The forward-looking proposals aim at supporting businesses by reinforcing the private sector.
The Malta Chamber of Commerce, Enterprise and Industry met with Prime Minister Robert Abela to present the 2023 pre-budget recommendations which focus on proposals that aim at supporting businesses by reinforcing the private sector.
While presenting the proposals, President of The Malta Chamber, Marisa Xuereb emphasised how this document is forward-looking and was compiled after numerous consultation sessions with economic groups and business sections within The Malta Chamber.
President Xuereb noted how such meetings are “vital as they provide an opportunity to discuss current challenges while proposing concrete ways on how these can be surpassed.” She continued by saying that “such challenges can only be mitigated through policy that encourages smart investment in various areas such as innovation, infrastructure, good governance and energy and environmental sustainability.”
During the meeting, Prime Minister Robert Abela stressed the importance of facilitating local business and that government should be proactive in taking decisions that lead towards economic growth with new priorities, such as digitalisation and sustainability.
Abela also highlighted the need for a centralised data system which in turn aids in reducing bureaucracy as much as possible. Mentioning that Malta has just gone through the process of MoneyVal and FATF successfully, the Prime Minister emphasised the importance of having an environment which stimulates business investment and growth.
Accompanying President Xuereb were The Malta Chamber BOM; Deputy President Chris Vassallo Cesareo, Vice Presidents Liz Barbaro Sant and Nick Xuereb, Mark Bajada, Ian Casolani and Norman Aquilina together with The Malta Chamber CEO Dr Marthese Portelli and Head of Policy, Kevin Mizzi.
Ministers Clyde Caruana, Ian Borg, Silvio Schembri and Miriam Dalli, Parliamentary Secretary Andy Ellul, Government Deputy Omar Farrugia and the Head of the Secretariat at the Office of the Prime Minister Glenn Micallef, were all present during the meeting.
The Corporate Sustainability Due Diligence Directive being proposed by the European Commission will require companies to look into their current operational practices and processes.
Do we know what the Corporate Sustainability Due Diligence Directive (CSDDD) is all about? Out there, there is a mix up: 1. Some are thinking that ESGs are an extension of CSR. 2. Some are thinking that it is on a voluntary basis. 3. Some are thinking that it is still too early to start thinking of what needs to be done to implement it within their business processes. 4. Some are thinking that their business is outside the scope of the directive. More clarity and information dissemination is needed.
We, The Malta Chamber are totally in favour of creating long-term value through approaches that incorporate environmental, social and governance (ESG) dimensions, in addition to economic ones. However, there are a number of aspects which emanate from the Directive and in respect of which we need clear clarity and in no uncertain terms.
1. Whether it is applicable at individual company level or at corporate level 2. More clarity is required on jurisdiction with respect to the procedures and requirements applicable 3. Clear demarcation between the value chain and supply chain 4. What will happen if one of the countries with whom business is transacting makes it close to impossible to analyse the value chain 5. Lack of qualified assessors
The success or otherwise of this directive will depend on whether the EU institutions and national governments acknowledge and take into account the actual current preparedness level of our companies. It needs to be acknowledged that businesses are trying to catch a moving train. Targets imposed need to be attainable. It is also important to ensure that compliance translates into elevated standards and steers away from meaningless reporting which leaves little scope beyond paper reporting. The success or otherwise of this Directive will depend on whether it will be a driver for growth and competitiveness or whether it will be just another law which creates unnecessary impediments and excessive unjustified costs.
It is easy to understand why there was a need for the EU to propose the so-called Digital Services Act (DSA) especially when we look back to our internet usage habits ten to fifteen years ago. Through the years, e-commerce has been steadily increasingly in popularity changing the way consumers and businesses shop and do business as it provided greater opportunities to scale up and reach new markets. Those who were dragging their feet had to quickly acclimate to the world of digital services especially with the advent of the global pandemic, which confined people to their homes and made them predominantly reliant on online services. However, as it is usually the case, the more something becomes popular, the more risks and challenges arise. The dependency on digital services therefore makes it pivotal to have safeguards which ensure that consumers and businesses alike can fully utilise these services without the fear of being subjected to insurmountable risks such as exposure to harmful or illegal content.
Put simply, the digital single market is made up of very complex supply chains within which different actors interact in providing seamless consumer and business experiences, and the DSA aims to tackle just that. Fraudulent items are a burden not just on consumers but also on custom services as well as other businesses. To this end, the DSA is fashioned in a manner to counteract unsafe and counterfeit products at their source of sales. This flagging process will also be applicable to illicit online content such as targeting the exploitation of children.
The DSA will include EU-wide application on all digital services that have consumers involved, in removing illegal content as well as offering more protection for the rights of online users. To achieve this, obligations are to be set on different online intermediary services such as internet access providers, cloud computing services or webhosting ones, online search engines and online platforms such as marketplaces.
The DSA introduces measures aimed at hindering the trade of illegal goods and services or content online. This will be done through the facility of making it more accessible for users to flag such illegal content. Moreover, in the case of online marketplaces, it would become easier to trace business users. Other measures included within the DSA seek to empower users and civil society. Some examples of how this can be achieved is through user compensation in case of infringement of rights, the provision of greater access to data generated by the larger platforms to vetted researchers and NGOs, as well as increasing the transparency for online platforms in terms of having more clarity on the algorithms used in promoting content and products to users.
Other measures aim to assess and mitigate risks. The larger online platforms and search engines will need to undertake more comprehensive measures in decreasing risks for their users and the misuse of their systems through various means including audits. Given the weight and information these big platforms and search engines hold, the DSA also has mechanisms set in getting efficient reactions from these online sources in case of crises pertaining to either security or health. In minimising risks for minors, the DSA is to also include safeguards for minors especially in terms of the use of their personal data. Finally, the Commission will have a more defined supervisory and enforcement role in dealing with large online platforms. This means that both the Digital Services Coordinators and the Board for Digital Services will have a greater role to play.
Positively, micro and small enterprises are exempted from some obligations and have more time than other larger businesses to implement measures. The Commission will be further assessing the impact of new rules on small businesses.
The DSA will benefit businesses by providing the facility to easily flag illegal activities that are detrimental to their trade as well as have access to redress mechanisms. Start-ups and small businesses seeking to innovate can benefit from a level playing field created through the DSA. This balance is created through lower compliance costs making it easier to navigate the single market. Through the DSA smaller companies have a better opportunity to compete with larger enterprises thanks to the common and horizontal rules that will apply across the Digital Single Market. This harmonization makes it simpler for small companies to compete cross border and grow.
There is also an element of proportionality set within the DSA that ensures that the obligations set are applied according to the size of the business in ensuring that the incurred costs of this Act are proportional.
Apart from creating a level playing field, the DSA is even expected to set the example for third countries to follow in establishing standards for digital services. The DSA remains a first in the field of digital regulation and its underlying principle remains that was illegal offline is also illegal online.
The DSA is expected to enter into force later this year.
TeamAtlas will embark on a month-long programme of events to touch upon the various aspects of mental health, as this is a vital part of our overall wellbeing
Atlas Insurance will once again organise a series of events throughout October to mark Mental Health Awareness month, which will be open for members of staff, clients, and the general public.
On Monday 10 October, which is World Mental Health Day, The Malta Chamber Health & Wellness Committee, which Atlas sponsors and which is chaired by Atlas Healthcare Managing Director Catherine Calleja, will host a webinar entitled “Mental Wellbeing – A Priority for Your Business”. The webinar will include interviews, a panel discussion and interventions from experts on social, health and economic impact of adverse mental health on the workforce and on the workplace itself. Register here.
A series of other webinars will be made available for TeamAtlas throughout the month on different topics, such as dealing with behavioural addictions, building better romantic relationships and cognitive beliefs.
Later this month, Atlas will host a webinar with the global Employee Assistance Programme, ICAS, on Gambling Addiction as part of the European Safer Gambling Week, in order to provide leaders with the tools and awareness they need to support their staff.
“For the fourth consecutive year, TeamAtlas will embark on a month-long programme of events to touch upon the various aspects of mental health, as this is a vital part of our overall wellbeing,” said Catherine Calleja. “This year we will be once again be collaborating with the Malta Chamber on a conference for the business community, as well as hosting a webinar during European Safer Gambling Week 2022 to highlight the mental health risks associated with gambling,” she said.
“Mental Health awareness month is very much in-line with Atlas’ values and our own commitment to provide our team with a safe environment in which they can rest assured that their wellbeing will be looked after,” Calleja said.
Pre-Budget Proposals discussed included Pre-Budget proposals on New Builds, Renovation, Waste, Excavation and demolition, rating of building materials.
“The development and the construction industry must improve and evolve with full respect for Malta and Gozo’s heritage, history, culture, natural environment and well-being”, Dr Marthese Portelli, The Malta Chamber CEO said during a meeting which she lead.
Present for this meeting were Ing Patrick Spiteri Staines, Chair of the Energy Efficiency and Conservation Thematic Committee, Head of Policy at The Malta Chamber Kevin Mizzi and Policy Executive Ing Stefan De Marco. The delegation met with Minister for Public Works and Planning Stefan Zrinzo Azzopardi, to discuss Pre-Budget proposals on New Builds, Renovation, Waste, Excavation and demolition, rating of building materials.
During this meeting the following subjects were raised:
• improved communication efforts between BCA and the Planning Authority with the aim of better compliance and enforcement • moving towards NetZero buildings by increasing take-up of sustainable building materials • the current state of the Building Codes, Fire Regulations and Building Passport • the vital role of contractor licensing • the need for an education and awareness campaign highlighting legal requirements, in particular those regarding energy efficiency • the importance of ensuring that BCA has the necessary skilled and specialized resources
The theme of this year’s conference reflects the challenges that the sector has gone through, and still is going through, in Malta as well as in other jurisdictions.
The 15th FinanceMalta Annual Conference entitled “Learning from the past: Looking to the Future” will be held on 1 December 2022 at the Intercontinental Arena Conference Centre. This will be the first fully in-person and face-to-face annual conference to be organised since the pandemic and is considered to be the largest local gathering for the financial services industry. The conference will feature C-level executives from Malta and abroad, European Union policymakers, Maltese Government representatives, officials of global standard-setting organisations, renowned academics, researchers and more.
The theme of this year’s conference reflects the challenges that the sector has gone through, and still is going through, in Malta as well as in other jurisdictions. These include the ongoing COVID-19 pandemic, the FATF grey listing and eventual white listing, the Russia-Ukraine war and the rapid increase in inflation and cost of living. FinanceMalta’s event will focus on the lessons learnt but also will take a look forward and see how, collectively, Malta can continue to seize the opportunities for growth in financial services, amidst an ever-changing economic and regulatory environment.
FinanceMalta’s Chairman George Vella said: “It feels good to host once again, in a face-to-face format, our annual conference. It will be a great opportunity to analyse what has been another unprecedented year and, most importantly, to look into the opportunities for 2023 and beyond. We will do this with a line-up of excellent speakers and we look forward to providing, once again, a platform to discuss the future of the Maltese financial services industry.”
The annual conference will feature prominent keynote speakers from the Financial Action Task Force (FATF), the Organisation for Economic Co-operation and Development (OECD), the London School of Economics (LSE) Law School and more. Malta’s Prime Minister Robert Abela and the President of the European Parliament Roberta Metsola will be addressing the conference. The event will be chaired by Deborah Webster.
The annual conference will be opened by FinanceMalta’s Chairman, and the first panel session will be titled “A look at our lessons and achievements in 2022”. Ms Webster will moderate the panel discussion, which will include Dr. Helga Buttigieg Debono, Executive Head, National Coordinating Committee on Combating Money Laundering & Funding of Terrorism (NCC), the MFSA, the Director of the FIAU Kenneth Farrugia and MBR CEO Geraldine Spiteri Lucas as panellists.
Plans for the financial services industry for 2023 and beyond will be the main theme of a live panel session moderated by the Malta Chamber Chairperson Marisa Xuereb. Panellists for this session include Malta Financial Services Advisory Council Chairman Joseph Zammit Tabona, Economist Gordon Cordina and Institute of Financial Services Practitioners President Tonio Zarb.
Banking in Malta in the context of European regulatory developments will take centre stage in a panel session that will include Fabio Axisa, Chairman of the Banking and Payments working group within the MFSAC’s Action Committee; MBA Chairman Marcel Cassar; and MFSA’s Head of Supervision David Eacott.
In the afternoon, the focus will shift on to Sustainable Finance. A fireside chat will take place which will be moderated by financial consultant Steve Ellul, with the participation of Professor Andreas Hoepner and Gabriella Borda, Co-Founder Avvena – Sustainability and Decarbonisation Advisor.
The annual conference will then discuss Good Governance. Trust in the reliability of the financial system is crucial in order to contribute to the proper functioning of the economy and good governance is a prerequisite to build such trust. This theme will be debated in a panel session facilitated by Therisa Mallia, Lead, Policy, Advisory & Training, Anti-Financial Crime Department at Bank of Valletta. She will be joined by Carmine Di Noia, Director of the OECD’s Directorate for Financial and Enterprise Affairs; FATF President for 2020-2022 Marcus Pleyer; and Manfred Galdes, Managing Partner at ARQ Malta.
The conference will also delve into the topic of Digital Revolution and Digital Finance. The adoption of the European Commission’s digital finance package which includes a digital finance strategy, legislative proposals on crypto-assets and digital resilience, as well as a renewed retail payments strategy, will be discussed during this session. A fireside chat on these themes will be led by Wayne Pisani, Chairman of the Regulated Business Subcommittee at IFSP, who will be joined by Dr Phillip Paech, Associate Professor of Law at LSE Law School as well as GTG Advocates Managing Director Ian Gauci.
The closing session of FinanceMalta’s 15th Annual Conference will delve into how the sector can attract and develop talent, upskill and reskill the workforce, as well as retain existing talent. The final panel session for the day, moderated by Talent Advisor and Headhunter Fran Moisa, will include Matthew Vella, Permanent Secretary for the Ministry for Education, Sport, Youth, Research and Innovation; Identity Malta CEO Mark Mallia; Director of the Institute of Business Management and Commerce at MCAST Andrew Galea; and the Dean of the Faculty of Economics, Management & Accountancy at the University of Malta, Emanuel Said.
A networking event for delegates and speakers will be held on the eve of the annual conference, on 30 November, at the Magazino Hall in Valletta. The annual conference of FinanceMalta also offers the possibility to companies to increase their visibility through a number of sponsorship packages. For more information on the FinanceMalta Annual Conference, sponsorship opportunities as well as to register and benefit from the early bird offers, visit https://www.fmannualconference.org/
Special considerations needed to avoid additional burdens on SMEs within value chains
On Tuesday 4th October 2022, the Malta Business Bureau (MBB) held a business session on the EU proposal for a Corporate Sustainability Due Diligence Directive (CSDDD). This Directive complements several other EU Directives such as the Corporate Sustainability Reporting Directive and the Taxonomy Regulation that look to improve the Environment, Social and Governance responsibility of companies.
The business session was introduced by MBB President, Ms Alison Mizzi who stated, “Several companies already take steps to implement due diligence processes in line with the corporate responsibility to respect human rights and the environment. New standards can be beneficial if they can be reasonably implemented and if the legal framework is designed to incentivise positive impact instead of a culture of punishment. Homogeneity of due diligence requirements across the EU are also required to level the playing-field.”
Ms. Mizzi added, “European businesses do not operate in vacuum and are very much interlinked in the global economy. From a Maltese perspective, businesses operate from a small open island economy on the periphery of the continent with some permanent disadvantages that magnify the challenges compared to the ones experienced by businesses on the mainland. Therefore, while reiterating the openness for lifting standards and adhering to sustainability and human rights obligations, there must be the right balance between making these necessary reforms and safeguarding economic competitiveness, particularly for small and medium enterprises within global value chains, and especially during the current economic climate.”
Dr. Marthese Portelli, CEO of The Malta Chamber of Commerce, Enterprise, and Industry, shared The Malta Chamber’s views on ESG obligations from the Maltese businesses perspective. Dr. Portelli emphasised, “The success or otherwise of this directive will depend on whether the EU institutions and national governments acknowledge and take into account the actual current preparedness level of our companies. It needs to be acknowledged that businesses are trying to catch a moving train. Targets imposed need to be attainable. It is also important to ensure that compliance translates into elevated standards and steers away from meaningless reporting which leaves little scope beyond paper reporting. The success or otherwise of this Directive will depend on whether it will be a driver for growth and competitiveness or whether it will be just another law which creates unnecessary impediments and excessive unjustified costs.”
The event was addressed by Dr. Ivan Sammut, legal advisor to the Ministry of Finance who shared the Maltese Government’s views on this Directive and an update on the current negotiations in the EU Council. It was also addressed by Mr. Clint Flores, Head of ESG at Bank of Valletta, and Ms. Nadine Magro, Assistant Legal Secretary of Simonds Farsons Cisk plc, who discussed the due diligence obligations on businesses requesting finance as well as those that form part of the value chain of companies that will fall within scope of this Directive.
The Malta Business Bureau is the EU-business advisory office of The Malta Chamber and the Malta Hotels and Restaurants Association. The Malta Business Bureau is a partner of the Enterprise Europe Network.
More than 400 students took part in ‘Building a Financially Capable Generation’ course, organised by JA Malta and supported by the HSBC Malta Foundation.
The HSBC Malta Foundation has supported JA Malta’s ‘Building a Financially Capable Generation’ (BaFCG) foundational sessions aimed at improving financial literacy skills among young people. A total of 414 students, aged between 12 to 16, participated in the programme.
Experience has shown that students who do not opt for business-related subjects during their studies may end their education without acquiring the necessary financial literacy skills. For this reason, the BaFCG programme, which is a global initiative by JA Worldwide and HSBC, aims to help students acquire these skills through user-friendly material and hands-on activities which act as a catalyst for student participation. This global programme is in line with JA Malta’s objectives of empowering young people to own their financial futures. The more young people know about managing their money, including ways to earn it, how to spend it wisely, and how to save money, the more control they will have over their life, without making money the only driver.
Simon Vaughan Johnson, Chief Executive Officer of HSBC Bank Malta p.l.c, said: “Financial literacy skills are crucial life skills. The earlier people learn these skills, the more confident they become in managing their personal finances. The hands-on approach of JA Malta’s BaFCG sessions is aimed at reinforcing and strengthening students’ financial knowledge in a relaxed, fun environment.”
Matthew Caruana, Chief Executive Officer at JA Malta, said: “This project is part of JA’s ongoing commitment to improving the financial capabilities of young people. In line with our commitment to this mission, this project has enabled us to reach students and deliver engaging educational sessions in an enjoyable environment. We would like to thank HSBC and the HSBC Malta Foundation for their continued support.”
“The Board is trusting us to sustain and enhance the success of a group of companies on which the livelihood of 4,500 families and individuals depends,” says Robert Debono, newly appointed Group CEO”
The db Group’s Board of Directors has appointed four key officers to take forward its vision and oversee its execution. The move also marks a watershed in the family’s succession planning moment.
Robert Debono has been appointed as the Group’s CEO with a clear brief to continue to drive an already robust business and investment strategy and to consolidate financial success on all fronts.
Dr. David Debono, a lawyer, is the Chief Legal Officer overseeing all legal matters as well as those pertaining to HR and Alan Debono will be the Chief Procurement and Accounting Officer responsible for financial and purchasing policy and execution. Victoria Debono is now the Brands Manager in charge of nurturing and expanding the Group’s local and global brand portfolio.
Silvio Debono remains Chairman of the Board.
Robert Debono comments: “This is an exciting and humbling challenge for my siblings and myself. The Board is trusting us to sustain and enhance the success of a group of companies on which the livelihood of 4,500 families and individuals depends. It is also happening as the tourism industry and the economy are expected to get a post-pandemic reboot. The future looks bright and we are ready for it.”
Silvio Debono comments: “My wife and I gave our children the freedom to choose their individual paths in life. They took different ones which, as luck would have it, are converging at this very moment. I am convinced that they will continue to expand and deepen our Group’s vision and prudently execute it. As the Group’s chairman, I shall oversee this positive transition, ensuring that our strong financial standing is sustained and to see that our excellent track record remains extends to the future.”
db Group Performance
The db Group’s post-pandemic recovery is exceeding forecasts, with figures at March 2022 comparing well with those of March 2020, the last month before the pandemic struck. The March 2020 financial results were better than those of the year ending March 2021, the year in which the pandemic took its biggest toll. Accordingly, comparisons with the March 2020 benchmark, at the end of a record year for tourism in Malta, lead to a more balanced picture of the Group’s performance.
As it did during the financial crisis, the Group once again continued to invest even during the darkest pandemic months. Throughout, the Group maintained its position as Malta’s largest local hotel operator. New Starbucks outlets and two new restaurants, LOA and Sonora were inaugurated, the latter two after March 2022. This growth was also complemented with an extensive rebranding and modernisation programme of the hotels and their restaurants.
The strategy paid off as it did at the end of the 2009 financial crisis. It drove the uniquely fast recovery of the Group as the worst of the pandemic was put behind us. In March 2022 Group revenue stood at €40 million, just €20 million less than in March 2020. EBITDA in March 2022 stood at €24 million, just €3.5 million less in the same period.
Profit after tax in March 2022 was €10.5 million when compared to €12 million in March 2020. Capital expenditure in March 2020 was almost €8 million against a Capex of almost €5 million in 2022.
