’s initiatives to initiatives strengthentoties strengthen between business ties between and academia, business and whilst academia, also stimulating whilst also employability stimulating skills. employability As an Enterprise skills. As anEurope Enterprise Network Europeservice Network provider, service we provider, have also we have continued also continued to support toenterprises support enterprises in growing, in

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growing, creating jobs creating and jobs connecting and connecting to other to potential other potential business business partners.partners.

Last butLast notbut least, notwe least, have we strengthened developed a close our collaboration close collaboration with with the the University University of ofMalta, Malta,which which has proven proven to to be hugely successful on the entrepreneurial front, particularly particularly the through ZAARthe crowdfunding ZAAR crowdfunding platform.platform.

With With this this in mind, I would like to thank the many stakeholders stakeholders who for have theirhelped ongoing us deliver collaboration. our workTogether for their ongoing with them, collaboration. we strive to Together achieve the with right them, conditions we strive in our to achieve countrythe for right business conditions to prosper in our andcountry grow. for business to prosper and grow.

I take this opportunity to thank outgoing President Dr IDavid take Zahra, this opportunity the Board, to as well thank as outgoing the MaltaPresident Chamber Dr of David Commerce, Zahra Enterprise and the Board, and as Industry, well as the andMalta the Malta Chamber Hotels of Commerce, and Restaurants Enterprise Association, and Industry, for theirand strong the commitment Malta Hotels and and Restaurants vision to see Association, this organisation for theirmove strongforward. commitment I also and extend vision a warm to see welcome this organisation to our incoming movePresident, forward.Simon I also extend De Cesare. a very warm welcome to our incoming President, Simon De Cesare.

I would also like to acknowledge the hard work carried out Iby would our team also like in Brussels to acknowledge and in Malta. the hard I thank work them carried for their out by passion, our team dedication in Brussels and and determination at the Head in Office helpinginthe Malta.

MBBI thank become thea team stronger for their organisation. passion, loyalty and determination in helping the MBB become a stronger organisation.

We have a strong political year ahead of us, with the We Juncker have Commission a strong political coming year ahead to an ofend, us, with the the UK Juncker aiming Commission to leave the coming EU on to 29 an March end, 2019, the UK andaiming the European to leave the Parliament EU on 29 elections March taking 2019, and placethein European May 2019,Parliament to name elections but a few.taking Withplace all that in May is going, 2019,we to can name assure but athe few.MBB’s With all commitment that is going, to continue we can assure being oftheservice MBB’stocommitment the Maltese to business continue community. being of service to the Maltese business community.

Joe Tanti Joe CEO Tanti CEO Malta Business Bureau Malta Business Bureau

Malta Business Bureau 2017-2018 Annual Report

Of New Challenges and Opportunities Photos: Alan Carville

From left: Outgoing President David Zahra, CEO Joe Tanti and incoming President Simon De Cesare

Martina Said talks to outgoing MBB President David Zahra and incoming President Simon De Cesare on their outlooks for the future of the MBB and the EU.

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Malta Business Bureau 2017-2018 Annual Report

ince taking the helm as President at the Malta Business Bureau (MBB), outgoing President David Zahra has witnessed its growth and achievements from the front line, at a time when the country was experiencing some major milestones of its own, not least leading the Presidency of the Council of the EU and taking on its year-long stint as European Capital of Culture.

“The past year has been an eventful one for the MBB; on the policy front because of Malta’s EU Presidency, and also because the MBB was awarded two new EU-funded projects, targeted towards improving digital literacy and the level of soft skills within industry. These complement the projects which we already have in place and which target various areas, ranging from financial literacy to entrepreneurship and employability skills,” Dr Zahra asserts. “Our participation in these projects extends the services offered to local businesses and to the Maltese economy in general. It is our aim that with the support given through these projects, Maltese enterprises become more competitive and sustainable.”

The MBB has continued to play a prominent role in pushing Maltese business’ priorities on an EU level, particularly on legislative proposals emanating from the e-Commerce, Services and Compliance Packages, Dr Zahra adds. “Also, since September 2017, the MBB increased capacity at its Brussels representation office with a senior advisor who joined the current EU Affairs Manager. This has enabled the team to increase the focus and level of engagement to achieve stronger outputs in our advocacy objectives.”

Looking back on the past 12 months, Dr Zahra says that the MBB’s several significant achievements have been indeed satisfying, among them the MBB’s active role within Malta’s Presidency of the Council of the EU, including its support in various initiatives and events taking place in Malta and in Brussels, as well as the publication of an environmental-economic report, as part of the ‘Investing in Energy’ project, in March 2018.

“While serving as a useful tool for businesses and energy service/ product suppliers, the study also serves as a strong base for our lobbying efforts with the Government and EU institutions on the need to increase energy financing options available to businesses,” he asserts. “The study shows that despite increased investment in energy efficiency and renewable energy measures, the investment required to reach the 2020 targets is even more considerable. And the 2030 targets will require even larger investments.”

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“We need a Union functioning on democratic and transparent institutions, and with economic competitiveness at the centre of its political vision.”

David Zahra

Simon De Cesare, the MBB’s new President as of 22nd May this year, believes that the profile of the Bureau is ever increasing. “I am pleased to have been given this opportunity to contribute towards the local business community. The work that the MBB has conducted, at EU level, over the last few years has been impressive. It has established itself as a key stakeholder to advise and support businesses on EU-related affairs,” he asserts. “I look forward to my term as President, to preside over the organisation to further sustain its growth and give my best to achieve more results as well as new opportunities for the benefit of Maltese businesses. In the meantime, I will continue supporting MBB’s drive to implement EU projects, as I believe that this is one of the best ways of disseminating information on EU-related issues, as well as of promoting opportunities with local business.”

Malta Business Bureau 2017-2018 Annual Report

Mr De Cesare shares his priorities as incoming President, asserting that his term will coincide with an exciting time for the organisation, but also with testing times for the EU. “My presidency will coincide with two major developments on a European level, which will define and most definitely steer the MBB’s work in the upcoming months.”

“The first is the Commission’s proposal for the EU MultiAnnual Financial Framework (MFF) that is expected to be published in May, comprising a comprehensive programme for the future of the EU budget beyond 2020. The most interesting aspect in this process will be the impact of Brexit on the future MFF. To date, the UK’s contribution to the EU budget is significant and one will have to see how this financial gap will be mitigated,” says Mr De Cesare. “This is particularly intriguing, especially at a time when the EU is under increasing pressure to do more to boost employment and growth, improve governance of the euro area, strengthen security and military cooperation, manage migration flows into the EU and tackle climate change, while also continuing frameworks such as the Common Agricultural Policy and Cohesion Funds.”

Mr De Cesare’s presidency will also coincide with the end of the current Commission mandate and the European Parliament elections in May 2019. “The upcoming legislature of the European Parliament will present considerable opportunities for Maltese MEPs to participate in debates, vote and decide on a series of legislation and reports of critical importance for Maltese companies in the medium-to-long term. In this regard, the MBB will be developing its own agenda and shaping thoughts as to what the next legislature should be focused on to sustain further economic competitiveness, growth and creation of employment.”

“My presidency will coincide with two major developments on a European level, which will define and most definitely steer the MBB’s work in the upcoming months.”

Simon De Cesare

He adds that, given the challenges it is currently facing – be they economic, security-related, geo-political, social or cultural – it is clear that the EU is in desperate need of real structural reforms.

“Considering a reduced EU budget after the UK’s withdrawal, more optimal use of EU funding needs to be made through targeted investments in youth training and life-long learning, among others. Time is of the essence, and we need to act now through implementation of structural reforms when they are affordable rather than too painful and designed to avoid crises of the future, not react to them.”

Dr Zahra adds that while the EU remains one of the best places in which to live, work and conduct business in the world, the EU process needs to be reaffirmed and reinforced to continue guaranteeing success and future prosperity. “Clearly, in today’s context, a scenario where the EU project rolls back to be nothing but a single market is not realistic. For this reason, deeper integration is required to enable us to be stronger and competitive on a global level,” he states.

“There is no one-size-fits-all solution, but there is a shared need to act to work towards economic and social convergence in the EU, which will address inequalities and poverty,” adds Dr Zahra. “We also need a Union functioning on democratic and transparent institutions, and with economic competitiveness at the centre of its political vision, as the key for growth, investment and the creation of jobs.”

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Malta Business Bureau 2017-2018 Annual Report

Looking ahead towards the MBB’s growth as a businessrepresentative organisation, Mr De Cesare says “what lies ahead is hard to predict, however it is clear that our businesses will continue to be affected by decisions, regulations and directives emanating from the EU institutions. More and more areas will come into the regulatory framework as the single market moves towards completion. We will need to ensure that the EU comes up with smart regulation to continue reducing barriers and improve the competitiveness of companies. Where possible, we also need to enable a legal framework and a business environment with adequate support structures from which entrepreneurs can benefit and thrive. The MBB will stay committed to monitor the development of, as well as advocate, EU legislation that is business-friendly, and continue serving the local business community by tapping into the opportunities offered by the EU.” On a final note, Dr Zahra says his journey as President of the MBB, which comes to an end this May, has been an exciting one, and he is proud of the organisation’s attainments during his tenure. “This would not have been possible were it not for the individuals who make up the MBB. And for that, I would like to thank the Board of Directors, which I had the pleasure to chair for the past year. Special thanks also go to MBB CEO Joe Tanti and the Executive Team for their hard work and selfless dedication towards the organisation. I also wish to take this opportunity to augur my successor, Simon De Cesare, to continue building on the MBB’s strengths and positive reputation, both at a national and an EU level.”

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Malta Business Bureau 2017-2018 Annual Report

Malta’s Burgeoning Cultural Economy

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Malta Business Bureau 2017-2018 Annual Report

With Valletta 2018 now firmly underway, a legacy has been formed: the development of Malta’s cultural economy for years to come. Here, Jo Caruana explores what this means for the artists and businesses affected by this growth.

nternationally, the business of culture has long been big news. From the multi-million dollar industry that is Broadway’s theatre world, to the colossal events venues and museums found in London, Paris and Berlin, culture has become a valued part of our world, and our economy.

Photo: Jan Zammit

Locally, the island has been growing its cultural sector for some time. Over the past few decades, artists of all kinds – including producers, musicians and curators – have been developing their products. Now though, with Valletta 2018 and our year as European Capital of Culture firmly underway, there is a sense that this has gained ground, and that, finally, support networks and audiences are making it possible for the arts to have a viable future.

“As a result of direct investment over the past five years, Valletta is bustling with events being organised as part of the Valletta 2018 Cultural Programme.”

Jason Micallef

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Speaking about the link between entrepreneurs, businesses and the arts, Valletta 2018 Chairman Jason Micallef believes this has always been strong, with patrons commissioning art centuries ago.

“The same happens nowadays and, while the Foundation’s budget comes directly from central Government for the development of a Cultural Programme, we have several collaborations with business entities including the Valletta business communities,” he says.

“In fact, Valletta 2018, together with the Republic Street

Business Community, supported the 2017 Christmas lights on Republic Street and shall continue to do so this year and beyond. The Valletta 2018 Foundation was also involved in a public, private partnership with the Arkadia Group for the opening of Is-Suq tal-Belt and the development of a Cultural Programme there. A number of premium partners, namely Bank of Valletta and General Soft Drinks, have also heavily supported Valletta 2018, while BOV and several other partners and sponsors support our projects.”

“Beyond that, businesses have also benefitted from the European Capital of Culture with the opening of several boutique hotels as a result of the increase in tourism. The Valletta Design Cluster, which will be opening over the coming months, will have community-shared spaces for design and will be beneficial for start-ups,” he says.

With all of that in mind, Valletta has become a very different city to the one it was a few years ago – it now has a vibrant personality, some of which has been fuelled by the growth and strengthening of the artistic community. “As a result of direct investment over the past five years, Valletta is bustling with events being organised as part of the Valletta 2018 Cultural Programme as well as by other entities in main venues and lesser-known places,” Mr Micallef continues. “The Strada Stretta concept, for instance, is an example of this. Regular events are being organised as part of the Valletta 2018 Cultural Programme, resulting in increased activity and business.”

Malta Business Bureau 2017-2018 Annual Report

In fact, Mr Farrugia says he is convinced that Valletta’s title of European Capital of Culture, which has been vastly and widely promoted for years, is at least partly responsible for the new lease of life the city is currently enjoying. “Business opportunities coupled with incentives by the Government are creating the ideal environment for commercial activity which is not showing signs of slowing down,” he says. “As the Malta Chamber, we have been proud players from the very beginning, sitting on the Board, contributing to the sustainability and long-term planning of this prestigious appointment. We have sought to contribute towards bringing business and the cultural worlds closer together as we believe that both can gain greatly from each other,” he explains.

Photo: Alan Carville

“We should make sure to keep up the momentum of investment and activity in Valletta well beyond 2018.”

Frank V. Farrugia

Meanwhile, the Malta Chamber of Commerce, Enterprise and Industry has taken its involvement in Valletta 2018 seriously, and has also seen the potential of developing the cultural economy. “The title of European Capital of Culture is an opportunity for any city to put its best foot forward while the European spotlight is shining on it,” explains the President of the Malta Chamber, Frank V. Farrugia.

“The title, in fact, maintains an emphasis on all things cultural, but this is seen as an enabling agent for social mobility, tackling important issues and certainly economic development.”

“Having formed part of the Board of Governors of the Valletta 2018 Foundation, on behalf of the Malta Chamber, I can assure that the Foundation has worked tirelessly for the past seven years and the programme we have produced offers a rich combination of cultural and artistic experiences that bring the business and artistic worlds together. Now, the value of the European Capital of Culture to business is evident in the undeniable renaissance that Valletta has gone through in the past 10 years. The deserted streets after office hours are no longer, as more and more quality entertainment establishments have opened shop in the capital.”

“The same goes for the extensive commercial activity taking place during the day as high-end shops are opening for business, while, from a city with very few accommodation solutions a few years back, Valletta now can offer tens of luxury boutique hotels.”

One cultural entrepreneur who has been directly involved in the development of Malta’s cultural sector is Valletta Film Festival organiser Oliver Mallia – and he agrees that Malta’s development in this area has been a long time coming.

“A decade ago, the news that Valletta could play the role of European Capital of Culture this year led politicians to think a bit more deeply about culture,” he says. “Before then, I don’t remember culture ever being a priority.”

“Perhaps that’s because, prior to Malta’s accession to the European Union, the island couldn’t afford to invest in the sector, as we had other priorities at the time like public health and infrastructure. But it is good that we are finally investing more in culture, although we are doing so some 30 to 40 years after our Western European counterparts,” he asserts.

Despite these investments, Mr Mallia stresses that Malta is still at a stage when the cultural sector is mainly made up of amateurs that do theatre, music, dance or film as a part-time activity or a hobby. “Unfortunately, I would say it is still hard to make a decent living in Malta by exclusively producing and selling artistic products,” he says.

“By supporting cultural initiatives, businesses can reach, speak to and improve the community and ensure more openness, resilience, dialogue and tolerance.”

Oliver Mallia

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Malta Business Bureau 2017-2018 Annual Report

He believes more also needs to be done to encourage artistic businesses and other businesses to work together. “I think the majority of Maltese businesses are still encouraged to view the world beyond their corporation as a field of competitors to be battled with, or consumers to be lured. So, I think that, for companies to be sufficiently robust and successful over the coming decades, they need to be more altruistic towards the neighbourhoods and communities that sustain their bottom line. By supporting cultural initiatives, businesses can reach, speak to and improve the community and ensure more openness, resilience, dialogue and tolerance. I think businesses need to understand that if neighbourhoods and communities flourish, corporations flourish too.”

Agreeing with this, Ruben Zahra – a composer and key cultural entrepreneur – stresses that business and culture should not be separate entities. “There is a business side to any area,” he says. “The business profile of any venture is what will make that venture sustainable. I think it all depends on professional engagement. If an artist is engaged professionally in his or her art, the business side becomes an essential part of that activity. What culture lacks in Malta is strategy. Artists need to adopt and apply business models to their craft to achieve effective results.”

“As a composer and producer, the ‘business of culture’ is the capacity to pitch and place my work to the international market,” he shares. “My clients are artistic directors of theatres, festivals, opera houses, ballet companies and other cultural institutions. I am competing on a global platform and therefore, when I conceive a project, I must think of internationalisation – travel and touring. I believe that it is very important to develop Malta’s cultural industry. It is a relatively untapped area and therefore an untapped economy. Culture is also a strong diplomatic vehicle because it can reach out to international audiences more efficiently than politics.”

As for Valletta 2018’s legacy, Mr Zahra believes this will be two-fold, and it will affect both events and infrastructure.

“I feel that the most important aspect of the Cultural Programme is the implementation of projects that foster transnational collaborations. This is important because it creates long-term cooperation between local and international artists that may extend beyond the Capital of Culture year. Infrastructural projects, such as Is-Suq tal-Belt, MUŻA and the Valletta Design Cluster contribute towards the legacy of Valletta 2018 and enhance the creative industry economy.”

Mr Mallia agrees, although he isn’t convinced that enough is being done to ensure the legacy is successful for a long time to come. “I think it is positive that we are getting a new Museum of Fine Arts and a Design Cluster but I think we could have done more to improve the infrastructure within Valletta and around the islands. It is good that we have created a national dance company, a national theatre company and a performing arts school, but I think we could do a lot more. Personally, I would like to see the country

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Photo: Lisa Attard

investing more in film education – I think we are lagging behind in this field.”

“What culture lacks in Malta is strategy.

Artists need to adopt and apply business models to their craft to achieve effective results.”

Echoing some of that, Mr Farrugia – on behalf of the Chamber – also believes a lot of work needs to go into ensuring the hard work that has gone into Valletta 2018 is felt for a long time to come. “2018 is a showcase, an opportunity and, like any other opportunity, it would be a great disappointment if it were to be missed. My appeal is that all involved should make sure that the title will not be a mere 12 monthRuben Zahra long celebration that fizzles out on 1st January 2019. It must become a catalyst that brings about the necessary changes that are carried forward into the future, for the next generations to see things differently.”

“We should also make sure to keep up the momentum of investment and activity in Valletta well beyond 2018. We have seen how investment in the city has generated more investment, creating jobs and opening new markets. We must maintain this energy in a way that translates into a long-standing legacy for the city,” he says.

Finally, Mr Micallef also shares his hope for the future of the cultural economy – and Valletta’s cultural role – after Valletta 2018. “I truly believe that the investment in culture that has been made as part of Valletta 2018 will continue to produce benefits in the years to come.”

“MUŻA will be opening its doors over the coming months, as will the Valletta Design Cluster. This, and Is-Suq tal-Belt, are reviving areas in Valletta while combining research and policy initiatives with education awareness and industry support to leave a positive impact long past 2018. Entrepreneurs are witnessing the benefits, and investment will continue to take place, especially in light of the Valletta Cultural Agency, which will replace the Valletta 2018 Foundation as from next year. I have no doubt that the creation of this agency will support the legacy of Valletta 2018 for future generations,” he concludes.

Malta Business Bureau 2017-2018 Annual Report

Tourism and the European Capital of Culture

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Malta Business Bureau 2017-2018 Annual Report

With the spotlight on Valletta as the European Capital of Culture for 2018, local and international experts discuss with Marie-Claire Grima the impact that holding the title has had on Malta’s tourism sector and the long-term effects that holding such a title tends to have on a city. he announcement back in 2012 that Valletta would be the European Capital of Culture for 2018 set the city on an immediate upward trajectory. From the completion of Renzo Piano’s City Gate and Parliament House project to the concerted restoration projects on some of its most priceless heritage builds, it’s practically unrecognisable from how it was a few short years ago. Surveys indicate that Valletta’s status as European Capital of Culture in 2018 has intrigued a growing number of tourists to choose Malta and visit Valletta, with figures increasing not just in terms of tourist arrivals, but also guest nights and tourist expenditure. So how has this prestigious title given Valletta such an astonishing boost?

“Cultural tourism did not start with Valletta 2018,” says Tony Zahra, President of the Malta Hotels and Restaurants Association (MHRA), and President of the Board of Governors of the Mediterranean Tourism Foundation.

“For example, the Baroque Festival, which always draws huge crowds, was established well before 2018. The purpose Valletta 2018 served was to be a catalyst for bringing more culture to the city. I believe that holding the title of Capital of Culture for 2018 has spurred on many investments and has given tourists another reason to visit Malta. Certainly, it has brought all the stakeholders together with one objective in mind and that is to make a success of 2018 culturally, architecturally and visitor experience-wise. Now it’s up to us to keep those programmes which have been successful, running.

That will be the legacy of Valletta 2018.”

Mr Zahra says that the process leading to Valletta 2018 was set into motion some years back and that this year is just the culmination of all the work that has gone in over the past few years. “The physical work that went into making Valletta what it is today is enormous. Today, everyone is proud of Valletta. The bus terminus with its shabby look is long gone, and instead we have a beautiful mall leading to an even better-looking Triton Square, which opens up to the iconic Piano Parliament building. This is not to mention the dozens of private investments, some of which are indeed very substantial, including Casa Ellul, opposite Tal-Karmnu Church, The Saint John Boutique Hotel in Merchants Street, Domus Zamittello in Republic Street, and many others all over Valletta. In terms of commercial outlets, we have Is-Suq tal-Belt, and tens of restaurants and shops all over the city.

“The purpose Valletta 2018 served was to be a catalyst for bringing more culture to the city. I believe that holding the title of Capital of Culture for 2018 has spurred on many investments and has given tourists another reason to visit Malta.”

Tony Zahra

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Malta Business Bureau 2017-2018 Annual Report

Indeed, as one visitor commented to me recently on visiting Valletta – ‘Valletta is looking magnificent, especially at night’. A lot of work has gone into making Valletta a city we can all enjoy.”

Overall, Mr Zahra says he believes Malta prepared well for Valletta 2018. “Could we have done more, or done better?

Of course we could – but then, isn’t it that way in almost everything that one does when looking back? Hindsight gives everyone 20/20 vision. I think the opening ceremonies were exceptional, in spite of the claims made by some that there was a similarity to events held elsewhere. Even if this were so, they were still a great cultural spectacle. So, I feel that congratulations are in order to all those who worked so hard – thank you for delivering Valletta 2018 in such good fashion.” He pinpoints the fact that all stakeholders had a target date to work towards. Mr Zahra acknowledges the work undertaken by Valletta 2018 Chairman Jason Micallef who has been successfully coordinating with the Government and private stakeholders. “Without this constant push, we might not have had the ability to come together as stakeholders to make Valletta 2018 the success that it has been. It’s a lesson that can be learnt and repeated elsewhere to achieve similar successes,” Mr Zahra says.

Over in the Netherlands, the city of Leeuwarden, which is sharing the title of Capital of Culture with Valletta in 2018, a similar positive impact on tourism is being noted. “The province of Friesland has always been a popular tourism destination with its lakes, islands and cosy towns. Its capital, Leeuwarden, was not so much part of it, however this has significantly changed now,” says Leeuwarden-based entrepreneur and MBB-close collaborator, Frank Hiddink, who is engaged in several EU-funded projects including those related to the tourism sector. “The city has become an increasingly-popular city trip for Dutch people from other parts of the country. Also, internationally, the European Capital of Culture title acts as a flywheel, with conferences such as the World Trade Centers Association’s (WTCA) Annual General Assembly taking place in Leeuwarden this year.”

Mr Hiddink says that the ‘iepen mienskip’, or open community approach with a bottom-up character, really works when implementing the Capital of Culture project.

“Years ago, Leeuwarden citizens were not particularly proud of their city, but look at them now! Of course, there was scepticism at first, but as the year 2018 drew closer, a positive feeling grew and you could sense it in the streets.

This contributes strongly to reaching out to potential visitors, having advocates out there talking about how energetic it is here. I really enjoyed the official opening in January. It was pouring down with rain when we were

“The human factor, I think, is key; creating a sense of shared ownership, creating a community feeling which is open to others, not closed or inward-looking.”

Frank Hiddink

waiting for it to start, but the rain stopped as soon as the music started. There was a terrific atmosphere, and it really brought a sense of community to the crowd. The human factor, I think, is key; creating a sense of shared ownership, creating a community feeling which is open to others, not closed or inward looking. Bringing new people together and being proud of your heritage can go hand in hand, as long as it is done in a positive and outward-oriented way.”

Legacy was recognised as an important point early on, Mr Hiddink says. “The city and province combination approach of Leeuwarden-Friesland 2018 is a strong one. I expect Leeuwarden to remain a popular city trip also after 2018. Both the international guests I bring to Leeuwarden, as well as the Dutch people from other parts of the country tell me they find Leeuwarden unexpectedly beautiful with its canals, historic buildings, cosy compact city centre and nice atmosphere. And – very importantly – they tell others about it too! Also, thanks to infrastructural upgrades, renovation and the realisation of the 11 fountains project in the 11 historic cities in Friesland, the festive cultural year will leave tangible outcomes,” he claims.

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Malta Business Bureau 2017-2018 Annual Report

EEN Tourism and Cultural Heritage Sector Group Chair, Paolo Bota also commends the ability of the European Capital of Culture title to increase the sense of belonging that is felt amongst European citizens. He states, “experience has shown that this initiative is the perfect opportunity to bring cities back to life by putting them in the spotlight for a whole year, and to help people appreciate them more – this includes both those who are citizens of the particular city and even those who are not, so at the same time this helps to increase tourism by attracting foreign visitors.” He adds that holding such a title is a great way to bring to light all those who in some way or another are involved in the cultural sector across Europe. “The programme of events often includes collaboration with local artists as well as international ones, and includes the involvement of those who together make up the cultural sector.

Cities holding this title often also tend to collaborate with each other, and this is an area in which the EEN can provide assistance.”

“Experience has shown that this initiative is the perfect opportunity to bring cities back to life by putting them in the spotlight for a whole year, and to help people appreciate them more.”

Paulo Bota

“The EEN Tourism and Cultural Heritage Sector Group,” he expands, “was created to bring together various SMEs and stakeholders within the tourism and cultural sectors. We are 27 active members coming from various countries across Europe. Some of us already have experience in the application process, and what it takes to become the next cultural capital, whilst others are preparing their applications. We all know the significance of holding such a title and just how it can raise the international profile of European cities and boost tourism within these regions. So, it is in our best interest to play a supporting role, by supporting the stakeholders of our member countries that are preparing their applications to become the next European Capital of Culture.”

“Cultural Capital destinations present an excellent platform for local entrepreneurs and innovators to tap international cooperation opportunities,” agrees Ana Vella, EEN Tourism and Cultural Heritage Sector Group Communications Coordinator. “This title offers a great way for the cities and businesses that operate within them, to connect with international networks and creative industries abroad. Cities that earn the chance to drive the Capital of Culture initiative inevitably warrant a boost in international recognition when engaging in dialogue within the pan-European dimension, as well as the rest of the world. We should also consider the positive effects that this title has on the cultural system of a city,

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Malta Business Bureau 2017-2018 Annual Report

as well as its future, especially in terms of its projects and image. What this means for us is that this is Malta’s time to excel in creativity and show Europe the true potential of what our capital city, and Malta, has to offer.”

“From an economic perspective,” she continues, “the Capital of Culture title broadens the potential of cultural tourism whilst promoting long-term sustainable physical developments within this sector. From a social perspective, it enhances citizens’ pride in the city and increases the number of people who are drawn to visit it. Policy-wise, one could say it even brings about winds of change throughout the city, as well as a solid commitment to maximising the role of culture through innovative policy initiatives and the improvement of funding options for cultural investment. I think it’s safe to say that overall, there are a fair few advantages and we must focus on maintaining them – not just in this calendar year, but in the longterm.”

“Cultural Capital destinations present an excellent platform for the local entrepreneurs and innovators to tap international cooperation opportunities.”

Ana Vella

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Malta Business Bureau 2017-2018 Annual Report

The Juncker Commission Starts Bearing Fruit As the mid-term of the Juncker Commission has passed, the process for various important dossiers at EU level was concluded. Meanwhile, new proposals that put this Commission on track to complete its political mandate in time by 2019 were released.

Photo: Etienne Ansotte/EC

017 was also an extraordinary year for the MBB’s Brussels representation office, as it was for Malta’s EU diplomatic corps, in view of the rotating Presidency of the Council of the EU that Malta held between January and June. During this period, Malta was leading the EU agenda, looking to reach compromise between member states to formulate a common position in Council on key dossiers. At the same time, it was also tasked with negotiating on behalf of the Council with the European Parliament and Commission on other important files. The MBB served as an interlocutor between Maltese public officials and the Brussels-based business community, whilst also widely supporting the Maltese Presidency initiatives and events taking place both in Malta and in Brussels.

In addition, MBB seconded one of its core team members with Government for the 2017 Maltese Presidency of the Council of the EU, who was given the opportunity to chair the Internal Market and Consumer Affairs Working Parties and was part of a team that successfully negotiated a unanimous General Approach on the Proportionality Test Directive, as well as an agreement between the Council and the European Parliament on the Consumer Protection Cooperation Regulation.

EU POLICY AND LEGISLATION Throughout the period under review, the EU agenda was earmarked with landmark proposals for legislations and wider strategies for the future of the EU. Single Market On the legislative front, the single market agenda was characterised by discussions on the Services Package that seeks to introduce an e-card to facilitate the cross-border provision of services, and an improved notification system as well as a proportionality test procedure, ensuring that member states comply with the established principles of the internal

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market. Overall, this package aims to improve the operability of service providers and ensure that new regulation for the services sector is proportionate and non-discriminatory.

Another important set of proposals concerning the internal market was part of the Compliance Package. This included a proposal for a Single Market Information Tool (SMIT) which would empower the European Commission to request information directly from companies as a last resort to investigate distortions in the single market. The package also included a proposal for the introduction of a Single Digital Gateway (SDG), an EU platform centralising links to national authorities containing relevant information for businesses and citizens based in different member states. The package also looks to improve the quality and use of SOLVIT, an existing EU platform providing solutions to businesses and citizens encountering problems with public administrations.

More recently the Commission published the Goods Package that includes two legislative proposals: one looking to improve the mutual recognition of goods that are lawfully marketed in an EU member state, and the second seeks to improve the coordination in market surveillance and provide minimum harmonisation for the powers of competent authorities.

Malta Business Bureau 2017-2018 Annual Report

Digital Single Market The digital single market was characterised by the continuous discussions on the different proposals included in the e-Commerce Package, with the most important being the end of unjustified geo-blocking.

While in principle one would agree that consumers should not be discriminated against when purchasing online cross-border goods or services, a balance was required to provide the necessary legal protection for traders when not actively marketing or selling the goods and services across borders.

Another important proposal from this package looked to increase transparency of prices and regulatory oversight in cross-border parcel delivery services.

Social Policy The area of social policy was characterised by the Pillar of Social Rights initiative, a strategy outlining 20 key principles that provide equal opportunities to the labour market, fair working conditions, social protection, and inclusion for citizens across the EU. The strategy was endorsed by the European Commission, Parliament and Council, as a proclamation was signed in Gothenburg, Sweden, at a Social Summit in November 2017.

Among legislative initiatives that emanate from the Pillar of Social Rights, which were introduced last year and are currently a work in progress, there is a proposal for a Directive on Work Life Balance, aiming to set a minimum level of compensated leave for working parents, and the revision of the Written Statement Directive, aiming to improve the transparency and information that goes into the working contract provided by an employer to an employee at the start of a working relationship.

Another controversial topic in the social field was the revision of the Posted Workers Directive. During the year, both Parliament and Council agreed on their respective position. The dossier is, however, not yet concluded as trilogue negotiations are ongoing. The most contentious issues of this file include defining what constitutes remuneration of posted workers, the maximum length of time allowed for posting missions, and whether rules will also apply to sub-contractors.

Energy The energy field saw intense discussions covering this legislative package that was the largest ever proposed in this policy area. In fact, a set of six legislations were put forward, covering electricity market design, governance, energy efficiency, energy performance of buildings, renewable energy, and establishing a European Union Agency for the cooperation of energy regulators. Substantial progress was achieved, particularly in energy efficiency, energy performance of buildings, and renewable energy. Yet, negotiations between Council and the European Parliament are ongoing. The most sensitive points relate to the targets to meet the EU’s climate change commitments, whether there should be EU or individual member state targets, or whether targets should be indicative or binding.

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Tax In 2017, the Commission also published a Definitive VAT System, aiming to upgrade the current regime, that was supposed to serve as a transition since its introduction in 1993. The Commission claims that the current system does not keep up with today’s digital economy, and that it is open to tax avoidance. The definitive system aims to tackle fraud, create a one-stop-shop to make it simpler for small companies to sell crossborder, apply the principle of destination whereby VAT is paid to the member state of the final consumer, and introduce simpler invoicing rules to reduce bureaucracy. Negotiations are ongoing.

In the field of taxation, consensus was reached on various other issues, including the second Anti-Tax Avoidance Directive, and on a common EU list of non-cooperative tax jurisdictions. Nevertheless, progress on the Commission’s long-term plan for a Common Consolidated Corporate Tax Base (CCCTB) has been slow due to member states’ varying stances, and partly in the light of this, in 2018 it introduced a new proposal which looks into tax revenues of multinational digital companies of a certain size.

Trade The EU trade agenda continues to be an ambitious one, yet the difficult ratification process of CETA (EU-Canada) Free Trade Agreement raised questions on the extent of EU competences in this field. Nevertheless, the EU continued to negotiate, and managed to conclude another landmark trade agreement with Japan. It also managed to make substantial progress in trade negotiations with the Mercosur bloc that is made up of Brazil, Argentina, Uruguay and Paraguay. Other negotiations with international partners, such as Australia and New Zealand, are in the initial stages. Considering the current tense political climate, discussions on modernising the EU-Turkey customs union have stalled.

Brexit Since the triggering of Article 50 of the Treaty on European Union by the UK in March 2017, the past few months were characterised by intense negotiations on the withdrawal agreement that would cover EU and UK citizens’ rights post-Brexit, and the price the UK would have to pay towards the EU budget based on previous commitments and guarantees of a soft border between the North and the Republic of Ireland.

Discussions on the first phase took longer than expected, and the EU institutions only gave the green light to move to the second phase of negotiations in December 2017. By the end of March, both parties also agreed on a transition phase until December 2020 that would cover the period during which negotiations on the future relationship between the EU and UK take place. This was an important development, considering that it is unlikely that negotiations for a comprehensive free trade or association agreement be completed in 2018, allowing also sufficient time for the ratification process of the end deal by all member states.

Future of the EU In the aftermath of political developments in recent years that saw populist movements growing across the EU and also led to the Brexit vote, the European Commission felt that an open debate should take place on the future of the EU. It therefore published a white paper outlining five scenarios on how the EU could function in the future.

These range from staying the course, to limiting cooperation to the single market only, to doing less more efficiently, doing much more together, or to progress in a multi-speed Europe. Reflection continues, and more concrete proposals on improving the function of the EU for business and citizens will be released ahead of the next European Parliament elections that are expected to take place in May 2019.

For further information contact Daniel Debono, EU Affairs Manager and Head of Brussels Operations.

T: +32 485 469 737; E: ddebono@mbb.org.mt

Malta Business Bureau 2017-2018 Annual Report

MBB European Projects

Helping Business Innovate and Grow Internationally The MBB has been an Enterprise Europe Network service provider since 2015, supporting local SMEs to make the most of business opportunities in Europe and beyond ever since.

Enterprise Europe Network Enterprise Europe Network (EEN) offers SMEs the opportunity to become ever more connected with businesses from all sectors overseas thanks to the network’s extensive partnership database. Local businesses now have greater access to information ranging from EU policy to business partnering opportunities, EU funding, market information, participation in brokerage events, company missions, best practice visits and B2Bs. Through the network’s services, MBB has been able to provide information to hundreds of Maltese businesses on various local support measures and to encourage their uptake for greater impetus and competitiveness at national and European levels. In particular, MBB has hand-held and offered its guided support to a number of SMEs, helping them to tap EU funds and explore new international markets, and providing information on access to finance and alternative financing such as crowdfunding.

Together with the other EEN Malta consortium members, MBB communicates the most recent business opportunity updates via a refreshed communication platform launched in mid-2017.

Through this website, EEN visitors and clients can take the first step towards establishing international partnerships with the right international partners to grow their businesses, find expert advice for growth and expansion into international markets, and find solution-driven services to turn innovative ideas into international commercial success.

MBB has strengthened its role within the local EEN consortium as an advisory supporting body for clients in the local hospitality industry. Over 2017 and this year, MBB has begun to forge relations with clients in this sector to gain better knowledge of their respective challenges and to offer the necessary advisory support to overcome them.

MBB encourages local businesses to visit the EEN onestop-shop site to see how the network’s service can offer a targeted approach to all key economic sectors ranging from tourism to retail, healthcare to agrofood industries and intelligent energy to fashion and textiles.

Visit www.enterprise-europemalta.com to read more.

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Malta Business Bureau 2017-2018 Annual Report

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Tourism and Cultural Heritage Sector Group The MBB is a member of the Tourism and Cultural Heritage Sector Group – one of the 17 key expert sector groups within the Enterprise Europe Network, comprising partners who work together to meet the needs of clients operating in a particular sector.

The Group’s mission is to promote business innovation, enhance cooperation and sustainable partnerships among European tourism SMEs and provide companies with services that have a European added value.

Since 2017, the tourism business agenda for 2018 has been piling high with new opportunities, particularly with the arrival of the EU-China Tourism Year 2018. The Group supports and is at the forefront of current initiatives that are being undertaken by the EU to facilitate business between European tourism suppliers and Chinese buyers.

Group members are joining efforts to encourage participation of their network clients to attend this year’s World Bridge Tourism (WBT) events as well as the Partnerships in European Tourism (PET) events that are happening throughout 2018. The WBT project is an initiative of the European Commission aimed at increasing the flows of Chinese visitors to Europe.

The PET initiative is aimed at supporting EU tourism businesses and operators wishing to expand their businesses into the Chinese and US markets, through tutoring activities, facilitating new collaborations and partnerships around trans-European tourist products and the organisation of B2B matchmaking and other promotional events alongside international fairs. The programme offers the opportunity to learn about and directly engage with the Chinese and US markets at a series of in-market and European-based events.

The EEN’s team of business advisers for tourism and cultural heritage is at the front line of these programmes thanks to an active collaboration with the European Commission on these initiatives.

In addition to these opportunities, the sector group is also teaming up with other sector groups to look for innovative creative tourism ecosystems to build international-driven, win-win cooperation between creative industries and tourism companies. The network partners will be helping tourism businesses go digital by finding the best international tech solutions to improve their digital environment and services, and will this year also support SMEs to explore new opportunities in the sharing economy.

For further information contact Ana Vella, Executive – Business Support.

T: 2125 1719; E: avella@mbb.org.mt

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MBB European Projects

Driving Design Innovation within Business Design is a strategic driver in creating innovative products and services that are appealing to consumers and in making businesses stand out from their competition. However, businesses do not always have the necessary design management skills. For this reason, the MBB has embarked on an initiative to help address this systemic gap.

DesignShots In April 2017, Design for Europe partners – the Business and Cultural Development Centre (KEPA) in Greece, the National Agency for Innovation and Research (LUXINNOVATION) in Luxembourg and the Malta Business Bureau – launched a Horizon 2020 project, ‘DesignShots’. The project aims to tackle the challenges that European SMEs face to integrate design-driven innovation and become more resilient.

Very often, the transfer of good practices in SME innovation support, as well as the enhancement of existing and the establishment of innovative support programmes for SMEs, remain rather slow. Additionally, SMEs benefitting from support programmes in Europe, still often remain dissatisfied with the services they receive.

programmes in the respective partner countries. The project partners are examining the uptake of design by SMEs, and identifying just how agencies and business intermediaries could better support enterprises to integrate design as an integral part of their innovation processes.

This year, the project will create a new service which will be tested and piloted among five selected SMEs in each partner country. This service will offer a diagnosis of the companies’ design needs.

The final outcome of this initiative will be a ‘Design Options Guide’ that will provide fundamental tips and recommendations, thanks to several case studies and the compilation of expert feedback, to national business support organisations when introducing or improving existing design services.

Through various peer learning activities throughout the year under review, the ongoing project is analysing the applicability of existing design support For further information contact Ana Vella, Executive – Business Support.

T: 2125 1719; E: avella@mbb.org.mt

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Malta Business Bureau 2017-2018 Annual Report

MBB European Projects

Enhancing Digital and Financial Literacy Whilst it is in the entrepreneurs’ best interests to make informed decisions in relation to all of their financial resources, it is also important for them to be well-acquainted with digital technology. With this in mind, the MBB has embarked on two distinct initiatives to help entrepreneurs improve their financial and digital literacy skills.

INVEST – Financial and Forecasting Models for Entrepreneurs Towards the end of 2017, the MBB launched a free online training model in financial literacy for young and inexperienced entrepreneurs.

This model – developed as part of the EU-funded ‘INVEST’ project – does not aim to turn entrepreneurs into accountants or financial experts, but rather seeks to improve their standards on simple foundational skills that have an enormous impact on their company’s bottom line. In essence, this training model has been specifically designed to address existing gaps in financial knowledge, within both the Maltese and the wider EU markets.

The gaps were identified following research investigating the existing level of financial literacy among entrepreneurs in the five partner countries, namely Malta, Greece, Italy, the Netherlands and the United Kingdom. Research showed that young and inexperienced entrepreneurs wanted to improve their basic financial knowledge, preferably through an e-learning platform. Addressing

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this, the ‘INVEST’ partners opted for the development of an online training model, allowing participants to learn at their own pace and within their preferred timeframe.

The ‘INVEST’ training model offers 30 hours of training customised to the entrepreneur’s skills gap, focusing primarily on accounting, savings and investment for entrepreneurs.

At present, local stakeholders and experienced entrepreneurs are testing the contents of this training model and providing their suggestions for improvement.

During the project’s closing conference in September 2018, a fully-finalised version will be made available online to the general public across Europe and beyond.

Within the framework of the ‘INVEST Erasmus+’ project, MBB also published a blog assessing the significance of financial literacy for entrepreneurs and the necessary means to build a sustainable business. To read this blog, entitled ‘Building Sustainable Businesses: The importance of Financial Literacy for Entrepreneurs’, visit the Electronic Platform for Adult Learning in Europe on www.ec.europa.eu.

Visit www.investproject.eu to read more.

Malta Business Bureau 2017-2018 Annual Report

VITA: Developing a Virtual and Augmented Reality Trainers Toolbox In 2017, MBB embarked on the ‘VITA’ project – another ‘EU Erasmus+’ project through which five organisations based in Malta, Greece, Romania and the Czech Republic are working closely with the aim of developing a novel toolbox by which trainers can attract, reach out and assist learners in improving their digital literacy. This is a subject of great importance to European and Maltese businesses.

Research conducted in the project’s initial stages shows that as digitisation penetrates more aspects of our daily life, from tasks at home to tasks at work, the demand for EU citizens to be skilled in digital literacy is fast increasing. The EU’s Digital Skills and Job Coalition (2016) reports how a staggering 45 per cent of EU citizens are still considered to be digitally illiterate.

This implies that adults need to be further exposed to digital technology.

The areas of focus were established following a needs analysis exercise, through which a survey on digital literacy was disseminated and complemented by focus group discussions in each European partner country.

The final European report determined the following as the project’s primary areas of focus: • Browsing, searching and filtering information • Managing data, information and digital content • Interacting through technologies • Collaborating through digital channels • Developing digital content • Integrating and re-elaborating digital content • Protecting devices • Solving technical problems • Creatively using digital technologies To this end, ‘VITA’s’ project activities will focus on enabling the training of trainers on the concepts and application of Virtual and Augmented Reality Technology.

Visit the following webpage to read more: www.mecb.com.mt/vita

For further information contact Marija Elena Borg, Executive – EU Funding.

T: 2125 1719; E: mborg@mbb.org.mt

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MBB European Projects

Promoting Sustainable Development within Business Energy is increasingly becoming a key concern globally. Traditional sources are rapidly changing as environmental and social concerns grow, as technologies improve, and as geopolitical landscapes shift.

Business is a key driver when it comes to energy; it is the one that develops, implements and maintains the technology. Business is also one of the key stakeholders in mainstreaming new and improved technologies. For this reason, it is important that business remains at the forefront of energy developments.

Investing in Energy In 2017, the MBB initiated the ‘Investing in Energy’ project with the aim of helping SMEs in Malta – particularly, the manufacturing and importer/ retailer sectors – to increase their energy efficiency and reduce carbon emissions. Over the past few months, the project has been doing this through complimentary energy audits, workshops for technical staff, management debates at business breakfasts, as well as providing regular energy updates related to businesses.

Through these energy efficiency initiatives, the MBB is not only supporting the implementation of the Energy Efficiency Directive in Malta, but also helping enterprises reduce their costs and become more competitive.

The ‘Investing in Energy’ project is a partnership between the MBB, 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.

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The report shows that the 20 surveyed non-SMEs have invested in various individual energy efficiency and renewable measures as having been identified by auditors, costing a combined €6.7 million. The annual savings resulting from these interventions were estimated at €1 million, offering a return on investment of 15.6 per cent. The renewable and energy efficiency measures also represent a saving potential of around 10 per cent of total energy consumption.

Almost all these measures were reported as due for implementation or already implemented by the business respondents.

The report also outlines the affordability of energy audits, with Malta’s non-SMEs paying an average of €7,500 for complex audits. The report also shows that energy efficiency is seven times cheaper than renewable energy, in terms of cost per unit of energy saved/generated.

Environmental-Economic Report on Energy Efficiency in Malta’s Industry – March 2018 In March 2018, the ‘Investing in Energy’ project published an environmental-economic report on energy in business for Malta. This report is a useful tool for businesses, energy service providers and product suppliers, as well as for policy setters.

The report is based on energy audit reports carried out by non-SMEs in compliance with the Energy Efficiency Directive. As such, it represents the most accurate snapshot available for industry to date. Information within includes a complete list of energy measures proposed to industry, the cost and repayment offered by these measures, and their frequency in being recommended to companies. Additionally, there are numerous interesting details that emerge, as well as others that point to the need to gather additional information.

Based on the reported cost of measures, it is clear that the business sector needs to invest between €30 to €50 million to meet the 2020 renewable and energy efficiency targets. The report also clearly demonstrates the industry’s willingness to take up energy recommendations.

In summary, considerable energy savings are possible, and identifying these savings, through expert consultants carrying out energy audits, is largely affordable. The largest of companies are already investing considerably in energy measures, whilst energy auditing has proven successful in identifying energy opportunities representing a good businesscase.

This report was prepared by Economist Bernard Mallia at the request of the MBB, as part of the ‘Investing in Energy’ project. The full version can be downloaded from www.mbb.org.mt.

For further information contact Geoffrey Saliba, Manager – Investing in Energy Project.

T: 2125 1719; E: gsaliba@mbb.org.mt

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MBB European Projects

Bridging the Gap between Business and Academia Rapid economic growth has made it crucial for business and academia to come together and address some of the underlying challenges. To further enhance its policy work and pro-activeness in this regard, the MBB has engaged in three separate initiatives – all aiming to strengthen ties between business and academia.

Go&Learn Network In September 2017, the MBB held a conference on ‘Bridging the Skills Gap in the STEM Sector’. This conference was the culmination of the efforts of both the MBB and the Malta University Holding Company (MUHC) under the ‘Go&Learn+’ project – an Erasmus+ initiative which brought together a network of multiple businesses and education institutions across 17 European regions.

This network, which is still virtually accessible online, provides access to an international catalogue of training seminars and company visits for students and educators, promoting a better understanding of the business environment and the potential for networking. Throughout the duration of the project, Malta successfully engaged 14 local companies working in the STEM industry, more specifically in the ICT, digital gaming and food manufacturing industries.

Whilst the project has now reached its end, it has definitely served as an excellent opportunity to emphasise the importance of STEM skills for our economy and society, especially when considering the increasing demand for those skilled in STEM subjects.

Relevant stakeholders and employers have also committed themselves to addressing the existing skills gap, specifically in the STEM sector.

Visit www.goandlearn.eu to read more.

A Study on the State of University-Business Cooperation in Europe The MBB engaged in a study on ‘The State of European University-Business Cooperation’ (UBC). This study was carried out for the DG Education and Culture within the European Commission (EAC/10/2015).

The study focuses on the cooperation between higher education institutions and public and private organisations in the 28 EU member states and five associated countries.

It aims to get a more profound, comprehensive and up-to-date understanding of the state of UBC in Europe from the perspective of both university and business, in the hope of providing policy conclusions and recommendations to enhance UBC. Whilst examining the perceptions of a wide range of businesses, it is clear that most businesses that cooperate with universities plan to maintain or increase their cooperation in the future. Notwithstanding this, more can be done, for example, in supporting businesses with the development of initiatives and activities that can support their cooperation efforts, as well as in developing actual and perceived capabilities, particularly of those businesses not currently engaged in cooperation.

Amongst this initiative, a series of good practice case studies were also identified. MBB is pleased to note that its close collaboration with the University of Malta, particularly in terms of entrepreneurial initiatives such as the establishment of Malta’s first crowdfunding platform ZAAR, has been identified by the European Commission as a good practice case study throughout Europe and beyond.

Overall, the number of survey responses that were received have made this the largest international study ever completed on the topic of UBC. Based on the results, a national report has been specifically compiled for Malta. This will be released officially at the beginning of June 2018.

Further information can be found at www.ub-cooperation.eu

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INCOME: Learning Model for Tourism As from the beginning of 2018, the MBB embarked on an ‘Erasmus+ Knowledge Alliances’ project, entitled ‘INCOME’.

This project aims to foster a new learning approach, linked to the development of soft skills and based on a cooperative learning process that brings together higher education institutions and businesses in the tourism industry.

In the context of this specific industry, soft skills are highly relevant to the rate of performance and competitiveness of businesses. Research has confirmed, however, that there exists an apparent mismatch between the needs of the market and the level of soft skills with which tourism students and graduates are equipped with.

The project consortium – made up of 13 partner organisations based in Portugal, Spain, Italy, Malta, Germany, Croatia and the Netherlands – therefore recognises the need and the opportunity to include the development of soft skills into higher education curricula and to strongly cooperate with businesses to ensure that learning opportunities in the ‘real’ world are provided to tourism students. This will guarantee the enhancement of skills pertaining to future and current working staff.

Taking the above into consideration, the ‘INCOME’ consortium is currently compiling a more detailed analysis of the current situation of the tourism industry requirements and the tourism curriculum in the participating countries and regions. At the same time, partners are seeking to inform tourism businesses about the objectives and targets of the ‘INCOME’ project through the organisation of one-to-one meetings, workshops and thematic discussions.

For further information contact Marija Elena Borg, Executive – EU Funding.

T: 2125 1719; E: mborg@mbb.org.mt

Malta Business Bureau 2017-2018 Annual Report

MBB European Projects

Foundation for the Promotion of Entrepreneurial Initiatives The past year has been pivotal and successful for the Foundation for the Promotion of Entrepreneurial Initiatives (FPEI) – a collaboration set up by the MBB and the University of Malta, which has been recognised as a best practice case study by the European Commission.

FPEI’s main aim is that of promoting and supporting entrepreneurship. It encourages all forms of entrepreneurship, from high-tech, high-growth ventures to social enterprises. The foundation aims to collaborate with other local and international partners to establish new initiatives and provide tools that will help promote entrepreneurship in Malta.

T3QM Project In 2017, FPEI embarked on a project funded by the ‘Erasmus+’ programme, named as ‘The Three Questions Model of Developing Social Entrepreneurs’ (T3QM), in partnership with five European partners – Bridging to the Future (UK), JO Consulting (Italy), IESESE (Lithuania), IED (Greece) and Stitching Incubator (Netherlands).

The project aims to enable a wide variety of aspirant entrepreneurs – from backgrounds of need and who fail to access traditional support – to practically develop their enterprise idea by approaching business development not as a theoretical exercise, but from the perspective of the market, the entrepreneur and the steps needed to start a business and generate employment. This is an innovative methodology proven to create jobs and develop social entrepreneurial skills, including both soft and hard skills.

The possibility to start a business should be accessible to everyone. Yet, many aspiring business people are discouraged by the complex, time-consuming steps required to start a business. ‘T3QM’ is about ensuring that the opportunities of social entrepreneurship are open to any individual, by making use of practical learning material.

‘T3QM’ is addressed to adult educators, adult learners and organisations involved in social entrepreneurship, but also targets consulting agencies, education centres, aspiring entrepreneurs, policy-makers and administrations at regional and national levels.

In October 2017, MBB CEO and FPEI Director Joe Tanti together with ZAAR Crowdfunding Manager Matthew Caruana attended the first transnational meeting of the ‘T3QM’ project, held in Birmingham. The kick-off meeting was conducted to establish the tools to be used throughout the project, the respective partner roles and the way of working in the project.

The second transnational meeting was held in March 2018 in Malta. As part of this meeting, FPEI organised an informative event to spearhead the project, entitled ‘Making Entrepreneurship More Accessible’. The ‘T3QM’ information session included interesting discussions with different speakers on how starting a business can be made more accessible and less daunting.

Further transnational meetings will be held in the project partner countries in 2018 and 2019.

Discover more at www.3questionsmodel.eu

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Malta Business Bureau 2017-2018 Annual Report

ZAAR Crowdfunding Platform Launched in 2015, FPEI’s first project was the introduction of ZAAR – Malta’s first rewards-based crowdfunding platform.

From the outset, ZAAR’s vision and mission were to enable and facilitate innovation and great ideas, and to help them obtain funding, by providing a platform where these ideas can be showcased to the public and potential backers.

ZAAR set out to promote the use of crowdfunding as an alternative means of financing in Malta where small businesses and organisations often struggle to achieve the financing they need through more traditional means.

The results have been very positive. In 2017, ZAAR received over 90 project leads, of which 24 translated into published projects on the platform. Among the projects that made it onto the platform, ZAAR managed to achieve a 90 per cent funding success rate across the board – marking an increase of more than 30 per cent when compared to 2016.

Also across the platform, ZAAR raised more than €85,000 with the support of over 1,400 backers. These numbers were achieved in 12 Arts and Creative projects – which raised €22,351, 11 Community and Philanthropic projects – which raised €63,948, and one Educational project – which raised €1,400. Each of these projects met, and in some cases even exceeded, their funding goals.

These successes underline the fact that 2017 was a growth year for ZAAR, especially in terms of resources. To further strengthen the team, ZAAR took on a full-time Administration and Marketing Executive, as well as two interns, all of whom joined the organisation to help it achieve its goals and obtain the desired results.

2017 also saw ZAAR launch its long-awaited ZAAR Clinics, which take the form of crowdfunding information sessions, that give potential campaigns the chance to network with like-minded individuals, and to better understand how to run a successful campaign. To further facilitate its educational role, ZAAR also launched its Crowdfunding Guidebook – a complete, full-colour guide that takes potential campaigners through a timeline for their project, with the help of to-do lists and crowdfunding toolkits.

ZAAR also engaged other tools to reach out, both to potential campaigners and to prospective backers. It launched a specific linkedin Group on crowdfunding (Crowdfunding Malta) to facilitate discussions on the subject and raise awareness.

Two monthly newsletters also became part of the ZAAR calendar – one which shares news and updates on ZAAR campaigns, and the other that provides the latest news from the world of crowdfunding in general. This initiative has been particularly successful and has registered a positive increase in the number of subscribers. On top of that, ZAAR also

dedicates a monthly post to its own blog on crowdfunding issues and embarks on ongoing PR initiatives to keep the topic of crowdfunding in the public eye. As a result, the team at ZAAR was frequently invited to speak as experts on a variety of related topics, including crowdfunding, alternative finance and entrepreneurship, both on a national and an international level.

Beyond all of this, ZAAR commenced a number of other important initiatives. The organisation partnered with the CORE platform for the Social impact Awards and created the first match-funding mechanism of €3,000; similar partnerships are planned for the future. Furthermore, ZAAR Manager Matthew Caruana was chosen as one of the 20 mentors on the European Crowdfunding Network (ECN) and the University of Bicocca in Milan for their Masters Programme in Entrepreneurship. ZAAR team members were also asked to form the judging panels for various start-up programmes, including that of Global Entrepreneurship Week.

A number of collaborations were also integral during the year under review. Both the Ministry for Economy, Investment and Small Business and the Arts Council Malta continue to be funding partners of ZAAR, while Grant Thornton has provided assistance and advice to potential start-ups interested in trying out crowdfunding, and Creditinfo Malta has provided ZAAR with due diligence and credit checks on project owners. Meanwhile, ZAAR continued to work with the Malta Financial Services Authority (MFSA) to lobby for investment-based crowdfunding to be introduced in Malta – a process that has now entered its final stages.

Now, ZAAR is looking firmly into the future, with a number of key projects already lined up for 2018. To begin with, the organisation will launch a marketing research exercise to assess the knowledge and aptitude that people have for crowdfunding in Malta. The launch of the new ZAAR crowdfunding platform is also planned, as well as the launch of an investment-based crowdfunding service, and a number of other ancillary services. Moreover, ZAAR will be a source for collaboration and assistance for potential partners.

Discover more at www.zaar.com.mt

For further information contact Matthew Caruana, Crowdfunding Manager – ZAAR. T: 2340 3982; M: 7789 0538; E: matthew@zaar.com.mt; W: www.fpei.mt

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Calendar of Events APRIL 2017 21st April: MBB CEO INVITED TO SPEAK AT ECON SEMINAR In April 2017, the Commission for Economic Policy (ECON) and the European Committee of the Regions (CoR) organised a seminar on ‘Developing entrepreneurship in insular areas: Challenges, opportunities and policy responses’. The event was held in Malta, under the auspices of the Maltese Presidency of the EU, to encourage and promote entrepreneurship and identify policy responses and practices to mitigate the risks faced by entrepreneurs located on the islands. The wider aim was to foster resilience, combat seasonality and stimulate the sustainable socio-economic development of island communities.

MBB CEO Joe Tanti was invited to speak on the first panel debate which focused on the challenges and opportunities for island entrepreneurship. he emphasised that in Malta, entrepreneurs need to consider expanding their business internationally from the very start of their business venture. This is particularly important to enable them to thrive, especially when considering the small size of the local market.

On the issue of access to finance, Mr Tanti encouraged the use of online crowdfunding platforms, through which entrepreneurs can access investors and backers from around the world. The seminar was also addressed by Stefano Mallia, Vice-President of the Employers Group in the European Economic and Social Committee (EESC).

MAY 2017

18-19th May: INTERIM MEETING OF INVEST PROJECT MBB EU Funding Executive Marija Elena Borg participated in the first interim meeting of ‘INVEST – Financial and Forecasting Models for Entrepreneurs’, held at the Museum of Peace in Naples.

The meeting served as an opportunity for the project partners to analyse and discuss the results of a survey on financial literacy, which had been specifically developed and disseminated by the project consortium in early 2017. Additionally, and based on this analysis, the partners took the first steps to develop an e-learning training model, with the aim of enhancing financial literacy amongst micro-entrepreneurs.

24th May: MBB AND UNIVERSITY OF MALTA COLLABORATE ON STUDY VISIT TO ALTARO SOFTWARE As part of their collaboration under the EU-funded Go&Learn Network, MBB and Malta University Holding Company (MUHC) organised a study visit for University students at Altaro Software. Participating students were given the opportunity to tour Altaro’s offices and the more extensive working spaces of the Malta Life Sciences Park, and also learn about the inner workings of an up-and-coming software company.

The objective of the Go&Learn Network was to bring the University and vocational colleges closer to the business sector. On a local level, MBB and MUHC gave priority to companies and students linked to the EU priority areas of Science, Technology, Engineering and Mathematics (STEM).

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MAY 2017 18-19th May: MBB EU AFFAIRS MANAGER ADDRESSES INTERNATIONALISATION SEMINAR IN SKOPJE MBB EU Affairs Manager, Daniel Debono, was invited by Western Balkan Chambers to deliver a presentation on SME internationalisation services and practices provided in Malta. The seminar was part of a European Commission TAIEX capacity-building programme that included participants from Chambers of Commerce representing Serbia, Montenegro, Bosnia and Herzegovina, Albania, Kosovo and FYR Macedonia.

In his presentation, Mr Debono referred to the various services offered by the Malta Chamber, the Enterprise Europe Network and Trade Malta.

He also reflected on the biggest challenges for the internationalisation of SMEs based in small economies such as Malta. Other speakers sharing best practices were from the Promos Milan, the Czech Chamber of Economy, the Croatian Chamber of Economy, the Hellenic Union of Chambers and CBI Netherlands.

30th-31st May: COMMEMORATING FOUR YEARS OF EUROPEAN ALLIANCE FOR APPRENTICESHIPS MBB CEO, Joe Tanti, and Malta Chamber Head of Policy Development, Andre Fenech, participated in a high-level conference organised by the Malta College of Arts, Science and Technology (MCAST) in cooperation with the European Commission and the Maltese Presidency, entitled ‘4 Years of the European Alliance for Apprenticeships: Celebrating success and looking ahead’. The aim of this event was to celebrate the first four years of the European Alliance for Apprenticeships (EAfA), by highlighting some of its achievements and successes, while also looking at current challenges and the way forward.

The conference was addressed by Minister for Education and Employment, Evarist Bartolo, who stressed the relevance of apprenticeships in today’s job market as an effective solution to several critical problems. The conference was also addressed by Silvio De Bono, President of the Board of Governors at MCAST; Detlef Eckert, Director of Skills at DG Employment; James Calleja, Cedefop Director; and Arnaldo Abruzzini, Secretary-General of EUROCHAMBRES. Other stakeholders and social partners were among the guest speakers.

On the eve of day one, Malta Chamber President, Frank V. Farrugia, signed a pledge with EAfA to collaborate closely with educational institutions, such as MCAST, to promote apprenticeships among its members. The pledge was signed during a reception, held at the Exchange Buildings, commemorating the fourth anniversary of the establishment of the EAfA.

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JUNE 2017

13-14th June: MBB PARTICIPATES IN HORIZON 2020 PROJECT WORKSHOP, LUXEMBOURG MBB participated in the first round of peer-learning workshops as part of the DesignShots H2020 project. Through the exercise, Design for Europe (DfE) partners – the Business and Cultural Development Centre (KEPA) in Greece, the National Agency for Innovation and Research (Luxinnovation) in Luxembourg and MBB (ambassador of DfE in Malta) – reviewed the various design-driven innovation programmes that currently exist in the respective partner countries.

stakeholder conference was to provide an opportunity to note priorities for action on the single market, especially for SMEs, start-ups and scaleups, and to look ahead towards further work for the implementation of the single market. Local entrepreneurs had the opportunity to share their experiences in relation to the single market.

Marvin Zammit, Managing Director of Mighty Box – a Maltese gamer development studio start-up incorporated in 2014 – outlined the challenges his company faces as a maturing start-up trading in the single market and worldwide. Managing Director of Evolve, Chris Busuttil Delbridge talked about the journey that his company has been on over the past 10 years, and his perspective on what he calls “the big world”.

Dean Micallef, CFO of Attard & Co. Ltd – whose origins date back to 1921 – focused on the salient points associated with operating a group of companies in Malta within the context of promoting products and services beyond borders.

Other keynote speakers included Minister for Economy, Chris Cardona; European Commission’s Deputy Director General of DG Internal Market, Industry, Entrepreneurship and SMEs, Irmfried Schwimann; Kristin Schreiber, Director – DG GROW; and MEPs Róża Thun and Marlene Mizzi.

This kicked off the creation of a Design Options guide that is being developed by the partners and will be disseminated with innovation and business intermediary agencies, to provide important tips and recommendations on how to support SMEs in bringing design to a strategic level, and add brand value through increased customer satisfaction. To achieve this, every specific design service should fit into the overall strategy of the company.

19th June: MBB CEO MODERATES SINGLE MARKET FORUM CLOSING CONFERENCE MBB CEO, Joe Tanti, was invited to moderate the Single Market Forum 2016/2017 Closing Conference, entitled ‘Generating further momentum for the Single Market’. This event was organised as part of the 2017 Maltese Presidency of the Council of the European Union in collaboration with the European Commission. The aim of this high-level

23rd June: MBB PARTICIPATES IN EURONANO FORUM 2017, MALTA MBB participated in the EuroNano Forum, a three-day event which focused on how nano and materials technologies can strengthen competitiveness across all European industries. The discussion was also extended to framework conditions such as education, standards, regulations, IPR and safety issues, as well as entrepreneurship and industrial policy. The programme also included sessions on finance and funding through European and national programmes, in particular Horizon 2020, smart specialisation and public-private partnership initiatives.

In its capacity as EEN service provider, MBB played a co-organiser role, supporting Malta Enterprise in the successful coordination of the international business-to-business (B2B) meetings held on the day.

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JULY 2017 12-13th July: MBB PARTICIPATES IN EEN TOURISM SECTOR GROUP MEETING, BRUSSELS The Enterprise Europe Network Tourism and Cultural Heritage Sector Group meeting was held in Brussels on 12th and 13th July 2017. MBB EEN Coordinator, Ana Vella, joined the Sector Group Chair, Paulo Bota and the other international group member counterparts, to report on the already-implemented activities and achievements of the MBB and the local consortia, including the work carried out in the first half of 2017.

JUNE 2017 23rd June: MBB INVITED TO SPEAK ON SUSTAINABLE DEVELOPMENT MBB Sustainable Development Manager, Geoffrey Saliba, was invited to moderate a workshop during an event organised by Deloitte Malta and SOS Malta, together with the support of the Core Platform (Corporate Citizenship for Responsible Enterprises). The event was organised as part of ‘Business with a Heart’ project which aims to increase knowledge, awareness and engagement of the Maltese business sector regarding its role in contributing to the EU’s Sustainable Development Goals.

The workshop created the space to discuss and develop ideas for good practices, encouraging participants to develop ways in which they can make a change within their business to ensure sustainability and resilience for the future. In this regard, Mr Saliba highlighted the necessity as well as the benefit for businesses to integrate sustainability within their business models, so as to stay competitive while pursuing an innovative image. He also insisted that this kind of change needs partnership and support from all stakeholders.

During May and July 2017, Mr Saliba was also invited to deliver presentations on MBB’s sustainable development portfolio at other local events, including Malta College of Arts, Science and Technology’s (MCAST) National Water Conference and Paragon Europe’s Climate KIK ideation event. Throughout the presentations delivered, Mr Saliba presented MBB’s past and current achievements, primarily the EU Life+ ‘Investing in Water’ project, the Voluntary Agreement initiative on energy efficiency for non-SMEs, and the ‘Investing in Energy’ project.

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During this meeting, the Group also discussed the possibility of synergies with DG Grow, in preparation for the 2018 EU-China Tourism Year activities. In discussing the guidelines and priorities for the network as well as the European Commission Tourism Policy action lines for 2017-2018, members have now established a way in which to bring their rolling plan even closer to such activities.

At this meeting, Ms Vella was nominated by the Sector Group members to take on the task of driving the Group’s Communication Strategy.

13th July: LEARNING FROM THOUGHT3D As part of a number of initiatives under the EU-funded Go&Learn Network, the MBB and Malta University Holding Company (MUHC) hosted another educational event targeting University of Malta students. Thought3D, which is a local 3D printing start-up based in the Kordin Business Incubator (KBIC) was invited to present both the thought process behind its setting up, as well as the opportunities and challenges that the team has encountered throughout the last years. Emphasis was also made on ‘Magigoo’ – a 3D printing adhesive developed and produced by Thought3D, with the intention of addressing a very common problem found in 3D printing technology.

Participating students, particularly those with a background in engineering and/or design, showed a lot of interest in the promising work area of Thought3D.

Malta Business Bureau 2017-2018 Annual Report

September 2017

JULY 2017 14th July: DHL SHARES ENERGY EFFICIENCY STRATEGY WITH INDUSTRY PEERS At a business breakfast held at the Malta Chamber in Valletta, DHL Country Manager, Charles Schiavone, shared DHL Express Malta’s experience about energy efficiency in Malta with business and stakeholder representatives. The event was organised by the MBB as part of the ‘Investing in Energy’ project, to share proven successful energy efficiency strategies with relevant businesses.

Mr Schiavone explained that DHL Express Malta, an ISO 50001- and ISO 14001-certified entity, has just completed an audit on its 2016 energy performance. In 2016, it managed to increase its energy efficiency by five per cent over 2015, despite a 16 per cent increase in workload.

Apart from an energy management strategy which focuses on seven key areas, DHL Express Malta identified a rate of 13 per cent failed first delivery attempts for its residential customers. It then developed and trialled a system of drop-off boxes to improve customer service as well as reduce subsequent delivery trips. A trial in three localities proved successful, and plans are underway to increase this to nine localities.

The trial resulted in a reduction of nine tons of CO2 emissions, and the expansion is expected to increase this significantly.

Attending business and stakeholder representatives raised several points in the ensuing discussion, including the possibility of using night-time deliveries to alleviate traffic, and the use of electric vehicles to reduce pollution. DHL pointed out that Malta’s limited road infrastructure and traffic situation made road operations the least productive amongst its European partners, and consensus was wide that night-time deliveries for business customers is worth exploring, particularly in view of a worsening traffic situation.

1st September: MBB SENIOR ADVISOR RELOCATES TO MBB BRUSSELS OFFICE In September, MBB Senior Advisor on Internal Market and Legal Affairs, Mark Seychell, relocated to the MBB’s Brussels Office following his secondment with the Permanent Representation of Malta to the European Union, for the purposes of the Maltese Presidency of the Council of the EU as a Senior Policy Officer within its Competitiveness Unit.

He has now joined EU Affairs Manager, Daniel Debono, in MBB’s Brussels operations, and together, they are steering the MBB’s lobbying strategy with the European institutions and pushing legal amendments on legislative proposals in the interests of Maltese businesses.

4-6th September: MBB EXECUTIVE COMPLETES EMPLOYERS YOUNG PROFESSIONALS ACADEMY COURSE IN TURIN MBB Executive, Ana Vella, participated in the Employers Young Professionals Academy (EYPA) programme organised by the International Training Centre of the International Labour Organisation (ITC-ILO) in Turin.

The programme consisted of three sessions focusing on being the voice of businesses at a national and an EU level, on the current economic debates in Europe and on social dialogue. Throughout the course, participants obtained a thorough understanding of the various challenges faced by business organisations and the expectations of their members, whilst also training on advocacy and lobbying techniques within the context of the EU.

Among the challenges facing electric vehicles are range and battery life, particularly for vehicles carrying heavy loads for delivery. While technology is expected to overcome these barriers, the attractiveness of gas-power or hybrid vehicles was outlined as a potential bridging measure.

Attention was also drawn to the importance of using a specific digital software that analyses route and vehicle performance. Such software, which has already demonstrated success locally, identifies changes which could lead to improved performance and route planning based on real-time information. This was widely agreed to be the way forward in the short-term, with DHL revealing plans to use such software in 2018.

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September 2017 12th September: BRIDGING THE SKILLS GAP IN THE STEM SECTOR A half-day conference on ‘Bridging the Skills Gap in the STEM Sector’ was hosted by the MBB in collaboration with the Malta University Holding Company (MUHC) on Tuesday 12th September at the Malta Chamber of Commerce in Valletta. The participation of high-profile experts, together with industry professionals and entrepreneurs contributed to a fruitful discussion on the subject matter. This conference formed part of MBB-University initiatives under the EU-funded Go&Learn Network, which provided access to an international catalogue of training seminars and company visits for students and educators. In so doing, the project promoted a better understanding of the business environment and the potential for networking.

In his opening address, Malta Chamber President, Frank V. Farrugia, stated that the current “lack of STEM skills present in Malta’s labour market is significantly hampering our progression to an innovationdriven economy.” He emphasised that whilst new technologies are emerging at an unprecedented rate, “a worrying lack of synchronisation” exists between the education system and the sectors related to Science, Technology, Engineering and Mathematics.

University of Malta Rector, Alfred Vella; Malta College of Arts, Science and Technology (MCAST) Vice-Principal, Vince Maione; Education Ministry Consultant, Alexander Grech; and Malta Chamber HR Committee Chair, Catherine Calleja, all participated in the first panel debate. This discussion – chaired by the Head of the National Skills Council, Joseph Cilia – specifically focused on identifying the causes of the existing STEM skills gap. One of the challenges identified was that students are exposed to STEM subjects at a relatively late stage in their academic journey. In addition, the means used to depict and teach STEM subjects are often not as creative and innovative as they should be. A special emphasis was given to the concept behind the Esplora Interactive Science Centre at Bighi, and how it should also be reaching students within the classroom.

The second panel discussion featured Malta Life Sciences Park Director, Joseph Sammut; TAKEOFF Business Incubator Manager, Joseph Bartolo; Altaro Software Co-founder, David Vella; and ELTY Food Founder, Jeanette Cameron. The panel, chaired by MBB CEO, Joe Tanti, discussed the role of the business sector in the face of this Europe-wide issue. It was determined that the role of internships and work-based learning is crucial to ensuring that students obtain a first-hand experience of their prospective careers, before they start seeking full-time employment.

In his closing address, MBB President, David Zahra, stated that by 2025, the “demand for STEM professionals is expected to grow by around eight per cent.” He encouraged the private sector, stakeholders and authorities to give priority to the STEM sector by forming strategic partnerships that seek to “upgrade our education and training systems in line with the fast-changing economic and societal environment.”

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13-14th September: MBB ORGANISES DESIGN THINKING WORKSHOPS

On 13th and 14th September, MBB hosted project partners for the Horizon 2020 DesignShots project in Malta for a two-day workshop held at the Malta Chamber of Commerce. DesignShots is being supported by the European Commission within the H2020 framework and is the result of collaboration between Business and Cultural Development Centre (KEPA, Greece), Luxinnovation (Luxembourg), and the MBB. MBB collaborated with the Valletta Design Cluster for day two of the workshop, and organised a joint Design-Thinking workshop for the DesignShots and Design4Innovation project partners with local stakeholders.

The thought-provoking event welcomed the participation of Leonie Baldacchino, Director of the Edward de Bono Institute for the Design and Development of Thinking, who delivered a presentation on how creativity and design thinking could be applied by businesses to lead organisations to innovation.

The workshop, attended by both project partners and stakeholders, including representatives from the University of Malta and the Arts Council, was conducted by certified LEGO® SERIOUS PLAY® (LSP) expert facilitators; Carlo Spellucci, Change Management master; and Mattia Michelangeli, Start-Up mentor. Dr Spellucci began by presenting the LSP methodology, and how it could be used effectively to help business support organisations with their clients. This was followed by a hands-on practical experience with LSP tools. The session served as a best practice example of business support by using design thinking methods, feeding into the key objectives of both the DesignShots and Design4Innovation projects, and allowing participants to build on their contributions of design-thinking within the innovation-driven process of enterprise. To close the workshop, a number of concrete ideas and results were discussed; all of which will be available in the Design Options Guide once published in 2018.

Malta Business Bureau 2017-2018 Annual Report

September 2017 19-20th September: MBB PARTICIPATES IN ZEST, TECH EVENT IN THE MED

20th September: MALTA CHAMBER PRESIDENT ADDRESSES EESC IN BRUSSELS MBB EU Affairs Manager, Daniel Debono, accompanied Malta Chamber President, Frank V. Farrugia, during a meeting held at the European Economic and Social Committee (EESC), to discuss the outcomes of the Maltese EU Presidency within the Employers Group.

President of the EESC Employers Group, Jacek Krawczyk, invited the Maltese employer social partners to share their views on the successes and progress achieved by the Maltese Presidency.

In his intervention, the Malta Chamber President outlined the most important legislations that will positively impact European business, and for which a compromise was secured by the Maltese Presidency.

Among others, these include dossiers from the Services, eCommerce, the Clean Energy and Circular Economy Packages.

Malta’s start-up conference, ZEST, returned with an even more exciting line-up of leading local and international speakers, wider international participation, and unprecedented networking opportunities. ZEST is the main gathering for tech start-ups based in Malta, where technology disruption is central to the discussions. It also serves as an excellent opportunity to attract foreign players to experience the island of Malta.

MBB Business Support Executive, Ana Vella, and MBB EU Funding Executive, Marija Elena Borg, attended the 2017 edition which took place on 19th and 20th September at the Radisson Blu Golden Sands Resort. The event attracted over 500 participants, mainly comprising CEOs and founders, investors, talent, influencers and professionals.

Mr Farrugia concluded that over time, “Malta will be able to look back and conclude that its contribution to the EU process has been positive, has had an impact, and can proudly assert to have made a small difference in the greater scheme of the EU project.”

The meeting was also addressed by the Vice President of the EESC Employers Group, Stefano Mallia; President of the Malta Employers Association (MEA), Dolores Sammut Bonnici; and President of the General Retailers Traders Union (GRTU), Paul Abela.

The event was a unique opportunity for MBB to be represented and network amongst a cosmopolitan crowd of locals, expats and fly-ins.

Discussion topics ranged from business foresight, investment, scaling strategies and organisational culture to the impact of emerging technologies on established verticals such as finance, content and hospitality.

MBB was also represented at the ZEST satellite event on 19th September, which targeted niche communities, giving more space for specialist discussion and networking. ZEST Malta 2017 was organised by the Malta Communications Authority, in collaboration with various other public entities and stakeholders.

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September 2017 25-27th September: TWO HIGH-LEVEL EXPERTS DELIVER TRAINING ON TRANSPORT ENERGY MANAGEMENT

Transport makes up an important share of a company’s energy consumption. In fact, it is envisaged that transport-related auditing will become an obligatory benchmark during the verification of the next round of non-SMEs energy audits required by 5th December 2019.

28th September: GO&LEARN PROJECT FINAL CONFERENCE IN MILAN MBB CEO, Joe Tanti, and MBB Executive, Marija Elena Borg, participated in the Final Conference of the European Go&Learn+ Project which was held in Milan. The event brought together team members of the partner organisations and key industry stakeholders and representatives of the education sector in Italy. Mr Tanti and Ms Borg were joined by Alexia Pace Kiomall and Mario Cachia from the Malta University Holding Company (MUHC).

The conference, in which the MBB CEO was a panel speaker, primarily served as an opportunity for the project partners to promote their EU-wide efforts in bringing students closer to the business sector. Due importance was given to the ways in which the sustainability of the project outcomes can be ascertained.

In view of this and as part of the ‘Investing in Energy’ project, MBB together with project partners The Energy and Water Agency and the Malta Chamber of Commerce, organised a two-day certification course followed by a half-day workshop on transport energy management.

These were delivered by leading European Energy Transport auditors Conor Molloy, of Authentic Energy Management Solutions (AEMS) in Ireland and Erik van Agtmaal, of Altimedes in Belgium.

The certification course was targeted towards local energy auditors, providing them with the necessary practical and technical skills required to undertake a transport energy audit. It was held at the Malta Freeport and enabled the trainers to demonstrate examples, and participants to practice an audit on a designated heavy vehicle.

The half-day workshop which followed was targeted towards local businesses. The event focused on technical measures which can be adopted as standardised fleet efficiency practices, ranging from fuel management to driving efficiency. The business workshop offered an excellent opportunity for technical people within businesses operating car fleets, as well as managers responsible for the fleets to learn more about successful fleet efficiency measures.

The Energy and Water Agency and the Regulator for Energy and Water Services will be updating the Guidance Note on obligatory energy audits under Regulation 10 of the L.N. 196 of 2014, in view of the next round of energy audits required by 5th December 2019. The procedure undertaken during the certification course regarding transport-related auditing is expected to become an obligatory benchmark during the verification of consequent energy audits by non-SMEs where transport is an important share of their energy consumption.

OCTOBER 2017 12-13th October: MBB INVITED TO SPEAK AT LAND USE PLANNING CONFERENCE In October, the Planning Authority organised a national conference for high-level officials, stakeholders, NGOs and the general public.

The two-day conference featured five sessions and focused on the topics of Fragmented Land Ownership, Revitalisation of Historic Centres, High Rise Buildings, Quality vs Quantity, and Planning for Sustainable Development. MBB Sustainable Development Manager Geoffrey Saliba was invited to deliver a presentation on Planning for Sustainable Development.

This was followed by a round-table discussion chaired by Victor Axiaq.

Joining Mr Saliba were panellists Simone Borg, Head of the Department of Environmental and Resources Law at the University of Malta, and Maria Attard, Director and Vice-Chair of the Institute for Climate Change and Sustainable Development at the University of Malta.

The sessions analysed the importance of land use planning and their synergies with economic, social, cultural, and environmental aspects at national and international levels.

The conference provided an open forum for the exchange of views on themes related to land use planning, and was conducive to discussions promoting new methodological and empirical approaches.

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OCTOBER 2017 25th October: ZAAR CROWDFUNDING PROMOTED INTERNATIONALLY

In October, MBB CEO and FPEI Director, Joe Tanti, was invited to deliver a best practice presentation about ZAAR at a workshop organised by the Polytechnic Institute of Viana do Castelo, a state-run polytechnic institute of higher education in Portugal, with five schools located in several cities of the Viana do Castelo district. The event was part of the Institute’s ‘Inclusive School’ project, targeted towards those who wish to use or start a crowdfunding platform. The event marked the beginning of ZAAR’s close collaboration with the Portuguese Institute, which also expressed an interest to engage with ZAAR further on its services, particularly crowdfunding knowledge and advisory on ecosystem management.

Earlier in the month, ZAAR Manager Matthew Caruana was also invited to actively participate in various events, including Crowd Dialog (www. crowddialog.eu) Conference and the European Crowdfunding Network (www.eurocrowd.org) Convention in Vilnius, Lithuania. Both served as a great opportunity to further promote ZAAR across Europe and beyond.

NOVEMBER 2017

Keynote speakers included President of the European Parliament, Antonio Tajani, European C o m m i s s i o n Vice-President, Jyrki Katainen, Commissioner for Climate Action and Energy, Miguel AriasCanete, and President of the European Investment Bank, Werner Hoyer, among others. Jerry Brown, Governor of the State of California, also addressed the conference. California represents 15 per cent of all the clean energy produced in the US, thus acting as a role model for the EU. This visit was supported by the European Parliament.

10th November: DIGITAL LITERACY PROJECT LAUNCHED The MBB, as a project partner in ‘VITA’, has competed successfully in the recent call for proposals under the Erasmus+ programme. Through this project, five organisations from across the EU are working closely with the aim of developing a novel toolbox by which trainers can attract, reach out to and assist adult learners to improve their digital literacy.

The VITA partners met for the first time in Malta on 10th November 2017 to discuss and plan project activities and deliverables. During the meeting, the partners present were also given live demonstrations of Virtual and Augmented Reality technology to help them explore possible preliminary case studies to help adults catch up with digital skills. The meeting was also addressed by representatives of EUPA, the Maltese National Agency responsible for the Erasmus+ programme.

7th November: MBB POLICY EXECUTIVE REPORTS FROM THE EUROPEAN PARLIAMENT MBB EU Policy Executive, Sarah Abdilla, participated in a high-level conference on Clean Energy Financing in Brussels. Back in 2016, the European Commission proposed the Clean Energy for All Europeans Package, presenting a number of measures to help the EU meet its Paris Agreement commitments. However, in order for the EU to reach its 2030 energy and climate targets, and to make the transition towards clean energy, each year billions must be invested in energy efficiency, renewable energy and infrastructure.

The conference provided a platform for key leaders in the World of the Energy Union, to communicate their priorities for the improvement of the investment climate for energy in Europe, the legislative measures of which are currently being discussed within the European Parliament and the Council.

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NOVEMBER 2017 13th November: MBB EXECUTIVE GRANTED BEST DISSERTATION AWARD MBB EU Funding Executive, Marija Elena Borg, received a Best Dissertation Award from the University of Malta’s Institute for European Studies for her Master’s dissertation.

Ms Borg’s dissertation, entitled ‘Promoting Entrepreneurship – The Impact of the European Union’s Structural and Cohesion Funds on Start-ups in Malta’, assesses how the EU’s Structural and Cohesion Funds have addressed the needs of local (start-up) entrepreneurs. It also affirms that co-funded incentives were, in some cases, not as successful due to the funds’ bureaucratic nature and the entrepreneurs’ inability to distinguish between the types of funding available.

20th November: MBB INVITED TO SPEAK AT INVESTMENT PLATFORM WORKSHOP, BRUSSELS MBB CEO, Joe Tanti, and Sustainable Development Manager, Geoffrey Saliba, were invited to actively participate in a Brussels workshop on EFSI investment platforms. MBB was offered the opportunity to present an EU grey water treatment project proposal for the hotel industry. This was presented during the Knowledge Café session in conjunction with the European Investment Advisory Hub (European Investment Bank).

In their presentation, Mr Tanti and Mr Saliba highlighted that modern water and energy saving technology could significantly reduce hotels’ operating costs. However, most hotels are not built with the adequate infrastructure to implement these technologies (flow rate regulation and greywater treatment). The implementation of these technologies can therefore only take place for hotels currently in design stage, or for hotels undergoing or preparing to undergo deep retrofits (where infrastructural amendments would be possible). The potential for the EU-wide hotel industry is large, with massive potential to reduce water and energy consumption, as well as an estimated €1.6 billion reduction in operating costs.

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20th-22nd November: EEN ANNUAL CONFERENCE, ESTONIA MBB Executive, Ana Vella, attended the 10th Enterprise Europe Network Annual Conference which took place in Tallinn, Estonia. The conference brought together business advisers from more than 600 Network member organisations coming from over 60 countries, as well as representatives from the European institutions and key external stakeholders.

This edition focused on digital disruption and transformation, thus reflecting the pioneering approach to digitalisation of the host country, Estonia. It provided an excellent opportunity to inspire and equip the Network to better serve European businesses in the future.

22nd-24th November: EUROPEAN VOCATIONAL SKILLS WEEK As a member of the European Commission expert group on Vocational Education and Training (VET), MBB CEO, Joe Tanti was invited to attend the second European Vocational Skills Week in Brussels. During this week, Mr Tanti participated in the high-level VET Conference targeted towards education and business, and mobility and sectoral cooperation. This was followed by his participation at the European Business-Education Summit, with the theme ‘The European Pact for Youth’. The aim of the European Vocational Skills Week is to improve the attractiveness and image of vocational education and training (VET), to showcase its excellence and quality, and to raise awareness on the wide range of opportunities it presents.

Malta Business Bureau 2017-2018 Annual Report

December 2017 1st December: MBB LAUNCHES TRAINING IN FINANCIAL LITERACY On Friday 1st December, the MBB – together with the Mediterranean Bank Network – launched a free and publicly-available training model in financial literacy for young and inexperienced entrepreneurs, as part of the EU-funded ‘INVEST’ project. This training model has been specifically designed to address existing gaps in financial knowledge, within both the Maltese and the wider EU markets.

5th December: MBB BRUSSELS REPRESENTATION OFFICE HOSTS DELEGATION OF GOZITAN BUSINESSES MBB EU Affairs Manager, Daniel Debono, hosted a delegation of Gozitan businesses visiting Brussels on the invitation of MEP Francis Zammit Dimech. Mr Debono had the opportunity to explain to the delegation the advocacy work being undertaken by the Malta Business Bureau with the European institutions. Mr Debono also invited officials from the Brussels Invest-Export Agency to discuss the product offering of the Gozitan companies and provide information on commercial opportunities in Brussels, as well as ways to locate partners in the region.

Whilst opening the event, Aaron Farrugia, Parliamentary Secretary for EU Funds and Social Dialogue, referred to today’s generation as the ‘Erasmus’ generation – one that has fully benefited from the opportunities offered to it by means of complementary EU funding streams and initiatives.

In his address, MBB President, David Zahra, stated that while entrepreneurs may have the best business idea or the most innovative product in the market, they risk failure if they lack the necessary financial knowledge in creating a sound business plan and in managing generated revenue. Highlighting the significance of financial literacy among small business operators, MBB CEO, Joe Tanti, explained that financial literacy does not only reduce the risk of failure and helps keep the business going, but also means that entrepreneurs will be in a better position to take advantage of opportunities that may arise.

The relevance of such a tool was re-emphasised by the panel, composed of four experts in the field: ZAAR Crowdfunding Platform Manager, Matthew Caruana; JAYE Malta Board Member, Fiona Captur; Business First Chief Officer, Paul Baldacchino; and BOV Chief Credit Business Development Officer, Albert Frendo.

During the event, participants were not only introduced to this model and the rationale behind it, but also encouraged to test it from the comfort of their homes, and provide the partner organisations with suitable feedback for its improvement. A fully-finalised model will be available for all in summer 2018.

14th December: MBB PRESENTS MALTA’S STATE OF UBC IN BRUSSELS In December 2017, MBB CEO, Joe Tanti, together with Saviour Zammit from the University of Malta, was invited to present Malta’s state of University-Business Collaboration (UBC) at a ‘State of European UBC Forum’ in Brussels. The forum was organised by the European Commission in Brussels, following a study which had been carried out

by DG Education and Culture in 28 EU member states and five other associated countries. The study examines the state of play of UBC in Europe from the perspective of both university and business. Mr Tanti presented the perception of businesses in Malta with respect to cooperation between businesses and universities.

A series of good practice case studies were also identified, and MBB is pleased to note that its close collaboration with the University of Malta has been identified by the European Commission as a good practice case study throughout Europe and beyond.

Further information can be found at www.ub-co-operation.eu

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January 2018 12th January: MBB ORGANISES FOCUS GROUP DISCUSSION ON DIGITAL LITERACY On Friday 12th January, the MBB hosted a focus group discussion as part of its ‘VITA’ project, with the intention of gauging the level of digital literacy among the local adult population and subsequently determining which digital skills gaps need to be given priority. As a subject of high importance to European and Maltese business, the MBB took the opportunity to invite representatives from key local stakeholders, namely the eSkills Malta Foundation, the University of Malta, the Ministry for Education and Employment, ZAAR Crowdfunding Platform and Firstbridge (a multifaceted professional services provider in Malta).

14th December: MBB EU AFFAIRS MANAGER PARTICIPATES IN EUROMED INVEST FINAL CONFERENCE IN BRUSSELS MBB EU Affairs Manager, Daniel Debono, attended the final conference of EUROMED Invest project, which saw more than 100 business support organisation representatives from the Euro-Mediterranean region coming together. The Malta Chamber of Commerce was an affiliate partner of the project. The aim of the project was to boost private investment in the region and pave the way for more economic development and opportunities for businesses, particularly SMEs. The conference offered a unique opportunity to look back on what has been achieved in the framework of the project and to contemplate the overall mission of the EU in the Mediterranean region. It was highlighted that the public and private sectors should continue to work hand in hand to create the necessary policy framework in which the private sector can evolve, create jobs and make our economies stronger.

On the occasion, a business guide was also presented outlining more information on doing business with countries located in the southern Mediterranean region, including opportunities and best practices.

The feedback gathered during this focus group was used to complement the data generated through a Europe-wide online survey on digital literacy. The finalised report has been used by the VITA project consortium to determine which skills gaps will be addressed through the project’s work programme and upcoming initiatives.

22nd January: MBB SUSTAINABLE DEVELOPMENT MANAGER TAKES PART IN EUROCHAMBRES COMMITTEE MEETING MBB Sustainable Development Manager, Geoffrey Saliba, took part in EUROCHAMBRES’ Energy and Environment Committee Meeting held on 22nd January in Brussels. During the meeting, the latest developments regarding the Clean Energy for All Europeans Package were discussed, with particular focus on the Energy Efficiency Directive (EED), the Energy Performance of Buildings Directive (EPBD), the Renewable Energy Directive (RED II), the Electricity Market Regulation Directive, and the Governance Directive. EUROCHAMBRES also gave a presentation of their policy priority areas in the field of energy and the environment for 2018.

Mr Saliba was offered the opportunity to present the implementation of EED in Malta, as well as the main findings of an environmentaleconomic report carried out as part of the ‘Investing in Energy’ project.

He explained how the report primarily sought to gauge the effort of each enterprise operating in Malta in complying with the legal obligations emanating from the EED, the EPBD and the RED II, while providing an understanding as to the costs and savings resulting from energy efficiency measures which non-SMEs have in place at the moment, as well as those they intend to implement in the foreseeable future.

The meeting also welcomed two other guest speakers. Head of EPP Working Group on Economy and Environment, Lasse Michael Böhm, gave insights into the European Parliament’s work on this matter and addressed energy/environment-related challenges for the year ahead.

Furthermore, Head of the Commission’s Unit on Innovation and Investment for Growth, Mark Nicklas, presented the renewed industrial strategy and provided an outlook for the EU Industry Day 2018 (which took place on 22nd and 23rd February).

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February 2018

it easier for companies, especially SMEs, to sell their products across Europe, and to strengthen controls by the national authorities to ensure that products are safe and comply with the rules.

The session, chaired by MBB Director and Executive Board Member of the Malta Chamber’s Importers, Distributors and Retailers Economic Group, Charles Zahra, included a round-table discussion among businesses. The discussion also welcomed the participation of stakeholder representatives from the Malta Chamber of Commerce, the Malta Competition and Consumer Affairs Authority, and Solvit Centre Malta. This session served as a basis for the MBB to draw up a number of recommendations on how the single market can work more effectively.

The event was supported by the Enterprise Europe Network.

7-9th February: INCOME PROJECT KICK-OFF MEETING On 8th and 9th February, MBB CEO, Joe Tanti, and MBB Executive, Marija Elena Borg, participated in the Kick-Off Meeting of the EUfunded INCOME Project, which was held in Viana do Castelo, Portugal.

The meeting brought together for the first time the team members of the project consortium – composed of 13 partner organisations based in Portugal, Spain, Italy, Malta, Germany, Croatia and the Netherlands.

Mr Tanti and Ms Borg were joined by Alexia Pace Kiomall and Mario Cachia from the Malta University Holding Company (MUHC).

On 7th February, Mr Tanti also had the opportunity to participate in the ‘Vital Regions International Conference: Attraction of talents as a factor of territorial development’. The conference enabled discussion on the desertification of vast areas of our territory and the lack of strategic thinking to address it, as well as on the need to clarify the problems and seek appropriate solutions.

16th February: MBB ORGANISES CONSULTATION SESSION ON GOODS PACKAGE PROPOSAL

22nd February: MBB EU AFFAIRS MANAGER PARTICIPATES IN COLLABORATIVE ECONOMY WORKSHOP IN BRUSSELS MBB EU Affairs Manager, Daniel Debono, participated in a workshop organised by HOTREC on the collaborative economy. This workshop gathered 26 participants from around Europe and served to update on new developments and to present HOTREC’s revamped communication strategy.

A representative of the City of Vienna, Peter Wieser, and two representatives of the City of Amsterdam, Femke Blokhuis and Nanette Schippers, delivered a presentation on how they took action, the tactics they used and the state of play. Attendees also had the opportunity to participate in a short design thinking workshop to help them shape strategies. Finally, András Baneth, Public Affairs and Strategic Communication expert, helped participants who were split into four groups to map all stakeholders involved in their country in order to define potential allies and opponents, and to customise a new method of argumentation and strategy. HOTREC will be publishing its communications toolkit on the collaborative economy.

The MBB held a consultation session focusing on the Goods Package, which consists of two legislative proposals focusing on compliance and enforcement (2017/0353(COD)) on the one hand, and mutual recognition (2017/0354(COD)) on the other. The proposals aim to make

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February 2018 23rd February: MBB EU AFFAIRS MANAGER PARTICIPATES IN A STRATEGIC EUROCHAMBRES WORKSHOP IN BRUSSELS In addition to the group meeting, within which members discussed the group’s Rolling Plan and role within the 2018 EU-China Tourism Year, MBB organised an agenda lined up with various activities. Some of the members attended the Mediterranean BLUE Tourism Forum, hosted by the Mediterranean Tourism Foundation (established by the MHRA), which was held with the purpose of uniting the Mediterranean region as one. They were later invited to a reception at the prestigious Verdala Palace, to network with the other international guests of the forum, and meet with the President of the Republic of Malta. The other Sector Group members participated in a very timely best practice visit to the Valletta 2018 Foundation – the driving force behind Malta’s current EU Capital of Culture Programme.

MBB EU Affairs Manager, Daniel Debono, participated in a EUROCHAMBRES strategic workshop called by incoming President Christoph Leitl. The workshop provided a platform for Chambers of Commerce from across Europe to take stock of the current and future advocacy work of EUROCHAMBRES, the pan-European Chamber network, and also served as an opportunity to discuss the state of affairs of Chambers in today’s business environment.

Mr Debono spoke about the need to strengthen the advocacy of the Chamber community on a European level, stating that more policy input by Chambers on how EU legislation is expected to impact businesses on the ground will strengthen the case in Brussels with the European institutions. Considering the investment by many other competitor lobby groups with different interests in Brussels, Chambers needed to capitalise more on the strength of their network in order to bring forward arguments supported by credible evidence to make its case.

MARCH 2018 1st March: MBB EU AFFAIRS MANAGER PARTICIPATES IN BUSINESSEUROPE DAY IN BRUSSELS MBB EU Affairs Manager, Daniel Debono, participated in the fourth edition of BusinessEurope Day, a conference that this year coincided with the organisation’s 60th anniversary. The event brought together highprofile politicians, EU public officials, and private stakeholders to discuss the role of business in society. It is widely recognised that Europe is one of the best places in the world to live, work and conduct business, and that the EU has made this possible. However, the business community believes that our economic and social models need to be modernised in order to continue benefitting from all the opportunities the EU has to offer. The programme included testimonies on companies’ answers to different economic and social needs, as well as panel debates on how European policies can support business for it to be able to assume its role.

1st-2nd March: MBB HOSTS EEN TOURISM AND CULTURAL HERITAGE SECTOR GROUP DELEGATION IN MALTA The Enterprise Europe Network Tourism and Cultural Heritage Sector Group congregated for the first official spring meeting in Malta in March 2018. In its capacity as a Sector Group member, the MBB hosted all 25 active members of the group, consisting of international expert partners with a special interest in these sectors.

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During the Official meeting, the group also opened its doors to welcome special local guests from the Malta Tourism Authority, and two experts, who have pioneered a number of projects for Heritage Malta and have succeeded in securing significant EU Structural Funds for the conservation of Malta’s most precious heritage sites.

Realising the potential for cross-sectoral collaboration with other EEN Sector Groups, an agreement between the Retail and ICT Sector Groups was also formalised during this meeting. Following the delegation visit, the new activities and focus of the group, will be to continue developing relations that it is now exploring together with new counterparts. Over 2018, the Tourism and Cultural Sector Group will also be mapping out the various tourism clusters that exist to support these very specific and non-traditional niche areas of tourism in each member country.

2nd March: MBB PARTICIPATES IN THE MCAST ANNUAL WATER CONFERENCE On Friday 2nd March, the Malta College of Arts, Science and Technology (MCAST) hosted The Annual Water Conference at the Institute of Applied Sciences in Paola. This year, the event focused on ‘The Science and Creativity in Water’, covering different topics such as ‘IP management in H2020’, a topic that will be covered by the European IPR Helpdesk, and ‘International Best Practice for the Licensing of Water’.

MBB Sustainable Development Manager, Geoffrey Saliba was invited to give a presentation about its previous EU Life+ ‘Investing in Water’ project, which aimed to help businesses and hotels reduce their water consumption. It has done this by identifying water-saving opportunities and recommending water-saving solutions. Throughout his presentation, Mr Saliba depicted an overview of the key findings and experiences of the project.

Malta Business Bureau 2017-2018 Annual Report

MARCH 2018 5th March: MBB ATTENDS INFORMATION SESSION ON GDPR MBB Executives Ana Vella and Sarah Abdilla participated in an information session on the General Data Protection Regulation (GDPR), which comes into force on 25th May 2018. The event was organised by the Malta Chamber of Commerce, Enterprise and Industry, with the participation of the Office of the Information and Data Protection Commissioner and RSM Malta.

The MBB urges all data controllers and data processors to understand their rights and obligations, and to ensure compliance with this Regulation.

9th March: MBB PRESENTS ENVIRONMENTAL-ECONOMIC REPORT FINDINGS

new technology to ensure a sustainable and affordable roll out of zeroemission vehicles and low-emission vehicles. Malta has the potential to be a leader in this regard.”

The report is based on energy audits carried out in compliance with the Energy Efficiency Directive. This directive requires non-SMEs to carry out energy audits once every four years, with the first audits having to be completed by December 2015.

Outlining the MBB’s vision for how the EU energy targets could be achieved, MBB President David Zahra highlighted the measures which have led to Malta’s success, and how they can be built on. “Energy audits for non-SMEs have been largely successful, we now need to widen the reach of energy audits to large energy consumers within SMEs. Dr Zahra also highlighted an important new measure which could be introduced to increase take up by businesses of energy measures. “We believe that there is also demand for financing of energy measures.

The investment made to date is already considerable. The investment required to reach the 2030 targets is even more so. It is important that we increase the energy financing options available to businesses.”

Following the presentation of main findings, attendees were invited to participate in round-table discussions. The discussions focused on what can be done to facilitate improved energy performance for businesses in Malta, considering both technical, as well as financial measures.

At an event held on 9th March at The Exchange Buildings in Valletta, the MBB launched an environmental-economic report prepared by Economist Bernard Mallia at the request of the MBB, as part of the ‘Investing in Energy’ Project. The report indicates that the business sector needs to invest €30-€64 million to meet the 2020 renewable and energy efficiency targets.

Concluding the event, MBB CEO, Joe Tanti, said “MBB believes in the opportunities that energy presents based on the work we are doing, both in Brussels to understand the EU’s vision and direction, as well as in Malta to understand the situation on the ground for our companies.

Our next steps are to continue supporting the business community through technical actions, to continue monitoring developments through studies such as today’s, and also to work towards increasing the financing options available for industry.”

Further information about the report may be found on page 57.

Opening the event, Frank V. Farrugia, President of the Malta Chamber of Commerce, Enterprise and Industry, explained “the 2020 EU targets for both renewable energy and energy efficiency, and the even more ambitious indicated 2030 targets, will create business opportunities for business operators. We believe that there are considerable opportunities for business involvement in energy, and that a favourable policy environment can be of strategic business value.”

MEP Miriam Dalli highlighted “as European citizens we need to be more ambitious if we want our member states to have the necessary impetus to do more, and invest more in cleaner energy. As the rapporteur to negotiate a reduction in CO2 emissions from the transport sector, I am committed to push forward for more research and investment in

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MARCH 2018 15th March: MBB PRESIDENT ADDRESSES SEMINAR ON EUROPEAN FUND FOR SUSTAINABLE DEVELOPMENT

visit several VET colleges in various sectors, including Noorderpoort College in Groningen and Friesland College in Leeuwarden, followed by interesting smaller group site visits in three different sectors: healthcare, business services and ‘recycle boulevard’ with a focus on the integration of migrants.

The concept of ‘practice-driven learning’, which aims to bring students closer to real working environment, was very much highlighted.

Particular focus was also given to the importance of increasing cooperation between teachers and skilled trainers within companies.

APRIL 2018

MBB was invited to both support and address an event organised by the European Commission Representation in Malta and the Ministry for Foreign Affairs and Trade Promotion, during which Commission officials provided details on the External Investment Plan (EIP) to Maltese stakeholders. The EIP encourages investment in partner countries in Africa and the EU neighbourhood region, to help promote inclusive growth, job creation and sustainable development, thus helping to tackle some of the root causes of migration. This event provided an excellent opportunity for discussion on how the local business community can benefit from the European Fund for Sustainable Development (EFSD).

In his address, MBB President, David Zahra, encouraged European businesses, including Maltese businesses, to seek opportunities in third countries. “It is well-known that the Maltese have a strong entrepreneurial spirit, that they are not shy of risk, and that being part of a small open economy, internationalisation is many times not an option, but a must. Therefore, the EFSD, through its various intermediaries, offers a win-win opportunity for the local business community to invest in the sustainable development of third countries, while expanding business operations into markets with huge potential,” remarked Dr Zahra.

23rd March: FPEI SEMINAR ON ENTREPRENEURSHIP On Friday 23rd March, the Foundation for the Promotion of Entrepreneurial Initiatives (FPEI) – set up by the MBB and the University of Malta – organised a seminar on ‘Making Entrepreneurship More Accessible’. This event, organised as part of an EU-funded project T3QM, aimed to provide food for thought for those interested in the promotion of entrepreneurship and entrepreneurship skills, or individuals keen to start a business.

The seminar brought together entrepreneurs, mentors, educators and policy makers, and covered the topic from different fields and perspectives. Speaking at the conference, MEP Marlene Mizzi said, “social entrepreneurship is key for achieving sustainable and inclusive growth, and plays a key role in tackling current economic and environmental challenges.”

26-27th March: MBB CEO ATTENDS PEER LEARNING ACTIVITY IN NETHERLANDS As an active member of the European Commission’s ET2020 Working Group on Vocational Education and Training, MBB CEO, Joe Tanti, was invited to participate in a peer learning activity in the Netherlands on the subject of ‘Teachers and trainers in work-based learning/ apprenticeships’.

Representing EUROCHAMBRES, Mr Tanti had the opportunity to

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16th April: REFUND SCHEME LAUNCHED FOR SMEs THAT CARRY OUT ENERGY AUDITS The Energy and Water Agency recently launched a support scheme which SMEs can tap into to cover energy audit costs. The Malta Business Bureau was involved in the consultation, particularly due to quantifications it demonstrated regarding audit costs and benefits through its recently-published environmental economic report on energy efficiency in non-SMEs. The scheme also fulfils the Energy Efficiency Directive obligation to promote energy efficiency among SMEs, and complements measures undertaken so far for non-SMEs. Energy efficiency is an EU objective, with targets set for 2020, and discussion is underway regarding further and even more ambitious targets for 2030. Energy efficiency represents lower costs for businesses, however taking advantage of opportunities does require expert guidance. Malta’s energy audit support scheme for SMEs thus provides SMEs with the financing required to secure this external expertise and identify opportunities for enhanced energy performance and reduced utilities bills.

19th April: MBB CEO MODERATES SINGLE MARKET FORUM MBB CEO, Joe Tanti, was invited to moderate the Single Market Forum (SIMFO) organised by the Ministry for Economy, Investment and Small Business together with the European Commission. The SIMFO offered a great opportunity to share best practices among stakeholders, to supply the general public with information and also to analyse the state of the internal market.

This year’s forum, named ‘Cross your Border – Improve your Opportunities in the Single Market’, included three breakout workshops specifically on ways to improve opportunities for businesses and entrepreneurs to internationalise, on how e-commerce can help SMEs become part of the online single market, and on how businesses may formulate a digital strategy. Leading these workshops were the Malta Chamber, the Malta Employers Association, the General Retailers and Traders Unions (GRTU), and the Malta Communications Authority.

Malta Business Bureau 2017-2018 Annual Report

Board of Directors 2017/2018

DAVID ZAHRA President

Simon De Cesare* Director

Malcolm Jones Director

Charles Zahra Director

Mario Spiteri Director

Reginald Fava Director

Also in attendance at Board Meetings:

Joe Tanti CEO, MBB

Kevin J. Borg Director General, Malta Chamber

* Simon De Cesare is the incoming President as of 22 May 2018 (Annual Board Meeting) Lino Mintoff Head of Projects and Internationalisation, Malta Chamber

Andrew Agius Muscat CEO, MHRA

Kyle Borg served as MBB Vice-President till January 2018

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Executive Team

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Joe Tanti Chief Executive Officer

Daniel Debono EU Affairs Manager and Head of Brussels Operations

Mark Seychell Senior Advisor (Internal Market and Legal Affairs)

Ana Vella Executive – Business Support

Marija Elena Borg Executive – EU Funding

Geoffrey Saliba Sustainable Development Manager

Sarah Abdilla Executive – EU Policy

Following their traineeships, in February 2018, MBB engaged Gabriel Cassar as Projects Assistant and Kristianne Azzopardi as Research Assistant