MONEY NOV 2019 ISSUE 57

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COVER STO RY

Celia Falzon

MEDICINE SUPPLY

10 Giselle Borg Olivier

THE RISE OF THE MUMPRENEURS

16 Dayna Clarke

THERE’S NO PLAN(ET) B

28 Jordan Portelli

DOES MALTA HAVE A BANKING CRISIS?

4 · MONEY

Is it just me or does the whole world seem to be going a bit mad? Trump in the US appears to be doing his utmost to get himself impeached, all the while keeping his thumbs busy with his incessant tweeting. The UK has gone into its fourth Brexit extension – or as the media is calling it, Brexit has been renewed for another season, with Johnson clutching at any straw available, and finding that they’re all short. And locally, well, we’re still in the same quicksand and every day we seem to be sinking deeper and deeper.

And there’s video recorded evidence about this. When the news broke that French media outlet Enquête Exclusive had secretly filmed a meeting with a representative from a local firm who makes a ton load of money thanks to the IIP Scheme, whereby the said representative allegedly told the ‘clients’ that he’s got contacts with Castille and nothing was an issue, people were understandably shocked, but sadly not surprised.

That we’ve always operated with a level of nepotism is nothing new and is a documented trait of most small island states – without going into the merits of it being good or bad. However, the general sentiment is that it’s never been quite this bad and this brazen. The IIP (or Passport for Cash) Scheme is not a Maltese thing. There are

WELCOME

dozens of jurisdictions who operate a similar programme with slightly different parameters, but the reward is the same – a passport that offers unrestricted entry into the EU.

ISSUE 57

COVER Celia Falzon Chief Executive Officer, Pharmacy Of Your Choice (POYC) Read the full story on page 20

Of course, it’s easy to use the ‘but we’re not the only ones doing it’ line to excuse any wrongdoing; however, when you play in the grey area things are never going to be clear-cut. There have been five cases this year alone, whereby persons who bought a Maltese passport have been accused of fraud or other crimes. This is enough to make anyone ponder, ‘just how thorough is the due diligence process?’ In parliament, the Opposition slammed the government’s claims that Malta’s due diligence process is ‘the best in the industry’.

These people are being charged on an international level and each one is dragging Malta’s name through the mud. Reputation takes years to build and seconds to destroy – is the money worth it in the long run? In October, EU Commission vice-president designate Vera Jourova told MEPs that she wanted cash-for-passport schemes to be banned across the EU. The firm caught on film have had their IIP license suspended and have been left to lick their PR wounds; however, because of this sentiment of uncertainty, again questions linger. Are they just a scapegoat to divert attention away from the real McCoy? A couple of days following their hidden camera moment, we were regaled with more footage where a businessman was covertly filmed allegedly telling another person that he was getting some help on a beach concession from some high-ranking people.

Although such allegations were categorically denied by one of these high-ranking persons, the fact remains that there is a tape documenting the incident, which opens another can of worms about the ethics and legality of hidden cameras. However, as yet, no further news has emerged about the incident. But we’re used to that too, aren’t we?

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6 · MONEY

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CONTENTS

ISSUE 57

48

BUSINESS

THE RISE OF THE MUMPRENEURS Giselle Borg Olivier speaks to four mumpreneurs who describe their mind-set, their dreams, and their achievements by finding the ultimate work-life balance, asking them: What led you to set up your own business?

INVESTMENT

WORTH MORE THAN ITS WEIGHT IN GOLD Coins have been collected by the general population since the mid-1800s but they are also an often-overlooked investment asset class. MONEY spoke to the Central Bank of Malta to find out more.looks at the pros and cons of creative investments.

ENVIRONMENT

THERE'S NO PLAN(ET) B

50

Gradually, public perception is changing; we are becoming increasingly aware of the evils of plastic and the importance of eco-friendly measures. Dayna Clarke meets local business leaders to find out what steps that are being taken on a local level.

52

NGO

DEMOCRACY NOW! Giselle Borg Olivier attends JCI Malta’s National Convention on the topic of democracy and discovers more about the activities organised by the local entity of this international NGO.

MARKETING

STRATEGIC PLANNING = WORKPLACE SUCCESS Richard Muscat Azzopardi explains why business and marketing plans should not work in silos.

54 20

22

SURVEY

EY’S MALTA ATTRACTIVENESS SURVEY: NEXTWAVE Simon Barberi, director and EU advisory services leader at EY Malta, gives a breakdown and analysis of this year’s EY Malta’s Attractiveness Survey.

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BANKING

DOES MALTA HAVE A BANKING CRISIS? Over the years, Malta has managed to register strong economic growth, if one had to compare to the growth figures registered by other euro-area economies, a momentum which might have cooled down, but which is still very benevolent. Jordan Portelli explains.

32

ARTIFICIAL INTELLIGENCE

EYE ON AI Theo Dix takes an in-depth look at that latest buzzword, AI, and what businesses need to know before getting started with AI.

44

COVER STORY

MEDICINE SUPPLY MONEY interviews Celia Falzon, chief executive officer at Pharmacy of Your Choice (POYC) on the scheme itself and the added value gained through innovation.

OPINION

GOLDEN BOY Political analyst Emanuel Delia analysis the case of former director of human resources at the financial regulator, George Spiteri.

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FA S H I O N

A BRITISH FEEL Conrad Buttigieg puts together a selection of items that symbolise ‘Britishness’.

Items with a strong ‘Made in England’ element in terms of both aesthetics and quality. The selection blends the contemporary with the historic. ‘Brexit’ indirectly inspired this theme but it also happens to be that time of the year when the weather gets gloomier and we all love that ‘wintery English style’.

L AST WORD

BURNOUT The Bluesman delves into overplayed songs on radio stations and the noise we are feeding our children which won’t serve them any good in future.

MONDAYS TUESDAYS WEDNESDAYS THURSDAYS

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FRIDAYS

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SATURDAYS SUNDAYS

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O P E N

PA R K T O W E R S M A L L B O R G O L I V I E R S T R E E T, S T J U L I A N ’ S

F R E E

C U S T O M E R

PA R K I N G

www.myparktowers.com

Psaila Street, Santa Venera t. 2148 0807

Gorg Borg Olivier Street, St Julian’s t. 2137 8520

Spinola Park, St Julian’s t. 2138 1055

10 · MONE Y

BUSINESS

ISSUE 57

Giselle is a freelance writer, proofreader and social media marketer who lives on Instagram and cappuccino. She runs Content for Success.

The R ise of the Mumpreneurs Giselle Borg Olivier speaks to four mumpreneurs who describe their mind-set, their dreams, and their achievements by finding the ultimate work-life balance, asking them: What led you to set up your own business?

The definition for ‘mumpreneur’ according to Collins Dictionary is ‘a woman who combines running a business enterprise with looking after her children’. It may seem facile; however, running a business and taking care of a family are possibly two of the most engaging, albeit tiring, jobs around.

and if you are not a risk-taker, it takes a lot of mental work that happens daily.

This risk resulted in the merging of two passions that I have – online marketing and beauty/self-care; the latter is especially important for mothers, because self-care is key when you have children relying on you.

So why do women opt for this lifestyle?

Name: Sarah Stellini Business sector: Beauty & Cosmetics Number of years operating: 1 Children: 2; ages 2 and 6 I always wanted to own something of my own. I am a very hard-working person and wondered whether working for myself would make me happy; however, although it was always an option I wanted to explore, I never took any action… until I became a mum. My needs and priorities changed, and I felt that I needed more flexibility in my role at work; however, because I supervised a team, it was difficult to get the flexibility I needed.

I also wanted to have something long term as a result of my hard work; I didn’t want to spend all those hours away from my children to then have nothing to give them. I think this was key in making the move.

It was very difficult, because I had to build everything from scratch in a new industry and give up the security that my job gave me and my family. In business you have to take risks,

I remember needing to replenish a skin care product; however, not having the time to go out, get the baby ready, park, etc. I

also noticed that many products were not widely distributed, making the process more challenging and inefficient. I had the option of buying online but would have to wait a week for my product to arrive – and that’s where I saw the need and business opportunity — to open a multi-brand store based in Malta offering delivery within two days of skin care, make-up, hair products, perfumes and more.

This is how MyBeautyHacks was created.

I am now working on a partnership opportunity which is a great achievement

THE BUSINESS EDITION

BUSINESS

MONEY · 11

personally. During the initial meeting they looked at me like I was odd; however, that shifted to us working together and now partnering up – that was an amazing shift!

Nonetheless, I still have days when I think of packing it all in (usually when I’m tired and long for an easy way out), but with some perspective and the vision of my long-term goal, I manage to re-focus. The transition from employee to self-employed was not a natural one, but one that took a lot of heart, soul and passion, and one that I’m glad I made.

Name: Kelly Hammett; KH Designs Business sector: Graphic Design Number of years operating: 2 Children: 4; ages 6, 5, 4, and 1 Once my eldest three children were settled in school, I started getting more involved in my husband’s business as we were opening a new restaurant. I studied marketing at University and was eager to get involved with the design process of the venue, the brand, and all the initial marketing. As the business grew with the launch of another two venues, I decided to focus solely on the design work.

My designs were noticed by marketing people whom we had worked with as well as some of our business partners and I began taking on new jobs. At that stage, I decided to create KH Designs.

THINK OUTSIDE THE BOX AND NEVER FEAR LEARNING SOMETHING NEW

Initially, my biggest hurdle was my lack of formal education in graphic design.

I’ve always had a knack for creativity and ‘theming’ and had been using design programmes for years to work on invitations, party designs, and home stationery for friends and family. With the restaurants, I set the bar quite high for myself and spent ages researching and practising through online tutorials. I’d say that, a few years down the line, I’ve successfully honed my skills and gained valuable experience.

Being recognised and trusted by new clients to work on projects was a huge step in allowing me to expand my portfolio and gave me confidence in my ability to interpret design briefs; on time, with quality and most importantly to the client’s specifications.

I’m lucky that I’ve been able to grow my →

12 · MONEY

BUSINESS

company at my own pace – being strict with myself about how much I can handle and knowing when to slow down. I’m always honest about my schedule and fortunately my clients have always been understanding.

I feel it’s a two-way street – my clients get a tailored service at competitive rates, and in return I promise a quick turnaround when I know I can deliver yet am honest about my availability when I’m a bit more pressed for time.

Although I love my work, I still consider myself a mother first. Therefore, adjusting to the changing needs of my kids and finding time to work within that framework is a constant hurdle. I worked straight through my last pregnancy and didn’t take any maternity leave which was relatively easy to do by the fourth child as I had mastered the art of predictable napping and feeding!

Now he is an active toddler and while I can count on nap time to do a few hours of work, I find myself working a lot more in the evenings after bedtime and sneaking in work slots when I have a babysitter. Once he starts nursery, I’ll then re-adjust my work/ parenting balance.

I carved this career out of my love for marketing, branding and creativity combined with my determination to be available for my children. I’m very fortunate to have found a way to work from home in a sector that interests and inspires me.

ISSUE 57

from routine, like keeping sick kids at home.

Many times, when the kids were younger, I used to feel like giving up as it was very stressful with the kids waking up at night and spending so much time on a cake for not much money but, over the years, I’ve improved my craft – definitely a case of practice makes perfect.

Name: Erika Fiorini Business sector: Cake decorating Number of years operating: 8 Children: 2; ages 8 and 5 As a child, I used to watch my grandmother and my mother cook, which led to my interest in cooking; moreover, my mother used to bake my cakes and I used to love helping her. Eight years ago, I got my own cake mixer and started baking decorated cupcakes and simple cakes for family and friends. When I had my son, I decided to make his baptism and birthday cakes and I was so pleased with the results (even though looking at the photos now, I cringe) and everyone had complimented me.

Starting out, the biggest hurdle was finding clients. I set up my Facebook page (Wish Cakes, Cupcakes and Desserts) to display my work and share ideas with others.

I started building my clientele through word of mouth from people who had tasted and seen my cakes. Unfortunately, many people do not understand that home bakers/ decorators do not buy things in bulk, we do not mass produce, and tools are very expensive, so we cannot charge the same price as that of a confectionery for a bespoke cake.

Cake decorating allows me to work from home whilst taking care of my kids. Workfrom-home jobs are very hard to come by and unfortunately, in Malta, working parents don’t really get much help when we have to deviate

Thankfully, after eight years, I have built a reputation whereby my clients, family, and friends regularly ask for cakes and cupcakes for their special occasions. One of the highlights is seeing the happiness in people’s faces when they see their cakes, especially children’s reactions – it makes the work worthwhile. Unfortunately, I cannot dedicate all my time to cake-making as I also have another job which also takes up a good portion of my time. →

14 · M O N E Y

Name: Nakita Attard Vassallo; the Mama Manual Business sector: Book publishing, consulting, course creation, blogging Number of years operating: 1.5 years Children: 2; ages 4 and 13

Ultimately, I prioritised more. I said no to unessential things and delegated where I could. The family pitched in more, and I automated whatever I could. I quickly learnt what my time was worth and paid for services which would free up my time.

The truth is, it was never my intention to set up my own business. Back in 2017, I started writing a book as a creative outlet, and the natural next step was to get it proofread, edited, and published. I then took the decision to launch a blog and social media accounts to market the book, and to continue the conversation online.

Despite this, my biggest hurdle is still time, but I take it in my stride. Being a fairly new business, I understand that I need to give myself the space to grow and adjust. It is a blessing really, because as the business grows and I take on more clients and launch new projects I am learning to outsource diligently, so I can focus more on my zone of genius, which is the creative aspect.

The book, called ‘the Mama Manual - How busy mums get organised’, was the first step into what is now my full-time job. Once the book was published, and my social media accounts and blog (www.themamamanual. com) had taken off, I was contacted by various companies for collaborations, and I dove into other projects which helped serve the community of mums that make the brand what it is today.

The biggest hurdle at this stage is the lack of time. I did this on the side for nine months; balancing work, family, myself, the home, and my side hustle was a challenge, but I managed to find my groove.

ISSUE 57

BUSINESS

In fact, one of my biggest achievements to date is the creation and launch of my first-ever digital course ‘Dinner in a Flash’.

The content creation, tech, and sales and marketing strategy for the project was not easy, and I am beyond delighted to soon be teaching the transformative content to my first lot of students.

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I absolutely love what I do especially in terms of the content that I create because it is my passion, as well as the mums whom I help empower to take control of their time so they can live their best life.

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K

Advice to other mumpreneurs in one sentence: Sarah: If it is a dream/passion, then it is worth looking into because the tenacity and the drive will come naturally. It is not easy, but easy is not always the answer.

PUTTING ALL YOUR FOCUS AND ENERGY INTO ONE MAJOR PROJECT (AT A TIME) IS ESSENTIAL FOR SUCCESS

Kelly: Think outside the box and never fear learning something new. I knew very little about graphic design a few years ago, but when I realised it was something that I could do from home then I set out to make it happen.

Erika: Don’t give up on your dream.

Nakita: Always choose one thing – putting all your focus and energy into one major project (at a time) is essential for success. It is not just about launching the project, but about surveying, tweaking and improving it until it serves who it was intended for.

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16 · MONE Y

ENVIRONMENT

ISSUE 57

Dayna is a senior speech therapist by day and feature writer by night.

When she’s not busy fixing words, she is travelling the world to add to her fridge magnet collection.

Gradually, public perception is changing; we are becoming increasingly aware of the evils of plastic and the importance of eco-friendly measures. Dayna Clarke meets local business leaders to find out what steps that are being taken on a local level.

It’s estimated that eight million tonnes of plastic waste is being dumped in the world’s oceans annually. There’s no question about it, every single one of us is responsible. As late, there appears to be an avalanche of announcements from all sections of society to combat this level of obscene waste. As the mood has changed, small companies to large corporations, as well as governments, have acted quickly to ensure they remain on the right side of public opinion, but what’s happening locally?

We have spent time trawling through the press releases, policy documents, sustainability targets and speaking with managers from a variety of industries. In doing so, we have come up with our top picks of companies from a plethora of industries, which are striving for change with regards to the environment. This snapshot of Malta is designed both as a look forward and an inspiration for others to act.

Park Towers Supermarkets Chris & John Borg, Directors “At Park Towers Supermarkets we are

continually trying to reduce the amount of plastic that gets used within our stores. Both front of the house as well as within our back of house procedures.

At the back of house all our delivery, which is delivered in cardboard boxes are compacted and sent to recycling, or the smaller boxes are

reused within the supermarket by clients who use them to carry their shopping. We have also started to introduce more eco-friendly ways of doing your shopping, including sugar plastic bags for fruit, vegetables and bread sections. The bring your own container concept for any of our fresh counters, including the butcher, fishmonger and

THE BUSINESS EDITION

ENVIRONMENT

M O N E Y · 17

delicatessen. Other eco-friendly products such as reusable mesh bags for fruit and veg, and large re-usable shopping bags have now taken the place of single-use plastic bags throughout the store.

As a company, we are continually working on improving and changing our stock. Currently, we are working on growing our range of ecofriendly detergents, soaps, hair products and disposables.”

Jacobs Brew Café Sarah & Jacob Cachia, Co-managers “At Jacob's Brew, we do our utmost to be environmentally friendly. Most of our beverages are in reusable glass bottles, and we offer our customers the option not to use a straw with their cold drinks. As much as possible we eliminate the use of plastics, and we even have reusable bamboo straws branded with Jacob's Brew for our customers to buy which not only serves as a great marketing tool but also serves its purpose in helping the environment.”

environment, such as reusable coffee cups that are made from recycled materials.”

JB Stores Chris Sant, Operations and general manager “JB stores has been striving to reduce its generation of single-use plastic both by its customers and internal operations for several years now. The number one source of single-use plastics used to be packing materials such as disposable shopping bags and poly bags, JB stores has been reducing its, and its customers use of such bags since 2005 by sourcing and supplying reusable and sustainably sourced paper bags at no extra charge. We have also made any plastic carrier bags unavailable to its customers →

Apex Fund Services Paulianne Nwoko, Managing director “Apart from paperless processes in our office environment we have lately introduced an Ethical Marketing Policy globally – meaning any marketing collateral is only printed as required, not held in stock, and must be printed on at least 60% recycled paper.

We also only produce promotional and branded gifts on products that benefit the

AN INTERNAL POLICY OF REUSING PACKING MATERIALS SUCH AS BUBBLE WRAP HAS ALSO BEEN IMPLEMENTED AND EVEN DAMAGED PLASTIC STORAGE BOXES ARE REUSED AS MUCH AS POSSIBLE INSTEAD OF BEING NEEDLESSLY THROWN AWAY

18 · MONEY

ISSUE 57

ENVIRONMENT

even if requested, thus eliminating their use.

Importation and sales of single-use plastics such as drinking straws, cutlery and plates have also been stopped for several years and replaced with reusable multi-use plastic plates and cups.

beauty is our priority. Following a very shabby chic style, our furniture, lights and chairs are made and handcrafted from used pallet wood. In 2017 we also won the award for best business practice in the Malta Waste Reduction Awards.”

Staff use of single-use plastics has also been reduced by the installation of various reverse osmosis water dispensers ensuring staff have a good supply of drinking water, reducing the use of single-use water bottles. An internal policy of reusing packing materials such as bubble wrap has also been implemented and even damaged plastic storage boxes are reused as much as possible instead of being needlessly thrown away.”

Malta Marriot Hotel and Spa Alex Incorvaja, General manager “Marriott International has recently announced that it is eliminating single-use bathroom amenities globally which will see a reduction of 500 million plastic bottles per year. Apart from this, locally at the Malta Marriott Hotel & Spa we also have

Soap Café, Beauty and Cosmetics Charlene Mercieca, Managing director “Soap Café was created back in 2008, born out of the need to create natural cosmetics products, which are great for our skin, cruelty-free and have minimal impact on the environment. From its decor using upcycled and tastefully decorated furniture, to its products using organic ingredients and local produce as to minimise as much as we can our carbon footprint. Soap Café was one of the first companies to allow their clients to refill their products on the spot. Clients can bring their own containers or be provided with one which can be reused; whether it is for their soap, haircare, face care and perfume to raw materials such as natural vegetable raw body butters, essential oils and bulk powders.

In addition, we also have a 'member bag' system, where clients can collect points for a cute cotton, fair trade bag which entitles them for free products and a special

CLIENTS CAN BRING THEIR OWN CONTAINERS OR BE PROVIDED WITH ONE WHICH CAN BE REUSED

discount for bag holders. The concept is to reduce bags, which although paper it still would contribute to more materials thrown in the landfill.”

OJO Hair and Beauty Salons Lisa Farrugia, Managing director “Here at OJO Hair and Beauty Lounge, we do our best to help the environment. Not only do we recycle daily – we also provide a refill service which is very popular with our clients. We also offer a discount to encourage our customers to use old bottles and not to keep buying new plastics. Our decor too is an important factor as recycling, and sustainable

several initiatives currently in use, such as guest room and public space recycling and high-efficiency lighting throughout the property. We also offer guests ‘Make A Green Choice’ programme; this is our guest-facing sustainability and loyalty programme that enables participating guests to help reduce their environmental footprint while earning points. The program is open to all guests staying at least two nights. For each day, a member can forgo housekeeping, and they earn points while helping reduce our environmental footprint.

Green Meetings is another sustainable practice that is offered to customers when booking meetings. In addition, all our hotels are required to maintain a Carbon Footprint and RFP Reporting tool to capture and calculate carbon, energy, water, and waste consumption.”

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20 · MONEY

ISSUE 57

COVER STORY

Medicine supply MONEY interviews Celia Falzon, chief executive officer at Pharmacy of Your Choice (POYC) on the scheme itself and the added value gained through innovation.

For the last couple of years, you have been managing the Pharmacy of your Choice Department within the Ministry for Health Department. What is the role of this Department within the Ministry?

I have no doubt that it is a pivotal actor in supporting the primary, secondary and tertiary care functions of the health service and ultimately the well-being and health of the general population.

I see the POYC service as the glue that binds the various public health services together.

Not everybody may know that this is publicprivate partnership, comprising Ministry for Health, the GRTU and the Malta Chamber of Pharmacists and their members, all working together towards a common goal: easy and convenient access to free medication for better health outcomes.

During the last few years a number of services have been added, the 70+ scheme, bulk products and named patients' items delivered at home. What added value are these services giving to clients?

The POYC scheme is now already 12 years old. It has been uniquely successful in serving close to 30% of the public on an ongoing basis, bringing together our team of staff at the POYC Unit, and practically all the private and public specialists, family doctors, pharmacies and pharmacists to serve some 143,000 patients.

The 70+ Scheme recognises that certain elderly persons face mobility issues and in the absence of a ‘delivery to the home’ service often had to rely on third parties to collect their medication. This service, offered by the community pharmacies as an integral part of the POYC scheme since December 2016, ensures that persons over the age of 70, as well as those with disabilities, do not need to depend on others to receive their medication.

Perhaps more importantly it ensures that these persons have the opportunity to speak to their pharmacist in the comfort of their home. It is measures such as this that are vital in the drive to help persons remain in the community when they reach a certain age or when they have disabilities.

Through this scheme, each day, close to 4000 patients are prescribed and dispensed the medications they need to treat and manage these conditions, from the convenience of a community pharmacy of their choice.

The POYC scheme ensures that Maltese residents have access to ongoing contact with professionals in their community and this is thanks to the 220 participating pharmacies, their pharmacists and the medical practitioners involved. These guide them and help them control the chronic condition.

The value-added of our services is always targeted at achieving a better quality of life for patients.

Certain non-pharmaceutical medical products distributed by POYC are bulky and heavy. Some patients living with chronic health conditions, used to experience serious

difficulties in collecting such items. By providing a free delivery service directly to the home for these types of products, we are confident that we are at least alleviating some of the burden which these persons, or their guardians, must face.

The Coeliac Voucher Scheme is an innovative service that entitles patients diagnosed with this condition to vouchers which they can exchange for gluten-free products at several participating retail outlets. Once again, this service is a collaboration between POYC and the private sector. In managing it, we also liaise regularly with the Coeliac Association of Malta. Recently, once again in a bid to eliminate unnecessary burdens and to bring the service closer to the client, these vouchers are being mailed directly to the entitled person’s home. Previously, these persons had to collect their vouchers from their local council.

Under our National Health Service, patients may exceptionally be entitled to medical products specifically procured for them.

In several instances these patients had to collect their medication from Mater Dei Hospital. Progressively, POYC is taking over this function and delivering these products on a personalised basis directly to the pharmacy of the patient’s choice for dispensing.

Besides CEO of POYC, you are also involved in other major projects at the Ministry for Health, among them being the introduction of a robotic system for medicines at Mater

THE BUSINESS EDITION

Dei Hospital. What’s so unique about this innovation?

Yes, I have been truly privileged to have been involved in this project. It has been a roller coaster of emotions and experiences from the very beginning and we are now very close to the launch, which is scheduled for early 2020.

Truly exciting times. Back in 2016, the Ministry embarked on a study to assess the feasibility of introducing an automated system for the management of all pharmaceuticals and medical products used at Mater Dei Hospital and SAMOC. Following a very intensive three-year long procurement process, around this time last year, the Central Procurement and Supplies Unit of the Ministry, put pen to paper and the actual implementation process was kicked off.

It has been my honor to work as part of a truly remarkable team of experts, representing both the concessionaire as well as practically all the sectors involved in the operation of Malta’s main acute hospital. The enthusiasm, commitment and dedication all around has been inspirational. The innovative procurement model adopted in this project is the first of its kind as the Ministry will only pay the concessionaire from the savings generated by the project itself as verified by independent auditors.

As innovative as the technology is, it is not what this project is about. Its single objective is to bring a step change to patient safety at Mater Dei and SAMOC by ensuring that patients are given the right treatment each time. Being able to do this in a sustainable fashion is just the cherry on the cake.

I am convinced that this decade will finally see us ditching paper and adopting integrated IT systems that allow the safe exchange of patient data across all authorised users

COVER STORY

This change is so vital because research has demonstrated that in any hospital operating a manual ordering and medication administration system, a small percentage of patients may suffer some level of preventable adverse event due to the patient receiving the wrong drug. This project is designed to improve patient safety whilst assisting doctors, pharmacists and nurses in their work.

It will be introducing electronic medication ordering to Mater Dei. Robotic dispensing will very significantly decrease the risk of dispensing errors. In the main, nurses will spend far less time managing stock.

They will receive the medication for their patients readily prepared and will be able to electronically confirm that the patient has been given the right medication at the right time. This closed loop system is designed to minimise as much as possible the opportunity for medicines administration errors.

Talking about innovation where do you see Malta’s health sector in the next decade?

I am convinced that the next decade will be an extraordinarily exciting one for Malta’s health sector. We know that if we do not introduce appropriate health management mechanisms, the burden of chronic conditions which are prevalent in Malta will continue to grow. This means that the health system will need to be increasingly

MONEY · 21

geared towards helping us help ourselves stay healthy.

Work in this regard is already underway.

We are striving to introduce tools and services that adopt predictive technology to ensure risks to health are detected as early as possible. We will, already in 2020, introduce technologies that empower patients to monitor and manage their own health at home. This will be assisted through services applying artificial intelligence to remotely monitor patients and raise alerts where necessary. These service models are expected to become mainstream over the next 10 years. Investment in staff, new technologies and new treatments must, naturally, continue apace.

I am convinced that this decade will finally see us ditching paper and adopting integrated IT systems that allow the safe exchange of patient data across all authorised users.

Patient data ownership will shift from the institution to the patient. Technology like block-chain will ensure data security and privacy. This is crucial to the attainment of a holistic, fully informed, health care service embracing both the private and public sectors.

Finally, we must continue on the path we are on, towards operational excellence, a service that avoids inefficiencies and waste, and makes the best possible use of resources.

22 · MONEY

ISSUE 57

SURVEY

Simon is director of EU Advisory Services at EY Malta.

EY’S MALTA ATTRACTIVENESS SURVEY: NEXTWAVE Simon Barberi, director and EU advisory services leader at EY Malta, gives a breakdown and analysis of this year’s EY Malta’s Attractiveness Survey.

107 top executives from foreign-owned companies operating in Malta were surveyed for the 15th edition of EY Malta’s Attractiveness Survey. The results dig deep to discover whether Malta is retaining its attractiveness to current foreign investors. It looks at the sectors exercising the strongest pull, what drives these preferences and what kind of transformations are to be expected soon.

This year’s report focused on the NextWave of business transformation, exploring the limitless opportunities for those ready to explore how their business could be doing things differently. This notion also captures the seemingly endless waves of disruption washing over Malta’s shores, as well as those of the rest of the world.

To get a sense of the country’s economic and financial pulse, the results are split into six categories: attractiveness, regulatory, skills, technology, international, and future. The insights are widely regarded by business, politicians, the media and major public stakeholders as the benchmark insights into what makes the country attractive for investment on both the national and sectoral levels.

Attractiveness Malta remains attractive in line with previous years.

Three-fourths of current foreign investors (77%) believe that Malta is an attractive destination for FDI, a preference which is driven primarily by corporate taxation (86%), stability of social climate (75%), the telecommunications infrastructure (72%) and potential productivity increase for your company (63%).

The stability and transparency of the political, legal and regulatory environment (46%) has ranked low in line with recent years.

In 2015, this parameter was second on the attractiveness scoreboard, with 85%.

Respondents also highlighted key areas Malta should focus on to remain globally competitive. As in previous years, developing Malta’s education and skills base ranked top (79%). Investors also highlighted the need to provide support for innovation and to high-tech industries (63%), support for SMEs

Foreign direct investors think that Malta is currently attractive

79% 15%

6% 2014

84%

87% 78%

11%

7%

5%

6%

2015

2016

Source: all 2014-19 respondents

74%

77%

16%

15%

11%

10%

8%

2017

2018

2019

11%

Yes

No

Don’t know

THE BUSINESS EDITION

MONEY · 23

SURVEY

(59%) and to invest in major infrastructure, transport and urban projects (53%).

Attractiveness scoreboard - Malta’s FDI attractiveness

Worthy of note is that 49% now believe that Malta needs to encourage environmental policies and attitudes, an increase of 20% in the last two years. Companies would also like to see a reduction in their labour costs (28%), up by 9% in a single year.

Corporate taxation Corporate taxation

86%

9% 5% 3% 1%

Stability of social climate 21%

75% Telecommunications infrastructure

4%

18%

72%

7%

Potential productivity increase for your company EY Narrative — Strengthen Malta’s reputation Malta’s tax regime remains the most attractive factor luring foreign investment. However, it is wise to sound a note of caution here and explore what parameters must be bolstered to safeguard future FDI. The stability and transparency of the political, legal and regulatory environment registered just 46% on the FDI scoreboard, a parameter that, back in 2015, ranked second with 85%. Steps need to be taken to bring back these confidence levels and restore Malta’s image, both locally and abroad.

3%

27%

63%

7%

Local labour skills level 33%

47%

21%

Flexibility of labour legislation

2%

39%

47%

12%

Stability and transparency of political, legal and regulatory environment 46%

30%

24%

34%

24%

Labour costs 42% Level of protection of intellectual property rights

2%

37%

40%

21%

Domestic or regional market 37%

33%

15%

15%

18%

15%

R&D and innovation environment 36%

31%

Transport and logistics infrastructure Regulatory Still ahead, but competitive edge on regulation needs to be sustained.

Over the last few years, investors in various sectors have viewed regulatory updates favourably. However, with competitors moving in, Malta’s first-mover advantage seems to be eroding. Seventy-three per cent of investors believe that Malta is keeping pace with regulatory changes in competing jurisdictions — 10% less than the last year’s survey. Thirty-seven percent believe that Malta’s legislative framework offers an international advantage.

EY Narrative — We’re still ahead, but our competitive edge on regulation needs to be sustained

19%

27%

Very attractive and attractive Neither attractive nor unattractive

43%

11%

Not attractive and not attractive at all Not relevant

Source: all 2019 respondents; Note: numbers may not total 100% due to rounding

Over the last few years, investors in various sectors have viewed regulatory updates favourably.

However, with competitors moving in, Malta’s first-mover advantage seems to be eroding. Thirty-seven percent believe that Malta’s legislative framework offers an international advantage, a decline of 19% over the last year. New laws that adequately balance stakeholder protection with innovation will need to be passed in the short and medium term.

Skills Demand outstrips supply, and costs are rising.

Considering Malta’s thriving economy and low unemployment, investors’ ability to recruit specialized skills remains a key issue. Seventy-three percent are having difficulty in finding the personnel they need.

Furthermore, respondents generally highlight that salary expectations are on the rise.

Although 73% of respondents are managing to retain their specialised personnel, this is eight per cent less than last year. When →

24 · MONE Y

compared to other countries, a relatively high level of employee loyalty continues to exist, but retention is clearly becoming more of a challenge year on year.

ISSUE 57

SURVEY

Find and recruit the required specialized skills in the local labor market

47%

45%

EY Narrative — More needs to be done to address current skill shortages With Malta’s economy approaching a state of full employment across various sectors, a wide range of solutions will have to be applied.

Although still more advantageous than most European countries, salary expectations are rising. In parallel, skills shortages are hindering expansion plans. Fortunately, investors’ ability to retain staff remains relatively high, although this has been on a downward path over the last few years.

Technology Companies are preparing for the NextWave.

As new ideas and technologies emerge, industries are converging and being reimagined. Intelligent automation, blockchain, advanced analytics and other technologies are creating new opportunities and posing challenges to conventional business models. Businesses need to be ready for the NextWave.

38%

27%

2015

2016

At all levels of their company, 60% believe they have the right skills in place to keep up with technology. Concerns have been highlighted at the staff level for the last three years, with only 43% believing that they have the right skills in place. The organisation’s board and management levels tend to receive more favourable replies. However, in 2019, belief in the board’s ability to keep up with rapid technological advancements has declined by six per cent. Investors are suggesting that policy-makers enhance workforce skills for the digital age (67%) and invest in digital technologies and infrastructure (63%).

In 2019, the most widely adopted technology remains cloud computing, followed by data

60% Yes

29% 11% No

Source: all 2019 respondents

2017

2018

2019

Source: all 2015-19 respondents.

Technology skills at all levels combined

Maybe

36%

analytics and mobile. The technologies expected to have the biggest impact on respondents’ businesses are process automation (64%), computing advancements (63%) and the IoT (27%).

EY Narrative — Technological take up is ongoing; again, skills must keep up.

While technology may replace various jobs, it will do so selectively, freeing up workers to focus on new tasks that deliver added productivity.

If government, businesses and educational institutions do not take immediate action to re-skill and upskill the current workforce, there is a risk of large-scale labour displacement. Educational curricula will also need to change to deliver the technical knowledge, and soft and practical skills, that tomorrow’s economy requires.

International The impact of global developments on local business.

Asked about the biggest risks impacting their next investment decisions in Malta, 63% cite →

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26 · MONEY

ISSUE 57

SURVEY

Retain specialized personnel

Presence in Malta in 10 years' time

2%

↓ (-1%) 85%

No

87% 82%

81%

73% Don't know

18%

Yes ↑ (+2%) 2015

2016

2017

2018

2019

Source: all 2015-19 respondents.

talent shortages as their most formidable challenge. Economic and political instability in the EU (excluding Brexit) is next with 28%, closely followed by a slowdown in global trade flows and the impact of Brexit, each with 21%.

These results can be compared with the EY’s Europe Attractiveness Survey 2019, which gathers the views of 506 international decision-makers. The impact of Brexit (38%) is highlighted as the main source of concern for future investment decisions, followed by the economic and political instability in the EU (excluding Brexit) (33%).

EY Narrative — Enrich current sectors and create new ones With Malta’s small size comes several distinct advantages that can help it act nimbly and quickly to adapt to change. These traits have been fundamental to the good health of the financial services and iGaming sectors. Malta has made admirable strides forward, particularly with its initiatives in FinTech, artificial intelligence and blockchain. Unfortunately, the R&D and innovation environment still scores low. The country must strive

80%

Source: all 2018-19 respondents

harder to capitalize on its potential as a test bed for new technologies, providing companies with access to a small English-speaking market with European regulations, thereby delivering an excellent showcase to investors.

Future Investors committed to Malta.

A total of 80% of foreign firms believe they will still be operating in Malta in 10 years’ time, the most positive response in the last 5 years. Only two per cent of investors do not believe they will remain there. The number of investors that believe that Malta will be attractive for FDI in three years’ time (54%) has increased by six per cent since last year. Overall, respondents from ICT and telecommunications, insurance and other financial services have higher levels of confidence in Malta’s prospects.

The key sectors expected to drive Malta’s growth in the next five years are a mix of the old and the new with iGaming (58%) and tourism and leisure (56%) coming ahead.

Fifty-eight per cent of respondents have some form of expansion plans for the coming year, a decrease of seven per cent compared with last year. The most common types of expansion are

sales and marketing (26%) and headquarter functions (23%). Once again, the skill shortage issue is highlighted, with investors indicating that it is their biggest obstacle to expansion (65%), followed by the size of the market (26%) and space limitations (18%).

EY Narrative — The environment is a business concern Environmental issues have also gained traction with the business community. Today, more than ever, integrating sustainability into an organisation’s strategy is important to future-proof business.

Sustainability is increasingly seen as a driver of business, not a hindrance.

Consequently, more efforts should target the safeguarding and improvement of the natural and built environment as a direct and indirect driver to attract and retain foreign interest and investment in Malta.

Actions are being taken to upgrade the island’s transport and logistics infrastructure. Yet it still features last on the attractiveness scoreboard.

Enhanced planning should ensure that projects will be sustainable and serve the country for the long term.

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28 ¡ MONEY

ISSUE 57

BANKING

Jordan is an economist and a portfolio manager for a local asset management company.

DOES MALTA HAVE A BANKING CRISIS? Over the years, Malta has managed to register strong economic growth, if one had to compare to the growth figures registered by other euro-area economies, a momentum which might have cooled down, but which is still very benevolent. Jordan Portelli explains.

At this point in time, and considering the forward-looking expectations for the domestic economy, also by leading rating agencies such as Moody’s, conceptualising of whether we have a banking crisis would be a bit too bizarre. That said, one should trend with caution certain current structural issues which might weigh negatively on our banking sector.

In reality what is a banking crisis?

A banking crisis can be triggered through several factors; however, amongst the biggest main risks are financial liberalisation, liquidity risk and credit risk.

Excessive financial liberalisation Despite this might be more seen more in developing economies, one of the main causes of the last global recession was brought about precisely by the more liberalised financial markets. Indeed, the lack of supervision or its ineffectiveness was one of the main causes for a shock in the global economy. In reality deregulation increases competitiveness and tends to push players towards more aggressive sales, which ultimately will lead to a warranted catastrophic situation within the banking sector. Case in point was the subprime

mortgage market in the United States way back in 2007, which ultimately led into a fully blown recession.

That said, loopholes for miss-selling might be still in place and thus diligent supervision is imperative by regulators.

In all fairness following the last recession, regulators took a very pro-active approach to tackle the lack of standards within the financial industry and ensure that all the necessary supervisory measures are in place.

Liquidity risk Liquidity risk is another possible scenario in which withdrawals exceed the funds available. In practical terms, this would occur

THE BUSINESS EDITION

BANKING

MONEY · 29

in situations in which individuals fear a bank being insolvent and thus withdraw money from their bank accounts, while the bank does not have the necessary funds to satisfy these withdrawals. Usually a liquidity risk scenario is triggered through more serious economic events which are associated to financial crisis.

Credit risk Credit risk might be seen as the highest risk for a banking crisis. In this case a bank would suffer the consequences of loans and other assets which are not performing or literary cease to perform. Usually a likelihood scenario of triggering such risk is an economic downturn. For instance, a relatively recent banking crisis was the Cypriot financial crisis in 2012-2013.

Looking at the current situation, domestically over the past years’ major banks had initiated a process of de-risking to mitigate the possible threat of a banking crisis, a derisking process which was also instigated by the ECB’s guidance brought forward in 2017 to tackle namely non-performing loans. The latter being a focal point in combating the possibility of facing a banking crisis.

Indeed, the measures taken by these banks have shown an improvement in their banking regulatory requirements, amongst others the tier 1 capital ratio, a measure of a bank’s financial strength. For instance, despite that much more needs to be done to improve its financial strength, Bank of Valletta has currently a tier 1 capital ratio of 19.1% as at June 2019 from the 18.3% in December 2018, while HSBC Bank Malta registered an improvement to 16.2% as at June 2019 from 14.6% in December 2018.

Therefore the imposition by the ECB on banks to abide by a set of clearly defined risk metrics has pushed banks, including domestic banks, to improve their financial sanity.

The flip side to the de-risking process Despite a de-risking process might indeed be seen as beneficial to safeguard banks, it might also interrupt economic sustainability, and ultimately trigger a ripple negative effect

on an economy, which might elicit itself a banking crisis anyway.

A very topical scenario is the de-risking process being currently undertaken by Bank of Valletta, in which it lately announced the closure of bank accounts for corporate clients who are deemed to be high risk. Amongst those that will be impacted are a couple of gaming companies which over the years have expanded their operations in Malta, an industry which factually over the years proved to be a very important contributor to Malta’s economic growth success.

As opposed to other countries, these companies, which are deemed by banking institutions as risky, have limited alternatives domestically in terms of banking solutions, and thus these structural difficulties might be seen amongst the possible triggers for reallocation. A realistic scenario which might have series consequences on the domestic economy, namely on the property market, and ultimately also impact major domestic banks indirectly through the spiral effect preposition.

One of the rationales for the aforementioned is primarily based on the current situation within the property market. Let’s be realistic and acknowledge the fact that the recent spike in property prices was primarily brought about by the ever increasing demand of foreigners who reallocated to Malta for

employment purposes and are seeking rental housing. The increased demand led to numerous property developments which are being financed by loans taken by individuals or companies who opted to leverage themselves with local banking institutions, given the very attractive returns as opposed to the low yielding environment within financial markets.

To this extent, one should be very mindful about the possible difficulties the property market could face and the negative implications to the wider arena of stakeholders, including banking institutions.

Indeed one of the difficulties that the property market could face is an outflow of existing foreign direct investments or housing supply that in the future might outpace demand. Both are realistic scenarios which will instigate downward pressures on property rental prices, which in turn will increase pressures on the servicing of loans, pressures which might impair the sanity of domestic banks.

Thus given the current relatively unpleasant structural situation, the Government and Institutions should strike a balance to safeguard existing FDI, while at the same time ensure that the de-risking process is also aligned to the needs for a sustainable economy. Indisputably, solutions are imperatively needed in the short-to-medium term.

THE BUSINESS EDITION

PROMO

ADDRESS(ing) CLIENTS’ NEEDS Duncan Barry interviews Joe Caruana Curran, branch manager and co-franchise owner of Remax Affiliates – Executives, Ibraġġ on the agency’s success.

There's stiff competition when it comes to agencies. What makes your agency stand out and why would a potential buyer turn to your services?

While it is true that agencies have mushroomed across the island, there are several factors which put us in a favourable position. Primarily, representing the RE/MAX brand makes us the obvious first choice to most potential buyers or vendors. Having an extremely well-prepared workforce of over 350 agents means that once you list your property with us, it is automatically available to all associates. When it comes to choosing to work with our office, our team is experienced in all areas of the property industry. Each one of my colleagues has a different area of expertise and can assist any type of client with regards to his or her needs or desires.

team member does so and that is why, year in year out, most of them feature in the RE/MAX top 50 category, and recently, the office has placed first runner-up Top Producing Office Service Fees per capita.

Your team won numerous awards. What’s the secret to this success?

Can you be successful career-wise while having a fulfilling personal life?

I don’t believe it is a secret. Our success is the result of the passion we have for our work.

Enjoying what we do and doing it in a pleasant environment are key elements to success. I firmly believe that past achievements help you stay at the top, thus, thriving on the recommendations and referrals that past clients give about you; going the extra mile for a client and showing them we have a sound knowledge of the market, as well as on the transaction process itself, is vital.

Furthermore, our job doesn’t stop at the promise of sale but even after the final deed has been signed. I can proudly say that each

You certainly can enjoy both a successful career and a personal life. I believe the two are quite separate, yet, they do cross paths constantly. When one experiences successful moments, it is so much easier for the other side of life to appear positive.

Nonetheless, the secret is never to allow the disappointments one may experience to affect personal life. I am fortunate having my wife and family who are truly understanding.

They constantly help me get over the less pleasant instances which occasionally arise in business and look forward to the next challenge or opportunity.

MONE Y · 31

Duncan has over two decades of experience in feature writing and journalism. He is also a freelance writer. In 2012, he was the national winner of the EU Health Prize for Journalists.

I DON’T BELIEVE IT IS A SECRET. OUR SUCCESS IS THE RESULT OF THE PASSION WE HAVE FOR OUR WORK

Are property prices on the decline or is it just media hype?

I believe that the media may have got it somewhat wrong in this regard; what we have seen recently is that prices have somewhat hit a ‘plateau’, but I wouldn’t go as far as saying that prices are on the decline. However, in terms of property pricing, vendors are no longer imposing unrealistic figures based on hearsay but are relying more on what professional agencies are advising them to sell at. People may have been misguided by information provided to them as opposed to heeding advice from professionals within this industry.

The bank loan process is becoming tighter. Is this deterring potential buyers?

The property boom experienced in the past few years, was mainly attributed to the ‘buy to let’ market. The banks have recently changed certain parameters making it harder to obtain the financing required for these acquisitions, and consequently this sector of the industry has seen a slight dip. Nonetheless, the ‘buy to let’ property market is still one of the most popular when it comes to investments, as long as we keep on increasing our foreign based workforce. The rental market has always played a fundamental role to the entire industry.

32 · MONEY

ARTIFICIAL INTELLIGENCE

ISSUE 57

Theo is a Manager at EY providing strategy consultancy and transaction advisory services.

He supported the Malta.AI Taskforce in developing a National Strategy on Artificial Intelligence and formed part of the 'Investment, Start-ups and Innovation AI Working Group'.

EYE on AI Theo Dix takes an in-depth look at that latest buzzword, AI, and what businesses need to know before getting started with AI. Artificial Intelligence (AI) is the hottest tech buzzword around. From curating our newsfeeds on social media, to predicting what we search for and the messages we type into our phone, AI is now truly in the mainstream and these examples are just scratching the surface of what it is yet to come. Yet, ask non-techy people what it is, and most will tell you that they haven’t got a clue, let alone how they can apply it to business today.

AI is a broad and emerging field that is

constantly evolving, and experts are yet to reach consensus of what AI actually is. The reason for this is that AI is not just a single technology but a broad set of technologies, tools and methods that can learn and self-improve which are being researched, discovered and progressed to expand what is currently possible.

A simple way to define AI would be the use of data and algorithms to perform specific tasks or make decisions that would usually require human intelligence, such as learning,

solving problems, and recognising patterns, images, and language. Trained AI can perform these tasks or make these decisions without explicit human instructions using a series of techniques and technologies.

There is widespread acceptance that AI will change everything in 10 years’ time, but little appreciation of how it could, and should, impact businesses right now. In some cases, there is too much hype, but paradoxically, the potential opportunities and benefits of AI are still, if anything, under-hyped. Often, the

THE BUSINESS EDITION

impact of new technologies is overestimated in the short term and underestimated in the long term, and while there is a lot of noise regarding AI, there’s been a lack of in-depth discussion and analysis of how it’s actually going to transform businesses.

Business looking to get started with AI first need to build a high-level understanding of the various branches and understand some of the ways it can be applied to their sector.

They then need consider it from the lens of the business-issue, define what that is, and

ARTIFICIAL INTELLIGENCE

then try to identify the solutions that can help them address it. Ideation workshops are often a great starting point, bringing together top management and teams from across the business to brainstorm a long-list of ideas (use-cases), which can then be assessed and prioritised. The assessment phase is critical.

Considerations include the business value the solution will generate, such as customer or process enhancements, cost reduction or revenue generation opportunities. The next step is examining the technical and legal feasibility and ease of implementation.

MONEY · 33

While some AI technologies are relatively mature, such as computer vision and its application to facial recognition or natural language processing and its use in chatbots and customer service functions, others are far-less developed. More mature areas often have more vendors, data-models and solutions which in turn makes such projects easier to undertake. Organisations also need to consider if they have the data to power the model for the use-case and access to capabilities and resources, internally or externally, to properly train the model. →

34 · MONEY

ISSUE 57

ARTIFICIAL INTELLIGENCE

They also need to consider the financial aspects and determine if the cost-to-benefit analysis makes sense.

Building a baseline level of digital maturity is key and different technologies can often come together to create a holistic solution.

While automation is often a key objective of many businesses, not all solutions need to be intelligent. Robotic process automation (RPA) solutions are programmed to mimic human actions such as logging into applications, moving files and folders, copying and pasting data, filling in forms, and extracting data from documents. These types of solutions are often the starting point for many businesses looking to take their first step into the world of automation.

While all this may seem daunting, various initiatives to support businesses to get started on this journey are currently being put into action. The government recently published a strategy themed ‘A Strategy

THERE IS WIDESPREAD ACCEPTANCE THAT AI WILL CHANGE EVERYTHING IN 10 YEARS’ TIME, BUT LITTLE APPRECIATION OF HOW IT COULD, AND SHOULD, IMPACT BUSINESSES RIGHT NOW and Vision for Artificial Intelligence in Malta’ with private sector adoption set out as one of the three pillars. Measures to support this goal include awareness campaigns to help businesses understand how AI can be applied in their sector, the commissioning of AI maturity and readiness assessment tools, training programmes and financial support measures to help companies develop AI related skill sets and bring in external expertise to review business processes and

carry out in-depth assessments. Maltese language tools are also being developed to enable computers to be able to process, understand and generate Maltese text and speech, which should facilitate the deployment of AI solutions in both of Malta’s national languages.

Nearly every challenge in the world, and particularly in business, is an opportunity for AI. Why not start taking advantage of AI now?

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PROMO

MONEY · 37

Worried about your technology investments?

Trends in Malta, opposed to other countries, remain traditional and risk-averse when it comes to investing in new technology. Bluefort provides seven tips for businesses to overcome this fear.

It is widely acknowledged that “Technology is the biggest story in business today”. However, the adoption of disruptive technologies relies on a culture’s willingness to change.

Culture refers to the norms, attitudes and behaviour of individuals. While often thought to be ambiguous, culture can be studied and quantified. Looking at Hofstede’s Six Dimensions of Culture, Maltese culture ranks high across “indulgence” and “uncertainty avoidance” dimensions. A high level of “uncertainty avoidance” means that people feel threatened by ambiguous and unknown situations that can produce unknown results. Combine this with a high appetite for “indulgence” and you get an overwhelming desire to try out new technology quickly but with a low appetite for risk. This proves true when looking at the way technology investments are made.

Whereas the general global trend is shifting faster towards investing in technology without knowing the exact return on investment, the trend in Malta remains generally traditional and risk-averse. The risk avoidance measure of having a detailed proof of concept and defining the exact return on investment is commonplace when

a technology investment is made. This, in turn, has a repercussion where traditional corporate giants and family businesses are being disrupted with new players and entrepreneurs that do not play by the same risk avoidance rules. The speed of business is the new currency in the modern enterprise and this is shaping the global economy fast.

The first recommended action to increase the speed of business and achieve digital mastery is to follow the 7 Rules for Transformation.

Rule 1: Evaluate your roles in experimentation ecosystems. This rule is about identifying complementary organisations from the different ecosystems that can help craft a digital strategy.

Rule 2: Explore capability co-creation options This rule is about building co-creation partnerships with other organisations, even if these are competitors. Testing this partnership will help transform the existing capabilities and build new ones.

Rule 7: Design your new digital ecosystems.

This rule is about orchestrating the relevant ecosystems, products and services into platforms.

The second recommended action is to extract more value from your existing platforms to enhance the customer experience while aligning improved operational performance.

Many businesses in Malta use disparate and disconnected technologies both internally and with clients. Using a single unified ERP platform, like Microsoft Dynamics, allows your business to efficiently connect clients and employees.

Rule 3: Examine the intersection of human talent and machine power. This rule is about getting inspiration from digital giants on how to use machines and technology to inspire and bring out the best out of the company’s human resources.

Rule 4: Engage ecosystems as transformational triggers. This rule is about understanding the need to develop the core capabilities for transformation and relying on other partners for supporting in other areas.

Rule 5: Navigate your preferential partnerships. This rule is about constantly re-evaluating business partnerships and rebalancing/reprioritising them as conditions change in favour of acquiring the necessary capabilities for transformation.

Rule 6: Augment smart humans with powerful machines. This rule is about finding means to improve human performance by augmenting talent with technology and fundamentally restructuring workflows and teams for better integration and communication.

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Working closely with clients from finance and iGaming to diversified group holdings, we have a deep understanding of Malta’s business software needs. Since 2014, Microsoft has trusted Bluefort to deliver ERP projects across the world — and so should you. Contact us for a free workshop to evaluate how you can transform into a digital enterprise for the modern marketplace. info@bluefort.com.mt

THE BUSINESS EDITION

MONEY · 39

PROMO

WHAT’S LOVE GOT TO DO, GOT TO DO WITH IT? Julianne Grima, chief executive officer of awardwinning creative advertising agency TBWA\ANG, describes the secrets to lasting success in the dog eat dog advertising industry.

I’m an Ad. man’s daughter. Born and raised in the graphic design studio, chasing after smartly dressed executives dashing off to important client meetings, I sat and watched this exciting, fast-paced world revolve around me on days when I was off school and dragged to my dad’s office. Everything I know, I learned experientially, quite literally a lifetime spanning over 30 years of observing, listening and testing.

An Ad. agency survives 50 years because the love, respect and understanding of, and for the work, is transmitted from one generation to another. Anyone working in a family-owned business would tell you that succeeding a founding parent is an extraordinary feat.

It requires a subtle marriage of humility to respect what came before with foresight and wisdom to develop your vision. In this industry, like many others, being the daughter of, does not have quite the same ring as a son and therefore certain gender-based hurdles need to be surmounted.

Limitations are merely an opportunity for creative solutions and with that in mind refocusing the agency towards actively promoting an almost all female-based management seems to have been effective over the years in superseding annual targets.

The intention is never to promote based on gender but rather, to not hold people back because of it.

Advertising accounts for a slim slice of the TBWA\ANG portfolio pie. Our roots are established in public relations and advertising, evolved over decades to also include event planning, magazine

IF YOU DON’T LOVE ADVERTS, YOU HAVE NO BUSINESS MAKING THEM production, social media management, strategic campaign planning, branding and all the contingencies of creative work including the production of print and television commercials. What this basically spells out is that we are a well-informed, experienced communications agency.

The industry has seen much change, and with the change, the evolution of how and what work is produced. Clients have developed internal structures responsible for a large chunk of what once was the entire remit of an Ad. agency. Training in the field has expanded to include various specializations, and that’s not to talk of the whole on-line boom and digital game-changer. Locally, the media is not unlikely to be bidding for tenders under the auspice of agency and the gaming industry is hard to compete with when it comes to talent recruitment. The industry evolves, and we acclimatise. In the face of change, we might adapt, but our core values remain unchanged. “Make it smart, make it fun and/or make it beautiful – if it’s none of the above, start over.”

Adverts are the tip of an iceberg. Behind the image, moving or static, is a finger on the pulse of current events and popular culture, a thorough immersion into client business

needs and the development of a clear message that pushes their brand ahead of the competition, connecting their services or products with the clients and customers resulting in a mutually beneficial relationship.

Advertising is much to do with strategic creative thinking that ultimately results in the public experience.

Fifty years of experience, a tangible understanding of how the processes of design and filmmaking have evolved, a strong belief in the nurturing of key talent, a genuine love for the brands you service and respect for the clients you partner up with are crucial ingredients to a successful practice. Beyond that, the necessity to be bold, stay current and have fun loving what you do.

It’s precisely here where our experience and creativity has been acknowledged on an international level, as we enter our 51st year in business with three recent global awards.

These include gold from Balticbest Festival, a gold from Summit Creative Awards and silver from W3 Awards.

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THE BUSINESS EDITION

M O N E Y · 41

PROMO

BEATING THE DRUM for DIGITAL TRANSFORMATION MONEY interviews Joseph Micallef, chief operating officer at BEAT Ltd, on digital transformation and what business leaders should be focusing on when taking up the challenge.

What is at the root of the current drive towards digitalisation?

The management of the various data types around us has been rendering the use of technology-based solutions indispensable.

It is an undeniable fact that we are currently seeing the evolution of businesses towards the use of digital technologies.

Extracting the right level of information from the data we produce and converting this into useful decision making power is vital.

What benefits would organisations hope to acquire by pursuing digitalisation?

Organisations must adapt their operating model to enable them to provide new revenue streams and higher value-producing opportunities and reduce unnecessary operating costs. Digitalisation also contributes towards the solving of myriad issues faced by organisations: dealing with human error, rework or inconsistency in the quality of service/product.

Digital transformation is becoming a favourite buzzword in corporate literature.

What is the fuss all about?

Digitalisation is ultimately about the use of digital technologies to change a business model. Any solutions we go for need to satisfy current matters and evolutionary change requirements imposed on the business.

transformation, which is what we do at BEAT, is also about cultural evolution and developing innovative operating models based on one’s readiness and maturity level.

What should business leaders be focusing on when considering taking on the challenge of digital transformation?

THE ULTIMATE SCOPE OF DIGITAL TRANSFORMATION IS TO HARNESS THE POWER OF TECHNOLOGY TO IMPROVE CUSTOMER EXPERIENCE AND ENHANCE THE COMPETITIVENESS OF ONE’S BUSINESS Digitalisation is about empowering people to do what they do best (demonstrate emotion, be compassionate, engage in thought processes and reasoning), and let machines perform repetitive mundane tasks efficiently, with controlled logic and variation, and close to no fatigue, with precision and repeatability.

Digital transformation is all about the journey an organisation chooses to undertake in this direction, whatever the level of technology deployed.

The requirement to invest in technology seems clear and logical; but what about the ‘transformation’ part of the equation?

The ultimate scope of digital transformation is to harness the power of technology to improve customer experience and enhance competitiveness. Managing digital

The focus should be on the business model.

As an advisor in this sector, before I can start talking about digital technologies with my clients, I always ask about the problem they are trying to solve. I find it is vital to take the time to listen, to put myself in the client’s shoes, and really understand what’s keeping them up at night. Understanding the problem they are trying to solve is vastly more important than keeping track of the digital landscape.

As an advisor on digitalisation and digital transformation, at what stage do you get involved in the process, and how?

From the very beginning! With the listening and understanding part done, we undergo a digital readiness assessment to gain a clear picture of the ability to leverage technology to maximise efficiency, effectiveness, and reach. The dimensions under scrutiny will range from the leadership’s ability to leverage technology to gain an advantage, to the risk that the company faces from (legacy or emerging) technology innovation. It is impossible to create a plan for improving a company’s digitalisation process without first understanding its current state of readiness and maturity. From there on, our team will design streamlined processes that are digital-ready, and bring in the right level of technology into the requirements.

Subsequently, we roll out the solution, hand-holding stakeholders through the journey, ensuring that the transformation is taking place at the right rate of change and acceptance.

THE BUSINESS EDITION

MONEY · 43

PROMO

Using AI and Machine Learning to Fight Money Laundering Data scientists have done a great deal for us by making our financial lives easier and, without a doubt, more secure than ever before. However, these advancements aren’t always used with good intentions. While technology has brought the financial world forward in leaps and bounds, it’s worth remembering that this same technology is used for far more nefarious reasons — cybercrime in its many forms.

The Cost of Money Laundering Fighting money laundering is a massive, costly mission that needs to be perpetually in motion.

For context, anti-money laundering (AML) measures cost European banks roughly €18 billion each year, with their US counterparts shelling out approximately €22 billion annually.

Banks all over the globe need to have their fingers firmly on the pulse of the fintech ecosystem, and that means paying close attention to their transaction monitoring standards. Failure to do so could leave banks with a hefty fine. The last 10 years have seen a whopping 90% of Europe’s banks slapped with fines for failing to take the required AML measures – that’s €23 billion on fines alone.

Changes in the Tech Landscape Staying at the forefront of tech is crucial for any organisation hoping to remain relevant in a highly competitive industry. AI and machine learning are developing at breakneck speed, with the biggest cloud providers in the industry making them a clear priority over the last few years.

This tech has the potential to completely revolutionise the front and back-end operations of financial bodies across the globe, boosting risk management efforts,

maximising efficiency, and reinforcing the effectiveness of financial crime investigations across the board. Embracing this new tech can also minimise costs by helping financial institutions meet regulations more efficiently, which frees up human resources that can be assigned to other vital areas of the business.

Types of AI and Machine Learning There are two types of AI and machine learning, each with its own set of pros and cons — supervised and unsupervised.

Supervised learning involves a model trained using data that has already been categorised to raise a red flag on any transaction that seem suspicious. In unsupervised learning, what happens is that raw, uncategorised data is introduced to the system, making it start from scratch. By interacting with that data, the system starts to identify patterns indicative of money laundering activities while also creating new ways to sort and analyse data.

The Bottom Line As intelligent as this tech may be, it’s only

as good as the data you feed it, so investing in talent should remain a top priority. You can’t expect any model employing AI to work without any sort of human input or testing – not yet, at least. For example, take transaction monitoring, each transaction needs to be evaluated against a set of risk-based rules. Even the most advanced monitoring systems to date leave banks with a substantial number of false positives, and that’s when the reviewer comes in to cast a human eye over the results before making a final decision. In order for any financial institution to get the best out of its human and tech resources, the two need to work hand in hand. Employees need to feel empowered to work with machines and AI, and tech needs a human element in order to continue moving the industry forward.

ComplyRadar to the Rescue ComplyRadar monitors transactions relating to individuals, accounts, and entities to detect suspicious activity — quickly and effectively. Its machine-learning transaction filter provides an additional probabilistic layer on top of the standard rules engine.

This not only drastically reduces false positives but also provides additional data output which is not being captured by simple rules. For more information visit www.comply-radar.com or email info@computimesoftware.com

44 · MONEY

ISSUE 57

OPINION

Manuel is a political blogger who writes for The Sunday Times and manueldelia.com.

GOLDEN BOY Political analyst Emanuel Delia analysis the case of former director of human resources at the financial regulator, George Spiteri.

George Spiteri is a lucky guy. He was given €150,000 to retire from his position of HR Manager of the Malta Financial Services Authority which used to include the company registry. The same restructuring that saw him off also gave its old department – the company registry – the status of a separate agency. That new agency recruited George Spiteri as its HR manager.

Effectively, therefore, George Spiteri was given in a day what many people earn in 10 years as a bonus for staying in the same job but with far less responsibilities. It’s not a million miles from winning a lottery. But without having to buy a ticket.

By trade, George Spiteri is a garden variety senior HR executive. Sure, he has experience, maturity and responsibility. He has many years of service under his belt enforcing public sector rules that can be arcane and esoteric and are often the purview of a limited few.

Indeed, HR managers in the public sector are a sort of priesthood. It takes years to learn all the rules and – a bit like the painting of the Golden Gate bridge – when you think you’ve learnt all the rules you need to start catching up with all the changes.

Illustrations by ouch.pics

One reason for that is that although entities within the public sector are in theory autonomous and can take their own decisions, they fall within the system of government which they can’t ignore.

Take an HR manager at the Transport Authority for example. The unions will want to negotiate the best deal for their employees.

The HR manager is not paying the employees out of their own pocket so instead of a tough

THE BUSINESS EDITION

MONEY · 45

OPINION

negotiation with an angry union, they may be tempted to give employees a huge pay rise and let’s pour a pint at the pub. After all the Transport Authority collects millions from car registrations and licences so it can easily spare a little bit extra for the pockets of its employees.

But then the union will go to another publicsector authority and ask for a pay rise. ‘Why do workers at Transport Malta make so much and teachers in schools make so little?’ The HR manager at the Education Department though, cannot afford to be as generous as their Transport colleague. The Education Department spends money but collects none.

The government avoids these problems by overriding the autonomy of its various agencies and imposing common standards

be sure it provides a public service. But the service it provides is intended for profitable businesses: banks, financial institutions, that sort of thing.

The Authority writes the rules for the behaviour of these businesses and makes sure these businesses comply with them. And since no business can function without rules that regulate its competitors, they pay the authority to ensure its continued existence.

The MFSA is not a ‘social service’. Compare it with the Housing Authority for instance.

The job of that body is to provide a roof over the heads of people who cannot pay for any themselves. The clients of that authority exist because they can’t afford to pay and the state is obliged to ensure nobody’s homeless even those who cannot afford a home.

THE DECISION NOT TO GIVE A FLYING DUCK ABOUT THE EXPENSE, OR, AS IS MORE LIKELY, THE DECISION TO PAY HIM A FAT BONUS FOR NO REASON WHATSOEVER, IS CORRUPT

of negotiation for collective bargaining. It pegs most salaries across the public sector matching relative rank with income. It only allows differences in the deals different authorities or agencies close when the specific needs of the sector in which they work justifies it. Otherwise it’s all one kitty.

After all some agencies are cost centres, some others are revenue centres. But the buck stops at the Finance Ministry and there’s only one of those.

The George Spiteri incident does not fit into this logical framework. George Spiteri was HR manager at the Malta Financial Services Authority. The MFSA is, in theory, a revenue centre for the government. To

Poor people don’t own banks. A bank that cannot afford to exist should fold and not continue to exist. Breathtakingly though, the MFSA lost money over the last few years and the government had to pay for the shortfall.

The George Spiteri episode therefore cannot be seen in isolation from this background. Not only would it not be right for the MFSA to be excessively generous because it is a revenue centre. The time when this happened was a time when this revenue centre was flowing money the wrong way, sucking up millions from the government rather than pumping them towards it.

The 2018 annual report of the MFSA notes

that the authority has lost the income that used to be generated by the company registry when that belonged to it. The registry pumped €14 million into the authority in 2017 down to €5 million in 2018. There will be no income from the now separate registry this year. Professional fees at the Authority have shot up from €748,000 in 2017 to a whopping €5.2 million.

And thanks to the handiwork of Mr Spiteri himself, employee benefits have gone up by €1.7 million on top of the €10.8 million spent in 2017. That’s salaries and social security for a staff complement that has gone up from 304 employees to 326: an increase of 15 managers. →

46 · MONEY

ISSUE 57

OPINION

It is right that the MFSA builds capacity. It needs to. Malta’s reputation as a financial services centre has not been quite so terrible since 1988. Under its nose, Pilatus Bank was set up, funded from proceeds of crime. Also, under its nose Satabank was set up operating what we’re hearing was a money-laundering machine, though we can’t be sure as no one has been charged of anything yet.

Although the HR Manager of a regulatory body cannot alone be held responsible for their employer’s failings, it is clear that the capacity building he was responsible for did not yield glowing results.

George Spiteri had no place in the reformed Authority. Its new management wanted to shake-up the way things were done so the MFSA would stop bumbling its way from one disaster to the next. The retirement schemes, of George Spiteri’s own design presumably, were meant to get rid of the dead wood. And he was sent adrift.

Only to be fished out again by the new registry agency before he even got properly wet. He now supervises the same staff he used to work with at the MFSA. They did not get a bonus when they were transferred from Mrieħel (the MFSA offices) to Żejtun (the new Registry offices). They were just given a letter saying they will now be reporting to a different agency on the same terms as before.

But George Spiteri’s letter had attached a whopping €150,000 for what effectively amounted to the same thing. This is wrong on so many levels. It is misuse of public funds, obviously. Except from George Spiteri’s point of view, the money is well and truly wasted.

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BUT NO ONE IS PAYING FOR THE CONSEQUENCES OF THAT CORRUPTION. EXCEPT YOU OF COURSE.

But it raises suspicion of worse: collusion, to begin with. Someone agreed to do this even expecting the inevitable criticism they would have to face. I accept that having knowledge of public sector HR practices is not a widespread skill, but it is not exactly unobtainable either. The market provides more experienced HR managers than brain surgeons or nuclear physicists and it pays neither of those €150,000 for no discernible reason.

that George Spiteri’s experience would avoid the cost of a learning curve at the HR department. But given he had been paid €150,000 of the public’s money to leave the MFSA, the conscientious thing to do for the new Registry management would be to forego the benefit of George Spiteri’s experience and hire someone else. The decision not to give a flying duck about the expense, or, as is more likely, the decision to pay him a fat bonus for no reason whatsoever, is corrupt.

What I’m saying is this. Whoever was setting up the registry agency may have thought

But no one is paying for the consequences of that corruption. Except you of course.

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48 · MONEY

INVESTMENTS

ISSUE 57

WORTH MORE THAN ITS WEIGHT IN GOLD Coins have been collected by the general population since the mid-1800s but they are also an often-overlooked investment asset class. MONEY spoke to the Central Bank of Malta to find out more.

With interest rates at rock bottom — and economic growth putting with more disposable income in the pockets of investors — alternative asset classes become more and more attractive.

Gold has a long tradition as a store of value, but gold coins provide a way to invest in this precious metal that adds a touch of rarity and demand.

While collectors usually have a particular theme, country, year or era in mind for their hobby, investment coins are based primarily on the price of the gold from which they are minted. The idea started in countries that

mined gold, and the best-known bullion coin of all – the Krugerrand– was first minted in 1967 as a way for individuals to hold this precious metal.

Over time, bullion coins became even more interesting as they were seen as a store of value, rather than investments like stocks and shares which are more easily affected by economic fluctuations, with coins issued by reputable mints clearly far more recommended.

Which is not to say that investing in gold coins is entirely without risk, however, and as with other asset classes, their value could go down

DID YOU KNOW? Coins usually have a pattern of hatching around the edge — usually referred to as a milled edge. This dates to the time when coins were literally worth their weight in gold and was meant to provide an instant way to check that none of the metal had been pilfered...

Coins with a hole in the middle were popular is many places around the world for various reasons, include for people who did not carry wallets around as they could be hung onto a cord worn around the neck, such as tribesmen in Africa and the Indian subcontinent. It is also a way to reduce the amount of metal in the coin without making it too small or too thin. One fascinating exception to this was the so-called ‘holey dollar’, which dates to the foundation of Australia in 1788. The new colony had no coins and in the early 1800s, Governor Lachlan Macquarie got a convicted forger, William Henshell, to punch the middle out of Spanish dollars — which effectively stopped them from being used as Spanish currency — with both the ‘hole’ and the resulting ring being used as the first official currency of New South Wales.

as well as up. Just over the last 10 years, the price of gold has gone from a high of $1,889.70 per ounce to $999.50. Its gradual rise since the last few months of 2018 has resulted in increased demand for bullion coins, no doubt boosted by low interest rates.

“Collectors are not as affected by the cost of a coin. They view them – even rare and expensive ones – as something that they intend to keep. Investors, on the other hand, look for something that would be a store of value, and as something that could actually give them a better return,” the head of the Currency Services and Security Department at the Central Bank of Malta, Peter Paul Tabone, explained.

The Central Bank of Malta has been issuing its own coins since 1972, starting with the first Maltese decimal coinage to replace British coins and also the first gold and silver coins for collectors. Dozens of coins issued over the ensuing decades, with themes ranging from archaeology and history to culture and personalities.

Coins were, as from 1973, minted at the Malta Mint which was housed within the premises of the Central Bank of Malta before moving to Sa Maison in 1985. The mint was very active, with the contribution of the former manager, the late Joseph Attard, being commemorated last year when a a public garden in Dingli was named after him. The Bank contributed several trees to the garden as recognition of his work.

THE BUSINESS EDITION

INVESTMENTS

A GUIDE FOR COLLECTORS Starting a collection? Why not choose a theme? Here are some of the most popular:

The coins were always very popular with the public, but some were more popular than others. Mr Tabone was on duty soon after he joined the Bank when the 1979 commemorative coin was issued to mark the departure of the British forces.

Country collections focus on coins from a single country, or samples from each country that has issued a coin

“We minted 50,000 silver coins and they were all snapped up immediately,” he recalled.

Year collections are based around a year which might have a special significance to the collector.

Numerous other issues followed, with the museum and shop in the foyer of the Central Bank of Malta attracting a steady stream of visitors. The Bank has a strong local following while its foreign clientele avail themselves of the Malta Coin Centre’s online shop.

Last year, the Bank teamed up with Lombard Bank to move into the investment sphere and issued the Melita bullion coin, the first in Malta, which was a tremendous success. The coins were available in three denominations: €25, €50 and €100 and rank among the purest official gold bullion coins available anywhere in the world.

The value of the gold with which they are minted is well above their face value – which is arbitrarily set – which is why they are sold at a considerable premium. The chief officer for banking operations, Jesmond Gatt, explained that this is because gold and silver coins are legal tender and therefore they can – if the bearer so wishes! – be used to pay for goods or services at their face value.

MONEY · 49

Type collections focus on examples of major design types, for example, euro coins or coins with a hole in the middle.

In the case of bullion coins, the face value is incidental as what matters is the weight and purity of the gold used. In the case of the Melita coins this is an ounce, half ounce and the quarter ounce.

The selling price of bullion coins is set within a very close margin of the market value of gold, and this is why the price of bullion coins may fluctuate. In the case of the Melita, the price was kept stable despite increases in the price of gold to promote the growth of this new niche product. However, the prices will be tweaked for the 2019 issue.

“The design will not be changed as these coins are not being minted for their aesthetic value but as a store of value,” Mr Gatt added.

Although bullion coins look very similar, each one has enough minute variations to have its very own identity. The curator of the Bank’s numismatic collection/museum, Kevin Cassar, said that a mobile app (Veriscan) enables you

Over time, bullion coins became even more interesting as they were seen as a store of value

Subject collections select a certain theme or subject, which could range from archaeology to history to flora.

Period collections are for collectors who are fascinated by a historic era, such as the period that the Knights of Malta of the Order of St John was in Malta.

to find out the unique number associated with your Melita coin, also scanning the coin to check it for any sign of tampering.

However, there is no doubt that the historian’s passion lies with collectors’ coins, each of which has its own story to tell, adding – in his view – to their more abstract value, along with their aesthetic values and craftsmanship. The themes are carefully selected, with children’s designs for a series of commemorative €2 coins being a best-seller over the past few years, and his own personal favourite: a coin showing the sublime conservatory that once graced the Argotti Botanical Gardens, the third oldest in the Commonwealth. The glasshouse was erected in the mid-19th century but pulled down in 1931 because of the expense required to maintain the wrought iron structure.

The Malta Coin Centre will soon launch its 2020 calendar, having launched six products apart from the bullion coin in 2019. Check out the latest information at www.maltacoincentre.com

50 · MONEY

NGO

ISSUE 57

Giselle is a freelance writer, proofreader and social media marketer who lives on Instagram and cappuccino. She runs Content for Success.

DEMOCRACY NOW! Giselle Borg Olivier attends JCI Malta’s National Convention on the topic of democracy and discovers more about the activities organised by the local entity of this international NGO. The JCI Malta (Junior Chamber International) provides young people with the opportunity to develop into future leaders and create positive change. It’s one of many NGOs in Malta that is committed to positive change and development for both its members and the country.

On the 11th and 12th October, JCI Malta held its National Convention 2019 entitled ‘Democracy Now!’ at Spazju Kreattiv, St James Cavalier, Valletta. The goal of the JCI Malta National Convention was to enable organisations and volunteers to share their talents and celebrate fresh ideas, new perspectives, and the adaptability needed for people to create action-oriented solutions to the challenges in our communities.

As JCI Malta explained, the theme of democracy was chosen because ‘the basic right that living in a democracy gives its citizens is the right to speak up and voice their opinions, to change a community, a country or the world through one’s actions. Being an active citizen, therefore, comes part and parcel of being a democratic citizen.’

Christoph Schwaiger, JCI Malta National President 2019, explained the importance of holding a National Conference: “The highlight of every JCI National Organisation is its national convention. In Malta we’ve been missing out on organising one for a couple of years. This year that changed thanks to our

brilliant team and governmental funding. We kept things realistic and I think we delivered in terms of content. There’s still room for improving the turnout.”

One of the highlights of the event was international keynote speaker and author, Eric Fitzpatrick, from Ireland, who, over the two days, delivered three extremely insightful and entertaining sessions explaining how to have difficult conversations and how to ask the right questions, all within the context of achieving effective communication. Mr Fitzpatrick delivers training sessions about communication and the power of persuasion to businesses all over the world; however, he supports JCI on an international scale by offering these training sessions to various JCI chapters because he firmly believes and supports the cause and mission of JCI. The second day of the convention also held a

very interesting and varied panel discussion which brought together four individuals representing different sectors in society.

The panellists, comprising Mr Ryan Borg, Head of Secretariat at the Parliamentary Secretary of Sports, Youth, and Voluntary Organisations, Dr George Vital Zammit, senior lecturer at the University of Malta, Mr Arthur Muscat from the Farsons Foundation, and Ms Natalie Muschamp, founder of Step Up for Parkinson’s all contributed to the discussion of the need for democracy and voluntary organisations underscoring the question: have we become too comfortable?

Students in the 1970s took to the streets when their educational aspirations were under threat in a bid to overturn decisions related to university courses that would have severely impacted their lives and educational path.

Twenty years later, in the mid-90s, university students once again protested when their stipends were at risk. It’s been another 20 years and despite mass protests happening on an international scale against the threat of climate change, there was barely any movement seen from the students.

THE BUSINESS EDITION

NGO

MONE Y · 51

The JCI Malta National Board 2020 There are over 1,000 registered voluntary organisations in Malta, so it appears that the desire to take a stand and make one’s voice heard is still relevant, but has the sector become too diluted to have any effect?

The panellists cited personal experiences and opinions fielding questions from the audience and engaging in a thought-provoking hourlong session. The convention ended with a small ceremony awarding the four winners of an online photography competition held during the months of September and October that promoted the importance of the United Nations Sustainable Development Goals. Cash prizes and a book by the keynote speaker were given to all the winners.

THE BASIC RIGHT THAT LIVING IN A DEMOCRACY GIVES ITS CITIZENS IS THE RIGHT TO SPEAK UP AND VOICE THEIR OPINIONS, TO CHANGE A COMMUNITY, A COUNTRY OR THE WORLD THROUGH ONE’S ACTIONS

The convention, which was free to attend, was open to all JCI members as well as the public.

A delegation from JCI Romania was also present for the event as part of the twinning agreement between the two countries. The project was funded by the Small Initiatives Support Scheme (SIS), managed by the Malta Council for the Voluntary Sector (MCVS).

As this event sees JCI 2019 wind down its operations for the year, in readiness for the 2020 board to continue and deliver the JCI vision, Mr Schwaiger reminisced about his role: “It’s never easy having a full-time job while simultaneously being one of the 100 JCI national presidents around the world. We’re all given one year to make a difference so every minute counts. However,

the experience is rewarding. Especially after a year like 2019 in which we excelled in competitions abroad and are training international delegates on our own tiny island.”

Meanwhile, the 2020 Board are eagerly planning the upcoming year with networking events, training sessions, and informative talks as just a part of the schedule. Markus Behmann, Incoming JCI President for 2020, said, “this year’s JCI team did an outstanding job by delivering the National Convention with insightful trainings, workshops, and bringing voluntary organisation stakeholders together. As upcoming president, my role is to build the foundation for next year. I am lucky to have a very capable board of talented professionals who will work together on leading sustainable growth for our organisation and Malta.”

Should you wish to join JCI Malta, you can apply online through www.jci.org.mt and JCI Malta can also be found on social media platforms — Facebook, Twitter, and Instagram.

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MARKETING

Richard is the CEO of Switch — Digital & Brand, a marketing agency that forms part of ICOM, the world's largest network of independent agencies. [richard@switch.com.mt]

STRATEGIC PLANNING = WORKPLACE SUCCESS Richard Muscat Azzopardi explains why business and marketing plans should not work in silos.

Illustration by ouch.pics

ISSUE 57

THE BUSINESS EDITION

Planning. It’s like sex in secondary school.

Everybody pretends that they know what they’re talking about when they discuss it, but nobody has a clue. So, I’m going to be honest, and I’m going to admit that there were times when I approached planning with the authority of a 14-year-old discussing the kama sutra. I kind of knew what the gist was, but I had no experience in it, so I was probably doing it all wrong.

If we’re to stick with the metaphor, when I did understand what it was, I think I was a bit too happy with it - and I did too much of it.

Too much of anything is a bad thing, so I’m going to kill this metaphor here. But what we realised here was that when we spend too much time planning, then we had no time to do anything.

The other problem we found with rigid planning was that it left very little scope for flexibility. Planning can become a crutch that

MARKETING

kills creativity. As long as you’re ticking off all the boxes in the plan, you’re sorted. Job done. Bill sent.

Nowadays, thankfully, our planning has matured a lot. We’ve developed a system where you can plan in a way that allows for you break your plan. As time goes by we’re doing much more of that with our clients. As we’ve been working at a deeper level with brands, it’s become a natural extension to look at a business’ plan after you’ve worked on defining its purpose.

As a business leader who cares about marketing, I’m here to tell you that the business plan and the marketing plan should not exist in silos. You should really be thinking about how you’re going to work on a plan and share it internally. People feel lost without a plan. People feel like they’re not part of something bigger, and if they don’t feel like they’re part of something bigger, then they can’t pull the business in the same direction.

I recently had a conversation with a friend and client who told me that his hardest challenge is motivating his people. This is a company that pays well and offers decent perks, however his employees still clock in and clock out as if there isn’t much more to it than that.

First of all, I told him that that’s fine. It’s a myth that people should be obsessed with their job. Some people just want to work for a living and that’s it. You can lead a happy life by being a great worker, you don’t need to dedicate your life to your job. If you are one of those people. Then I’m happy for you. I’m also very happy for your employer. Secondly, I asked him whether the company’s vision was clear to everyone in the company. It wasn’t.

PLANNING CAN BECOME A CRUTCH THAT KILLS CREATIVITY

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Sport is always a good metaphor. You might not follow football regularly, but I’m sure you know the basics. 11 people playing against another 11. The aim is simple. Score more goals than the other team. If you put someone on your team, but never explained what they’re meant to do, where they’re meant to play and which goalpost they need to score in, do you think they’d be of any use?

We’ve sat across the table from, coincidentally, 11 stakeholders in a major company and asked them where they were heading. They all had a different answer. Which one of those goals were they expecting their 100+ employees to rally behind? The typical company gives access to the plan to only 42% of managers and 27% of employees. And in the situations where it is communicated, it is often unclear what the strategy is.

Can you imagine watching a Champions League final where one of the teams only has three players who know what they’re meant to be doing? No matter how good they are technically, they’re going to be decimated.

Do you want another scary set of statistics?

Some 85% of leadership teams spend less than one hour per month on strategy, and 50% spend no time at all on strategy. Those aren’t numbers I’ve made up - they come straight from the Harvard Business Review.

How can you ever move forward if you’re not spending any time checking that you’re moving in the right direction?

So even if you’re excellent at drawing out plans, you also need to think about how you will be executing them. If you are going to plan for next year, or if you’ve planned already, have you planned for a way in which you can constantly monitor your plan?

Have you decided how you’re going to communicate it to everyone in your organisation?

Oh, and if you’re not the person in charge of the plan, you’re not off the hook. It’s your responsibility to go to your bosses and to ask them for it. Don’t accept being a cog in the machine. And remember. Not every plan is the same. Not every business can work with the same frameworks, so find the right one for yours. There is no one-size fits all plan.

54 · MONEY

ISSUE 57

FA S H I O N

Conrad is an economist by profession but has over a decade of experience in the men’s clothing trade. He now splits his energies in-between his two passions: tech and fashion.

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A BRITISH FEEL Conrad Buttigieg puts together a selection of items that symbolise ‘Britishness’.

Items with a strong ‘Made in England’ element in terms of both aesthetics and quality.

The selection blends the contemporary with the historic. ‘Brexit’ indirectly inspired this theme but it also happens to be that time of the year when the weather gets gloomier and we all love that ‘wintery English style’.

Back in 2015, Conrad started working on Vestis.AI, a digital personal shopper and private stylist app powered through a combination of AI and human creativity which is scheduled to launch in 2020’s second quarter. If you would like to become a test-user visit www.vestis.ai/test and follow the instructions.

THE BUSINESS EDITION

MONEY · 55

FA S H I O N

1 Burberry does gaming B BOUNCE is a digital game created by British logo label Burberry. To play, you just need to ‘steer’ a cartoon deer through a series of challenges. Some commented that the vintage game Doodle inspired B Bounce.

Expect the Burberry usual’s, i.e. trademark check and monogram. If you hit a top score, you get to win custom emoticons, stickers and more.

Free / burberry.com/b-bounce

2 Streetwear-styled barbour The jacket merges Barbour’s world-famous waxed fabric to the streetwear-inspired hoodie style. Ironically, the man behind this capsule collection was BBC adventurer Ben Fogle, hardly the hyper cool skater. Also, unlike the traditional Barbour jackets that require reproofing, this Barbour Ben Fogle jacket was created by using DryWax, a fabric that doesn’t require waxing. €230 / barbour.com

3 Paul Smith suit’n’coat combo A unique piece of suiting that would be typically done at an MTM (made to measure) or bespoke tailor. Many brands and retailers would never dare propose such a suit and coat combination. Yet, Paul Smith’s whimsical but elegant style never fails to surprise, many a time, in a subtle way. Made in Italy from a luxurious Italian wool, this British fashion label has always taken pride in working with the best manufacturing partners. In terms of suit, jacket and coat manufacture, Italy is probably your #1 choice. €1380 (coat), €1125 (blazer), €445 (trousers) / paulsmith.com

5 No ordinary umbrella An umbrella you’d think twice before leaving behind. London’s foremost umbrella shop, James Smith, offers a beautiful range of hand-carved and hand-crafted umbrellas.

The handle made from beech wood, is carved by hand, while the nylon cloth is made using a densely woven nylon which is sourced from Italy. €330 / james-smith.co.uk

6 Alexander Mcqueen jewellery Piercing without the piercing. Alexander McQueen - through its original founder managed to redefine British fashion. It’s a pity for global culture at large that such talent died at such a young age. Many brands and labels have interpreted and re-interpreted the ‘skull’ theme but nobody embodied this symbol the way McQueen did when he designed and lead the collections himself.

This item of jewellery does not require any piercing, has antique and silver details but is made from brass. €750 / alexandermcqueen.com

4 Good old diary Not sure if this makes a good suggestion or rather, a nice item to own, especially for the hand ‘leathery feel’ that comes with quality accessories. The stripes on the lightweight cross grain leather also give this diary a very ‘on-trend feel’, even though most likely this classic design was recycled from the brand’s massive design archives (established back in 1887). €85 / smythson.com

7 Solovair boots Northampton is home to the Barker’s, Cheaney’s, Church’s, Crokett’s, Lobb’s and all the other classic British shoemakers.

The resemblance to the iconic Dr Martens attracted my attention. Maybe we can consider this brand a premium version of the latter since now Dr Martens are made in China, whilst Solovair’s website specifically states that the products ‘will always be handmade from start to finishing in the UK’. So, go forth, check out their selection (including half sizes) and start polishing. €260 / nps-solovair.com

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56 · MONEY

L AST WORD

The Bluesman is a Maltese sound engineer working in New York.

The Bluesman delves into overplayed songs on radio stations and the noise we are feeding our children which won’t serve them any good in future.

Is music being overplayed? Never thought I’d ask that question. I’ll attempt an explanation.

I do not mean on a personal level of course.

Whether as a performer or listener I feel the enjoyment is boundless. As the Bard wrote in Twelfth Night; ‘If music be the food of love, play on; give me excess of it’. So, it’s the radio stations' playlists spinning [or streaming] the same tunes day after day I have a problem with. Even more annoying when they do an ‘A to Z’ run, usually around year’s end, when they play everything they can lay their hands on in their libraries. Why not rotate more frequently? So, yes some tracks get more than their fair share of play.

The commercial stations have their reasons and it is all to do with advertising revenue and getting as many ears to listen, since, the larger the listenership, the greater the attractiveness to advertisers. Listeners expect to hear music in the genre that the station offers but it still doesn’t explain why so many tracks are not played in favour of the ‘Hotel Californias’ or the ‘Stairways’.

Then there are the rockumentaries. The visual tabloids of the music scene filled with hearsay gossip shared by former hangerson and wannabes implying they’re in the know because of some close connection

ISSUE 57

THE BUSINESS EDITION

L AST WORD

with the documentary subject/s in question commenting with smug satisfaction but providing only seedy tidbits of dubious veracity and nothing about the music. Even the recent movies, like Bohemian Rhapsody, the glossy pictorials, if you like, are not necessarily fully true to the facts - a movie director’s view of the historical facts.

A month ago, Rolling Stone reported that sales of vinyl are on the verge of outstripping CD sales for the first time in decades. Vinyl has indeed been increasingly popular but CD sales have only been slightly down so it’s not a question of gain versus loss. A lot of audiophiles enjoy the sound of an LP on good equipment. No doubt the ritual of prepping for the listening session [lowering the stylus onto the grooves, adjusting the listening position] may have something to do with it, while popping a CD onto the drawer and

MONEY · 57

Needless to say, equipment of this quality runs into thousands. From the AC power condition and cord through the electronics, speaker cable and speakers everything is selected after being compared for performance and fidelity. Hmm, I wonder if the clear mountain air in Colorado had a small part to play as well? Incidentally our ears are merely the external appendages that catch the varying air pressure that is generated by a sound source and guide it down to where, via the ear drum, the pressure waves excite hairlike nerve endings that our brains perceive as sound. All this and they help us keep our balance.

We do ask a lot of these organs. Beyond being tuned to listening for the rustle of leaves and the potential danger of some animal stalking us and being most sensitive in the frequencies the human voice occupies, we

THE COMMERCIAL STATIONS HAVE THEIR REASONS AND IT’S ALL TO DO WITH ADVERTISING REVENUE AND GETTING AS MANY EARS TO LISTEN

hitting a button might seem a little irreverent and unworthy of audiophilia. On a personal level, I still have vinyl records as well as CDs. The two mediums sound different and the vinyl certainly more prone to surface noise and physical damage although a poorly manufactured CD might tend to skip. But I happily enjoy a few hours of Grateful Dead, sitting back and inhaling the creativity as needed.

I read a review of the Rocky Mountain Audio Fest held in Denver, Colorado, between September 6 and 8, where one of the cofounders of PS Audio who manufacture highend digital pre and power amps, described listening to a friend demonstrating gear; ‘Mikey pulled from his arsenal a prized copy of Joni Mitchel’s Court and Spark … glorious music.

All were transfixed with the vinyl he played.

Stairway to Heaven … Holy Moly! I had no idea of what the recording really sounded like’.

assault them with noise that can damage them in the long term. The brain does wonders with discerning the useful parts of the cacophony. It can auto correct jumbled numbers and misspelt words and tends to adapt to an out of tune instrument, to the relief of many, I’m sure, although hearing fatigue will set in when our ears get tired of the battle and the brain will stop fighting. Don’t blame yourself when you drop off while listening to speech that is unintelligible.

So, let the music play on [play on] and let the little children come to the music which will serve their brains well in old age. Let’s not rip their childhood away by plonking them on the first step of a ladder that only gets harder and more stressful to ascend. Let them learn in the garden first. It may not be under the tutelage of the lyre playing Chiron but let’s let their minds grow through play.

58 · MONEY

NEWS

ISSUE 57

Creating dreams one bedroom at a time Choosing a mattress used to be a simple task, you would walk into a mattress shop and choose from a choice of fully, semi or just plain orthopaedic mattresses. Most of the time you wouldn’t even lay on the mattress you were going to spend the next 10 years on, or more.

Calamatta Cuschieri Group appoints Head of Capital Markets

Ending up with the wrong mattress can easily lead to a lot of headaches and stress not to mention back pain. When choosing the quality of your 'sleep sanctuary' (as we call it) you are in fact choosing the mood which will affect your entire day, each day and ultimately your entire life. It’s incredible when you think about it, that such a small piece of furniture can have such a big impact on your life.

Calamatta Cuschieri is proud to announce the appointment of Patrick Mangion as Head of Capital Markets. Mr Mangion who is a veteran in the Capital Markets field, joins a team of high calibre individuals who form part of the management team of the CC Group.

Mattress Collection provide superior memory foam and latex mattresses, beautiful hand-made storage beds and remoteadjustable beds made in Milan, pillows and accessories. All tested and designed by experts in their field and all medically certified to guarantee high standards.

Mr Mangion brings with him over 15 years’ experience in the financial services sector. Prior to joining Calamatta Cuschieri, he occupied the role of Principal with Deloitte Malta. He initially formed part of the core team which created a Deloitte Malta asset management service offering and represented Malta at several local and international asset management fora. Throughout his career he had working stints at Deloitte offices in Budapest, London and Zurich. More recently Patrick became an integral part of Deloitte's financial advisory capital markets team.

Mr Mangion joins Calamatta Cuschieri in a period of growth within the Capital Markets team. This year the company advised on over 20 capital market transactions, spanning the breadth of Malta's diverse economic sectors. Nick Calamatta, Co-CEO of Calamatta Cuschieri said: “We are proud to welcome Patrick to our team, as a leader in capital markets we felt it was the right time and believe that his addition will help the company to strengthen its service offering and capture the expected growth in Malta's capital markets sector, as an increasing number of business owners and entrepreneurs become aware of the opportunities to finance their operations through the issue of equity and bond as an alternative from traditional bank financing.”

The quality is backed by an unlimited 10-year guarantee and peace of mind is secured with their unique 30-day sleep trial. Basically, if you don’t like it, they’ll change it or give you a full refund.

Visit one of their showrooms in Żebbuġ or San Ġwann to view the beds in action and take advantage of some great offers. You will be surprised to learn that the bed of your dreams is a lot more affordable than you imagined. For enquiries call 2146 1961 or visit mattresscollection.com.mt.

brings cool back to the kitchen with engaging content, delicious recipes and a lifestyle flair.

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