Executive Magazine No 13

executive traveller 13

Malta‘s#next Transformation executive traveller  FREE issueCOPY 13 1 PRODUCED BY AVIAPROS.COM/ETM

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While much of Europe is facing gloomy times, Malta continues to prosper. Indeed, Malta’s economy performed better than expected in 2018, with real GDP growth reaching the high rate of 6.6%. Economic growth accelerated in the second half of the year, driven by record-high levels of private consumption growth, which increased by 7.3% compared to the previous year. In particular, robust employment growth coupled with modest price pressures in the household consumption basket contributed to boost households’ real disposable income.

Economic growth in Malta has translated in increased levels of disposable income for households. Average household income in 2015 was over 41% higher than in 2007. This reflects the economy’s increased level of output and strong performance over the past few years.

Malta’s current strong economy is the result of the government’s long term vision for a strong and forward looking economy. It is also the product of the government’s drive to consolidate key sectors including tourism, financial services and the gaming sector as well as its bold decisions to invest in new niche industries including artificial intelligence, blockchain and medical cannabis.

The 13th issue of Executive Traveller provides an insight into the growth of key sectors through the eyes of key individuals. Indeed, this issue provides a deep insight into the main sectors that form the backbone of the local economy. Moreover, it also looks at other key industries such as the construction industry and the real estate sector.

We wish you all a pleasant read and a pleasant summer!

Andrea Trapani Editor and Publisher

/

Omar Vella Editor

the makers Publishing Editor

Andrea Trapani atrapani@aviapros.com Omar Vella marketing@aviapros.com

Advertising Executive Rebecca Pace adverts@unionprint.com.mt

Design

Ryan Bezzina design@unionprint.com.mt

Printing

Union Print Co. Ltd. www.unionprint.com.mt

Publisher

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Aviapros International Ltd

Contributors

Special thanks for the production of the 12th edition goes to Executive Aviation Malta as the main contributor and sponsor, as well as all other contributor and sponsor, as well as all other contributors for their time and images.

We also thank all advertisers for their support to ensure the constant growth of the magazine.

Advertising

For advertising in our next issue, please send an email to Ms Rebecca Pace on marketing@aviapros.com or +356 9944 1432, +356 7948 4888.

Executive Traveller Magazine is distributed for free to top hotels and venues, and is available at local and international business aviation conventions. The publication is also available online at: www.aviapros.com/ETM Disclaimer: Particular attention has been given to ensure that all the content of this magazine is correct and up to date as on date as issue. The views expressed in the articles and technical papers are those of the authors and are not neccessarily endorsed by the publisher. While every care has been taking during production, the publisher does not accept any liability for errors that may have occurred. Copyright© 2017.

executive traveller  issue 13

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Policy for Medical Cannabis Malta and its European Counterparts

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ince 2015, the Drug Dependence (Treatment not Imprisonment) Act has enabled specialists in neurology, oncology, radiotherapy, anaesthesia, intensive care medicine, and psychiatry, to prescribe cannabis when it is the only viable option. In response to evolution in this field, last year sparked off some path-breaking legislative amendments. The revised Drug Dependence Act allows all licensed medical practitioners to prescribe cannabis-based products which are produced with good manufacturing practice (GMP). In addition, the Malta Medicines Authority, in liaison with the Superintendence of Public Health, implemented a process to review applications for sourcing medicinal cannabis-based products to the

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local market through the importation and wholesale distribution of GMP-certified products. Within a year of these amendments around 30 medical practitioners have prescribed cannabis to just over 200 patients to fight fibromyalgia, anxiety and various types of tumors.

They prescribed three approved products accessible from pharmacies through a named-patient procedure.

It is becoming clear that the particular legislation we carefully and prudently sculpted for Malta is addressing the challenges posed by those who are still skeptical about endorsing the medicinal use of cannabis. Medical practitioners have over the years relied on a well established formula of laboratory and

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The biggest mistake we can do is to underestimate the scale and the potential of this market, and we only have to look at how the market is growing in Canada, in the States and several other countries.

There is predominance of Chinese patents, suggesting that pharmaceutical science is evolving quickly in China, outpacing Western capabilities.

We want to carve out our name in this industry and shut [down] mainstream’s conceptions of medical marijuana. The sector needs people like you; cannabis-related careers are here, and now it’s up to you to see how far you can go and how far this industry will keep growing in Malta.

Malta’s position on medical cannabis Chris Fearne Deputy Prime Minister Minister for Health Malta has set itself apart in the medical cannabis industry. It is a dynamic country which seeks to constantly take the leading role in key niche sectors among which, the medical cannabis industry. The legislative measures enacted with respect to medicinal cannabis are not some transposition of provisions implemented everywhere else.

Many in the field are cognisant that Malta has floodlit an area which may still be quite hazy elsewhere.

The Malta Medicines Authority has attracted an impressive international reputation for its patient-centric work in the regulation of medicines – be it assessments, inspections, pharmacovigilance, or other advanced scientific contributions.

Chris Cardona Minister for the Economy, Investment & Small business

Debattista acknowledged that the Malta Medicines Authority has attracted an impressive international reputation for its “patient-centric work in the regulation of medicines – be it assessments, inspections, pharmacovigilance, or other advanced scientific contributions,” and set out to reassure his audience that the regulation of cannabis for medicinal and research purposes would do nothing to risk this.

“Communication and co-operation are key,” he said.

That’s why Malta “embarked on this initiative in strong liaison with the Superintendence of Public Health, Malta Enterprise and University of Malta, while reaching out to our counterparts far and beyond. I have accompanied a number of delegations from the Medicines Authority myself in visiting medicinal cannabis procedures, analytical laboratories, dispensing pharmacies, and regulatory agencies to develop competence and explore potential areas of collaboration.”

Deo Debattista Parliamentary Secretary for Consumer Rights, Public Cleansing and Support For the Capital City

Not only does Malta have a strong pharmaceuticals manufacturing base, it also has one of the best medicines authorities in Europe, a customeroriented and investor-friendly organisation that Galea said works very closely with Malta Enterprise.

The country also has a strong and growing medical research and education infrastructure. It is, for instance, building a state-of-the-art life sciences park together with international investment partners and transforming its sister island Gozo into a medical innovation hub.

Mario Galea CEO, Malta Enterprise 2018 Medical Cannabis World Forum

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 The bottom line is that while ensuring the accessibility of cannabis-based preparations on the local market, we remain strongly committed to regulate cannabis production for medicinal and research purposes. We are keenly forward-looking, encouraging research and development such as in product safety, quality and efficacy – the three pillars at the forefront of the regulation of medicines.

In the production of cannabis for these purposes, EU-GMP certification meets the legal requirements for facilities operating in Malta. It is a steady step forward for having a quality product fit for medical use. The win-win we are looking for is rooted in a common understanding of the standard requirements, an approach which gets all players to aim for the same goal, and measuring excellence only in terms of direct benefits to the patient. clinical, peer-reviewed research and strict evidencebased regulation to ensure safety and efficacy. Whilst the medical cannabis industry excitedly races ahead, it is essential that the clinical evidence-gathering keeps up with the momentum.

The disconnection between the industry’s pace and that of research and innovation is possibly rooted in the limited exchange of views, knowledge and resources it has with academia and regulatory bodies. Collaboration on quality research that provides evidence-based conclusions represents the only sensible way forward. It is with this frame of mind that through an integrated interdisciplinary approach, the Health authorities, Medicines Authority and Malta Enterprise are implementing a streamlined application of regulatory sciences for medicinal cannabis.

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It is reassuring to observe how the United Nations, the World Health Organization and the European Parliament, amongst other major international bodies, are all evaluating this evolving scenario. It is understood that be it a treaty, a rescheduling consideration or a resolution, the intention of safeguarding public health unifies all.

This dovetails perfectly with Malta’s policy to prioritise advanced scientific innovation. We are committed to drive research in the field and will always be open to collaborate with stakeholders who wish to join forces with their technical and scientific expertise, high-tech resources, or clinical experience. Only in this way can our prudence and courage in legislating achieve its only legitimate goal – that of making the patients’ health the benchmark of success.

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Europe Medical Cannabis The medical use of preparations derived from the Cannabis sativa plant has a long history, however it was only in recent years that the question of the medicinal use of cannabis has shifted from the margins of medical debate squarely to the arena of positive legislation.

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s noted in the recent report published by the European Monitoring Centre for Drugs and Drug Addiction in December 2018, “Medical use of cannabis and cannabinoids; questions and answers for policy makers,” it was only in the mid-1990s that citizens in several US states responded to patient demand for cannabis by passing referenda that legalised the medical use of cannabis for people with a variety of illnesses, such as chronic pain, terminal cancer and multiple sclerosis. A similar approach was later adopted in many other US states. In 1999, Canada introduced a medical cannabis programme that expanded over

the subsequent decades in response to court decisions. The US and Canada were followed by Israel (2001), the Netherlands (2003), and later other countries, such as Switzerland (2011), Czech Republic (2013), Australia (2016) and Germany (2017) who legislated to allow the medical use of cannabis under specified conditions.

Most European countries now allow, or are considering allowing, the medical use of cannabis or cannabinoids in some form. However, the approaches taken vary widely in terms of both the products allowed and the regulatory frameworks governing their provision.

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 Medical use of cannabis and cannabinoids in Germany The German legal framework developed over several years as a result of court challenges to the state.

The result is a policy that provides broad access to cannabinoids and cannabis for medical purposes.

Medical use of cannabis and cannabinoids in Switzerland

Medical use of cannabis and cannabinoids in the Netherlands

The Swiss system restricts the prescriber’s choice to either an approved medicinal cannabinoid product or a magistral cannabis preparation and restricts prescriptions to applicants on a named-patient basis.

Although the qualifying medical conditions are not individually identified, they are specified as ‘potentially life- threatening’.

The Dutch framework allows relatively broad access to cannabinoid medicines and cannabis preparations, with any doctor allowed to prescribe.

Medical use of cannabis and cannabinoids in Italy Italy limits medicinal products while investing in the production of standardised cannabis preparations.

Medicinal products containing dronabinol or nabilone are not authorised; the only authorised cannabinoid medicinal product is Sativex, which is reimbursed under the national health insurance scheme.

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General Overview As noted in the European Monitoring Centre for Drugs and Drug Addiction report, it is clear that no standard regulatory framework for cannabis preparations and cannabinoid products has been developed and that there is considerable variation between countries in the approaches taken, reflecting a variety of historical and cultural factors. In most countries, the provision of cannabis and cannabinoid products and preparations for medical purposes has evolved over time, often in response to patient demand or product developments, and the situation continues to change rapidly.

We are committed to drive research in the field and will always be open to collaborate with stakeholders who wish to join forces with their technical and scientific expertise, high-tech resources, or clinical experience.

96 patients discribed medical cannabis in Malta Times of Malta November 22, 2018

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Make your

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Don’t be fooled by the Maltese Islands’ diminutive size. In each corner, there is a story to tell. Be it archaeology, anthropology, art, history, religion, military, maritime, or nature, Heritage Malta’s attractions are able to suit any of these interests.

Starting from the prehistoric temples which are older than the Egyptian pyramids, visitors can choose from six sites which all form part of the UNESCO World Heritage List. The spectacular megalithic structures of the temples of Ħaġar Qim, Mnajdra, Tarxien Temples, Skorba, Ta’ Ħaġrat and Ġgantija represent a phenomenal cultural, artistic and technological development in a very early period in human life.

Ħal Saflieni Hypogeum in Paola, an intriguing prehistoric burial site which bears a unique testimony to a cultural tradition that has disappeared, has also made it to the UNESCO World Heritage List.

Paintings in red ochre which decorate some of the walls within the site, are the oldest and only prehistoric paintings recorded on the Islands. This burial theme is accompanied by Ta’ Bistra Catacombs in Mosta and St Paul’s Catacombs in Rabat, Malta.

Għar Dalam in Birżebbuġa is Malta’s oldest prehistoric site. Bones of Ice Age animals which were recovered from the cave are exhibited in old Victorian style displays. The exhibits include fossil remains of dwarf elephants and hippopotami.

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 A captivating selection of museums are housed within historical auberges and fine buildings which were constructed by the Order of St John and by the British Authorities when they ruled the country. The museums trace different aspects of Maltese archaeology, history, anthropology and art. Numerous exhibits enhance the visitors’ experience to envision the local prehistoric era, the influence of the various colonizers, the natural history, the maritime industry, the artistic development, and the narratives of war.

The two formidable fortresses of Fort St Angelo in Birgu and Fort St Elmo in Valletta are downright witnesses of the Islands’ turbulent history.

Nowadays, these offer spectacular panoramic views of the Grand Harbour and its surrounding fortified towns. The latter fort hosts within it the National War Museum.

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The Domus Romana in Rabat, Malta, and the Palace State Rooms and Palace Armoury in Valletta speak of grandeur and refined quality which existed on the Islands throughout different periods. On the other hand, the Gran Castello Historic House is a cluster of medieval houses at the Citadel in Victoria, Gozo, that illustrate the local domestic, rural and traditional ways of life.

The Inquisitor’s Palace in Birgu is another architectural gem and one of the very few surviving buildings of its kind. It represents a particular religious setting in Malta when the Church played a substantial role in the inhabitants’ lives. The austere setting of the Holy Office Tribunal, the prison complex, and the torture chamber say it all.

More information about Heritage Malta’s attractions is available at www.heritagemalta.org

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FORWARD

LOOKING

VISION Interview with

Konrad Mizzi, Minister for Tourism

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ourism continues to play a key role in Malta’s economy. The figures recently published in the Grant Thornton Malta’s Travel and Tourism Sector Review show how 2018 was an exceptionally good year for Malta’s tourism industry as the number of inbound tourists reached a record 2.6 million, reflecting an increase of 14.3% over the previous year. Moreover, according to the World Travel and Tourism Council, accounts for 27.1% of the country’s Gross Domestic Product (GDP) when the wider effects from investment in tourism and its supply chain are taken into account. This represents a contribution that is much higher than that in Europe and the World, where tourism contributed 10.3% and 10.4% to GDP, respectively. This positive performance is expected to continue in the near future, with the sector’s value added expected to grow by 4.2% p.a. to reach 32.9% of GDP by 2028, largely due to the island’s attractiveness as a versatile tourist destination. Konrad Mizzi, Minister for Tourism recently shared with Executive Traveller his thoughts on the industry and projects in the pipeline aimed and strengthening Malta’s status as a destination of choice.

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You recently spoke about the ministry’s work to create a strategic medium and long term vision for the tourism sector leading up to 2025? Can you tell us more about this strategy?

Together with key stakeholders, the Ministry for Tourism is working to create a vision for the tourism sector for 2025. The objective of the vision is to ensure that Malta attracts tourists who spend more money on the island and to focus on sectors which can create sustainable growth. We’ll identify the target niches that we should focus on, we’ll certainly focus on both leisure tourists as well as business travel and MICE, and we will also focus on new countries and target markets which we will promote Malta in. This will ensure that tourism is sustainable and that it will also identify the key actions which will need to be undertaken to make this strategy happen.

Why is it important for Malta to have such a long term strategy?

Over the last few years we have worked extensively to secure and open new routes with different airlines, to diversify markets and to grow tourism in the shoulder months. It is now essential to plan ahead to make sure that tourism growth will remain sustainable. To this effect we need to assess bed capacity, we need to look into the infrastructure which is required to support tourism in Malta. We need to also focus on the attractions which the island is focusing on. Such planning will require interministerial co-ordination, as well as

communication with the private sector to incentify investment in new sectors associated with tourism. It is the government’s objective to provide direction together with key stakeholders in this important strategic section.

One of the main objectives of this strategy is to uncover more tourism niches and to attract new tourists from Japan, Australia, America, India and China. How will the country tap on such niche sectors?

In order to attract more tourists who spend more money in Malta, we need to look at new markets. And yes, these include targets in the Asian region, including Japan and Korea, as well as China and Singapore, and India. We have currently introduced a new route via Qatar Airways which will provide connecting flights to such destinations. We also are working extensively to increase our reach in North America, in particular in the United States. Results on our earlier marketing campaign, has yielded fruits and we are pleased to know that the United States offers interesting prospects both for leisure tourists as well as incentive and conference travel.

In order to reposition our tourism, we are working extensively to improve our infrastructure through GHRC, we are investing in a regeneration of lower Valletta. We are also investing in regenerating our 3 Cities in the Inner Harbour region. Other regeneration initiatives will be undertaken in St. Julians and Buġibba, which are tradition resorts, as well as other destinations in the south such as Marsaxlokk and Birżebbuġa.

We are also working to upskill our workforce in conjunction with the ITS which has now partnered with the Emirates Academy of Hospitality which is a world class international educational institute in hospitality.

On the other hand, how will the country seek on sustaining traditional markets such as the UK and Italy?

Traditional markets are also important. To this effect we have worked with airlines, with the MTA, with the MIA to sustain routes and grow routes on traditional markets. We have worked extensively to ensure that there are multiple airlines operating on every route and also to ensure that frequency is also improved. To this effect, we have worked extensively on the UK market not withstanding Brexit, to sustain market share. We have introduced new flights to Exeter and Cardiff, and we are also investing extensively in Italy, Germany and France. These core markets will be critical for our ongoing tourism sustainability together with diversification in non-core markets. Positive results have been also registered in Poland and Spain, and other European countries.

What makes Malta stand out of the crowd today in the tourism industry?

Malta’s tourism offer is very variant, and it offers the right mix between leisure, culture tourism as well as the right ingredients for business travel. Our sun and sea are obvious attractions together with our culture, but we have also enhanced our offering with additional focuses and new niches. To this effect, I believe that the events that MTA is creating is helping to ensure that we attract tourists to Malta thanks to the world-class names that we are bringing to the islands. In addition to that, non-traditional niches such as diving, LGBTIQ tourism, and adventure travel are also proving to be very successful.

In what way is Malta working to be the most Brexit-friendly state in the EU? It is Government’s policy to make Malta the most Brexitfriendly country in the EU. Our objective is to ensure that British travellers have a seamless experience when they come to Malta. To this effect we are liaising with the relevant authorities to ensure that UK travellers will be given a dedicated line when they arrive from the UK here in Malta, to make them feel more special. We are working extensively to make sure that British residents here in Malta are also treated well and we will also provide schemes to reduce any uncertainty which may have been created because of the Brexit situation. In addition to this we are working extensively in the UK to promote Malta. We have introduced various promotion schemes with traditional tour operators as well as the Malta-only specialists. And we are working extensively to sustain routes and increase routes to and from the UK.

You have recently also noted that trends show that Malta no longer suffers from seasonal tourism. What were the major factors which have contributed to such a success?

The Government has been working extensively together with MTA, MIA and various stakeholders and the operators to promote Malta during the shoulder months. I think the availability of routes to and from Malta in the shoulder months has provided more capacity for the island and that reflects the increase in numbers we have registered in these months. In addition to this, the product offering is also improving with additional events also being held in the winter months. However, we still have opportunities for growth in the January to April period, and we will be working with operators, particularly in the MICE sector to actually attract more business travellers to Malta during the winter months.

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Turning Things Around Interview with

Charles Mangion, Air Malta Chairman

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ir Malta recently announced that it had turned a â‚Ź10.8 million deficit registered at the end of March 2017 into a profit of â‚Ź1.2 million in year ending March 2018. The positive turnaround is the result of several key measures taken over the past months namely; better aircraft utilisation, the implementation of a new sales strategy, a heavy investment in IT technology and the signing of all four collective agreements with unions to give a strong base for increase productivity.

The Airline now seeks to grow further thanks to a long term strategy which Charles Mangion, chairman of Air Malta shared with Executive Traveller.

How would you summarise the recent financial results for year 2017/2018?

The financial results as duly audited confirm that for the first time in 18 years Air Malta obtained an operating profit. This clearly indicates that the strategy of growth that the Airline has embarked upon since 2017 is the right strategy for the National Airline in an industry which is highly competitive, and price driven.

Again, I reiterate that this is only the beginning of a more longer challenging process for the Airline to become the Airline of the Mediterranean linking Malta more solidly to the mainland Europe and the rest of the world.

This is important also for the country to continue the path of sustainable economic growth.

What still needs to be done for Air Malta to find its way out of the tunnel?

First of all, it has to be realised by all those within the airline that the comfort zone of the legacy airline tradition no longer exists. The aviation industry is a cutthroat price driven industry and the next 20 years clearly indicate that the trend for low cost travel will prevail. This trend while challenging provides also an opportunity. It underlines the fact that air travel will grow exponentially, and this can provide the opportunity for the airline to consolidate and grow.

I do not believe that the National Airline should emulate a low-cost competitor. Our inherent legacy structure does not allow us to compete at that level.

However, evolving into a hybrid airline expanding our connectivity footprint within Europe and North Africa and beyond whilst retaining some legacy comforts which will make us an efficient, service driven, customer centric airline, different from LCC, constitutes a challenge from which Air Malta can benefit. This requires commitment and an adaptation to change which is a continuous process within the aviation industry. Seeking and securing the individual work balance without compromising with and overcoming the Company’s current and future challenges is in my opinion unacceptable.

What key strategic decisions have been taken over the past months which have contributed to a healthy growth for Air Malta?

First and foremost, we opted for a policy of growth and further connectivity. For this reason, we opened formerly abandoned European routes, opened up 21 new routes and increased frequencies to popular destinations by over 20%.

Secondly, we increased the fleet to 10 aircraft and enhanced its utilisation, namely, the block hours in the air from an average of 7 hours to 12 hours daily or more in the high season. This obviously created some resistance as it affected substantially the customary work ethic of our employees, but we are working together to find and address this issue and create a more balanced work life situation for all. However, I cannot but re-state that the competition does not allow for complacency.

Furthermore, we also introduced the new economy structure with the Go-Light and other fare ladders which needed revision and improvement and also enhanced the Business Class. We introduced the buy on board scheme to replace the infamous ‘bezzun’ and we are also reforming and restructuring operations so that the whole operation side of the Airline will be integrated thus serving customers better and improving the On-Time Performance whilst increasing the frequencies and number of flights.

As a result of these changes we now travel to 42 destinations in Europe and North Africa consolidating our connectivity footprint and preparing the groundwork for further growth in our connectivity. This will be beneficial to many economic sectors including emerging ones.

Airmalta is investing heavily in IT improving its scheduling, rostering and passenger experience through the airlines new integrated Operations Centre.

In what way were such decisions also critical for the Company’s growth?

One of the earliest decisions taken by the new KM Board was to invest heavily in IT – in actual fact an allocation of €5m was approved. No investment in IT was undertaken for more than a decade.

The objectives of such investment are various but, in the end, we aim to obtain a fully integrated IT system within the Company and in its outstations, which will facilitate and improve the passenger experience whether travelling from Malta or from outside Malta. This transformation is also laying the foundation for the early introduction of artificial intelligence processes which will enhance and assist our employees in their pricing methodology, inventories, scheduling of aircraft and travel, rostering of cockpit and cabin crew, customer interaction etc., all this signifying a significant improvement in customer centricity without increase in cost.

It is to be noted that all efforts and initiatives undertaken are also driven by a tight cost driven management intended to enhance productivity without of course increase cost.

This will enhance our competitiveness in the sector.

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

The Airline of the Maltese Islands

IBIZA S TA R T I N G F R O M

new

16th AUG 2019

2019 ROUTES

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executive traveller  issue 13 @airmalta

P R I C E S S TA R T I N G FROM O N LY - € 4 0 t n c s a p p l y

www.airmalta.com

ďƒœ We owe it to the Maltese people that have supported us for the last 45 years.

In what way is the Airline today standing out of the Crowd? In what way is Airmalta becoming more customer centric?

I think customer centricy is crucial for the airline in order to increase volumes and improve revenue. The customer wants to build his/her own travel experience and expects good efficient proper and friendly service.

Thus, all efforts must be geared to meet the customer demands and requirements from the initial online search to the departure and arrival at destination and if required to connectivity farther beyond the initial destination. All this can be achieved at a competitive price and it has to be communicated properly. Thus, our distribution channels are also a very essential element to ensure growth.

Our planned Aircraft fleet change to Neo 320 is also contributing to the enhancement of the customer experience. For the first time in many years within 4 years all our aircraft will have a common configuration which will include a comfortable pitch though variable within the business and economy class. We are also validly studying the investment required to include WIFi on our new aircraft as they are introduced within the fleet. This will compliment and satisfy passenger demand whilst providing additional services to passenger and revenue for the Company.

What are Air Malta plans for the future?

Whilst implementing the consolidation and restructuring

plans indicated above at the same time we are planning actively for the future.

We are evaluating the Sub Saharan destinations and the opportunities these might offer, India is also within our radar and moreover we are continually enhancing our code sharing and special pro-rate agreements with bigger airlines to provide services for our customers utilising as a base our strategic location and the connectivity we have built and which we will continue to build within Europe, the Mediterranean Basin and North Africa. All initiatives are based on proper strategic analysis and business plans which undergo continuous and critical scrutiny before being presented to the board for approval.

I have deep faith in the sustainable growth of the Company. The Shareholder gives full relentless support to the Company and for this I would like to express my gratitude to the Board of Directors, the Minister and the Government.

I would like to thank also the management and staff, but I would also encourage them to adapt to the change that the aviation industry demands from each one involved.

We cannot escape or evade this demand – the 100% commitment of all involved is required. We are all aware that state aid under any form of modality is prohibited and the success of the airline depends on the hard work commitment and professionalism of each and every employee. We owe it to the Maltese people that have supported us for the last 45 years.

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THE SAVILE ROW OF THE SEA

Made-to-measure is tolerable for toothpaste and perfume. Clothes, cuisine and vacations however, must satisfy an individual’s exact specifications. Azure Ultra prides itself on being the Savile Row of Mediterranean charters, so it’s no surprise that for the 2019 yachting season, the bespoke specialist has created a series of unique itineraries, carefully designed to inspire connoisseurs of leisure to create something personal, and unforgettable, of their very own. executive traveller  issue 13

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Azure Ultra Fleet

Some like spices, others frown on salt. Some have grown up with cutlery, others wouldn’t even break bread with anything but their hands. Some of us are introverts, others are extroverts. Off-the-shelf, one size fits all, generic. . . these mass designations simply cannot adjust to all our different shapes, sizes or cultural preferences, especially when it comes to leisure time.

From inception, Azure Ultra understood that basic fact of life and built its service delivery upon it, honouring and enhancing clients’ individual visions, requirements and lifestyles.

This approach has worked so well for Azure Ultra that it has won Best Maltese Based Charter Company of the Year for two years running. More importantly, is that connoisseurs of maritime excellence and luxury are returning again and again for exclusive, custom-fitted experiences.

One such individual is Mr Maven Nahawi, who enjoys a two-week charter to Sicily every year with his wife and two children.

‘It is customised to us in every way, the food, schedule, the pace, everything.

The crew accommodate us and in all three trips, has been very attentive.

For example, in preparation for our trip, the crew even drove around Sicily at one point so that they could make recommendations of the sights.

‘Every year, they revisit the itinerary to ask what we enjoyed and what we didn’t 24

executive traveller  issue 13

The Nahawi family

to make sure each year is better than the last,’ Nahawi explained.

Based on feedback from clients like Nahawi, Azure Ultra has curated eight Mediterranean experiences in order to give existing and potential clients an inspiring flavour of varying styles of charters, which can be tailored and embellished to fit their exact requirements.

The Ruins of Taormina Theater

1. Cruise-a-Lampedusa Three days, two nights

Lampedusa is the largest of the Pelagic Islands, which lie some 175 km west of Malta. Surrounded by stunning aquamarine waters, this popular summer holiday destination is a paradise of white sand beaches that wouldn’t look out of place in the Caribbean.

While away the sun-filled days swimming, sunbathing and exploring the gently undulating nature trails on this unspoiled Mediterranean island.

Rabbit Beach, Lampedusa

3. The Spirit of Sicily Four days, three nights

Begin your Sicilian escapade by sailing from Malta’s historic Grand Harbour to the port town of Syracuse, famous for its Greco-Roman ruins. Cruise east to the hilltop town of Taormina, towered over by the 11,000m Mount Etna.

2. The Ortygia Odyssey Four days, three nights

Ease yourself into four days of Mediterranean bliss with sundowners on deck, against the backdrop of the picturesque Birgu Marina in Malta. At first light, head out to the charming islet of Ortygia, the historical city centre of Syracuse which is connected to mainland Sicily via two bridges. In this old town, you’ll discover the ruins of an ancient Greek temple, a seventh-century cathedral as well as a thriving market teeming with fresh seafood, quaint cafés and traditional trattorias. Sample the very best local delicacies on an optional Food and Wine Walking Tour.

Spend an afternoon sauntering through chic streets sampling delicious cannoli or admiring the city’s glorious medieval churches and sweeping views over the Bay of Naxos. Optional excursions include a Godfather vs Mafia Tour and Sicilian Lunch; Cannoli Making; and a Mount Etna and Alcantara Tour.

Next, we sail to the modern marina at sleepy Riposto for the evening, where you can try the signature Calabrian Pasta alla Norma at the Marricriu restaurant. Lastly, stop off at the fishing village of Marzamemi, home of Campisi, one of the finest, most atmospheric seafood restaurants in all Sicily set right on the quay.

4. The Tropean Trip Eight days, seven nights

Sail away to scenic southern Italy.

Setting out from Malta, cruise past the east coast of Sicily to arrive in the secret Calabrian beach town of Tropea, which is all dramatic cliffs, crystal waters and sandy shores. Explore the historical town centre, perched above the Tyrrhenian Sea on the Coast of the Gods which, as legend has it, was discovered by mighty Hercules. Spend glorious days swimming and snorkelling in the turquoise Capo Vaticano sea, exploring the town’s labyrinthine lanes and indulging in the most succulent seafood dishes, with a Taste the Calabrian Countryside optional tour strongly recommended.

Tropea Calabria Italy executive traveller  issue 13

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5.

5.Sicilian SicilianSunsets Sunsets

Fourteen Fourteendays, days,thirteen thirteennights nights Experience Experiencethe thebest bestofofSicily Sicilyon onaatwotwoweek weekround roundtrip tripbeginning beginningfrom fromMalta.

Malta.

Your Yourfirst firstport portofofcall callisishoney-hued honey-hued Syracuse.

Syracuse.Admire Admireancient ancientGreek Greekruins ruins amid amidfragrant fragrantcitrus citrusorchards. orchards.Follow Follow winding windingmedieval medievallanes lanesdown downtotocharming charming cafés cafésserving servingdelectable delectabledelights delightswithin within dazzling dazzlingbaroque baroquepiazzas. piazzas.Next Nextwe wehead head for forTaormina Taorminaand andcocktails cocktailsininPiazza PiazzaIX IX Aprile, Aprile,backdropped backdroppedby bythe thevolcanic volcanicvista vista ofofMount MountEtna.

Etna.Sail Sailinto intothe themedieval medieval port portofofMilazzo, Milazzo,famous famousfor forits itscastle castle nestled nestledininthe theBorgo BorgoAntico Antico(Old (OldTown) Town) and andVenus’s Venus’sPool Pool––Sicily’s Sicily’s‘blue ‘bluelagoon’. lagoon’.

Your YourSicilian Sicilianpilgrimage pilgrimageends endsininbeautiful beautiful Cefalù, Cefalù,known knownfor forits itsdreamy dreamysunsets sunsetsand and cinematic cinematictownscape, townscape,asasimmortalised immortalisedinin the theclassic classicfilm filmCinema CinemaParadiso.

Paradiso.Choose Choose from froman anamazing amazingarray arrayofofchoux chouxbuns buns from fromthe thebakery bakeryon onthe thepromenade promenadelining lining the thelong longsandy sandybeach. beach.Saunter Sauntertotothe thetop top ofofLa LaRocca, Rocca,the theold oldArab Arabcitadel, citadel,for for sensational sensationalviews viewsover overthe thetown. town.

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6.Majestic MajesticMalta Malta Four Fourdays, days,three threenights nights

Comino Comino--Blue BlueLagoon Lagoon

Mio MioAmoreAmore-Sunseeker SunseekerManhattan Manhattan64 64 26

executive traveller  issue 13

Enjoy Enjoyaafour-day four-daycruise cruisearound aroundMalta Maltaand and its itsbeautiful beautifulsister sisterislands. islands.Head Headtotothe the fishing fishingvillages villagesthat thatlie lieininthe thesouth southofofthe the island, island,with withtheir theirfleets fleetsofofcolourful colourfulluzzu luzzu boats boatsswaying swayingininthe theharbour. harbour.Spend Spendaa night nightanchored anchoredininquiet quietComino Cominoand andwake wake up upwith withaarefreshing refreshingswim swimininthe theheavenly heavenly Blue BlueLagoon Lagoonbefore beforethe thecrowds crowdsarrive. arrive.

Hop Hopover overtotoDwejra DwejraininGozo Gozo––where wherethe the famous famousAzure AzureWindow Windowfell fell––and andspend spendaa day daylounging loungingininaastunning stunningsecluded secludedbay bay not notaccessible accessibleby byland. land.By Bythe thetime timeyou you dock dockback backininBirgu’s Birgu’shistoric historicharbour, harbour, you’ll you’llhave haveseen seenthe theMaltese Maltesearchipelago archipelagoinin an anentirely entirelynew newlight. light.

7.7.Beach BeachLuxury Luxury&&Sea Sea

Four Fournights nightsresort, resort,three threenights nightsyacht yacht Toast Toastthe thehigh highlife lifeon onland landand andsea. sea.Four Four magical magicalnights nightsininaacastaway castawayfive-star five-star resort resorton onits itsown ownBlue BlueFlag Flagbeach beachand and three threenights nightson onthe theglamorous glamorousMiss Miss Moneypenny, Moneypenny,surrounded surroundedby byblue blueskies skies and andseas seasand andgolden goldensands sands––this thisisiswhat what unhurried unhurriedluxury luxuryisisallallabout. about.

Golden GoldenSands SandsResort Resort&&Spa, Spa,Malta Malta

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8.Chic ChicCity City&&Sea Sea

Four Fournights nightshotel, hotel,three threenights nightsyacht yacht Soak Soakup upstylish stylishculture culturecapital capitalValletta Valletta day dayand andnight, night,with withsumptous sumptousmuseums, museums, Michelin Michelineateries, eateries,seafront seafrontbars barsand and old oldtown towntreasures. treasures.All Allfrom fromaaluxurious luxurious Sunseeker Sunseekerbase basewith withan anacclaimed acclaimedaccent accent on onexcellence. excellence.Hennessey Hennesseyand andhypnotiq. hypnotiq.

Remi RemiMartin Martinand andMint MintJulep.

Julep.Luc LucBelaire Belaire bubbly bubblyand andSpanish Spanishtapas, tapas,ororaabit bitofof everything? everything?Why Whynot notspeak speaktotoaacharter charter executive executiveabout aboutcreating creatingyour yourown own personalised personalisedbooze boozecruise, cruise,complete completewith with Instagram Instagramsunset? sunset?

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All AllAzure AzureUltra Ultraitineraries itineraries include includecharter charterprice, price,fuel fuelcosts, costs, marina marinafees feesand andovernight overnightcrew crew rates ratesasaswell wellasasany anyassociated associated crew crewaccommodation accommodationcosts coststhat that may maybe berequired. required.

Get Getinintouch touchwith withan anAzure Azure Ultra Ultracharter charterexecutive executive for formore moreinformation informationor orto to discuss discussan anitinerary itineraryyou’d you’d like liketo topersonalise. personalise.

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Call Call+356 +3562778 27782500 2500 email emailinfo@azureultra.com info@azureultra.com or orvisit visitwww.azureultra.com www.azureultra.com executive traveller  issue 13

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Why register an aircraft, in MALTA? Since 2010 Malta has taken steps to become a leading jurisdiction of aircraft registry that offers aircraft owners and operators, current and future, an easy and expedient registration procedure and further ease and freedom of intraCommunity operation.

Malta’s aircraft registration regime’s openness to many different legal forms and arrangements, non-selectiveness regarding nationality, as well as the non-taxation schemes and other benefits have proven to be an attractive feature sought after by many foreign entities today. For these reasons Hi Fly Malta, Medavia and VistaJet have established their businesses in Malta.

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executive traveller  issue 13

e: rmb@erremme.com.mt w: www.erremme.com.mt t: +356 2166 1273

What are the benefits of registering an aircraft in Malta?

Access to intra-Community traffic rights Registration of an aircraft and fulfillment of additional requirements for licence and certification in Malta grants the aircraft rights to fly all intra-Community routes within the EU.

A secure EU jurisdiction and legal framework Malta is a part of European Union, has a robust legal system, is OECD and FATF compliant, as well as is a contracting party of number of different international treaties and other agreements, including, over 70 double taxation treaties, Cape Town Convention on International Interests in Mobile Equipment and its Protocol, that ensures high level security of interests of stakeholders, including creditors, investors, operators etc.

Availability of Maltese aircraft related services Malta ensures a broad range of aircraft related services, including aircraft and engine maintenance, repair and overhaul, component manufacture, aircraft management, leasing, aircraft maintenance training and other related support services. This has provided growth in Malta to aircraft related service providers such as Lufthansa Technic, SR Technics, Aviation Cosmetics Malta.

Fractional ownership The Maltese law allows any aircraft and its engines to be owned by multiple co-owners provided that fifty percent or more of the owners of the shares in the aircraft fall under the criteria of a qualified person. Each fractional interest is regarded as separate as it can be financed by different creditor, which can take securities over the respective fractional interests, as well as be sold, leased and pledged separately. Under Cape Town Convention these interests may be considered separate international interests and each fractional interest may be registered in the International Registry. International interests rank prior to national security interests and once registered to the International Register shall have full effect in Malta.

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Tax scheme for aviation related personnel

Ownership through trust

recent years, there is also a significant need for additional

The Maltese legislation acknowledges the rights to own an aircraft through trust. While the trustee may be registered as the owner, the Maltese law ensures the rights of the beneficiaries are enforced against the trustee in case of default. The beneficiaries of the trust are considered for eligibility of the trustee (as a standard procedure for all registration applications), however they shall enjoy confidentiality regarding such ownership.

Broad options of registration Any type of aircraft can be registered in Malta, including helicopters, airframes, as well as aircrafts under construction. In addition, aircraft engines may also be registered separately, allowing for engine financing opportunities.

Favourable taxation regime for aircrafts Malta has developed a taxation framework that provides various tax related incentives for owners of aircraft, both private and commercial, registered in Malta.

For example, in case of private aircraft as it is not used for income generating commercial services, its operation is not subject to any tax obligation in Malta.

Since the growing of aviation and ancillary services in highly qualified workers. In order to attract such highly qualified persons to occupy “eligible office” in companies licensed/recognized by the respective authorities, Malta has developed a tax scheme. This scheme allows workers who have registered under the scheme benefit from a favourable tax rate of 15% on all income derived from employment in Malta in amount of up to €5,000,000 (any excess of this amount is not subject to tax).

The individuals that may opt for the mentioned scheme: ■

Aviation Continuing Airworthiness Manager

■

Aviation Flight Operations Manager

■

Aviation Training Manager

■

Chief Operations Officers

■

Other aviation related personnel under Qualifying Employment in Aviation (Personal Tax) Rules

Who is eligible?

Persons eligible to register an aircraft: ■

An owner operating an aircraft;

■

An owner of an aircraft under construction or temporarily not being operated or managed;

■

An operator of an aircraft under a temporary title;

■

A buyer of an aircraft under a conditional sale or title reservation agreement authorised to operate the aircraft;

Furthermore, fringe benefits resulting from the use of a private aircraft by non-residents are also not subject to tax in Malta.

In case of commercial aircraft any income which is generated from the ownership, leasing or operation of an aircraft or aircraft engine which is employed in the international transport of passengers or goods is also exempt from Maltese tax, as it is considered to arise outside Malta for Maltese income tax purposes.

This provision applies to the leasing of aircraft or its engines by non-residents to Maltese-residents lessees, which would not be subject to Malta income tax. Such schemes may be particularly attractive to foreign companies resident (management and control in Malta), however not domiciled, in Malta.

Beneficial depreciation period for wear and tear The depreciation of the aircraft and other related

or ■

Who is qualified?

The qualifications of the registrants depend, whether the aircraft is for private or commercial use.

Private aircraft Any natural person who is a citizen of, or undertaking established in, a member country of the OECD and any other country approved by the Minister by notice for the purposes of the Act (termed “International Registrant” in the Act), may register a private aircraft on the Maltese register, provided it: ■

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executive traveller  issue 13

has legal capacity to own/operate and aircraft in terms of law;

■

appoints a local resident agent to represent the owner in Malta for matters concerning the registration of the

objects for wear and tear spans, for instance a minimum of 6 years for an aircraft airframe.

A trustee for the benefit of beneficiaries.

aircraft; ■

complies with applicable regulations/guidelines.

Commercial aircraft

the Government of Malta, or by any Member State

■

The Government of Malta;

of the EU or by persons referred to above, whether

■

A citizen of Malta or a citizen of a Member State of

directly or indirectly through one or more intermediate undertakings.

the EU or of an EEA State, or Switzerland, having a place of residence or business in Malta, the EU, the EEA, or Switzerland, including a person sharing in the ownership of such aircraft by virtue of the community of acquests subsisting between such person and a citizen as described above in whose name the aircraft is

Operator certification and licensing To carry out any commercial air services within the EU, the following shall be needed: ■

transport organisation to carry out any air service within

registered; ■

An undertaking formed and existing in accordance with the laws of Malta, of a Member State of the EU, of an EEA State, or of Switzerland and having its registered office, central administration and principal place of business within Malta, or the EU, or the EEA, or Switzerland, whereof not less than 50% of the undertaking is owned and effectively controlled by

Air Operator Certificate (AOC) - necessary for an air the European Community;

■

Air Operator Licence (AOL) - AOC holders must also possess an AOL, permitting it to provide air services as stated in the operating licence, e.g., to carry by air passengers, mail and/or cargo for remuneration and/or hire. AOL is valid within the EU, the EEA and Switzerland.

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The Business aviation industry at a glance An Interview with Andrea Trapani – Founder and Owner of Executive Aviation Malta and the Executive Traveller Magazine Executive Aviation Malta.

Tell us about your company in a few words.

A success story. A niche business made up of a dedicated team of professionals providing exceptional services to high end customers.

Tell us a little about your story and how you got here..

I started my career really and truly at Air Malta back in 1994, a job which gave me valuable work experience within the aviation industry and something I will cherish and never forget. Unfortunately or perhaps, fortunately, the way I see it, Airmalta is what it always have been. No matter how the media portrays it, progress limitations, bureaucratic impasses and political intrusion has always derailed the Company’s progress along the years since its inception. For someone like me who had been chasing a dream and always aimed higher, Airmalta can be seen as the catalyst which built up a strong work attitude and motivation I needed to improve in my profession.

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executive traveller ďƒ˜ issue 13

Was this the main reason why you moved on?

Well, I sadly resigned from the company after a 13 year experience because I felt demotivated and was desperately in need of a new challenge. I spent two years working with other local aviation companies before I took the decision to set up my own business as I believed I could still do more and better. Mind you I still believe I can do more and better.

What can you tell us about Business Aviation in Malta?

When I started my company 9 years ago, the local scenario was very different. Imagine, I remember being the first and only service provider to set up a modest and accessible airside facility with own lounge and basic

facilities for crew and high end passengers. I was first in introducing and basing a real executive vehicle at Malta International Airport, a BMW X5. I took some financial/ business risks but in the end, with a lot of effort while observing work ethics, it all paid off.

What changed since then ?

Well, at the time, as a start-up, my company was only handling around 1, maximum 3 aircraft movements a week. Business was slow and the demand, low. Today, the scenario is completely different. On average, we currently handle around 2-4 aircraft a day. Business grew gradually along the years thanks to many factors. Today, I’m proud to say that we are trusted by the world’s largest and most renowned business jet operators and owners such which is hard to mention them all. I’m also very proud to say that in 9 years we have not lost a single client for any fault of our own. On the contrary, we have managed to consistently maintain a very good client base and increase our market share.

What’s the secret for keeping a client happy in such an industry?

Well, it’s no real secret that clients flying privately in business jets pay a lot of money and only the few can afford that. We operate within an industry where everything around us is expensive, hence, It stands to reason that the expectations of most of our customers is high. We fully understand this and even though we have many operational limitations here in Malta, we always thrive to provide the best of experiences for our esteemed clients.

What are these limitations you mention ?

Well, there are various. It is very difficult or rather close to impossible for us to be able to set up our own FBO facility as we know it, since, access to/exit from the airfield is controlled by the Armed Forces of Malta and Airport Security, the space is gradually becoming less and less available and quite limited. Foreign investment also within our industry has meant that big spaces within the airfield and actual aprons have been taken up by private maintenance and repair organizations (MROs) since these also contribute well to our country’s employment numbers and economy.

How is this effecting your business?

Thanks to the ever increasing popularity of the island and good work by Government and the Malta Tourism Authority, tourist number have been on the increase year after year and new airlines slots always take priority leaving us with little room where to park medium to

large business jets and killing our appetite for seeking further growth. The ever increasing number of based commercial airliners, established AOCs and aircraft registered locally is also a positive indication. What’s unfortunate however is that the infrastructure on the airfield is what it is and we are either quite slow to react to the growth in our sector and cater for better business jet parking facilities or else, we are not giving enough importance to the GA/Bizav business.

Understand that must be frustrating for someone like you….

Well, we have been promoting Malta and our services for many years. We have a good number of customers specifically stopping in Malta for crew rest, crew training and opting for our island instead of other countries simply because we have managed to convince them that we can offer a better service and because Malta’s strategic position is more convenient. Unfortunately, today we have operators not stopping in Malta with their aircraft simply because we have no parking space available. This obviously translates into loss of business and sometimes complete loss of customer/operator to a third party neighbouring country. Unfortunately this does not augur well for any business seeking to grow further.

Understood, is the local government aware about this?

Both government and airport authorities are well aware, however, the feeling I get is that we are not being given enough importance since there are bigger and more profitable/plausible priorities such as high tourism and employment numbers. I just hope that whoever is responsible finally understands that we need to be provided with the right facilities even if we had to financially contribute so that we would be able to grow our business, a business which at the end of the day creates good paid jobs , employs hundreds and sustains many service providers and not just our Company.

Thank you for your time, as a conclusion I have one final typical question for you. Where do you see yourself in 10 years from now?

Retired, God willing (sic ) , but before I do, I wish I could achieve a lot more for myself, my team whom I consider as my second family and for Malta, this gem of an island who deserves to be respected and rewarded for being so very kind to us. That’s my plan and I’d love to have the opportunity to stick to it. ** Andrea Trapani may be contacted on atrapani@ executivefbo.com

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Matter

photos by Delia Group

A Family

Interview with

Shane Delia,

Chef & Restaurateur

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executive traveller ďƒ˜ issue 13

T

he concept of family is so central in the life of Chef Shane Delia. Every element

that pertains to his world is in one way or another connected to his family or origins.

Indeed, Shane has the word ‘Fortis et Hospitalis’, or ‘Strength and Hospitality’ tattooed on his arm which rekindles the Delia family motto, brought to Australia by his father who migrated there from Malta in 1970. Moreover his award-winning restaurant in Melbourne is named after his wife, ‘Maha’. However it is in the food he constantly experiments on, that brings together the different cultures which lie at the basis of his family. Shane Delia spends hours in his kitchen experimenting on new food concepts which combine the Maltese culinary experience passed on to him by his own family with the complex Lebanese cuisine taught to him by his wife’s parents, together with other Middle Eastern Cuisines he came across during the famous TV series “Shane Delia’s Spice Journey.” All these worlds are brought together in one pan and are reinvented thanks to his highly idiosyncratic flair. Shane shares with us his connection with Malta, his passion for Middle Eastern food and his entrepreneurial vision.

When and how did your food journey start?

To be honest, it was when I was 14 and my father took

the whole family on a 3 month holiday to Malta. It opened my

eyes to real hospitality and the role food and food culture play in the community.

How has your Spice Journey enhanced your food experience?

When I started my first Spice Journey in 2012 I was a

boy who loved food and thought he could cook. I had no real appreciation or respect for what food really meant and how important it was to the fabric of a person’s identity and

history. I now have a greater understanding of what makes food so special, why people hold their food traditions in

such high esteem and I now have a broader global view on people, culture and humanity.

Which country impressed you most for its food culture?

That is an impossible question to answer. Each country has

so many beautiful aspects; it would be like asking me which one of my children I love more.

Is there any Maltese imprint in your work?

There will always be a little Maltese DNA in what I do, but the

Malta I draw from is not the Malta many, especially today’s Maltese, consider to be Maltese. To me, today’s Maltese

food is a mix of Italian, British and a broader Mediterranean cuisine. I think the real beauty of Maltese food is a lot older

than that, the food of our Arabic influence, simple peasant dishes and classics, which can be traced back to Arab trade.

executive traveller  issue 13

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

We pride ourselves on being able to capture the best produce that is available.

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executive traveller ďƒ˜ issue 13

 How does Maha stand out of the crowd?

I suppose the main difference Maha has from other restaurants

cooking “Middle Eastern” food is that we don’t really cook

Middle Eastern food. By that I mean I think Middle Eastern food in it’s purest form is beautiful so I don’t mess with that,

but for whatever reason it may be, social, political, historical, religion or war, Middle Eastern food is one of the few world’s

great cuisines that has yet to evolve, unless it is unshackled

and given room to breath and develop in an unrestricted

Whilst reading through your food career, I noted a strong

giving it some room to be free, develop and dare to wonder

and how do you balance family and work?

forum it will always be good, but never great. I am simply what it could be. I’m not doing anything new, weird or ground

breaking. I’m just using the aspects of Middle Eastern food, products, flavour and history and letting the food to the rest.

In a world that likes to give everything a label or a

emphasis on your family. Why are they so fundamental My family give me more than support, they keep me

grounded, give me purpose and humility and the fire in my belly to succeed.

My father left Malta at the age of 17 to travel to Australia in

category we have had to define our food by a title, modern

the hope that one day he would meet a woman, have a family

are forced to label it we call it “Unrestricted Middle Eastern”.

blessed with. My dad has lived his life selflessly to achieve his

Middle Eastern is tacky, fusion can become confusion so if we

I recently read that you tend to effect random calls to clients who visit your restaurant. In what way have such random checks helped your business develop?

In every way. Customer satisfaction is what we are all about.

We

need

to be continually improving

and

providing our guests with the best possible experience we can. What better way to do that then to ask them straight up what they liked, didn’t like or what they would like to see at Maha or at any of our brands.

What should we expect in your latest book “East/West: A Culinary Journey Through Malta, Lebanon, Iran, Turkey,

and give that family all the opportunities he hadn’t been

goals which are embodied by my brother, sister and myself.

How can I possibly sit on my butt and take each day as it comes and be lazy? Too many people have given too much for me to have the opportunities I have. There is no way I am going to let them down.

Do you have culinary projects in the pipeline?

There

are

always things

on

the horizon.

We

are

constantly approached by groups abroad to bring Maha to their establishments in the UAE, USA and Europe, but we haven’t yet found the right offer or partner to do so with.

So we are focusing on Melbourne.

I am not a greedy person, money isn’t my motivator. I am

Morocco, and Andalucía”?

more driven by excitement and challenges, relationships

Spice Journey. Beautiful places, pictures, recipes and little

run and bills to pay but if it’s just purely about money then I’m

Basically, it is an overview of the past three seasons of insights from me about what makes the places we have visited so special.

and experience. Don’t get me wrong, I have a business to not interested.

My brand Biggie Smalls is doing extremely well and we are

about to open our fourth venue. Maha is on the eve of its 10

All the seasons play a part in our kitchens. We pride ourselves

cocktail bar venue to enhance the dining experience at Maha,

How do seasons fit in any way in your kitchen?

on being able to capture the best produce that is available.

Being based in Melbourne gives us so much variety, we are truly spoiled.

year anniversary and we are in the middle of negotiating a so there is a lot going on. I also have a new TV show about to

air in Australia called ‘Recipe for Life’, so I guess you would say we are quite busy.

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Malta’s Infrastructure

A Holistic

Vision Dr Ian Borg

Minister for Transport, Infrastructure and Capital Projects

Malta, an economic success in spite of

rather than because of its road infrastructure.

It is normally the other

way round for countries, but our Government has managed to

bring about economic

success nevertheless.

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On the other hand, we are conscious and highly aware that if we want to maintain this momentum we have gained, we will need to upgrade the country’s infrastructure to the highest quality, in order to be able to reflect the other sectors of our successful country.

It was no easy feat – we inherited the derelict roads that had been left abandoned for decades by previous administrations who had decided to burden Local Councils with all the responsibility for residential roads without matching their resources while investing very poorly in the country’s arterial roads and junctions.

That is not this Government’s way. Today, Malta is undergoing a nationwide upgrade of both arterial and residential roads, with investments ranging from short-term interventions on congested roundabouts to multimillion long-term investments like the €70 million Marsa Junction Project which will introduce the first multi-level junction to our country and forever transform the way we view, plan and implement our infrastructure.

in an estimated €20 million investment that also includes another set of tunnels near the airport in Kirkop, an area which has also seen vast improvement through a number of upgrades. And the route will be concluded with the introduction of a set of tunnels passing beneath the Santa Luċija roundabout which will undergo its own upgrade towards improved safety and efficiency.

Another great endeavour we are going to embark on is the Central Link project, a great investment that will lead to the realignment of existing roads and the introduction of new ones, the elimination of three traffic lights junctions and the redesign of 13 junctions, with the elimination of a number of bottlenecks along the main route that will connect the southern part of the island to the central areas and another part of the north, another project that once finished will see to the completion of another route, another chain of connections made up of individual investments and projects towards a better quality of life for our people.

All of this is notwithstanding the unprecedented pledge of €700 million towards the rebuilding of all residential roads over 7 years, a journey that we have embarked on, with 2019 being the first out of these seven, a project that will directly improve the standard of living of all of Malta and Gozo’s residents.

Our investments, however, are not being done haphazardly. We are looking at our country as a map – a living organism with arteries that connect our living and dynamic localities, arteries that form a network that will only function properly if all of its components are upgraded to reflect the rest.

This is the Government that completed the Coast Road Project and then mapped out a route that would connect north to south, upgrade after upgrade. We followed with the Kappara Junction Project and then swiftly began the Marsa Junction Project together with the Marsa-Ħamrun Bypass. In the middle of this route is the stretch of Regional Road notorious for accidents and traffic congestion, a stretch of road which is now undergoing a major upgrade in order to improve safety and efficiency, a project which includes the rebuilding of a 1970s bridge that passes over Msida Valley Road. And the investment doesn’t stop there. This Government will also be upgrading the three tunnels that form part of this route, Ta’ Ġiorni Tunnels, Tal-Qroqq Tunnels and the Santa Venera Tunnels

Our vision for infrastructure and for our transport mechanisms is vast and wide. The reality includes the studies that we are carrying out so that we may determine if an underground mass rapid transport system is a viable option for our country. The reality is that this government is the government that is working tirelessly to push forward the electrification of our transport systems, the government that is investing in the necessary infrastructure for an electrified fleet, the government that is year after year issuing initiatives and schemes to promote the use of alternative means – the provision of free public transport for our youths and full time students, just to mention one.

Our vision goes so far as to include a solid and confirmed plan to provide a permanent link between our two islands.

But for the government all this is not enough and we will continue to revisit our plans, to review, to amend and to extend. Our ultimate goal is to witness the improvement of the quality of life and standard of living of our people, and we will plan, we will work and we will deliver the necessary upgraded infrastructure and transport mechanisms that will help to make this happen.

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The booming construction industry As recently highlighted in the recent update of the Construction Industry and Property Market Report carried out by KPMG, the construction industry is still one of the main drivers of the Maltese economy with core construction activities contributing €694.12

How has the company evolved over the past years?

AX Construction has evolved from just a construction company to a specialized building contractor as well as a restoration contractor. Our specialization lies in the fact that we can execute a complex project which has construction and restoration elements, such as the St. Paul’s Catacombs, the Rehabilitation of the Birgu Ditch, the Old Valletta Market as well as several unique properties in Valletta amongst many more.

million in gross value added.

When considering the direct and indirect impact, the Construction and Real Estate sectors contribute around 13.5% of Malta’s GVA and from 2016 to 2017, direct, indirect and induced output grew by 8.9% to €2.56 billion. Full-time employment in the sector also grew by 8.9% to 37,428.

What is AX Construction’s experience of the current construction boom?

The current construction boom brings higher demand, of course. However, this doesn’t mean that one can accommodate all the requests that come in. One must be wise and filter the works that one is capable of executing with the resources at hand. The fact that there is a shortage of skilled workers is no news, and one must be clever how to properly allocate the resources for the jobs at hand. Therefore AX Construction has opted for specialized and qualitative projects rather than quantity.

Executive Traveller recently met up with Denise Micallef Xuereb, AX group Construction and Development director who shared with us her views on the industry and the constant growth of the company.

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To what do you attribute the fact that the construction industry is still the backbone of Malta’s economy?

I would say that rather that than the construction industry alone, I would define it as the construction and real estate markets are the backbone of Malta’s economy. This can be confirmed through the

independent and updated KPMG study commissioned by the Malta Developers Association. The report states that “this updated research report found that the construction industry is still one of the main drivers of the Maltese economy with core construction activities contributing €694.12 million in gross value added.”

studies published to-date don’t show any over-heating as yet in this sector.

One main factor is the multiplier effect that such works bring with it onto other industries, directly or indirectly. The amount of workers employed directly or indirectly with this industry also show this.

Although I don’t know to what context this was said, I believe that rather than it referring to the urban development involving high rises and land reclamation, Perit Falzon was more referring to the foreign contractors coming to Malta with imported foreign labour to actually execute the implementation of the big projects being approved rather than going through the local contractors. As a local contractor, what is of most concern to me is not the fact that foreign contractors come to work in Malta, or are awarded local contracts, but to ensure that the conditions of foreign contractors and local contractors are the same and that there are no special conditions favouring foreign contractors be it in terms of bureaucratic processes, legislation or financial exemptions.

Is there a risk of a bubble?

Once again here, I would like to make a distinction between the property market and the construction industry. The construction industry represents the different contractors executing the works and not necessarily the developer. It is important that this distinction is made. The construction industry doesn’t have any risk of a bubble, it is the property market that would show indicators of over-heating, however, all the

Perit Michael Falzon recently noted that we are currently experiencing the Dubaification of the construction industry. To what extent do you agree?

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

 In what way have the increasing costs of building materials impinged on the construction industry?

The increase in costs can be seen and felt across the board, from the increase in wages to the increase in the cost of basic materials such as steel, concrete and bricks as well as other building material, equipment and accessories. Unfortunately, even though construction rates have increased, this has not increased at the same rate as the costs. Also, a number of other indirect costs such as higher health and safety costs, environmental control measures, better public and third-party segregation, have continued to increase costs. Although this is very important and such measures are necessary and good, this then automatically increases the rates and sometimes certain clients do not wish to pay for other ancillary/ indirect costs and this leads to cost-cutting prior to contract award.

One of the major challenges faced by the industry is certainly the shortage of skilled people. How do you work around such a problem?

As I mentioned before, the fact that there is a shortage of skilled people is no news as this has hit practically each sector on the island. The situation in the construction industry is more acute since the locals wanting to work in this industry is on the decline due to the nature of the work as well as the dangers associated with it. The way AX Construction has dealt with this is to focus on the few good and highly skilled workers rather than the quantity. This helps to focus on the quality jobs and specialization of works.

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Vassallo Group Chairman Nazzareno Vassallo recently noted that part of the solution would be to grant contractors a limited number of temporary work permits allowing third-country nationals, who are very often keener to work in this sector, to start work right away. To what extent do you agree?

Yes, this is a very good suggestion. Through my involvement in MDA as a council member, we had suggested that third-country nationals are given a temporary permit to work immediately whilst the application is being vetted by the competent authorities. Once the final permit is approved the applicant’s status will be transferred to a permanent one and if not approved, then the onus is on the employer to immediately terminate his employment as per work permit issued.

What’s next for AX Construction?

AX Construction is continuously looking at ways and means how to expand and improve its services to its clientele. We are also always on the look out for exciting and complex jobs that upon completion we would be proud to have executed and left our mark on.

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Taking Infrastructure

to the Next Level Interview with

Ing. Frederick Azzopardi, CEO, Infrasctructure Malta

The Maltese economy

has over the past years

successfully progressed to a higher level of economic

growth. This new level

of growth created new challenges in several

key areas among which,

infrastructure. Indeed, the

country was called to invest and upgrade the existing

infrastructure in order to

support the increased economic activity and

pave the way for further growth. Earlier last year

Fredrick Azzopardi

took up the role of CEO

of Infrastructure Malta

which seeks to implement

the government’s vision

in this key areas. Fredrick Azzopardi shared with

Executive Traveller the

government’s goals for an

infrastructure of excellence.

How would you assess your first year at the helm of Infrastructure Malta?

In recent years, Malta experienced unparalleled economic and social progress. Our country’s infrastructure needs a major reinforcement to continue supporting this development. When our agency was established, we had no time to lose. The infrastructure

we use every day has to be constantly optimised and adapted to meet our society’s ever-changing requirements. As soon as we lag behind in this ongoing process, our families and businesses start to suffer as well. In less than a year, we started to make a positive difference in road users’ lives. However, we definitely have a long way to go, and a lot more work ahead of us.

In what way has the establishment of the authority agency contributed to a more efficient infrastructure in Malta?

An efficient system is one that swiftly fulfils its functions with minimal difficulties to its users and beneficiaries.

Infrastructure Malta is implementing a comprehensive plan, with an unprecedented national investment, so that we gradually render our infrastructure more efficient, more sustainable and safer to all current and future users.

We have recently collaborated with economist Gordon Cordina to assess the benefits of some of our major road projects. The results are very encouraging. For every €1 million we invest in the road network, families and businesses in Malta are getting back €7 million in benefits. These gains are all about increased efficiency – roads that get us to our destinations quicker, with lower accident risks, reduced fuel costs and producing less harmful emissions. More free time, more disposable income and a better environment for the people in Malta. Infrastructure Malta is tirelessly working towards augmenting these benefits, because as this study shows, it pays to have quality infrastructure.

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

 In a recent interview you noted; “Our studies confirm that in the do-nothing scenario, within a few years, travelling times along this route will increase by 250 per cent.” In what way have the infrastructural projects embarked on by the ministry contributing to a better Malta?

You are referring to the Central Link Project, which will upgrade the arterial road corridor from the Mrieħel Bypass all the way to Ta’ Qali, to reduce travel times and improve air quality in Birkirkara, Balzan, Attard and other nearby neighbourhoods. When we plan infrastructural projects, we conduct several studies to identify current and future challenges and design sustainable solutions.

The Central Link Project studies show that unless we take action and upgrade these roads immediately, we will soon face a gridlock situation that will have a detrimental effect on the quality of life of thousands of families in nearby areas. These residents are already experiencing some of these consequences, including noise, poor air quality and increased accident risks outside their homes, as road users use their residential roads as a quicker alternative to the existing, congested one-lane arterial route, including Mdina Road and Triq in-Nutar Zarb. Over a decade ago, the authorities prepared plans to upgrade these arterial roads. Successive administrations did not

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have the courage to implement them. Unfortunately, as I said earlier, when infrastructural development lags behind, people suffer the consequences.

In what way is the Central Link Project not just a quick-fix road-widening project?

This project has been included in national plans since 2006, when the heart of Attard, Birkirkara and Balzan were already feeling the pressure of an outdated and overstretched arterial road network. We have not settled for these 2006 plans. We conducted new studies, including a wide-ranging environmental impact assessment, and considered different options until we selected the most sustainable solution. This project does not simply overcome existing difficulties. It future proofs this part of the network for many years to come.

It will lead to substantial air quality improvements in many nearby residential areas. Particulate matter and nitrogen dioxide, the two main road transport pollutants, will decrease drastically, even when considering future transport demand. Moreover, Central Link Project also introduces much-needed alternative transport infrastructure that encourages commuters to shift to more sustainable modes of travel. Besides kilometres of new

to be solved but even by the people?

National challenges cannot be tackled through the efforts of one entity or initiative in isolation. Let’s consider road safety for example. The authorities and agencies involved, including Infrastructure Malta, have a major role to play in providing a secure road network and encouraging the public to avoid behaviours that increase accident risks. However, we cannot succeed without the support of road users themselves, and without constant collaborations with other activities that may also have an impact on our infrastructure. The same applies to the sustainability of transportation. National initiatives can pave the way for big improvements, but individual choices in our travel patterns and in the modes of travel we use are equally significant to make change happen.

footpaths and safer pedestrian crossings, this project also includes Malta’s longest bi-directional segregated cycle track, all the way from Mrieħel to Attard.

You have often stressed on the need to inform people about infrastructural initiatives taken. In what way has Infrastructure Malta ensured that the public understood better why certain works were necessary and how they are being implemented?

I would say we need to focus on communicating with the people, rather than informing them – it is a two-way interaction, not a one-way process. The people need to know what’s new, and what’s changing, in the systems they use every day, so that they can make informed decisions and maximise the benefits of the improvements being made. More importantly, we need to get back as much feedback as we can. It helps us identify new challenges users are coming across, and opportunities they feel we should invest in. Such feedback gives us an opportunity to assess the impact of our projects and refine ongoing works, whilst considering different ideas for our future plans.

Do you feel the current infrastructural challenges Malta is facing do not only depend on the authority

In what way do you feel the new mandatory safety features introduced by the EU will ensure safer roads?

We welcome any measure that can help make our roads safer. The new regulations making certain driver-assistance technologies compulsory in cars and vehicles are another step forward in the EU’s commitment to halve fatalities and serious injuries caused by road accidents. Vehicle technology innovation and infrastructural developments were also among the European priorities listed in the Valletta Declaration on Road Safety, endorsed during the 2017 Maltese Presidency of the European Union. Driver assistance technology can save lives, but it also requires adequate infrastructural preparations. Recently, the Infrastructure Malta planning and implementation teams held talks with road safety experts from the European Union Road Federation, to discuss the impact of these new vehicle safety systems on road infrastructure, such as markings and signage. This collaboration and other knowledge sharing and R&D initiatives are helping us gradually prepare our road network for many new upcoming technologies.

The authority agency has launched in February a nationwide aerial survey using drones, to develop a new “orthophoto” map to analyse the condition of all roads in Malta and Gozo. In what way will this project ensure more efficient and safer roads in Malta?

Through this project, for the first time in Malta, we will have a detailed analysis of the surface condition of all roads in Malta and Gozo. The drone study gives our road planners the necessary tools to better plan our ongoing road reconstruction, maintenance and repair programmes. As we continue gathering such data

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

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 What other measures has the authority agency adopted over the past year to ensure a safer Malta?

Road safety is deeply ingrained in all stages of our operations. When planning new infrastructure, or the reconstruction of existing roads, we seek to introduce

What’s next for Infrastructure Malta?

There are many ongoing projects that will be completed soon. Investments such as the reconstruction of Triq tal-Balal and the new junction at Vjal il-Labour will be ready in the next few weeks. In summer, we will start using the first flyovers of the Marsa Junction Project. The reconstruction of Triq il-Buqana, Triq Ħal-Luqa and Triq Ħal-Qormi is advancing as well. Other projects announced

by Infrastructure Malta in recent months will be commencing soon. They include the Central Link Project, the new tunnels beneath the Santa Luċija roundabout

designs that reduce accident risks. For example, in most of the junction upgrades we completed during the last year, we introduced new bypass lanes and longer merging lanes, to reduce the chances of collisions when travelling from one road to another. The ongoing Regional Road project, which will widen part of this artery to six lanes, includes the upgrading of seven junctions, for safer connections. The Msida Valley Road bridge, which we are reconstructing as part of this project, is being built with an improved alignment and superelevation to reduce accident risks in what was previously a major accident black spot. At Triq tal-Balal, we are using a new crash barriers system that helps prevent cars from rolling over upon impact, reducing the probability of serious injury. We are also introducing new measures to ensure road contractors working on our projects adopt the safest procedures to ensure the wellbeing of road users, residents, and workers.

and the construction of new pedestrian bridges at Luqa and Blata l-Bajda. In 2019, we also started working on several maritime infrastructure projects, including the upgrading of the quays and pontoons used by the fishing community at Gozo’s Mġarr Harbour. Soon, we are starting the construction of the new Qrejten breakwater at Marsaxlokk. In addition to all these projects, we have also been working on the reconstruction of over 290 residential roads planned for this year.

There’s also a lot of activity in our planning departments. We already announced the PembrokeSt Julian’s Connections project, including four new tunnels and the widening of Triq Sant’ Andrija, between the Coast Road and the Ta’ Ġiorni Tunnels, to improve connectivity in this region. Soon, we will also announce another list of residential roads that will be reconstructed in the beginning of 2020. We certainly have quite a busy schedule for the next few years!

through the years, we will also be able to assess the effectiveness and durability of different road building and maintenance methods and materials, to continue optimising our processes.

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A

Craftsman’s Pride Executive Traveller observes the impressive work of

Chris Castillo

T

he concept of jewellery takes a different dimension in Chris Castillo’s workshop.

His work is bold, fresh, compelling and brings together a series of modern concepts which are rigorously disciplined by mathematical and engineering principles. Employing algorithmic tools and complex diagramming techniques, Chris is able to design and fabricate jewellery aesthetically reminiscent of 3D graphs, geometric models, and avant-garde sculptures.

The final desserts are interpretations of jaw dropping concepts that might look more at home inside an art gallery than in any retail showcase.

Irrespective of the jewellery’s theme, each of Chris’s creations emphasize his desire to “make something interesting and innovative.”

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Craftsmanship names an enduring, basic human impulse, the desire to do a job well for its own sake.

- Richard Sennett

ďƒœ executive traveller ďƒ˜ issue 13

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 It is often said not to judge a book by the cover. The first impact with Chris can be misleading. Behind the outer crust of a gentle and quiet person, lies a strong, focused and very determined person with such a colourful mind packed with concepts that blow your mind. His philosophy is so avant-garde and his work is a statement.

He mastered in digital arts at the University of Malta, then proceeded to England to follow a three-year course in product design. Silver smithing was a part of the course and, while at the University for the Creative Arts in Rochester, together with a fellow Maltese student, he excelled in this line.

Their lecturers encouraged them to take part in leading competitions in the UK and internationally. The praise and awards they won were ongoing, and they even placed first and second in a number of top competitions. In one competition which attracted 800 entrants, they were even commended for their design.

to quality’. Castillo knows he can go down easier paths by commercialising his wares and selling less exclusive stuff yet he refutes to see his product fade into the crowd. He wants his collections to stand out of the crowd.

His vision is all about quality and he wants his collection to be works of art – all have the hallmark of artistry already but he wants to go on designing, to be inspired by what Malta has in abundance everywhere you look. Moreover, his goal is to create something which is long-lasting.

Castillo is indeed one of the young talents to keep an eye on in the years to come. His talent can only grow thanks to his amazing work produced over the past years. He is a ray of light for the artisanal industry and a guideline as to how this endangered industry still has scope to exist. It is just a matter of revisiting, renewing and innovating.

After graduating, Castillo worked in the UK for a year with a top jeweller and then returned to Malta. His friend stayed on but their close collaboration is still alive and the designs inspired by the Mosta dome, aptly called the Holy Collection, were a combined initiative.

Castillo believes Malta has so much heritage that if you look hard enough you are swamped by it – all you have to do is study the old and give it a new twist. There is art everywhere and all art can be interpreted and reinterpreted to make things shine, and feel regenerated.

Castillo blends his jewellery craft and what inspires him into contemporary design. His friend still prefers using traditional instruments, using only manual aids. On the other hand, Castillo does it all virtually using computeraided programs for all his designs. Together, these Maltese craftsmen have gone where few dared to go and the result is mind-blowing.

The work behind his current collections is painstaking and slow. Indeed, it took them over two years before coming out with what they branded, the Holy Collection.

Castillo spends a lot of time on the renderings for every collection which are time-consuming and costly, making sure they are of the best quality possible. There is also the choice of material, the oxidisation, the work to make sure all is done just right. But time, energy and all necessary monetary investments will all serve their purpose as long as every product developed ensures a high level of quality. In his own words, he will be ‘a slave

Looking at ways of turning old crafts into a new modern idiom is definitely a step in the right direction for artists and craftsmen in Malta. Our size might be small, but our creativity can be kick-started to cause a few ripples even in something as hard to penetrate as jewellery design. Once the right path is chosen our size and our small market will also be surmounted.

Castillo has managed to break into a rather unusual line and his design is unique and refreshing. In the past, Maltese silversmiths were very well known and respected internationally. Castillo’s designs seem like sure bets to make a hit in jewellery circles in the near future.

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Setting Ourselves Apart

W

hat’s the current prognosis about the Maltese Property Market? How can we envision the market going forward in the future, and what challenges do we need to tackle? Benjamin Grech, Managing Director at Engel & Völkers Malta shares with Executive Traveller his views on the industry.

Matthew Charles Zammit 54

executive traveller  issue 13

What are the key factors that have influenced the growth of the Maltese property market over the past years? What makes Malta stand out of the crowd?

I view the industry from a perspective which has become very data-driven: What we have seen in these past six to twelve months, is the culmination of a number of analyses from different stakeholders, including for example the study done by KPMG, on behalf of the Malta Developers’ Association.

When taking all of this in consideration, one immediately notes that the market has grown considerably: the transaction volume has grown, the number of transactions have increased, and the average price of property has

increased, by a quarter, across the board. In some localities, the asking price has actually slightly reduced, but as a country in general, the trend is pretty clear.

There are various other factors to consider. Whereas before, a typical homeowner with an amount of savings would go and purchase his own second or third property, nowadays, someone with a bit more ambition, even while lacking any sort of experience in the sector, can start developing.

This, paired with Malta being on the map within the international market, and the various residency schemes that we currently have, the interest from operators in the financial services and the gaming industry, together with the increase of tourism and foreign workers moving into the island, have all contributed to this increase. The trend has been clear and significant, and it all originated started from the rental sector.

Ever since the Individual Investor Programme was introduced back in 2014, the first shocks became immediately visible. Through the ups and downs that we have in real estate, I believe that this scheme was an important component in what now can be described as an eight-year upcycle in terms of value of property. A few months down the line, after the trend of rental rates went up, the property’s value followed the same trend.

As a country, we have always had an incredibly high demand. Our culture as Maltese is very different to the rest of Europe: Our parents brought property, our parents helped us buy property, our parents brought their second property, and so on... as a country, we were always traders in real estate. That demand was very strong, and remains strong to this day.

When it comes to Malta, I would say that the conditions for international investment are ideal, and our climate is very welcoming. But in all honesty, very little else separates our country from the rest. The competition with European markets is very tight. I think that our standards, both in terms of quality building, as well as the services offered to all international clients, need to be improved. The pride that we have today, of what makes us Maltese, is not what it was fifty years ago.

International clients do feel that Malta has that special factor, but somehow we’re not hitting the nail on the head. If we manage to do that, it can make all the difference.

What makes Engel & Völkers stand out of the crowd in such a fast growing sector?

We’re part of a premium real estate international franchise; a network of more than 11,000 people, with 350 offices worldwide. Not to mention that my family has been in the business for the past 60 years.

What sets us in a league of our own, however, is our

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

 approach to the business: my primary client is my agent.

We need to provide him with the tools, the training, and the services that we possess, in order for him to go out there and treat the external customer with the professionalism, knowledge, passion and competence needed to deal with his clients. Our emphasis on our agents, is what sets Engel & Völkers apart.

During a recent business breakfast organised by the Malta Institute of Management, Kurt Xerri from the University of Malta’s Department of Civil Law (within the Faculty of Laws) noted the followings; “I don’t think there exists a bubble right now, but there is a risk, because FDI is very vulnerable to exogenous shocks, so it all depends on the health of the economy.” To what extent to you agree?

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Foreign Direct Investment is very vulnerable, especially because we currently lack the infrastructure and processes needed to encourage the right businesses to invest in Malta. Speaking to top Executives who run multi-national businesses, they all admit that for them to set up shop within the legal jurisdiction in Malta is a daunting task, because if there’s an issue, they have to take legal action, which takes months and years to gets resolved. That’s a big concern.

There’s also a problem about qualified staff and salaries: Every Tom, Dick and Harry is opening their own business, taking what they learned from their employer, and doing it on their own. This isn’t inherently negative, but we have to face the facts. We don’t have the numbers and the space needed for this growth. We don’t have the infrastructure to cope with these problems.

There has recently been talk of Malta being a country

of Commerce cautioned against the flooding of the market with newly constructed property which might remain vacant if Malta’s economy doesn’t continue on its expansion trend. Do you agree?

The market is being flooded with new units, because the demand is very high. I think that the issue is simple.

Those people who are investing in new construction, that do not fit the criteria of today’s standards, cannot expect a return on their investment. If someone buys an apartment, and he can hear their upstairs neighbour watching a loud movie on their TV, that’s bad construction. The well-being of my private space is essential.

At the moment, it’s at a fine line, where the current trends couldn’t continue as they are, or it will start to become quite difficult.

With regards to the IIP, I agree 100% with the idea of removing the option for applicants to rent property.

The value of the property that they need to buy, in my opinion, shouldn’t be so low as it is today, and it needs to be considerably increased.

with the population of a million people: Some are against. I’d say; “Bring it on.” But while I am in favour of this sentiment, I’m scared because there needs to be a very high level of planning that comes with such a decision, which I am not confident that we can currently attain with the systems in place, otherwise such a decision will not become a success.

We can correct a lot of these things very quickly. But in order to do that, I think that people need to feel that this criticism is honest. There’s isn’t an ulterior motive, except the one where we want a better future for ourselves and our children. Plain and simple.

He also highlighted the need for “stronger government involvement” in providing affordable housing, especially for people who can’t afford to pay the current market rates. Earlier in February, The Malta Chamber

The Chamber put forward a number of recommendations aimed at safeguarding the country’s long-term sustainability and competitiveness in the global market including the re-assessment of the IIP programme’s property investment eligibility criteria.

To what extent are such initiatives a tangible way forward? What should we expect from the Real Estate industry in the years to come?

The property sector is changing so fast, I am reluctant to consider these changes on a quarter-to-quarter basis, but rather on a monthly or weekly basis. I can’t say what’s going to happen next year, because it’s unpredictable.

Some trends are recognisable. For example, last September I spoke about a slowdown in the market. I was told I was speaking rubbish, but then come January or February, the market did in fact slowdown. We have a reached a peak point where the prices are so incredibly high, it has made the buyer much more cautious about buying the right property. The demand has stabilised, but I believe that we are going to see a slight decrease in prices across the board.

There’s a big demand now for more professionalism and knowledge in the sector. I believe we’re going to see more transparency. The younger generation, who want to make better decisions, seek better quality for their investment, and I think that the market will get healthier. However, the right steps need to be taken, for example the giving of licences to developers that reach certain criteria in terms of their structure, their proficiency and the professionalism, to ensure the sustainability and the longevity of our property market.

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Malta

A Powerhouse of Economic Innovation

T

o describe Malta as a powerhouse might seem to many as a contradiction in terms; except that we have successfully demonstrated to the world that this tiny island in the Mediterranean is more than capable of anticipating the future and innovate itself. Despite our size and the challenges this fact characteristically engenders, we are now at the forefront of the digital revolution, considered by many as a major point of reference on a global level and the quintessential powerhouse for economic innovation.

Malta’s thriving financial sector, together with our launch into the exploration of Fintech as a new, lucrative economic niche has placed this sector well ahead of its time. It is only through our foresight to launch an all-encompassing Fintech strategy that we can provide a better understanding of the benefits and opportunities this new economic niche presents, both to the general public and businesses, with all the innovative risks, challenges and the required capacity and experience this entails. The drive towards such new areas of growth has solidly paved the way to establish Malta as an International Fintech Hub.

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 But to maintain our powerhouse vision, we need to promote and sustain all areas of innovation and to this end we have enacted 3 blockchain laws which have effectively placed Malta as the first world jurisdiction to create a regulatory framework for this sector, providing legal certainty to operators while ensuring market stability, integrity and consumer protection, earning our country the appellation of ‘Blockchain Island’.

When the laws were finally put into effect in November of last year, we were immediately inundated by applications from operators, businesses and investors

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who were seeking to acquire a Maltese license. These are being processed through the System Auditors, that is, individual or legal entities that will act as the bridge between the operators and the Malta Digital Innovation Authority (MDIA). The System Auditors are responsible for undertaking audits on Innovation Technology Arrangements, in order to ensure that the standards by the MDIA and Malta Financial Services Authority (MFSA) are adhered to according to their arrangements.

On the other hand, companies operating in virtual currencies in and from Malta will have to obtain a license

easier to operate within, limiting licenses to two – B2B – Business to Business and B2C – Business to Consumer, while strengthening the role of the Malta Gaming Authority (MGA), while making the system more transparent in line with concurrent developments as well as fulfilling its obligations to eliminate the more undesirable elements within the sector.

Today, Malta is also considered as one of the main jurisdictions for the gaming industry, boasting an outstanding reputation as an important regulator of this ever-growing sector.

from the MFSA for their operations. In this case the Virtual Financial Asset Agents will act as the buffer between the authority and the industry. These VFA Agents are responsible for the preliminary due diligence on the issuer or company dealing with virtual currencies and prepare the relevant documentation as necessary.

Today, Malta is also considered as one of the main jurisdictions for the gaming industry, boasting an outstanding reputation as an important regulator of this ever-growing sector. The introduction of a new Gaming law, just last year, has developed the sector into one which is

However, our drive to remain innovative supersedes even our past achievements. We now need to rigorously explore the economic niche presented by esports, video gaming and game development and how these could be incorporated in our already strong ecosystem. Currently, we are looking at formulating a holistic strategy, wherein Malta could serve as a hub for this industry; a strategy which will also identify the ideal incentives and the skills required, as well as the establishing of a new niche within the tourism sector.

Today, we can also safely claim that Artificial Intelligence is no longer in the realm of science fiction but has become a highly advanced disruptive technology which provides a surfeit of possibilities. We must aspire to create the right environment in which local and foreign companies and entrepreneurs can develop, prototype, test and scale AI, and ultimately showcase the value from their innovations across an entire nation primed for adoption. With a National AI Strategy up for public consultation, we believe that we are on the right track to successfully achieve this.

Malta has proved time and again, that limits exist only in the mind and it is now time to cast our aspirations even further afield. It is to this end that we have launched Malta’s Vision for a National Space Strategy, which for the first time ever, will be looking at seriously exploring the commercial potential related to space and which will ultimately seek to attract space commercialisation, exploitation and innovation developments initiatives to Malta.

Together, we stand at the cusp of an exciting era in our history, but it is only through our ability to evolve apace, adopt the changes which are inevitably coming and adapt to the challenges this brave new world will unleash, that we will sustain our achievement within this sphere. Our minute size does not impede the unprecedented growth of our digital economy but rather invigorates further our ambition in reaffirming Malta as the Powerhouse of Economic Innovation.

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malta

www.dacoby.eu info@dacoby.eu | +356 9923 5347 62

executive traveller  issue 13

We stand by our philosophy of “Customer satisfaction through reliable and outstanding service”. We do this by ensuring professionalism in our chauffeurs, reliability in our performance and keeping the highest standards in both our services and our fleet.

We believe that our professional chauffeur service ensures our customers’ peace of mind, safety and trust.

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Young, determined

and with a curriculum

which speaks volumes about his undisputed

expertise in the field of

Blockchain, DLT and artificial intelligence,

Joshua Ellul was recently entrusted

with the chairmanship of Malta’s Digital and

Innovation Authority.

He is called to see

that the country’s

vision in the sector will

become reality. Joshua shared with Executive

Traveller his vision for

the industry, the role of MDIA and what should

we expect from the

industry in the coming

years.

Transforming

VISION INTO REALITY Interview with

JOSHUA ELLUL,

Chairman of Malta Digital and Innovation Authority

What is MDIA and what is its main scope and remit?

The Malta Digital Innovation Authority (MDIA) is a newly set

up authority that aims to instil higher levels of technology assurances to users of Innovative Technologies Arrangements (ITAs). Currently innovative technologies that fall within

the remit of the MDIA include Distributed Ledger Technologies (DLT), including Blockchain, and Smart Contracts as defined in the Innovative Technologies and Services Act

(ITASA). ITASA puts in place a voluntary regime, whereby

those operating ITAs can choose to certify their technology

arrangement with the MDIA by undergoing a systems audit

through an MDIA approved Systems Auditor. Other national competent authorities may impose obligatory requirements for those activities operating under their remit to undergo a technical systems audit from an MDIA approved systems auditor or apply for certification with the MDIA.

What is your vision on blockchain and AI for a country like Malta?

Let’s start with my vision for Blockchain and DLT for Malta.

I see Malta, the Blockchain Island, continuing to be at the forefront of various aspects pertaining to DLT. Including

remaining a leading regulatory jurisdiction for Blockchain, DLT and Smart Contracts, where industry players would

seek to come to Malta to attain certification in aim of building higher levels of trust with their users. In attracting such

companies it’s important to have a skilled workforce, and to a degree this already exists since there is an overlap with the skillset required in the iGaming sector (including ICT,

Legal and Business related skills). However, we also need professionals specialised in the sector, in which various

educational institutions should look into providing. To remain at the forefront it’s also important to work at the cutting edge of developments, and therefore companies, professionals, academics and the various institutions should continue to

undertake research, development and collaborate on various fronts to build an ecosystem that fosters innovation.

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

 Blockchain can act as a virtual central point of trust to fill such gaps.

Malta through the Malta.ai Artificial Intelligence task

force is investigating and putting together a strategic plan to put Malta on the AI map. Malta should take advantage of its unique features that could place itself as a leading

jurisdiction in certain aspects. Its small size makes it the perfect place to become a testbed for AI operations and systems – this could turn Malta into a hub for deploying

Nonetheless the MDIA will continue to work towards a

regulated environment that both meets the required market

needs, as well as works towards increasing user technology assurances. The market will ultimately reach an equilibrium, as the demand for System Auditors gets larger, more organisations would opt to become system auditors.

AI and testing AI systems. Obviously proper due diligence

Is MDIA primarily focusing on VFA at this stage?

already impacting many sectors and providing automation

enable higher levels of technology assurances whilst being

needs to be undertaken when running such tests. AI is

of various tasks. It’s important that individuals are educated in regards to what AI is, what it offers, and how it may

make their daily lives and work related tasks more efficient.

Embracing such technology could enable Malta as a whole

to become more efficient, allowing for the nation to become leaders in various other sectors, perhaps sectors that it

already is known for, and perhaps other new sectors that will emerge.

Is MDIA ready for the expected influx of VFA service

providers and issuers to be licensed and registered in Malta? How many systems auditors were approved?

The first batch of System Auditors have been approved. This number should increase in the coming months. Based upon other similar auditor frameworks the number should suffice.

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MDIA’s primary focus is to provide a framework that will technology and sector agnostic. That being said, given

that the VFA regime and related operations are attracting interested parties to Malta, the MDIA has been focusing

on how the technology and sector specific framework can

support the required technology assurances for the sector.

You have recently noted,“Students needs to be

exposed to the multidisciplinary area.” How can this be achieved?

We already have educational programmes in Malta that

allow for students to specialise in various disciplines which

the DLT sector requires (including ICT, Law and Business).

In my opinion, post-graduate educational programmes that allow for such students to gain a multi-disciplinary

view of the sector would be beneficial – due to the heavy

interaction and overlap between the various professionals

wider adoption of such technology may be required. This is

cases, financial models and regulatory frameworks

- there are undoubtedly many others.

in the area. ICT experts need to understand the business within which they write code for. Legal experts need to

but one case of where a DLT implementation could be used

understand the technology to appreciate how to regulate

New technologies bring opportunities but also

understand what the technology can offer and how it is

overcome such risks and challenges?

business operations. Business professionals need to

different from traditional platforms, and also appreciate the legal framework within which it will operate. Educational

institutions should look to providing such multi and crossdisciplinary educational initiatives.

Disruptive technology may have significant impact

on the airline industry in terms of maintenance and

automation. Is MDIA targeting this industry and would it be in a position to certify any such platforms?

MDIA provides for a technology and sector agnostic framework (when it comes to innovative technology

arrangements). Blockchain, DLT and Smart Contracts

should be (and actually is) being applied within the aviation

sector. From providing maintenance audit trails, to aviation logistics, to registration, and disintermediation between

challenges and risk. What measures is Malta taking to Indeed such new technologies bring opportunities and

risks. In fact when talking about Blockchain, DLT, Smart Contracts and cryptocurrencies, one could say that not

taking an opportunity to attempt to become a World leader

in the sector is a risk in itself. In regards to Blockchain and DLT, being a decentralised system, at the most abstract

level a jurisdiction can choose to either: (i) do nothing about it, which does not provide any higher levels of assurances to users nor legal certainty to operators; (ii) ban it, which is next to impossible to enforce and does not provide

any added benefits to users and definitely drives away

innovators; or (iii) provide a form of regulation in aim of

providing higher levels of assurances to users and legal certainty to operators.

Such emerging technologies, which are often

various organisations in providing different services in the

surrounded by speculation, typically see a decline in interest

targeted the sector, it has various similar features to DLT

authority has from its onset targeted to be as technology

aviation chain (and more). Whilst, it has not yet directly

systems, including that they are often used for safety critical

and high risk systems. The authority is already investigating into aspects of safety critical and high risk systems – in

fact the authority issued a consultation document on an

after the initial hype cycle. In order to circumvent this the

and sector agnostic as possible enabling for other types of sectors and technologies to fit within the MDIA regulatory remit as appropriate.

enhanced system audit. Looking particularly at aviation

Your message to those interested in applying

sector.

industry.

could be beneficial for Malta due to its thriving aviation

The aviation industry in Malta has done tremendous

improvements yet Malta lacks some ancillary services such as leasing companies. Can blockchain or VFA in any way boost this sector?

Blockchain and DLT is all about decentralisation. Ownership of real world physical objects is often stored in a centralised registry, and physical objects are typically owned by single entities. Within the DLT sphere physical objects can be tokenised in a decentralised registry, which also allows

Blockchain to their industry, and to the Blockchain To those looking into applying Blockchain to their industry: When it comes to DLT, it’s all about trust. Identify current centralised points of trust within the industry that are

questionable. If there are any such questionable centralised points then Blockchain and DLT could provide a solution.

Then identify any processes or operations that cannot take

place or be automated because there currently is no central point that can be trusted to fulfil the operation. Blockchain can act as a virtual central point of trust to fill such gaps.

To the Blockchain industry: Building users’ trust in

for decentralised fractional ownership of physical objects.

a system is a challenge for various reasons including

and operate an aircraft leasing operation in a decentralised

is developing, and also that there is a lot of skepticism

This could allow for various different entities to purchase

manner, not having to trust either of the entities implicitly whilst also providing a tamperproof audit trail of the

operation. There are a number of challenges to achieve this including potential legislative changes which would honour ownership from a digital and virtual representation to the

physical ownership of an object; and depending upon the

extent of users that would be required to use such a system

that users are typically non-technical, the technology

surrounding the industry. The MDIA’s regulatory framework can help increase the level of trust users will have in your

system through an independent approved systems auditor engagement. Besides providing user assurances when

it comes to the technical implementation, the regulatory

framework also provides legal certainty to those providing such solutions.

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A National Artificial Intelligence Strategy Interview with

Wayne Grixti, Chairman of Malta AI Taskforce

F

ollowing the Government’s success to

transform Malta into a Blockchain Island, it

has now shifted its attention towards Artificial Intelligence. The government’s vision is to

replicate what we have done in the Blockchain sector and transform the potential of Artificial Intelligence into a new contributor to Malta’s

economic growth in digital innovation. Indeed,

the Government’s aim is to develop a National AI Strategy and put Malta amongst the top 10 nations with a national strategy for Artificial

Intelligence. Wayne Grixti, Chairman of Malta AI Taskforce recently shared with Executive

Traveller the government’s goals in this sector, the potential AI can offer to Malta and the next steps the country will take in this area.

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 Why is it important for Malta to develop a national AI strategy?

Artificial Intelligence (AI) is today widely recognised as

a General Purpose Technology that is expected to have a

significant impact on all facets of society, just like electricity, airplanes, computers and the internet, to name a few.

Therefore careful consideration has to be given to ensuring that the social and economic benefits brought about by AI can be maximised and risks mitigated.

The Government’s vision is to put Malta amongst the top

ten countries with the highest impact national AI programme where AI policy has a positive impact on citizens and

business. Our main goal is to apply AI to issues that can

make a real difference to the well-being of Malta’s citizens.

Prime Minister Dr. Joseph Muscat was one of only

eleven global leaders to reference AI in the United Nations

speech. He wanted to highlight that Malta has taken a clear

stance that it will embrace technological innovation as a way to drive progress. Malta should be a disrupter, rather than a follower.

Our aim is to develop a National AI Strategy that

maps the path for Malta to gain a strategic competitive

advantage in the global economy as a leader in the AI field, generating investment and positioning the country as a hub for the application of AI and niche areas of research and

development, supported by a vibrant start-up community.

The Strategy will explore how AI can be deployed widely across Government operations to improve citizens’

experiences, facilitate access to public services, and to

directly improve Maltese citizens’ well-being. It will design policy measures to promote private sector AI adoption as

well as actions to update Malta’s education system to better prepare our citizens, especially children, to prosper in a digital world increasingly defined by automation.

Malta aspires to become the ultimate AI launchpad,

where local and foreign companies, entrepreneurs and startups, can develop, prototype, test and scale AI applications, and then springboard them from Malta to the world.

What are the key foundations of Malta’s AI strategy?

The Strategy, as highlighted in the High-level Policy

Document – Towards an AI Strategy published last March

for public consultation, will be built on three strategic pillars, being Investment, Start-ups and Innovation; Public Sector Adoption; and Private Sector Adoption. These pillars are

supported by three strategic enablers, being Education and Workforce; Legal and Ethical Framework; and Ecosystem Infrastructure.

To realise our vision, Malta will engage with a broad

spectrum of stakeholders, aiming to be inclusive and

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transparent, and to build awareness of key topics and issues to promote a shared understanding ensuring that no parts of Maltese society are left behind. Risks will be acknowledged and mitigated, devising a policy emphasising ethically

aligned, transparent and socially responsible AI, and the need for AI to be applied in a fair, ethical, transparent, accountable, responsible and reliable manner.

The Strategy will propose regulatory actions, fiscal

measures and public-private partnerships that strengthen Malta’s position within the global AI ecosystem and

especially as a hub for foreign investment in this sector.

Simultaneously, we will look to identify the underlying skill base and infrastructure required to support AI.

its advantage to generate national success stories. We need to foster an AI ecosystem where innovation and

collaboration can thrive, creating an environment which

stimulates research, knowledge, economic growth and new What makes Malta an attractive hub for investors in AI technology?

One of the main objectives of the Investments, Start-

opportunities.

Economic development is a primary objective of the

Strategy and one deserving key focus. We all know that

ups and Innovation strategic pillar is to establish Malta

Foreign Direct Investment is a central part of Malta’s

while providing an environment for the creation of niche

will look to attract companies of all shapes and sizes, from

as a leading centre of excellence and hub for applied AI

economy and a key driver for growth. The Government

AI solutions where Malta can leverage its small size to

start-ups to established global tech leaders. Malta’s value

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

ďƒœ propositions are numerous including being a member

of the EU with a tech-savvy population, English as one

of the official languages, advanced telecommunications

infrastructure, innovation regulatory frameworks, a business friendly environment and more.

AI raises questions of ethics and legality. How will the

strategy address such issues and how can AI be used in a responsible way?

One of our key objectives is to make sure that AI

deployment is ethically aligned, transparent and socially

responsible, and therefore a strong ethical framework will be designed to underpin the Strategy, in close conjunction with the National Technology Ethics Committee contemplated in the MDIA Act.

AI is still a black box although research is now focusing

on transparency and the notion of Explainable AI, i.e. the ability to interpret how and why an autonomous decision was taken. Autonomous decision making can lead to

discrimination, both unintentional and intentional. If the

AI learns from biased data then decisions can also have discriminatory results.

The Strategy will take account of the Ethics Guidelines

for Trustworthy Artificial Intelligence issued in April 2019 by the EU High-Level Expert Group on AI, which reflects a set of principles and values articulated in EU Treaties and the

Charter of Fundamental Rights, in addition to the work being undertaken by various organisations from across the globe.

The Asilomar AI Principles which promote ethics, values,

privacy and the common good as core attributes will guide

the Strategy that is being developed. Measures will also be

developed to equip our current and future workforce with the skills needed to thrive in this new era.

Malta has taken a global lead in developing a

regulatory approach that supports innovation and

emerging technologies, including a voluntary regime for the certification of innovative technology arrangements (currently open to DLT platforms and smart contracts)

which aims to build trust and transparency amongst the

public, users and stakeholders. The Government will build on the strong regulatory foundations it has developed and

supplement these with AI specific provisions to address key

What’s next for Malta and AI?

Following the High-level policy document that was

published in March for public consultation, the Malta.AI

Taskforce together with all the stakeholders will work on the foundations that were established in this document and the feedback received from the consultation, to build in detail across the following months as the National AI Strategy is developed. We plan to continue consulting with local

and international stakeholders, and will be publishing the strategy for public consultation in Summer.

We aim to build on the concept of Malta being a test-bed

challenges and opportunities. We are aware that AI creates

and emphasize it in becoming the ultimate AI launchpad

monitored and, where necessary, addressed directly

and entrepreneurs, can develop and test applications of

a new set of risks that must be understood, discussed,

through public policy, including regulatory and enforcement mechanisms.

where everyone, local and foreign companies, researchers AI in Malta and then launch them into the world. The final Strategy will be published in quarter 4 this year.

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What’s New for

Europe?

Resistance to change is often innate in people’s character. Change does bring about challenges, and these, in turn can bring opportunities. As policy makers, we must ensure that we not only maximize the full potential of the opportunities that arise, but that we are protagonists in actually seeking new opportunities.

We hail from one of the smallest Member States in the European Union, yet we have repeatedly punched above our weight. We made our voice heard and piloted policies in areas such as climate change, migration, equality, economic growth and many other sectors.

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Our country has registered unprecedented economic growth, when other Member States where struggling with their domestic situation. Malta managed to do this because its decision makers enacted policies geared towards growth. At the same time we are fully aware that social and political change is happening, as manifested rising populism and Brexit looming over the horizon.

In this scenario where change is the order of the day, us policy makers need to present ambitious policies that can drive the required transformation. From my standing and based on the work I carried out over the past years

There has been a lot of discussion about how a New European Union would look like, following the MEP elections of the 25th of May. Some of this concern is justified, whereas other fears are merely the consequence of change.

as member of the European Parliament, I strongly believe that sustainability is the overall, encompassing key policy that we need to ensure in the years to come.

The entire European Union and its individual Member States, including Malta, require legislations that strike a balance between economic needs and environmental protection. Encouraging businesses to constantly invest and innovate will lead to proactive solutions that can benefit the country, businesses and workers alike.

A couple of challenges that we need to address in

the immediate future includes having a strong skilled labour force that provides for the most developed technological economies and for manual economies that need to have proper space to thrive. Secondly, banks need to assess loan applications for Small and Medium Enterprises (SMEs) from a qualitative viability perspective whilst alternative financing solutions need to be provided for. Malta is dependant on SMEs and this means that we must ensure policies that are innovationfriendly. Moreover, policies must improve access to finance and information. SMEs must be made aware regulations and procedures that can help them flourish.

These, in turn, must be simplified and made accessible to all.

Moreover, we need to enact policies that prioritise investment in research, development and innovation whilst implementing a proper framework that ensures the robustness of the Cohesion Fund, that can provide for a better standard of living for our citizens. More so, at a time where the anticipated decrease in this Fund caused

by Brexit is causing some unease.

Britain’s exit from the EU is already presenting challenges particularly to businesses in the other 27 Member States. It is a fact that businesses, citizens, workers that are currently operating in the UK or from the UK together with British counterparts working in the EU, do not know where they actually stand until the nature of Brexit is made known. This, in itself, makes further planning a major challenge.

The future is challenging but definitely interesting.

Malta will stand firm in defending the EU’s four pillars of freedom of goods, services, capital and people which are not to be taken for granted.

Malta’s economy can only benefit if pro-Europeans work together to deliver a European vision that provides prosperity, security and equal opportunities to all. This can be achieved through policy making that brings together stakeholders from different backgrounds including social partners, business partners, civil society, trade union representatives and environmental organisations. It is only through this that decisions reflect the aspiration of businesses and citizens at the European, national and local level.

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