Month: July 2023

Chris Vassallo Cesareo was elected President of The Malta Chamber at the end of March, after serving on its Council for 10 years. Here, he speaks to Rebecca Anastasi about his priorities for the next 2 years, and how he plans to continue bolstering the entity’s 175-year heritage.

In its 175-year  history,  The Malta Chamber of Commerce, Enterprise and Industry has grown to become the backbone of private-public business relations.    Indeed, the organisation has proven instrumental in ensuring that the Maltese corporate community, as well as its strong industrial sectors – manufacturing, retailing and service providers – flourish, weathering the storms determined by the economy.”

In March, businessman Chris Vassallo Cesareo, whose CV includes a 10-year stint on The Malta Chamber’s Council, and an established career as Managing Director at Domestica, one of Malta’s leading furniture establishments, was elected President for a two-year term.

“My background is in the small-to-medium business sector, with Domestica being a second-generation family business, possessing investments in retail, manufacturing and servicing, so I’m very aware and conscious of the challenges and opportunities facing similar businesses working within these economic pillars – which, actually, include most of The Malta Chamber members. The fact that I’ve also been working on the Council, and working closely with the entity’s former presidents, means that I can also follow in their good footsteps,” he smiles.

Indeed, his key priority is to more firmly entrench the deep roots already established by The Malta Chamber, which, Mr Vassallo Cesareo says, is fundamentally dependent on the work of those starting out their careers. “My intended focus is on the future generations of business leaders,” he continues, adding that he’s also the Chairperson of JA Malta Foundation, which provides training and mentorship to entrepreneurial youths. “It’s our responsibility to give a platform and the space to future generations to excel in their respective areas,” he insists.

This is done through the commitment to The Malta Chamber’s five pillars: economic growth and resilience; environmental sustainability; digitalisation and infrastructure; human capital; and good governance. “We champion these foundations, to make sure we continue to leave a legacy,” he says, explaining that integral to these principles is education. “I don’t believe we can afford to separate education from industry. The Malta Chamber can help create the future, bringing educational institutions in touch with local businesses so we open the doors of opportunity, with youths being able to establish a career, and not simply look for a job. We are looking at things holistically, and this is tied to a national vision for the country,” he says.

Good governance will be another of Mr Vassallo Cesareo’s core priorities during his tenure. “Once you have this in place, then you can be competitive. It comes naturally. We have written a document giving recommendations on how to strengthen Parliament, and another on how to establish better procedures for public procurement.  Through these, what we’re saying is that we, as businesspeople, are also looking out to ensure the work is done correctly. For instance, if companies are not in line with the law, they shouldn’t be awarded public tenders.””

Trust is a two-way street, he says. “It’s our duty to raise these issues, since it creates a healthier economy which is more conducive to conducting correct business. To be more specific, if a tendering process has been launched and company A, that has done everything well, and paid all its dues, is competing with company B, that has not paid its taxes, then this is an unfair advantage, since the latter will have more cashflow, for a start.”

Concurrently, The Malta Chamber is also suggesting a lobby register – a proposal which has been put forward to Government over the past few years – in which meetings with public officials will be declared within 24 hours after the meeting is held, with the minutes uploaded on a public forum, so “they can be read and debated. They should be available to the public,” Mr Vassallo Cesareo says, pointing out that “the proposals being made by The Malta Chamber are always tangible, structured and concrete recommendations,” and therefore, workable.

This approach is crucial if The Malta Chamber is to fulfil its mission of championing the interests of the islands’ economic sectors and lobbying the authorities to ensure the best possible economic, social and political environment for businesses to flourish. “We are aligned to these five pillars, but we are also finding new priorities, new pillars. Our job never stops,” Mr Vassallo Cesareo attests.

Indeed, in the foreseeable future, The Malta Chamber will be focusing attention on the challenges associated with recruitment and human resources; the ease of doing business in Malta; access to finance and cashflow; helping to resolve the kinks in the supply chain; and the issue of Government competing with the private sector.

Moreover, The Malta  Chamber  is  keen  to  aid  businesses capitalise on the opportunities offered by technology, including by partnering up with Tech.mt, a Government entity launched to help tech companies export their digital offerings. “With this partnership, we represent the private sector, and we encourage firms to internationalise their products and services,” he says, adding that all local enterprises should be cognisant of the opportunities inherent in using digital solutions to also do business away from Malta’s shores.

“We are involved in several projects such as DS4Air, which has now ended, but its goal was to help companies become more tech-oriented. And there are other such initiatives in the pipeline, through which we give free services to our members, in order to help them expand,”” he continues.

Rising inflation has also been of concern to local businesses and, as a result, to The Malta Chamber. “At the moment, inflation is at a 3.61 per cent increase, averaging at 3.55 per cent, so this has been of major concern to private enterprises, irrespective of their size, turnover or sector. In fact, we’re being asked for clarity on how this will be resolved moving forward. We know, for instance, that Government has been absorbing the increasing costs of energy, but what’s going to happen when these subsidies stop?”

In his view, “Government must see how it is going to ease the way for local businesses in this regard, and I’m sure if we handle rising inflation correctly, we can navigate it. We don’t want the Government to be handing out money to everyone, for instance – but to those who really need it to survive. And once again, if a particular business has not paid its taxes, it should not be eligible for Government aid. Therefore, our solutions are very much linked to good governance and the associated competitiveness,” The Malta Chamber President says.

Looking ahead, Mr Vassallo Cesareo insists that the future is bright. “We’re celebrating 175 years of being in operation, and we still stand for the ethical voice of business in Malta. We champion policies and represent good business, and correct business. We have a strong stake, and there’s a firm direction, which can give the local business sector courage and strength to navigate what comes our way,” he concludes.

This article was first published in the Business Now 2023 magazine.

EY Malta’s Industry Focus Sessions held in collaboration with The Malta Chamber have returned. The event was the first in this year’s series which leverages the insights of The EY Future Consumer Index in different sectors, The Malta Chamber’s experienced network, and the perspective of business leaders in the market.

This session focused on the retail sector. The aim was to continue exploring new avenues of opportunities to redefine the industry in an ever-evolving local and global market post-COVID. The move to digital meant larger markets and greater space for experimenting with the customer’s journey. As consumer preferences and behaviours continue to change further growth is being envisaged.

Dr Marthese Portelli, CEO of The Malta Chamber kicked off the event. She said that, “retailers need to fully reimagine their business models. Very few have taken or are taking the full plunge. Some retailers are choosing to retain the status quo, while others are responding with incremental changes. This passivity has resulted in reduced spending and insufficient investment in crucial areas.” Dr Portelli also emphasised three main areas which the retail industry must work on: Managing the skills shift; Adopting a more agile and omni-channel operating model and Embracing automation across their organisations.

Gilbert Guillaumier, EY Malta Strategy and Transactions Partner, and Gianluca Trapani, EY Malta Strategy and Transactions Senior followed up with a presentation of the local results of the 8th EY Future Consumer Survey against the backdrop of global insights. The survey highlighted that the key emerging trends which are affecting consumer behaviour and choices are affordability, accelerated digital adoption, focus on health, awareness of sustainability issues, and seeking experiences.

In fact, these five themes were among the foremost topics covered by the panel discussion including Norman Aquilina, The Malta Chamber Council Member and CEO of Farsons Group; Geoffrey Debono, The Malta Chamber Council Member and CEO of Debono Group Holdings Company Ltd; Alona Andruk, CEO and Founder of Take Off and BundleX; moderated by Theo Dix from EY Malta.

The panel discussion revolved around the importance of having customers as a focal point for a successful brand strategy. They spoke about the fact that companies need to be sensitive to what the market is telling them and it would be foolish to push premium brands to all the customers if they are not interested in them. The speakers emphasised that, we as retailers need to know what the customers’ needs and preferences are and to do so constant communication with your target audience is key. To obtain this the use of technology and digitilisation is fundamental.

In her closing remarks, Rachel Attard, Head of Communications and Strategy at The Malta Chamber said that, “This survey showed that consumers and retailers are vividly aware that this is a time of disruption. There is increasing pressure on profitability and return on capital. But at the same time there is a growth of opporunities, new opportunites, leading to a sustainable future.”

Key Findings and Observations

The study showed that growing concerns about affordability have led to a change in priorities from long-term, collective goals, towards shorter term, individual goals. This reprioritisation is driving behaviours such as cutting back on non-essential spending, exploring alternative brands to reduce costs, and becoming more sensitive towards wastage.

An extent of spending reprioritisation is seen between customer segments by income category, as lower/ middle income groups are indicating less expenditure on discretionary items, whilst high income earners are spending more on grocery deliveries, non-alcoholic beverages, and vacations in the coming months.

Customers are gradually starting to follow through on their intentions on the sustainability agenda by making incremental behavioural changes in this respect. Consumers are now demanding better information, easier access to sustainable products, and less confusion around sustainability claims of companies. Especially when considering that 61% of buyers now pay more attention to the environmental impact of their purchases with 51% also noting their societal impact.

Against this backdrop, the need for customer-centricity is not retreating, but accelerating as consumer expectations evolve, enabled by other factors such as increased transparency and choice, rapid technological shifts (especially in digital environments), mounting concerns and commitments around sustainability, and convergence between different sectors as retailers explore new ways to unlock value.

Way Forward

Inflation is showing no signs of slowing and consumers are concerned. Retailers must act in accordance with their customers’ changing priorities. Some retailers may find that passing on cost increases to customers can prove difficult and efficiencies in the cost structure need to be sought. Technology and digitisation of business processes can help in this respect. Customers also want more transparency around business’s sustainability goals and a better customer experience overall.

It may seem a tall order but those who are embracing adaptation are finding new areas of revenue which is helping them both survive and thrive. It is time to accept that the new normal is here to stay, and while the appeal of shopping pre-COVID is still around it will take more than that to convince patrons to buy.

“Education matters greatly for business. It matters for human capital; digitalisation; sustainability; good governance; and for the overarching goal of resilient economic growth. All this is key to maintaining Malta’s international competitiveness,” The Malta Chamber President, Chris Vassallo Cesareo, said in his opening speech during a conference organised in collaboration with HSBC Malta Foundation.

The Malta Chamber of Commerce, Enterprise and Industry organised a conference titled ‘Skills Rush: Have we missed the bus?’ which published the analysis and results of an exercise carried out by Prof. Alexiei Dingli and Prof. Rose Marie Azzopardi in relation to Human Capital and its transition from a local, European and Global context. This study was carried out through the Human Capital Research Project funded by the HSBC Malta Foundation.

The Malta Chamber President said that “we will remain committed to put the Education sector at the forefront of our work. Human Capital has always been one of Malta’s greatest resources and we are supporting this project because we believe in having an optimum workforce that can address future needs.”

Geoffrey Fichte, CEO at HSBC Bank Malta, noted that “given HSBC’s commitment to Malta, we want to raise awareness on an important topic that affects our customers and the community: Future Skills. At HSBC Malta, we are constantly investing in the long-term success of our people and our community. We need to ensure that our people have the skills needed for the jobs of the future. Therefore, we are supporting this 3-year project, which is being endorsed by the Ministry for Education, because it anticipates the skills needed to succeed and ensure Malta’s ongoing competitiveness in the global economy. Together with The Malta Chamber we hope that this project plays a key role in the formation of national policy in this area.”

Minister for Education, Sport, Youth, Research and Innovation Clifton Grima in his address said that “we need to equip our students with the necessary skills such as critical thinking and problem solving. The education system should be able to give our children the right tools that the future needs.”

AI Expert Prof. Alexiei Dingli together with Economist Prof. Rose Marie Azzopardi emphasised that in today’s fast-changing world, Malta is ready to make a big difference in education. “We need to create learning plans that are personalised for every student’s unique needs and talents, instead of a one size fits all. Tools like chatGPT can greatly help our learning process. It’s no longer about having access to knowledge but more about knowing how to use it in our tech-driven world. It’s also important to connect school learning with real-world jobs. We want our students not only to learn but to use this knowledge in everyday life. This means getting them comfortable with digital tools and technology from a young age. Malta’s current economic model is unsustainable.  We need to focus on quality not quantity, evaluate the high level of skills mismatch in the labour market, aim for a skills anticipation strategy, consider reskilling and upskilling as an ongoing process and work to ensure we implement the strategies, we as stakeholders decide upon together. We need to act before it is too late,” they said.

In her closing remarks, Dr Marthese Portelli, The Malta Chamber CEO, said that “our economy depends, directly and intrinsically, on a high standard of education in order to enable us to broaden our intellectual capital through successful human resource growth. For this reason, education must be continuous, relevant and attractive. The bottom line in education is not how much money we spend, but on what we spend it and how we spend it.”