business agenda issue 20

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Tourism Minister Edward Zam- mit Lewis has revealed that Malta’s tourism results during the first seven months of the year show that “almost one mil- lion tourists visited the Maltese islands, meaning a nearly 9 per cent increase over the figures registered in the same period last year. The non-EU mar- ket grew by 15 per cent during the same period under review.” Moreover, during this period, “Malta’s 8.6 per cent growth compares very well with Spain’s 7 per cent, Cyprus’s 5.9 per cent, Turkey’s 6.8 per cent, Morocco’s 8 per cent and Croatia’s 8.1 per cent growth rates. Neighbour- ing Italy reports a more sluggish 2 per cent growth to date. Only Greece (17 per cent) and Portu- gal (13.7 per cent) are register- ing a performance which super- sedes Malta’s up to the first half of the year.” Ahead of the Malta Hotels and Restaurants Association’s (MHRA) upcoming forum on Mediterranean Tourism this November, Business Agenda delves into the current state of the region’s tourism indus- try in light of political unrest in neighbouring countries. MHRA CEO Andrew Agius Muscat and Malta Tourism Authority CEO Paul Bugeja shed light on the industry’s current state, and how unstable times have contrib- uted towards fluctuations in its growth. BUSINESS AGENDA THE OFFICIAL BUSINESS PUBLICATION OF THE MALTA BUSINESS BUREAU THIS ISSUE NEWSPAPER POST TOURISM Are we doing enough to promote local cuisine as a tourism-friendly product? page 17 INTERVIEW President of BUSINESSEUROPE Emma Marcegaglia discusses Europe’s competitiveness and what can be done to revitalise fledgling economic growth in Europe. page 13 ENERGY Now that the Energy Efficiency Directive has been transposed into Maltese law, three experts assess the implications for Maltese businesses and how best to tackle them. page 25 INTERVIEW Malta Film Commissioner Engelbert Grech discusses the local film industry’s vast potential, its recent successes and where he plans to steer its future. page 20 EUROPEAN AFFAIRS A business perspective on the Juncker Commission. page 33 ISSUE 20 | AUTUMN 2014 TOURISM UP BY 9 PER CENT MINISTER EDWARD ZAMMIT LEWIS The amount of plastic waste brought to all of WasteServ’s facilities collectively in 2013 weighs in excess of 1,700 tonnes. WasteServ CEO Tonio Montebello says that “around half this amount is attributed to PET (mainly plastic beverage bottles) while other fractions include the stronger HDPE (such as deter- gent bottles and plastic crates), bulky items including car bum- pers and outdoor furniture, plas- tic film and even plastic extracted from bulky waste such as wash- ing machines. These materials are sold and exported by the pri- vate sector to recycling facilities overseas.” Mr Montebello upholds Waste- Serv’s vision to improve the effi- ciency and effectiveness of its operational facilities. As the entity responsible for waste management in the Maltese islands, WasteServ’s priorities, according to the CEO, include “reaching national and EU tar- gets using existing or new infra- structure, and where possible moving away from being the operator of last resort. We want to take on a more coordinative and monitoring role, while con- tinuing to pursue educational ini- tiatives.” MALTA GENERATES A STAGGERING 1,700 TONNES OF PLASTIC WASTE EVERY YEAR See full story on page 5. See full story on page 9.

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Page 1: BUSINESS AGENDA Issue 20

Tourism Minister Edward Zam-mit Lewis has revealed that Malta’s tourism results during the first seven months of the year show that “almost one mil-lion tourists visited the Maltese islands, meaning a nearly 9 per cent increase over the figures registered in the same period last year. The non-EU mar-ket grew by 15 per cent during the same period under review.” Moreover, during this period, “Malta’s 8.6 per cent growth compares very well with Spain’s 7 per cent, Cyprus’s 5.9 per cent, Turkey’s 6.8 per cent, Morocco’s 8 per cent and Croatia’s 8.1 per cent growth rates. Neighbour-ing Italy reports a more sluggish 2 per cent growth to date. Only Greece (17 per cent) and Portu-gal (13.7 per cent) are register-

ing a performance which super-sedes Malta’s up to the first half of the year.”

Ahead of the Malta Hotels and Restaurants Association’s (MHRA) upcoming forum on Mediterranean Tourism this

November, Business Agenda delves into the current state of the region’s tourism indus-try in light of political unrest in neighbouring countries. MHRA CEO Andrew Agius Muscat and Malta Tourism Authority CEO Paul Bugeja shed light on the

industry’s current state, and how unstable times have contrib-uted towards fluctuations in its growth.

businessagendaTHe Official business publicaTiOn Of THe MalTa business bureau

THIS ISSUE neWspaper pOsT

TOURISM Are we doing enough to promote

local cuisine as a tourism-friendly product?

page 17

INTERVIEWPresident of BUSINESSEUROPE Emma Marcegaglia discusses Europe’s competitiveness and what can be done to revitalise fledgling economic growth in Europe.

page 13

ENERGYNow that the Energy Efficiency Directive has been transposed into Maltese law, three experts assess the implications for Maltese businesses and how best to tackle them.

page 25

INTERVIEWMalta Film Commissioner Engelbert Grech discusses the local film industry’s vast potential, its recent successes and where he plans to steer its future.

page 20

EUROPEAN AFFAIRSA business perspective on the Juncker Commission.

page 33

ISSUE 20 | AUTUMN 2014

TOurisM up by 9 per cenT – MinisTer edWard ZaMMiT leWis

The amount of plastic waste brought to all of WasteServ’s facilities collectively in 2013 weighs in excess of 1,700 tonnes. WasteServ CEO Tonio Montebello says that “around half this amount is attributed to PET (mainly plastic beverage bottles) while other fractions include the stronger HDPE (such as deter-

gent bottles and plastic crates), bulky items including car bum-pers and outdoor furniture, plas-tic film and even plastic extracted from bulky waste such as wash-ing machines. These materials are sold and exported by the pri-vate sector to recycling facilities overseas.”

Mr Montebello upholds Waste-Serv’s vision to improve the effi-ciency and effectiveness of its operational facilities. As the entity responsible for waste management in the Maltese islands, WasteServ’s priorities, according to the CEO, include “reaching national and EU tar-gets using existing or new infra-

structure, and where possible moving away from being the operator of last resort. We want to take on a more coordinative and monitoring role, while con-tinuing to pursue educational ini-tiatives.”

MalTa generaTes a sTaggering 1,700 TOnnes Of plasTic WasTe every year

See full story on page 5.

See full story on page 9.

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Publisher

Content House Group

Mallia Buildings

3, Level 2, Triq in-Negozju

Mriehel QRM3000

Tel: 00356 2132 0713

Email: [email protected]

www.contenthouse.com.mt

Malta Business Bureau

Cornerline, Level 1,

Dun Karm Street, Birkirkara, BKR 9039

Tel: 00356 2125 1719 (Malta Office)

Tel: 0032 4859 81124 (Brussels Office)

Email: [email protected]

[email protected]

www.mbb.org.mt

Editor: Joe Tanti Deputy Editor: Martina Said Design: Nicholas Cutajar

Editorial Team: Omar Cutajar, Daniel Debono, Mark Seychell, Sarah Micallef and Jo Caruana

Publication Sales Manager: Matthew Spiteri Advertising Sales Executive: Jake Davey

Advertising Sales Coordinator: Lindsey Ciantar

Business Agenda is the quarterly publication of the Malta Business Bureau. It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

COLLABORATING PARTNERS:

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

ediTOrial

The last few months of Euro-pean politics were particularly contrasting – with active cam-paigning on an institutional level and a slower pace on an opera-tional level. This was no excep-tion, and as normally happens towards the end of a legislature, the majority of policy and legisla-tive initiatives are either delayed or shelved.

The main reason behind this is to avoid binding commitments on sensitive issues by the College of Commissioners on its sub-sequent one, particularly when this time round it was already established that a new President would lead the European Com-mission. This is also in view of the fact that the choice of Presi-dent would have gone to the can-didate representing the party that wins the majority of votes in the European Parliament elec-tions, which could have either gone to the centre right Euro-pean People’s Party or the centre left Social and Democrats Party – both having diverse opinions on different issues.

So in a few weeks’ time, after the process whereby the Euro-

pean Parliament ‘grills’ and approves a new College of Com-missioners, one expects the European operational engines to switch on and start implement-ing President Juncker’s political programme, which was agreed with the majority of the political groups. (A detailed analysis of this programme can be found in this edition on pg 33.)

From a Maltese business point of view, the message to the new European Commission is clear. Steer Europe towards growth and allow the private sector to help you achieve it. This statement may sound too self-assuring, but the reality is that the Com-mission has two paths ahead; it can kill the private sector’s initia-tives with regulatory burden and remove its appetite to invest, or it can regulate in a functional man-ner to allow fair competition but at the same time create a busi-ness ecosystem that will eventu-ally deliver.

We naturally augur that on a macro political level, the Euro-pean Commission opts for the second option. But this leads to another important message.

On a micro-level, the Commis-sion needs to continuously be reminded that more than 99 per cent of businesses in the EU are made of small and medium enterprises (SMEs). SMEs are classified as such when among other criteria, they employ less than 250 people. Particular attention needs to be given to such enterprises as in fact their reality is very different to the larger multinational companies. For this reason ‘one size fits all’ regulation should neither be the exception nor the norm.

The Small Business Act issued in 2009 had already instilled the ‘Think Small First’ principle in order to draft tailor-made regu-lation for the needs of SMEs. This was substantiated with the introduction of ‘The SME Test’ that included an impact assess-ment to evaluate the expected impact on SMEs.

For the new legislature, there is already a planned revision of the Small Business Act. This should be a priority for the Commis-sion, with a need for a thorough assessment on whether the principles outlined above were

observed or otherwise. Needless to say that this has not always been the case.

However, the European Com-mission only proposes draft leg-islation. Ultimately the European Parliament and Council are the legislators that edit and approve the legislative process. There-fore, they also need to equally abide by the same principles; and change whenever a Commission proposal seems to increase the regulatory burden on SMEs, but also avoid falling in the pitfall of introducing costs to SMEs that were not existing in the original proposals.

A case in point was the Data Protection Regulation proposed by the European Commission in 2012, which proposed the intro-duction of a mandatory data protection officer for the public sector and for large enterprises, exempting SMEs. However, ear-lier this year, the LIBE Commit-tee within the European Parlia-ment voted not to base this on whether a company is considered to be large, but on the number of data subjects processed each year, which is indeed very low,

and thus bringing SMEs back into the equation. This could mean that businesses would have to employ or designate an officer to deal with data protection which will result in unnecessary costs on enterprises which can affect their competitiveness and which funds should be rather invested in core activities.

Looking forward, we augur for a productive new legislature with an open dialogue between EU politicians, officials and busi-ness stakeholders in order to work together towards the same direction – that of achieving growth and establishing Europe as the global base to conduct business.

By Joe Tanti, Chief Executive Officer, MBB

siZe MaTTers fOr sMall business

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envirOnMenT

WasteServ CEO since March of this year, Tonio Montebello upholds WasteServ’s vision to improve the efficiency and effec-tiveness of its operational facili-ties. As the entity responsible for waste management in the Maltese islands, WasteServ’s priorities, according to the CEO,

include “reaching national and EU targets using existing or new infrastructure, and where pos-sible moving away from being the operator of last resort. We want to take on a more coordi-native and monitoring role, while continuing to pursue educational initiatives.”

Having recently concluded a study on the amount of plastic waste collected for recycling last year, Mr Montebello credits the lottery campaign ‘Igbor u Irbah’. This campaign contributed to increasing the plastic waste col-lected within Civic Amenity Sites (mainly in the form of plastic bev-erage bottles) by almost 12 per cent in 2013 over 2012. Indeed, he affirms, through this popular campaign alone, which rewards members of the public who recy-cle their plastic bottles, “over one million plastic beverage bot-

tle have been collected for recy-cling in a two-year period.”

The amount of plastic waste brought to all of WasteServ’s facilities collectively in 2013 was of course more than that, and weighs in excess of 1,700 tonnes. According to Mr Monte-bello, “around half this amount is attributed to PET (mainly plas-tic beverage bottles) while other fractions include the stronger HDPE (such as detergent bot-tles and plastic crates), bulky items including car bumpers and outdoor furniture, plastic film and even plastic extracted from bulky waste such as wash-ing machines. These materials are sold and exported by the pri-vate sector to recycling facilities overseas.” This is significant as it represents in a tangible way that waste is truly being perceived and managed as a resource locally, reaping not only environ-

mental benefits but also serv-ing an economic purpose, he affirms.

Speaking of how Malta is faring in general in relation to recy-cling, Mr Montebello compares the amount of recyclable mate-rials treated at the Sant'Antnin plant last year with that in 2002, the year in which WasteServ was set up, to demonstrate how far we’ve come. “Going back to 2002, only 560 tonnes of sepa-rated materials were treated; in 2013, source-segregated recyclable materials totalled 19,735 tonnes. This is definitely a reflection of the infrastructural improvements that have been

made over the years, apart from heightened awareness brought about through educational cam-paigns.”

Having said this, Mr Montebello reveals that the main challenge remains cooperation by the public, which despite greater awareness is still lacking espe-cially among older generations. “Unfortunately we still receive an array of hazardous items mixed with recyclable waste such as dead animals, animal skins and used syringes to mention a few examples. This is a cause for concern in light of the fact that recyclable materials are primar-ily hand-sorted at the Sant’Antnin plant,” he warns.

saraH Micallef speaks to Wasteserv ceO TOniO MOnTebellO about Malta’s progress in relation to waste management over the last decade, and what more needs to be done to reach eu targets by 2020.

Tonio Montebello

“going back to 2002, only 560 tonnes of separated materials were treated; in 2013, source-segregated recyclable materials totalled 19,735 tonnes.”

“Over one million plastic bottles collected for recycling in two years”

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envirOnMenTMoving on to recycling practices within the business community, he indicates that privately run waste collection schemes are serving the business commu-nity well and that the number of enterprises participating in sustainable waste management practices is growing. Despite these advancements however, Mr Montebello remarks, “many businesses are still not on board and are choosing to dispose of their waste in the same man-ner as households. This places a burden on local councils that are

not meant to be catering for the collection of commercial waste.”

As for opportunities for local businesses to expand into the waste management indus-try, while local businesses are already present in some sec-tors, Mr Montebello believes that there is scope for further market penetration in certain areas. He affirms that WasteServ hopes to collaborate with the private sec-tor more closely in this regard.

Asked about how Malta is doing with regard to EU legislation in

relation to waste management, the WasteServ CEO asserts that the permanent closure of uncon-trolled landfills was an important step that had to be taken in order to be in line with EU legislation, yet points out what he considers to be a prevalent misguided per-ception among the Maltese pub-lic that the Maghtab landfill is still in use. To this end, he avows, “this is definitely not the case.The dumpsite that was in use up to 2004 was closed upon Mata’s accession to the EU. Of course a replacement had to be sought for the deposit of mixed waste, so

engineered landfills – in essence quarries with multiple layers of protective lining – were intro-duced within the confines of the Maghtab Environmental Com-plex, and this is where black bags are now being deposited, in accordance with EU legislation.”

When it comes to EU targets, Mr Montebello explains that there has been progress but further improvement is still required. “By 2020 we need to reach a recycling target of 50 per cent when it comes to paper, plastic, metal and glass waste generated by households. In 2011 we were still at 23 per cent.” (Source: MEPA data as quoted in the Issues Paper, MSDEC 2013).

Other targets he highlights refer to the collection rates of bat-teries and WEEE (Waste Elec-trical & Electronic Equipment), recovery and recycling rates of packaging waste, and the rate of biodegradable municipal waste sent to landfills among others; of which he states, “these areas too require further effort not only from Government and Waste-Serv, but from all stakeholders including the private sector and the general public.”

All in all, Mr Montebello believes that Malta has come a long way considering that proper waste management systems have only been around for about a decade, stating, “compared to other countries, the sector is still in its infancy.”

Indeed, he maintains, although further cooperation by the Mal-tese public is still required, the public is engaging more and more in waste separation. Apart from this, “there is also growing awareness that preventing waste in the first place is an even better option than recycling. Testament to this fact is the growing num-ber of voluntary groups that are sprouting on social media and in the local community promoting upcycled art and the donation or sale of unwanted items for reuse by others. This all contributes to prolonging the lifespan of objects before they become waste,” Mr Montebello states.

Finally, the WasteServ CEO adds he is confident that the national communications campaign to be launched by Government in the near future will help boost the public’s awareness on criti-cal waste management concerns and that WasteServ is fully sup-porting this campaign.

“by 2020 we need to reach a recycling target of 50 per cent when it comes to paper, plastic, metal and glass waste generated by households. in 2011 we were still at 23 per cent.”

“Many businesses are still not on board and are choosing to dispose of their waste in the same manner as households. This places a burden on local councils that are not meant to be catering for the collection of commercial waste.”

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cOver sTOry

The Mediterranean region is dis-tinctive and charming – and the collection of countries that make it up are similar, but altogether different. Malta has held its own as a competitive Mediterranean tourist destination for many years, also performing better than the region’s average in some years, such as this one so far.

Tourism Minister Edward Zam-mit Lewis says positive results for tourism in the Mediterranean region have been reported in a number of destinations, “and it is satisfying to note that Malta’s results during the first seven months of the year are on the high side of the average performance. In fact, during the first seven months of this year, almost one million tourists visited the Mal-tese islands, meaning a nearly 9 per cent increase over the figures registered in the same period last year. The non-EU market grew by 15 per cent during the same period under review.”

Minister Zammit Lewis says that the growth in inbound tourism between January and July 2014 also brought an increase of 5 per cent in nights spent by inbound tourists, reaching seven million nights and an increase of more than 7 per cent in tourism expen-diture. “We will end 2014 with annual tourist arrivals almost four times our population. More-over, during this period, Malta’s 8.6 per cent growth compares very well with Spain’s 7 per cent, Cyprus’s 5.9 per cent, Turkey’s 6.8 per cent, Morocco’s 8 per cent

and Croatia’s 8.1 per cent growth rates. Neighbouring Italy reports a more sluggish 2 per cent growth to date. Only Greece (17 per cent) and Portugal (13.7 per cent) are registering a performance which supersedes Malta’s up to the first half of the year.”

Conflicts in regions neighbouring the Mediterranean, which began raising alarms in 2011 through the so-called Arab Spring and continue to unfold in such coun-tries as Syria, Egypt and Libya, have been said to deter tourists from visiting counties nearby. On the other hand, others consider such conflicts to have been a driv-ing force for increased tourism in neighbouring ‘safe’ countries.

“Conflicts often lead to shifts of tourism flows from one coun-try to another, but the nature of shifts depends on the type of tour-ism which prevails in the affected destinations,” says Minister Zam-mit Lewis. “Therefore, a decline in basic beach tourism in a North African destination is more likely to shift to an alternative big beach destination such as Turkey or Spain, while a decline in niche activities such as scuba diving in the Red Sea or religious tourism in the Holy Land is more likely to impact Malta positively. However, shifts in destinations’ fortunes are not solely limited to crises but may also be due to natural eco-nomic fluctuations and cycles.”

CEO of the Malta Hotels and Res-taurants Association, Andrew Agius Muscat, says that the impact

on the Mediterranean of conflicts in countries such as Libya, Egypt and the Middle East has some-times been that of a diversion of tourists to neighbouring countries that are more stable. “However, the latest conflict between various countries and the Islamic Sate, better known as ISIS, in Syria and their network across various countries, in particular the Medi-terranean countries, will lead to new challenges.”

Mr Agius Muscat adds, “up to now, the number of tourists opting for alternative destinations due to insecurity in North Africa has contributed to growth in Malta’s recent tourism figures, however it cannot be considered as the sole reason for success. Indeed, new airline route connections can be identified as the key for such a surge in numbers.”

Asked how he believes tourism in the Mediterranean region is cur-rently faring, Mr Agius Muscat says it is first necessary to under-stand where the region stands in the tourism industry at large in order to appreciate its cur-rent status. “Today tourists travel more to ‘experience’ rather than to ‘see’ a specific destination. Countries in the Mediterranean have a story to tell and are very colourful in nature. The Mediter-ranean bridges three continents, and is one of the most diverse regions in the world, despite the relative proximity of the countries characterising it. While compari-sons between, for instance, Spain and Egypt or Turkey and France,

ahead of the MHra’s upcoming forum on Mediterranean Tourism this november, MarTina said discusses the current state of the region’s tourism industry in light of political unrest in neighbouring countries, and finds out whether countries in the Med can work better together for the benefit of the region at large.

TOurisM in THe MediTerranean regiOn

BUSINESS AGENDA SPEAKS TO TWO OF THE KEYNOTE INTER-NATIONAL SPEAKERS WHO WILL ADDRESS THE MHRA FORUM, ON THE STATE OF THE TOURISM INDUSTRY IN THE MEDITER-RANEAN REGION

Hala El Khatib, Secretary General, Egyptian Hotel Association:“It is stating the obvious when we say that the tourism industry is a very sensitive domain that could be affected by any crisis, be it a political, health or natural crisis. The so called Arab Spring has left a great negative impact on tourism traffic in affected coun-tries, namely Libya, Egypt, Syria and Israel. It has, however, to be understood that these countries are referred to as Middle East-ern rather than Mediterranean countries. In the past, when there was no problem in Egypt, for example, the Gulf war had tremen-dously sliced the number of tourist arrivals to Egypt, but the tour-ist is not entirely aware of the geography of the affected country – in countries like Egypt, with incidents limited to no more than an area of 10km, the entire country and all its destinations are negatively impacted. Therefore, the Mediterranean region should not be affected or, at least, should not be as badly affected as countries in the Middle East. The Mediterranean will continue to offer an extended sun and sea product compared to other regions in the world.

On the issue of seasonality, in accordance with UNWTO figures, the greatest demand is directed towards leisure tourism. How-ever, I believe that there are ample attractions in all the Medi-terranean countries. Taking Malta as an example, with the right marketing efforts and tactics, its historical heritage could eas-ily qualify for a decent cultural tourism product. Another product could be shopping tourism, if countries realise that relaxing their taxes and other regulating laws of trade can take them to new tourism horizons. The same applies to countries overlooking the Mediterranean.”

Iva Bahunek, CEO, Croatian National Association of Hoteliers:“Ensuring balanced development to counter seasonality is both a challenge and an opportunity for Mediterranean countries if they want to stay competitive in the long-run as part of the global race for success in tourism. As the Portuguese government stated in its national paper on tourism, 'they should seek not more but better tourism, with emphasis on value rather than volume.'

Mediterranean countries will always have a certain ‘stigma’ of being a summer destination. However, it is imperative to start using added energy to create new values and touristic products for different target groups of tourists such as senior citizens, who would visit in the winter months, as well as through the develop-ment of health and spa tourism, cultural tourism, etc.

Croatia has a long tradition of northern European arrivals and the main reasons are incredible and fascinating coastlines and landscapes and excellent air travel connections from Scandi-navia. In 2012, Croatia was awarded the ‘Most Interesting For-eign Destination’ at Finland’s Travel Awards. All Mediterranean countries offer similar attractions – hospitality at its best which is everything a Scandinavian guest requires. In terms of expanding their vacation to the whole region, each destination should offer a different magical experience and brand it as unique, thereby attracting northern Europeans in 'destination-hopping'.”

Hala El Khatib (second from left) and Iva Bahunek (fourth from left), key-note speakers in last year’s panel discussion.

Photo by Clive Vella - www.viewingmalta.com

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will highlight distinct aspects in each country, there are also com-mon elements that characterise them as truly Mediterranean.”

“With this in mind, tourism in the Mediterranean has to-date fared well. Naturally we are all in competition and some are doing better than others, also due to circumstances that arise from time to time, such as the eco-nomic crises that hit the southern European states, political crises caused by the Arab Spring and the ongoing conflict in the Middle East. Despite the ups and downs,

it is however certain that the Med-iterranean (particularly the tour-ism industry) has a huge poten-tial, which should be nurtured to grow.”

Malta Tourism Authority CEO Paul Bugeja is in agreement, adding that an overall positive year for a number of countries in the Med marks a stark difference from what prevailed in recent years, “where we were faced with a situ-ation of a number of destinations growing to the detriment of oth-ers.”

He says “crises are recognised as having an impact on tourism flows but it is also an acknowledged fact that tourists are becoming increasingly resilient to such cri-ses. Reactions to political tur-moil are generally very localised and short-lived in nature, so in the case of a vast geographical area such as the Mediterranean, one cannot really talk about a region-wide crisis but localised hot-spots which have relatively localised impacts on tourism. In total, inflows have not changed, whilst in Malta we are concentrat-ing on attracting long-term tour-

ism flows rather than respond to other destinations’ troubles from year to year.”

Mr Bugeja says that the Medi-terranean is a large and diverse region with a very sophisticated tourism offer which has evolved broadly from the basic and tradi-tional sun and beach holiday of a few decades back, but still suffers from a situation of overcapacity of supply; forcing prices to drop in order to attract business. “This leads to a highly competitive mar-ket, which means that most Medi-terranean destinations compete

very aggressively against each other rather than try to reap the benefits of cooperative competi-tion. Taking all aspects into con-sideration, more work needs to be done in this area to ensure that the Mediterranean is marketed as a destination together with each participating country.”

Mr Agius Muscat argues that competition among Mediterra-nean countries will remain, how-ever this will not preclude them from seeking avenues for poten-tial synergies in aspects where it matters most. “For instance Mediterranean countries can work together on promoting the identity of the Mediterranean as a whole to appeal to new travel-lers who are growing in numbers from the BRICS countries. Also dialogue between all Mediterra-nean partners should be encour-aged to explore ways of facilitating the fragmented practice of issuing visas, while retaining all security safeguards as it is expected.”

Minister Zammit Lewis consoli-dates the discussion, saying that the Mediterranean’s tourism potential is still far from satu-rated, which implies that tourism in the region will continue to grow in the years to come, and that the share of tourists from more dis-tant regions will increase further-more.

“We are focused on creating and developing a strong brand that will put our destination on the radar of non-EU countries, in particu-lar those with high-performing economies. We are determined to tackle visa issues and direct air connectivity, and the Malta Tour-ism Authority is actively engaged throughout the development of Government's initiatives by pro-viding the expertise to penetrate new source markets,” the Minis-ter concludes. “No stone is being left unturned in our strategy – this is the vision we strongly believe in, which will be taking our most important industry to the next level for the benefit of our coun-try's economy.”

The MhRA’s MediTeRRAneAn TouRisM FoRuM - noveMbeR 21sT AT hilTon, MAlTA The MhRA launched the Mediterranean Tourism Forum initiative last year with the aim of bringing together stakeholders from the tourism sector in the Mediterranean region to discuss avenues for synergies. This year the theme of the Forum will be ‘The Great story’ and will take place on 21st november at hilton, Malta under the patronage of the President of Malta h.e. Marie-louise Coleiro Preca. Top personalities from over 15 different countries will participate in various panel discussions. For more information contact the MhRA secretariat on [email protected]

cOver sTOry

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inTervieW

saraH Micallef speaks to president of businesseurOpe emma Marcegaglia about europe’s competitiveness and what can be done to revitalise its fledgling economic growth.

On behalf of European compa-nies, BUSINESSEUROPE Presi-dent Emma Marcegaglia – herself co-chief executive of Marcegaglia group, a leading industrial group within the steel processing sec-tor – stresses the need for the European Council and Parlia-ment to cooperate positively and refocus the European agenda on improving competitiveness and giving more jobs to European citi-zens. “In a global economy, Euro-pean countries must join forces. By 2050, none of the European member states are projected to be among the world’s largest economies. We only have a choice between succeeding together and becoming insignificant sepa-rately,” she says.

Addressing the strong represen-tation of eurosceptics within the new European Parliament, Ms Marcegaglia considers the clear majority of pro-European forces

achieved in the EP elections as a mandate and strong obligation to work together constructively for a more competitive Europe to cre-ate more growth and more jobs. “This is our common interest and is the best way to address the concerns of those Europeans who feel disenchanted by the Euro-pean Union. It is also important to give credit to the majority of Europeans who expressed their support for a better Europe, an improved EU,” she maintains.

In the context of EU institu-tional changes currently taking place, particularly as a result of the recent EP elections and the forthcoming formation of a new European Commission under the stewardship of President-elect Jean-Claude Juncker, Ms Marcegaglia believes that the new European Parliament and Commission should keep Europe’s competitiveness at the

top of their agenda. “The Juncker Commission should regard high energy costs as a major threat to the competitiveness of European industry,” she asserts.

“In his political guidelines for a new start for Europe, President Juncker underlined that ‘it is mainly companies, not govern-ments or EU institutions that cre-ate jobs’. He is right. Companies are keen to invest in Europe but to do so they need a business envi-ronment where they can thrive. Juncker needs to create real change in the way the Commis-sion works. Otherwise, the revival

of the economy remains just a pipe dream,” she warns.

Asked about her take on the per-vasive gloomy mood in relation to the current economic climate

within the euro-zone area, Ms Marcegaglia emphasises the fact that rising geopolitical tensions across the globe are impact-ing both business confidence and growth prospects, not only in the EU, but across the globe. Admitting that data released in the summer showing that the EU economy grew by only 0.2 per cent in the second quarter, with no growth in the euro area, was disappointing, she contends that

“the 1.6 per cent growth forecast for the EU in 2014 we made in the spring now looks a little optimis-tic.”

Despite the current situation how-ever, Ms Marcegaglia remains of the belief that the EU is experi-encing a slow but steady recovery. She expands on this, maintaining, “there were a number of techni-cal reasons why the second quar-ter growth figure was lower than expected, and it was also good to see that countries that have made reforms in recent years, nota-bly Portugal and Spain, are now growing. Nevertheless, the fall in output in Italy and the absence of growth in France remind us of the urgent need for a number of member states to make rapid progress in structural reforms in order to raise long-term growth prospects.”

With economic analysts com-menting that the US is now com-ing out of the recession, while the EU is still trying to stand on its feet, Ms Marcegaglia dispels the notion that the European econ-omy is at risk of stagnation, stat-ing, “I am an optimist and don’t even like to hear the word stag-nation. The euro-pessimists are wrong. The European economy is slowly improving but we can’t relax our efforts as we have not yet regained the ground lost since 2008.”

According to Ms Marcegaglia, due to various factors, particularly high operating costs, high energy prices and excessive administra-tive burdens, Europe is becoming less attractive as an investment location. Indeed, she claims, “we are losing investments not only to fast growing economies but also to developed economies such as the US that has man-aged to capture new investments in recent years due to very com-petitive location costs. Even if the EU continues to be the lead-ing world investor, our share of worldwide FDI flows fell to 24 per cent in 2012 compared to 40 per cent in 2000.” This situation, in her view, can only be changed by creating the necessary conditions for a more competitive industry

“by 2050, none of the european member states are projected to be among the world’s largest economies. We only have a choice between succeeding together and becoming insignificant separately.”

resTOring eurOpe’s cOMpeTiTiveness Will Take MOre THan a feW years

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inTervieWin Europe, creating jobs for the future and continuing to secure high living standards for citizens.

In response to fledgling economic growth, some European govern-ments are advocating greater flexibility with regard to public expenditure oriented towards employment generation. This goes counter to the prevailing EU discourse and rules on fiscal dis-cipline. In relation to this delicate debate, it is BUSINESSEUROPE's view, according to Ms Marcega-glia, that “fiscal consolidation and growth enhancing reforms must

and can go hand-in-hand, using the flexibility in the Stability and Growth pact to put in place bold structural reforms.” She goes on to maintain that the bias towards tax increases must be corrected by reducing public expenditure and implementing measures to improve competitiveness as foreseen in the Country Specific Recommendations endorsed by the European Council last June. “When governments are think-ing about how to reduce public expenditure, they should be care-ful not to harm areas that will have the strongest benefit for

future growth. These investments for the future include spending on skills which can improve employ-ability, particularly of the young and long-term unemployed,” she warns.

Beyond the political debate, the feedback from the millions of companies that make up the membership of the national employers' associations consti-tuting BUSINESSEUROPE is that high tax and energy prices need to be addressed to enhance growth. “In our 2014 spring Reform Barometer, our members iden-

tified the actions required to increase companies’ competi-tiveness,” Ms Marcegaglia main-tains, explaining, “they said the overall tax burden on companies is higher in the EU than in our main competitors. They urged to continue growth-enhancing fiscal consolidation and to ease admin-istrative burdens, especially for SMEs and start-ups. Our mem-ber federations also complained about high industrial energy prices and want to see measures in place to address the energy price differential with our major competitors.”

Aside from these issues, Ms Marcegaglia asserts that compa-nies also want to see the EU Hori-zon 2020 programme be more business-oriented: “it must help us to bring innovative products to markets.” Another immediate priority is to unlock the access to finance for companies, espe-cially for SMEs, by implementing the banking union: “this all needs the implementation of structural reforms by the member states, but as our member federations found, only 23 per cent of the Country Specific Recommenda-tions have been followed, so far, by satisfactory implementation.”

Overall, speaking of what she thinks the EU can do concretely to revitalise growth in Europe, Ms Marcegaglia maintains that the cost of doing business in the EU is still very high, citing, “part of these costs come from the non-completion of the internal mar-ket and unjustified regulatory differences still existing among member states in different policy areas. The excessive costs are also due to lack of coordination between different EU policies. Poor impact assessment leads to measures that harm the com-petitiveness of companies, in par-ticular SMEs.” In light of this, she believes there is an urgent need to develop “a genuine industrial policy in Europe that promotes a pro-business framework and fos-ters the sustainable development of our industry.”

On a personal note, having been at the helm of BUSINESS- EUROPE for a little over a year now – a position she calls “an honour and a huge responsibility” – Ms Marcegaglia is grateful of having been given the opportunity to represent companies from 35 European countries by BUSINESS -EUROPE’s 41 member federa-tions. “With them, we work hard to make companies’ voices heard in the European institutions. We succeeded in putting the question of Europe’s competitiveness, high energy prices and the need for a new industrial policy to reverse the decline of Europe’s manu-facturing industry high on the political agenda. However, more efforts are needed to turn words into actions,” she says.

Indeed, her mission for the future is clear: “European businesses have many strengths, but we cannot afford to stand still and allow other economies to take the competitive lead. The work to restore Europe’s competitiveness will take more time than the next two or four years. Much needs to be done to achieve a successful industrial renaissance, to return to sustainable growth and create millions of new jobs for European citizens. It is work in progress and as President of BUSINESS -EUROPE – working with the new European Parliament and the new Commission – I will do every-thing I can to help achieve these goals.”

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TOurisM

Local cuisine has become an integral part of travel. Gone are the days when visitors asked to eat the food they got back home (fish and chips, anyone?). Today, gastronomy has become a valu-able tourist product with huge business potential – from local restaurants to authentic food markets.

Across the world this sort of travel has become a major driver. People will trek around the globe to sample the new big thing in cuisine, or pay through the nose to tuck into the latest offering from a Michelin-starred chef. In fact, the 2012 Global Report on Food Tourism, which was published by the World Tour-ism Organisation (UNWTO), sug-gested that, in recent years, food tourism has grown considerably and has become one of the most dynamic and creative segments of tourism.

Interestingly though, the report also found that most of the coun-tries studied for the report don’t yet have a branded ‘food tour-ism’ product, and that this could

be holding them back. So where does Malta stand in the develop-ment of its gastronomy product?

“I believe that Maltese cuisine and Maltese produce should be an intrinsic part of brand Malta,” says Stefan Hogan, executive chef at the Corinthia Palace Hotel and Spa. “We need to rediscover pride in our culinary heritage, which, in itself, tells the story of Malta through the various influ-ences we have experienced as a nation.

“We need to promote rustic Mal-tese food so as to rekindle a pride in all that is Maltese. There’s no doubt that we have a cuisine product to be proud of – one that is uniquely derived from our geo-graphical location at the cross-roads between Europe and North Africa. We deserve to show it off.”

Agreeing with that sentiment, Chris Cassar, the proprietor of popular Maltese food restaurant Ta’ Kris, explains that our food-related traditions do promise something exciting for visitors to try.

“Aside from our history, our cul-tural calendar also brings so many interesting dishes and fla-vours to the fore,” he says. “For instance, there are the sweet zeppoli to try on St Joseph’s Day, the many vegetarian options – including ricotta pie and stuffed artichokes – that are served instead of meat during Lent, and

the long-awaited figolli on Easter Sunday.

“Plus, the natural seasons also determine much of our cuisine. Hobz biz-zejt (local bread driz-zled with olive oil and topped with fresh tomatoes) is popu-lar in summer because it’s very refreshing,” he says. “While, in September, it’s traditional to eat lampuki fish because they are in abundant supply. So, dishes such as the tasty lampuki-filled pie have become a must-try option at this time of year.”

Locally our food is also a life-style, which Mr Hogan believes can help to enhance our cuisine-related product.

“For us food equates to family and friends, and we view eating as something communal that brings us all around the table to eat, drink and talk,” he says. “It sums up our character – we love sharing good food that creates an experience with memories.

“Similarly there are so many sto-ries of people who come to Malta as tourists and become friends with a Maltese family that then invites them over for dinner. It’s these people who become the best ambassadors for Malta because they have really expe-rienced what our food and hos-pitality have to offer. It would be good if this could be packaged

into an authentic offering for more people to enjoy.”

Beyond that, genuine local pro-duce is also an element enjoyed by visitors – including our honey, olive oil, goats’ cheese, fruit, veg-etables, bread and wine.

“Today’s tourists don’t just want to see; they want to feel and experience,” says Mr Cassar. “I would recommend that people are given the chance to really get to know us through our produce, with organised tours to baker-ies, wineries, olive groves and more. Cooking classes are also very popular and visitors love the chance to get hands-on and learn something.”

Mr Cassar even has first-hand experience of how local food tra-ditions can serve to promote our island.

“i would suggest a food heritage festival on a national level, and a regular food market of dishes and produce.”

– Stefan Hogan

from crunchy bread drenched in olive oil to our unique easter-time figolli, Maltese food has a lot to be proud of. but are we doing enough to promote it as a tourism-friendly product? JO caruana speaks to two experts to discuss their opinions.

stefan Hogan

fOOd TOurisM: a MalTese Offering

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“I once hosted some Korean din-ers who absolutely fell in love with Maltese food,” he says. “So much so, that they asked to film me making bragjoli (beef olives) and our famous rabbit dish from scratch. A year later, I received news that these diners had actu-ally got one of Korea’s most famous singers to try our rabbit dish, based on my recipe! It was a great endorsement for Malta and our food.”

Similarly, Mr Hogan has expe-rienced hotel guests who have been really keen to try particu-

lar Maltese foods, as a result of what they had read about our cuisine in magazines or online.

“It’s actually quite common for guests to want to try a tradi-tional dish, and that’s a regu-lar request,” he says. “However some of them even come with something really specific that they have heard about, and which they ask us to make for them. They usually love the associated stories and traditions that go hand-in-hand with that recipe, and it helps them to develop a real flavour for what we have to offer as a nation.”

Thus, it seems we have a lot to be proud of when it comes to our gastronomical offering. So what can be done to promote it further for the future?

“I believe we need a targeted and organised campaign that really highlights what we have to offer and how effectively it can be enjoyed,” says Mr Hogan. “I would suggest a food heritage festival on a national level, and a regular food market of dishes and produce that people can enjoy. Holistic events that really showcase why Maltese food is unique and exciting will go a long way towards helping us excel in this area, and the results will be worth it,” he adds.

TOurisM

“aside from our history, our cultural calendar also brings so many interesting dishes and flavours to the fore.”

– Chris Cassar

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inTervieW

With a string of successful productions under its belt, ranging from the award-winning gladiator to the latest film by the sea under the direction of angelina Jolie, the Malta film commission is one to contend with. Martina said chats with its leader, commissioner engelberT grecH, on the industry’s vast potential, its recent successes and where he plans to steer its future.

“We aim to make the lives of pro-ducers and directors easy – that is what we do,” says Malta’s Film Commissioner, Engelbert Grech with a hint of a smile, “making Malta more attractive in terms of facilities, human resources and cooperation from Government entities, which is crucial. Every day on set is worth a lot of money, so we need to process everything as fast as we can.”

Merely two months shy of the end of his first year as Film Com-missioner, it is safe to say that Mr Grech has settled into his role rather smoothly. In fact, it appears that interest in Malta’s film industry, both locally and on an international level, is peaking somewhat. But while waves of activity are great for the island’s economy and for the industry at large, they are precisely what he wants to avoid. On the contrary, he would like the Commission to attract a continuous stream of work in order to sustain the industry and the careers of the people who invest in it.

This active period in the local film industry did not happen by chance. “The key here has been in packaging Malta well as a film destination, and we did this by working hand-in-hand with the

economic division of Government. We got a group of economists together to assess the potential of Malta’s film industry, and we could prove there and then that the industry has a huge multiplier effect. The study showed that the economic impact of the local film industry has a multiplier effect of 3. It goes beyond employing a few crew members – when filming for a production is over, it has a ripple effect on the rest of the economy, such as transport, communica-tion, accommodation, restau-rants, costume design, hardware stores and more.”

Once they were able to establish the economic benefits reaped by the industry, Mr Grech says the next step forward was to fine-tune the financial incentives, which they did by approaching the Ministry of Finance. “After dis-cussions based on data, we came to the conclusion that financial incentives had to be tailor-made for the industry’s specific needs. The second key priority is human

resources, because attracting a lot of business to the islands is useless without the ability to ser-vice it properly, so we invested half a million euro in EU funds

and devised 19 courses to better train people and upgrade human resources, which were worked out by international universities and are regulated by the Malta Qualifications Authority.”

The third key factor that needed and still requires serious upgrad-ing is infrastructure, and the Commission is tackling this by incentivising investors to invest in it. “This is very important – Gov-

ernment will invest, but there needs to be interest from private investors too. Then, from our end at the Commission, we seek to make life easy by reducing red tape when it comes to obtaining location permits and when apply-ing for VAT refunds, for instance.” Mr Grech is quick to stress that everything still needs to be done properly, but with the film indus-try’s needs in mind. “A permit for a film cannot be given the same

“[The industry] has a ripple effect on the rest of the economy, such as transport, communication, accommodation, restaurants, costume design, hardware stores and more.”

a cuT abOve THe resT“The economic impact of the local film industry has a multiplier effect of 3” – Malta Film Commissioner Engelbert Grech

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inTervieWterms and conditions as building a block of flats,” he explains, “so we are going into the finer details to ensure that the system is clear and accountable, but tailor-made to these specific needs.”

One of the latest productions to cause lots of excitement in recent months – both locally and over-seas – is Brad Pitt and Angelina Jolie’s production together, By the Sea, currently being filmed at Mgarr Ix-Xini in Gozo. Mr Grech acknowledges that having the entertainment industry’s favou-rite couple film here will certainly help attract more productions in future, and is a feather in the Commission’s cap when negoti-ating new projects with directors and producers. “It was a major coup for us, and we definitely want more big Hollywood studios to continue the trend.” Taking this particular project as a case in point, what does the economy

reap from it and how does it ben-efit?

“Every year is different, obvi-ously depending very much on the quality of the production that we host. However, if we had to compare the film industry to, for instance, the manufacturing industry, the film industry reaps better return hands down, and this is proven by economic stud-ies that we conducted,” explains Mr Grech. Every production filmed in Malta can be considered as a foreign direct investment. On a good year, the film industry can inject around ¤40 million in the economy. We deal a lot with high net worth individuals, and few people know but they pay taxes too when shooting in Malta. The Film Commission audits every film project that chooses Malta, so we are able to track everything from when it starts setting up to its ripple effect on various sectors of the economy.”

For the first time in the industry’s history, which began hosting pro-ductions in 1925, there are four international projects currently on the islands working at the same time: By the Sea filming in Gozo, Clavius which is a Roman epic directed by Kevin Reynolds, starring Joseph Fiennes and Tom Felton, an American TV series for CBS based in the Middle East, and Andron, an Italian feature film.

“I’m proud to say that there are also two Maltese feature films in production: Limestone Cowboy produced by Take Two, and Pho-bia, both of which are supported by the Film Fund. This is a trend I want to see more of: with the wave of international productions we’re attracting, we can transfer the skills acquired on the foreign productions to the local indig-enous industry, and that is ulti-mately a key element to building a proper film industry, where even if there aren’t current foreign

productions, we can generate our own films and series for interna-tional distribution.”

Malta’s rich and diverse filmog-raphy ranges from the epic Troy

(2004) starring Brad Pitt to Cap-tain Phillips (2013) starring Tom

Hanks, which, along with numer-ous other projects, have elevated Malta’s profile as a veritable film-ing destination. Mr Grech says an assortment of films have contrib-uted to this: “for instance, I love

the way the director of The Count of Montekristo creatively used

“We invested half a million euro in eu funds and devised 19 courses to better train people and upgrade human resources.”

“every production filmed in Malta can be considered as a foreign direct investment. On a good year, the film industry can inject around €40 million in the economy.”

World War Z [2013] - Photo by Jaap Buitendijk - © 2013 Paramount Pictures. All Rights Reserved

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different locations on the island to represent different coun-tries. Same thing with Munich – Spielberg has used Malta as the Middle East, Italy, Cyprus and Greece among other loca-tions. Then there are films, such as the Oscar-winning film Gladi-ator, Troy and By the Sea, which add extra credibility to the local industry in the eyes of interna-tional directors.”

His vision for the Maltese film industry appears clear and on-track, but he will not stop there. “If we succeed in making private

investors believe in the indus-try, then the next step would be to create awareness, at a local level, in film from a young age,

because if we want to have a real film industry, we need to create a culture of film. It can prove to be a hobby for some, but a career for many as well.”

That same culture of film that Mr Grech speaks about seems firmly ingrained within him. Having been involved in different aspects of the industry for 18 years prior to his role as Film Commissioner, he certainly knows the ropes.

"In the past I’ve worked in vari-ous levels of production – so I can speak and understand the lan-guage of international directors and producers. We are building a new brand, portraying Malta as a film-friendly island, with a great film history and an even greater future."

inTervieW

“With the wave of international productions we’re attracting, we can transfer the skills acquired on the foreign productions to the local indigenous industry, and that is ultimately a key element to building a proper film industry.”

Captain Phillips - Photo by Jasin Boland - © 2013 Columbia Pictures Industries, Inc. All Rights Reserved.

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Every business knows that energy efficiency makes sense and should be a priority – but so often eco sensibility is swept under the carpet because there simply isn’t time to deal with it.

Now, though, the Energy Effi-ciency Directive has been put in place by the Government, and stringent measures will need to be taken to bring Maltese busi-nesses up to speed and in-line with EU law.

“Energy efficiency is very impor-tant at both a national and an EU level – given that Malta, and the EU in general, is an energy importer,” explains Geoffrey Sal-iba, the projects development manager for the Malta Business Bureau. “The MBB, and its parent organisations the Malta Cham-ber and MHRA, would like to sup-port this increased emphasis on

energy efficiency and to start it off on the right foot.”

The directive was transposed into Maltese legislation in June, through LN 196 2014. It means that large enterprises (non-SMEs) are now legally obliged to carry out energy audits in con-formity with the law, while SMEs are encouraged to also focus on energy efficiency.

The directive forms part of the EU’s drive to achieve its 2020 target for an energy efficiency increase of 20 per cent. The directive prioritises action by the various consumers and suppli-ers, and includes obligations for the public sector, energy provid-ers, energy service providers, and industry and commerce. It also paves the way for further initia-tives on energy efficiency.

So what exactly are the implica-tions for Maltese businesses?

“A few requirements have been put in place,” explains Mr Saliba. “For instance, large enterprises (non-SMEs) now need to carry out an energy audit at least once every four years, with the first concluded by 5th December 2015. SMEs, meanwhile, are being encouraged to also implement energy efficiency measures.”

In addition, the directive now obliges member states to facili-tate the implementation of energy efficiency measures through vari-ous means, including promot-

ing certified energy auditors and the benefits to SMEs of applying energy management systems.

“This means that non-SMEs, as well as SMEs, should focus more strongly on their energy efficiency,” Mr Saliba says. “This brings in an element of financial and resource costs of course, however, if managed well, this cost could become an investment with an attractive return."

Naturally there are several bene-fits that can be expected from this approach.

“For industry and commerce, increasing efficiency means reduced costs – a very finan-cially attractive benefit,” contin-ues Mr Saliba. “There is also a strong environmental benefit, as reduced energy demand means reduced CO2 emissions at a time when global warming is a key con-cern and is expected to result in significant impacts. There is also a political benefit given that the EU is largely an energy importer. Making the imported energy work harder for the EU decreases EU reliance on external sources.”

That said, no one is suggesting that the implementation of this directive will be easy.

“There is a lot to be done,” explains Ing Charles Buttigieg, officer for the Sustainable Water and Conservation Unit at the

Ministry for Energy and Health. “In reality 2020 isn’t very far off and every action that needs to be taken, whether by Government or private enterprises, requires investment. Thus, when the Com-mission proposes further reduc-tions, Malta is always cautious but positive.

Nevertheless, Ing Buttigieg is keen to encourage a nation-wide drive to hit the targets set. “Energy efficient actions aren’t only cost-reduction measures but also improve the image of the firm in question and the well-being of its employees,” he says.

“Most Maltese businessmen are aware of this and we plan to help them achieve their energy goals.”

For instance, the Ministry intends to formalise companies’ energy audit programmes.

“The results of this will vary from entity to entity but a number of firms have already addressed this issue and improved their opera-tion in some way for instance in the use of variable speed motors in industry. There are many other aspects to be tackled, such as the hotel sector’s approach to heating and cooling,” Ing Buttigieg says.

Nevertheless, there is a definite urgency to be addressed.

“With the first deadline set for just over one year’s time, 70-odd enterprises now have to act very quickly, and there is still a ques-tion of accredited auditors to be resolved,” explains engineering and energy efficiency consultant Ing Joseph Restall.

energy

now that the energy efficiency directive has been transposed into Maltese law, JO caruana speaks to three experts to assess the implications for Maltese businesses and to discuss how best to tackle them.

Making businesses energy efficienT

geoffrey saliba

ing charles buttigieg

“if managed well, this energy-saving cost could become an investment with an attractive return.”

– Geoffrey Saliba

“energy efficient actions aren’t only cost-reduction measures but also improve the image of the firm in question and the well-being of its employees.”

– Ing Charles Buttigieg

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energy“Furthermore the level of energy audit being asked for is very intensive and requires multi-skilled teams, which means that costs will not be cheap; in fact, in larger entities, this could run into tens of thousands of euro. The upside is that, if properly done, the audits will generate actions that will effectively recover these costs through energy saved.”

As a consultant in energy effi-ciency, Ing Restall strongly rec-ommends that energy audits are not just carried out in the spirit of satisfying the law but with the

intent to re-visit an enterprise’s energy consumption in the full knowledge that there will be areas of improvement with the benefits explained above. “It is pleasing to note that all the initiatives we have carried out that have been properly studied to reduce energy consumption did give the results expected,” he adds.

Now, though, it is simply a case of encouraging businesses to press ahead, and to give this directive its due importance.

“Looking at it objectively, the key benefit remains the fact that increasing energy efficiency can slash utility bills, freeing up financial resources for more prof-itable investment,” continues Mr Saliba. “In an increasingly envi-ronmentally conscious world, the benefit of being acknowledged as a ‘green business’ is also to be valued.”

And there is proof of this. In fact, the EU LIFE+ Investing in Water Project, run by the Malta Business Bureau, showed that being more efficient in consum-ing water makes good business sense.

“Businesses and hotels collabo-rating with the project were sav-ing over 141,000,000 litres of water every year by the project’s close in March 2014. That repre-sents savings of over ¤112,000 per annum.

“This project turned into yet another case study of how envi-ronmental measures and good business sense go hand in hand.

“Now, the MBB, Malta Chamber and MHRA intend to build on the lessons learnt through the EU LIFE+ Investing in Water Project to also support enterprises con-serve energy and reduce their operating costs through LN 196. We are looking forward to seeing the results of this new directive, and will be on hand to help in any way we can,” he adds.

ing Joseph restall

“if properly done, the audits will generate actions that will effectively recover any costs through energy saved.”

– Ing Joseph Restall

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business newsMbb updaTe23Rd June –

MBB SHORTLISTED FOR EUROPEAN ENTERPRISE PROMOTION AWARDS

18Th sePTeMbeR –

HIGH PROFILE ROUND-TABLE WORKSHOP ON BRIDGING yOUTHS TO BUSINESS

The Malta Business Bureau’s EU LIFE+ Investing in Water Project has been shortlisted for this year’s European Enterprise Promotion Awards. This is only the second time that a Maltese project has been shortlisted since the start of this EU initia-tive nearly ten years ago. If the project receives the award, it will be Malta’s first project awarded under the European Enterprise Promotion Awards.

The project has been shortlisted under the ‘Supporting the devel-opment of green markets and resource efficiency’ category. Only two other projects have been shortlisted under this cat-egory, including a project result-ing in greenhouse gas reduc-tion from Portugal and a project improving the textiles manufac-turing process to use fewer raw materials from Turkey.

The Minster for the Economy, Investment and Small Business, Dr Chris Cardona congratulated the Malta Business Bureau, stat-ing “industry has an important role to play in increasing effi-ciency and clearly enterprises, through the Malta Business Bureau’s EU LIFE+ Investing in Water Project, rose to that chal-lenge. I congratulate the MBB for running such a successful initia-tive in support of both industry and the environment.”

The EU LIFE+ Investing in Water Project collaborated with over 130 enterprises, providing them with recommendations and training on how to implement water saving best practice. By the project’s end, enterprises which had adopted water saving measures were saving an esti-mated 141 million litres of water every year – enough to supply the

needs of two medium sized four star hotels and three large water consuming factories.

Earlier this year, the MBB’s EU LIFE+ Investing in Water project had placed first in the National Enterprise Support Awards 2014 which is the national phase of the European Enterprise Pro-motion Awards. The European Commission’s DG Enterprise will now select a European best proj-ect from amongst the shortlisted best national projects. Winning projects will be announced at the SME Assembly in Naples, as part of the European SME Week, on 2nd October.

This edition of Business Agenda was issued prior to the announcement of the Europe Enterprise Promotion Awards ceremony.

The Malta Business Bureau col-laborated with the European Union Programmes Agency (EUPA) and Agenzija Zghazagh in organising a high-profile round-table event that focused on bridging the communication between the private sector and youth workers/career advisors.

This is part of an Erasmus+ proj-ect entitled ‘Cross Over’, which is a Key Action 2 project aiming to foster cooperation between organisations from different countries in the fields of youth work and non-formal learning for young people.

The session explored in what ways youths’ attitudes and soft skills determine the selection for a job. This was reflected particu-larly in the context of low skilled jobs that do not require a high level of education. The objectives of the event were for the private and youth sectors to share and exchange experiences in order to get a better understanding of current practices, as well as to set up a dialogue for long-term partnerships and future actions.

The session was moderated by PBS News Production and Cur-rent Affairs Manager, Mario Xuereb. An introductory presen-tation was given by MBB CEO Joe Tanti and Agenzija Zghazagh CEO Miriam Theuma, who kicked off the discussion by outlining a number of issues experienced by the private and youth sectors. Mr Tanti referred to the fact that

despite certain jobs being classi-fied as low skilled work, the pri-vate sector expected to recruit individuals with some basic training and awareness of the importance of customer service, and having a positive attitude and drive.

The Malta Chamber was rep-resented by Matthias Fauser, Chairman of the Manufacturers and Other Industries Economic Group, and the MHRA was rep-resented by Isabella Debattista, Chairman of the HR Committee. Other participants from the pri-vate sector came from the man-ufacturing, retail, waste man-agement and hospitality sectors.

A number of recommendations emanating from the session focused on the development of training programmes specifically designed for non-skilled work-ers wishing to enter the labour market; on providing a better industry experience to youths particularly to secondary school students; and on enticing more students to work during summer to obtain experience. All agreed that this dialogue should be con-tinued and should involve further stakeholders for a more holistic approach.

As part of the ‘Cross Over’ Eras-mus+ project, representatives from both sectors will now par-ticipate in a trans-national dia-logue taking place in Latvia in December.

19Th sePTeMbeR –

MEP ROBERTA METSOLA VISITS MBB

During a visit to the Malta Busi-ness Bureau, MEP Roberta Met-sola agreed to collaborate in the best interest of Maltese busi-nesses and consumers. She expressed her wish to have a more open and continuous dia-logue with businesses so as to be in a position to take their con-cerns on EU legislation into con-sideration.

“Too often I hear businesses complain that the EU decision making process is too far away from their everyday reality and I believe that through continuous dialogue we can help address this. Malta’s businesses have a lot to contribute on an EU level. We need to find the right balance between safeguarding consumer rights and not increasing unnec-essary bureaucracy or unfair burdens on small businesses,” said Dr Metsola.

The MBB expressed its concern on two current legislative issues. On the proposed EU Data Protec-tion package CEO Joe Tanti said that this could affect businesses negatively in Malta as it could impose unreasonable financial burdens on SMEs. “This could mean that businesses would have to employ an officer to deal with data protection when the number of people employed by the company may already be very limited,” he noted.

Dr Metsola said that while a high degree of data protection is essential, she agreed that a one-size-fits all approach could not work. “We cannot treat multi-national conglomerates with the same glove as we would an SME employing a smaller number of people,” said Dr Metsola.

Dr John Vassallo, who was rep-resenting the MBB Board of Directors, augured that this would be the start of a continu-ous dialogue with MEP Metsola and other MEPs both local and foreign throughout this legis-lature. “In addition to providing the Maltese business position on various legislative proposals issued by the European Commis-sion, the MBB is also looking for-ward to working proactively on developing long-term policy pro-posals that would ultimately add value to the local business com-munity,” he stated.

Also present for the meeting were Senior Executive Daniel Debono from the MBB and Fran-cesca Debono from MEP Metso-la’s office.

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Mbb updaTe

16Th oCTobeR –

EUROPEAN PARLIAMENT FOR ENTERPRISESA Maltese delegation made up of senior officials of the Malta Chamber of Commerce, Enter-prise and Industry, and also including MBB President Mario Spiteri and CEO Joe Tanti, will be participating in the third edition of the European Parliament for Enterprises (EPE).

This will bring together 1,000 business representatives from 45 European countries who will gather in the hemicycle of the European Parliament in Brussels.

The EPE is the largest event at EU level that gives the floor directly to entrepreneurs, allow-ing them to provide politicians with bottom-up feedback on EU policies.

Entrepreneurs from all sizes and sectors of business, acting as Members of the Parliament, will vote on crucial topics currently debated at EU level, by which they are directly affected. The aim is to help define the business agenda for the new EU legislative term.

23Rd oCTobeR –

BUSINESS SEMINAR AS PART OF SME WEEK ACTIVITIESAs part of this year’s SME Week activities, the MBB in collabo-ration with the Ministry for the Economy, Investment and Small Business will be organising a seminar on nurturing start-ups through business incubation and providing access to finance through alternative financial instruments such as crowdfund-ing.

Crowdfunding has been growing fast in Europe; providing financ-ing for research, the develop-

ment of prototypes and the commercialisation of products. Projects range from technol-ogy and creative inventions, to educational programmes, social infrastructures and renewable energy farms.

Among others, the event will be addressed by the Minister for the Economy Dr Chris Cardona, the President of the European Crowdfunding Network Oli-ver Gajda and a number of best practice start-ups that experi-

enced business incubation as well as crowdfunding.

The MBB will also give details on its projected plans to launch Malta’s first crowdfunding plat-form in collaboration with the University of Malta.

For registration and more infor-mation, contact the MBB on T: 2125 1719 or E: [email protected]

23Rd sePTeMbeR –

MBB SENIOR EXECUTIVE PARTICIPATES IN EUROPEAN BUSINESS FORUM ON VOCATIONAL TRAININGMBB Senior Executive Daniel Debono participated in the Euro-pean Business Forum on Voca-tional Training, themed ‘Busi-ness and VET – Working together for growth and competitiveness’.

This is the second forum being held following the first edition that took place in June 2012. The European Business Forum on Vocational Training was set up following a recommendation by

European ministers for VET and Social Partners to the European Commission in December 2010.

The scope of the forum is to pro-vide a high-level platform for exchanges between the educa-tion and training sectors, busi-nesses and policy makers, on a wide range of topics related to excellence, attractiveness and relevance of skills to labour mar-ket needs.

This year’s edition saw the par-ticipation of European Commis-sion for Education Androulla Vassiliou, Maxime Cerutti, Social Affairs Director at BUSINESS-EUROPE, Mikael Andersson from the European Vocational Training Association (EVTA) and Cedefop Director Dr James Calleja, among others.

27Th oCTobeR –

SEMINAR ON OPPORTUNITIES FOR BUSINESSES By THE SME INSTRUMENTThe MBB is organising an infor-mation session in collaboration with the European Commission Representation in Malta on EU funding for SMEs, particularly through the SME Instrument.

The SME Instrument provides funding to highly innovative SMEs with a clear commercial ambition and a potential for high growth, with internationalisation as its prime target. For those eli-gible, the programme will issue

grants for feasibility assess-ments, innovation development and demonstrations, business coaching and other support ser-vices.

Among others, the session will be addressed by the Parliamen-tary Secretary for EU Funds Dr Ian Borg, DG Enterprise and Industry Director Joanna Drake and Pierre Roubaud from the

European Agency for Small and Medium Enterprises (EASME).

For registration and more infor-mation, contact the MBB on T: 2125 1719 or E: [email protected]

upcOMing evenTs:

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eurOpean affairs

by OMar cuTaJar, Mbb’s permanent delegate in brussels

Following the outcome of the European Parliament (EP) elec-tions, the political dynamics were in place to shape the next politi-cal milestone – the nomination of a new Commission President, who would in turn be tasked with the formation of a new college of Commissioners. The tight results of the EP elections left no room for any other alternative but a German ‘grand coalition’ style of collaboration between the two largest pro-European groups – the European People’s Party (EPP) and the Socialists and Democrats (S&D).

Having polled a relative majority of votes at the EP elections, the EPP had the right of nominating its candidate for the post of Com-mission President designate. Mr Juncker’s candidature had to be approved by the European Parlia-ment. A plenary vote was taken in mid-July, whereby Mr Juncker obtained 422 votes in favour, 250 against and 47 abstentions.

During the session, the Commis-sion President-elect, took the opportunity to unveil his broad political programme for his stew-ardship of the new Commission over the next five years. Juncker delivered a speech based on a paper entitled ‘A New Start for Europe: My Agenda for Jobs, Growth, Fairness and Democratic Change’ – a set of political guide-lines representing to a significant extent the political compromise brokered in the previous weeks between the several EP factions that committed their support to Juncker’s candidature. Juncker’s nomination enjoyed a very broad support from all the moderate,

pro-European political factions in the European Parliament.

AN APPEASING AND COMPROMISE-DRIVEN POLITICAL AGENDAIt is not surprising that against this background of consen-sus-oriented style of politics, Juncker’s political programme promises to be a ‘pot pourri’ of legislative proposals, political pet projects and new policy initiatives sourced from several different

ideological streams. Juncker’s political guidelines are in fact a departure from the EPP elec-toral programmes and can be summed up as a major compro-mise programme among the pro-EU political parties – EPP, S&D, Liberals and Greens.

From a business perspective, the new political programme carries both interesting prospects as well as old challenges. Juncker’s programme is based on a con-

tinuation of the main initiatives launched by the Barroso II Com-mission whilst also re-visiting a number of stalled legislative proposals, often by giving some social sugar-coating.

Mr Juncker’s proposals are ambitious, however such initia-tives must be read in their politi-cal context as attempts to resus-citate proposals that have either met stiff resistance at the Council of Ministers or are still awaiting

a second reading at the European Parliament.

Among such items, confirming the extent of continuity rather than a radical rupture in the policy content of the incoming Juncker Commission, pertain issues such as the enhanced cooperation procedure driving the introduction of a Financial Transactions Tax (FTT), the re-tabling of a proposal on a Com-mon Consolidated Corporate Tax

fasT fOrWard, THe Juncker cOMMissiOn – a business perspecTive

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eurOpean affairsBase (CCCTB) and an ambitious revision of the Energy Efficiency Directive. Additionally, there is a whole array of initiatives previ-ously lying dormant under the outgoing Barroso Commission that could prove a headache for business. The revision of the Working Time Directive is the most conspicuous of these dor-mant matters.

On the positive side, Presi-dent-elect Mr Juncker should be developing further the Bar-roso discourse about the need for economic policies delivering

sustainable economic growth, investment and new jobs. Junck-er’s flagship proposal is his commitment to present within three months of his mandate a ‘Jobs, Growth and Investment Package’, based on the premise that the European investment environment needs consider-able improvement. To this end, "more effective financial instru-ments, including in the form of loans or guarantees with greater risk capacity," will be developed whilst a further increase in the European Investment Bank's capital will be considered. The

additional investment will be lev-eraged for infrastructure, notably energy and broadband networks.

Juncker’s political programme is even more appealing from a business perspective in rela-tion to the proposed way forward for a ‘deeper and fairer’ internal market based on a strength-ened industrial base. Juncker re-instated the outgoing Barroso Commission target of re-balanc-ing industry's weight in the EU's GDP back to 20 per cent by 2020, from less than 16 per cent today.

SOCIAL PITFALLSThe flipside of this important pro-business commitment is Juncker’s willingness to suc-cumb to the demands of the more left-oriented political con-stituencies at the European Par-liament. An enhanced freedom of movement of capital cannot come at the cost of a ‘free for all’ in relation to wage dumping and distortive labour remuneration practices for the same services tendered but in different member states. Consequently, a ‘fairer’ internal market entails the need to explore the introduction of a

European minimum wage, with Juncker quoted to state that “all countries in the European Union, we set in place a minimum social wage, a minimum income, a guaranteed minimum income.”

Beyond the social aspects, the Juncker Commission promises to be rightly focused on the digi-tal dimension of the European single market, with new legisla-tion to be tabled addressing the digital connectivity of the inter-nal market, addressing long-pending issues such as copyright claims, the provision of cross-border telecom services and data protection rules.

Equally important are Juncker’s pronouncements on an ambi-tious climate agenda, with a political commitment to conclude an ‘Energy Union’ for the EU to become the world's number one producer of renewable energies. Another ambitious commitment lies in the area of energy effi-ciency with the stated ambition of going beyond the 2020 target in relation to energy efficiency in buildings.

Fast-forward 2019, the Juncker Commission would have deliv-ered on several separate but inter-linked fronts ranging from a connected digital internal market, maybe concluded the negotiations on a Transatlantic Trade and Investment Partner-ship Agreement with the US, and proved to European citizens that indeed a deeper but fairer eco-nomic and monetary union is feasible.

For this to happen, President-elect Juncker will be depending on a new College of Commis-sioners – a team, this time round, unlike the outgoing Barroso Commission of senior and promi-nent politicians nominated by the member states’ governments.

The hearings of the Commis-sioner nominates will be taking place during the month of Octo-ber, with the aim being for the new College of Commissioners to make its official inception in the first week of November, under the stewardship of new EU Com-mission President, Mr Juncker.

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Gone are the days when a busi-ness event revolves around a table of lukewarm coffee and three packs of biscuits to share between too many people – cor-porate activities are entering a new age of sophistication that leave guests talking about the tasty food, flowing drinks and sheer organisation of it all long after they’ve said their goodbyes to fellow colleagues and guests. But such success does not simply happen by chance.

Business events are a tried and tested method for companies, organisations and public bod-ies to reach out and engage with their audiences. From product launches, conferences and cor-porate hospitality to business breakfasts, dinners or team-building exercises, they are the ultimate live marketing tool, and the most important part is that they are delivered seamlessly.

Event planning is not the tough-est job of the lot, but it requires acute organisation and a total attention to detail – while no one is likely to notice if everything goes off without a hitch, it will be the talk of town if something goes wrong. From the choice of venue to the right type of catering for the event, there are numerous aspects that need to be kept in mind when planning a corporate event.

SETTING THE TONESettling on the best venue option for your event is a good place to start, as it will determine many other factors of the event.

Michael Zammit Marmara, Director of Sales and Marketing at Paradise Bay Resort Hotel, says that event planners gener-

ally come with specific requests when scouting for locations: “they look out for audio-visual equip-ment and technology, accessibil-ity, the availability of a business centre, reliable and knowledge-able contact persons working at the venue, natural light, as well as capacity. The correct choice of venue is very important for such events, and it needs to be flexible enough to host a variety of events ranging from small meetings to larger product launches. The chosen venue reflects the corpo-rate identity of the company and the image it would like to por-tray to its clients; hence planners

tend to evaluate various criteria when choosing a venue.”

When catering for corporate events, Mr Zammit Marmara says it is important to always keep the nature of the event in mind – “organisers request light lunches as delegates need to stay alert during a business event as well as innovative coffee breaks. It's also essential to know which country the delegates are coming from due to religious and cultural customs. With our ‘yes we can’ philosophy, we have fast grown into one of the leading four star properties for conference and

incentive business in this cate-gory, mainly due to the fact that we embrace the challenge to pro-vide tailor made packages for cli-ents.”

Rosette Micallef, Head of Mar-keting and Sales at the Mediter-ranean Conference Centre, says business related events could take various forms such as con-ferences, seminars, workshops, business breakfasts, B2B, prod-uct launches and training ses-sions. “It could be a simple meet-ing requiring a standard set-up with basic audio-visual equip-ment, or an event requiring an

elaborate and more sophisti-cated set-up. When a company is looking to host a conference, not only does it inspect the venue but also the area’s infrastruc-ture. Factors such as destination, transport links, accommodation, leisure facilities and food all play an important role in venue selec-tion.”

Ms Micallef says the range of services offered at the Centre cater for clients’ different needs. “MCC boasts a total of nine halls over an area of 7,000 square metres. The halls vary in size and are therefore suitable for a

evenTs

as the world of corporate events gets increasingly smart and sophisticated, one cannot help but feel the need to keep up with all the latest trends of event organising. MarTina said delves into the tricky task of corporate event planning, which could head for success or disaster with one little detail.

THe rOad TO successful evenTs

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evenTsrange of events: the largest being the Republic Hall with a seating capacity of 1,400, and the small-est is La Cassière Hall which can take up to 60 persons. Each meeting hall is equipped with its own independent sound, lighting and climate control. The Centre offers attractive meeting pack-ages at reasonable prices; how-ever, we also offer tailored pack-ages according to clients’ needs, no matter the size of the event being organised. The key word for a successful event is qual-ity of service but this is primarily

achieved through excellent plan-ning and coordination.”

A critical factor that always plays a pivotal role in the suc-cess or failure of such an event is the catering. Veronica Zam-mit Tabona of Osborne Caterers says they are requested to cater for a variety of business events, “however besides in-house con-ferences held at Villa Arrigo, we also service coffee breaks and fork lunches in offices. The most common business events we cater for are business breakfasts at Villa Arrigo, where we offer a

modern style breakfast menu and coffee breaks with fresh fruit and home-made Danish pastries.” She adds that many organisers prefer to opt for the standard cof-fee breaks and fork lunches in order to enable the attendees to network with each other.

How do they go about catering for large crowds or small intimate groups? “For larger events, it is very important that the organis-ers inform us of the exact num-ber of attendees at least five days prior to the event. This will help us provide the correct amount

of food to be served on the day, and be more efficient and func-tional,” she explains. “As a word of advice, it is important to select experienced caterers for any event, in order to guarantee it is hassle free.”

IN CAPABLE HANDSIf the whole ordeal looks a little daunting and you’d rather leave the task in the capable hands of someone you could trust to orga-nise an event, then there is no harm in doing so. Anneliza Grech, Finance and Administration Man-ager at LEAD Training Services, forms part of a team of spe-cialists passionate about train-ing, with a common ambition to share learning experiences with people in the business commu-nity as well as with civil servants and civil society. “Our target audiences are the professional people working in various fields, who would like to keep abreast of new developments as well as obtain new knowledge relevant to their field of work. LEAD Train-ing Services offers a wide range of accredited courses both for the general public as well as on a bespoke basis.”

LEAD also organises team-building activities according to a specific company’s needs. “Staff events and team building activi-ties serve multiple purposes. The obvious purpose is that it serves as a time for staff to interact in a more informal manner prefera-bly at a place away from the usual office environment,” says Ms Grech. “Another more important purpose is to embed a learning activity in a fun way. LEAD Train-ing Services has developed a range of team building activities which allows delegates to partici-pate in activities which are enjoy-able but at the same time ensure that knowledge is imparted. The team building exercises are selected with care and tailored to meet the company's team build-ing objectives.”

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inTellecTual prOperTy rigHTs fOr eurOpean businesses in Malaysia

Although Malaysia’s legal system is fundamentally based on the British system, many differences now exist. Malaysia’s intellec-tual property (IP) laws are gen-erally in conformity with inter-national standards, particularly with regard to the amendments made due to Malaysia’s obliga-tions under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement of the World Trade Organisation (WTO). However, legislation is still evolving and there are many IPR issues that are important to be aware of. The following aspects are by no means exhaustive but give a good idea about some of the major IP issues foreign busi-nesses may face.

TRADEMARKSJohn Marrett, Policy Officer at the European Business Organ-isation, states that “trademark legislation in Malaysia is rela-tively advanced compared to many other Southeast Asia coun-

tries. For example, in enforce-ment proceedings ‘first use’ of a mark generally defeats ‘first to apply’. In other words, if a busi-ness holds a well-known mark that has not been registered in Malaysia it may still be able to take effective action against another party that has registered that mark in bad faith.”

He adds that, “a point to watch out for though, is that sepa-rate trademark applications are

needed for different product types when registering a mark. Malaysia does not have multiple class filing meaning you must file a separate application for each type of product (class) you wish to protect with the same trade-mark. Therefore, it pays to think carefully about all the types of goods and services that may be offered in the future by the busi-ness, as well as which types an infringer might consider using the trademark with.”

PATENTSIn Malaysia, as in Europe, a pat-ent is an invention that is new, involves an innovative process and is industrially applicable. Malaysia is party to the Patent Cooperation Treaty adminis-tered by the World Intellectual Property Organisation (WIPO), which means patents applied for by a business in the EU can be extended internationally. Accord-ing to Mr Marrett, “this can sim-plify the international extension

procedure for patents as formal-ities are done at a local European IP office, whereby the applica-tion simply needs to ‘designate’ Malaysia as a target country.”

COPYRIGHTSMr Marrett notes that “as in Europe, a creative work is pro-tected by copyright from the moment of creation. There is no formal requirement for the work to be registered in order for copyright to be claimed or

business

business agenda discusses with JOHn MarreTT, project Officer at the european business Organisation, the realities and prospects of intellectual property rights in Malaysia for european sMes.

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businessrecognised, however a copyright owner may voluntarily register their copyright in Malaysia.” He suggests, “registration is advis-able for foreign businesses as it can be extremely useful in enforcement proceedings – it acts as clear evidence of the ownership of a work. Addition-ally, copyright can act as a back-up to other IPR. For instance, a creative trademark image can be granted official copyright protec-tion too.”

ENFORCING IPRAlthough since 2007 Malaysia has had dedicated ‘IP courts’, Mr Marrett asserts that “however, it remains the responsibility of the rights holder to collect and prepare evidence of infringe-ment and prove ownership for all types of IPR enforcement. It is also advisable to collect all nec-essary evidence before any offi-cial proceedings begin – ‘new’ evidence presented during an enforcement action may not be accepted.”

For cases of counterfeiting and piracy, Mr Marrett suggests that “a complaint should be made to the Enforcement Division of the Ministry of Domestic Trade, Co-operatives and Consum-erism (ED). It should be noted that making complaints to the ED entails a commitment for a company or individual to assist the ED to investigate the com-plaint to its resolution. This may include attending court proceed-ings in the event that criminal prosecutions are initiated.”

STAY SAFE, THINK AHEAD…Mr Marrett notes that “there are very few European companies that would not take the issue of intellectual property rights (IPR) seriously in their business strat-egies, nevertheless there are issues that are frequently over-looked, and delaying action on these can compromise a busi-ness venture and potentially ruin a brand’s reputation.”

“Whatever the efforts of the authorities to continue to improve the implementation and enforcement of IPR in Malaysia, timely application by European businesses for grant and regis-tration of their IP rights is still crucial in order for companies to have a chance of defending and enforcing them. Thus the key to a successful IP strategy is taking action far in advance!” he con-cludes.

The ASEAN IPR SME Helpdesk is a European Union co-funded project that provides free, prac-tical, business advice relating to ASEAN IPR to European SMEs.

To learn about any aspect of intellectual property rights in Southeast Asia, visit our online portal at www.asean-iprhelp-desk.eu.

For free expert advice on ASEAN IPR for your business, email your questions to: [email protected]. You will receive a reply from one of the Helpdesk experts within five working days.

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‘blink’ – an Online direcTOry Of ecOMMerce service prOviders

a firsT sTep in Taking yOur business Online! a firsT in a series Of iniTiaTives, eManaTing frOM THe naTiOnal ecOMMerce sTraTegy

With the number of global inter-net users increasing year-on-year, the propensity to shop online is even greater. In fact, around 40 per cent of global inter-net users shop online. According to Payvision, global eCommerce is growing by 19 per cent each year. This is further corrobo-rated by Juniper Research which states that online retail is grow-ing at much faster rates than traditional retail, and further adds that mobile eCommerce is expected to grow at a much faster pace than other types of eCommerce. It is forecasted that around 580 million consumers will be purchasing goods and services online using a mobile device by the end of 2014.

The 2013 Eurostat data provides valuable insights into the eCom-merce activities of Maltese small to medium and large enter-prises. The indications are that Malta fares pretty much in line with the EU average, however, in terms of web-based sales, it still lags far behind the best perform-ing member states. In light of these statistics, the Malta Com-munications Authority (MCA) was tasked to draft, and subsequently implement, a national eCom-merce strategy spanning over a number of years, to support the take-up of eCommerce and the provision of eCommerce-related services by local busi-nesses whilst also addressing, at a high level, the prospects for

Malta to attract foreign compa-nies providing eCommerce or ancillary services to establish operations in Malta. This strat-egy, which further builds on the eCommerce actions outlined in the Digital Malta strategy, was launched for consultation dur-ing a press conference hosted by the Parliamentary Secretary for Competitiveness and Economic Growth.

The strategy sets out a suite of measures and initiatives to be undertaken by Government in collaboration with public entities and key stakeholders to ensure that entrepreneurs have the nec-essary means to capitalise on opportunities brought about by eCommerce. It also considers opportunities for Malta to attract eCommerce business providers to establish operations in Malta. This strategy was developed fol-lowing consultation with key representatives from public and private entities, which offered an insight into the difficulties that are holding back business from taking advantage of the benefits offered by web-based technolo-gies whilst making a number of valid recommendations which have been taken on board in the strategy.

One such project is ‘Blink’ – an online directory that provides easy access to all the informa-tion required by businesses wishing to take their operations

online. It is a practical resource purposely designed around a number of stages that reflect the different phases required to set up an online shop. In its efforts to be as exhaustive as possible in grouping all the services related to eCommerce provision, the MCA is aware that it could have missed out on some valid cat-egories and to this end it is open to any suggestions in this regard.

Blink complements and further builds on the Authority’s efforts to provide essential information to any entrepreneur interested in providing eCommerce services. In 2009, the Authority had pub-lished the eCommerce Guides for Business, with the intent of creating a one-stop shop of infor-mation for those who carry out, or consider undertaking activi-ties that fall under the eCom-merce Act. The purpose of these Guides is to provide information and to assist traders accordingly.

blink aims to build a solid database of business contacts and on this note, the MCA is at present inviting businesses and self-employed individuals who offer eCommerce-related services, to submit their details online via the link www.mca.org.mt/blink for listing on this directory, according to the categories selected in the online form. The information listed is on a voluntary basis and is completely free of charge.

business updaTe

creaTing a beTTer cliMaTe fOr businesses TO OperaTeThe setting up of a new Business Development Unit within the Planning Directorate is enabling the Malta Environment and Plan-ning Authority (MEPA) to provide a more efficient and business-oriented service, with a strong emphasis on reducing bureau-cratic procedures and increasing efficiency.

Over the past months the Authority introduced a number of new measures and initiatives to create a better climate for busi-nesses to operate and grow. One of the first measures is the sub-stantial reduction of fees when submitting a planning applica-tion. On average, planning appli-cation tariffs for a proposed commercial development have seen a 34 per cent reduction. To further encourage businesses to invest and regenerate our village cores, works associated with the restoration and rehabilitation of old buildings are exempt from a planning application fee.

To reduce red tape and bureau-cracy on development applica-tions, the Authority extended up until March 2015 the validity period of all expired planning development permits issued after 3rd August 2006. It also increased the validity period of a compliance certificate from six weeks to three months.

Over the past months the Authority has worked intensely on updating and enacting a num-ber of new planning policies, making them more pertinent to today’s realities. Such poli-cies which have a strong bear-ing on the commercial sector include the publication of a new

legal notice regulating the Use Classes Order, the Floor Area Ratio Policy regulating tall build-ings and the revision of the Hotel Height Limitation Policy. Other policies and plans that are rele-vant to businesses and are being updated include the Structure Plan and Local Plans, the Solar Farm Policy, the Development Control Policy and Design Guid-ance, and the Fuel and Service Station Policy.

A protocol aimed at addressing grey areas regarding accessibil-ity for people with mobility prob-lems has been agreed with the National Commission for Per-sons with Disability (KNPD). This protocol will facilitate that cer-tain commercial activities will be exempt from the ‘access for all’ regulations.

In the coming weeks, the Author-ity will further enhance the One Stop Shop concept, which will make the procedure and system for applying for a development permit simpler and cheaper.

Furthermore, MePA continues to welcome suggestions from the public and the business community on how to further reduce bureaucratic procedures and increase efficiency within the Authority. These suggestions can be made by calling the co-ordination unit on T: 2290 2005. For more information about the businessense measures and initiatives visit www.mepa.org.mt/businessense

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business updaTe

nOT yOur usual kind Of resTauranT Style is a word that immediately comes to mind when entering Palazzo Castelletti. From its impressive architecture, to the interior décor, to the very welcoming and polite staff and the high quality food, you will surely remain impressed with how well all these elements come together to offer patrons a memorable experience each and every time.

Palazzo Castelletti is a 17th-century building from noble origins in the heart of Rabat now converted to very high stan-dards into three different culinary con-cepts which one can find within the same palazzo, namely San Andrea restaurant, RedWhite Trattoria and Castelletti Salu-meria & Patisserie.

Surely the keynote flagship restaurant of the three is San Andrea restaurant which is not your usual kind of restaurant. Expect the best here in terms of food, service and ambience. Attention to detail is never enough and at San Andrea they adopt operating standards of procedures which ensure superb consistency every time. A case in point, it’s a must that once

the plate leaves the kitchen ‘Pass’ the quality of the food is guaranteed. Like-wise, the tables are set up to perfectly spotless crockery and cutlery.

Service starts from the parking at San Andrea restaurant as it also offers free Park & Ride facilities for its customers on weekends who are also greeted by a very welcoming customer host at the palazzo lobby.

It’s also interesting that at San Andrea the menu is changed every quarter and kept alive by the introduction of new dishes according to seasonality and culi-nary trends. As a matter of fact, the new autumn menu has recently been intro-duced and is a fusion of ingredients which are sure to tease the culinary taste buds of all good food lovers.

For reservations or more information call Palazzo Castelletti on T: 2145 2562 or M: 9910 9911 or visit www.palazzocastelletti.com. Group functions and events are also accepted.

MuscaTs MOTOrs exTend THeir bMW rangeBMW together with Muscats Motors proudly launched the new BMW 4 Series Gran Coupé together with the new X4. The launch event took place at the stunning Xara Lodge where these incredible models were displayed together with the remaining of the 4 Series family, which include the Coupé and Convertible range.

The 4 Series Gran Coupé is the first four-door coupé in the premium mid-size class that represents a consistent extension of the model range. Following the launch of the BMW 4 Series Coupé and Convertible, the Gran Coupé is the third model to join the new BMW 4 Series, which is longer, wider and more dynamic than any of the previous mid-size series due to the bal-anced proportions of the vehicles. The new BMW 4 Series Gran Coupé combines the sleek look of a two-door coupé with the functionality provided by four-doors and expansive spaciousness, including a wide-access luggage compartment. The smallest engines available for this model are 420i and 418d.

The other star of the event was the BMW X4. The new BMW X4 blends the hallmark features of the successful BMW X family with the sporting elegance of a classical coupé, and introduces the unique Sports Activity Coupé concept to the premium mid-size segment. Its dynamic pedigree

is underlined by a wide range of cutting-edge high-performance engines, the xDrive all-wheel-drive system and an exclusive spread of standard equipment features such as variable sport steering, Performance Control and a sports leather steering wheel with gearshift paddles. For this unbelievable model the starting avail-able engines include X4 xDrive 20i and 20d.

The starting price of the 4 Series Gran Coupé and X4 are ¤39,950 and ¤54,950 respectively. These prices include various options such as Bluetooth, front and rear parking sensors, and automatic air-con-ditioning, among many others.

For further information on these outstanding models, contact Muscats Motors on T: 2326 4582 or e: [email protected]. book your test drive today and experience the sheer driving Pleasure that these incredible vehicles have to offer.

Page 47: BUSINESS AGENDA Issue 20

47BUSINESS AGENDA | AUTUMN 2014

Page 48: BUSINESS AGENDA Issue 20

48 BUSINESS AGENDA | AUTUMN 2014