“The pandemic hit us, especially our hospitality arm, however, looking back I feel we were resilient to the changes that came about when the world ground to a sudden halt” begins von der Heyden. “It was somewhat of a blessing that we sold one of our biggest developments to date, the Blue Tower at Bavaria Towers in Munich, literally just three weeks before Covid hit. Whether by pure chance or from effective planning, timing has been integral to the Group’s thirty-three-year success. Of course, for business leaders everywhere, there are great lessons to be learnt from the Covid years. Since our successful survival back in 2008-2009, we have remained agile as ever and kept a close eye on changes in the market”.

Did the Group change their strategy during the pandemic? “Our focus has always been in delivering exceptional quality, in the case of office developments, we are aware others can turn around buildings and office spaces at a cheaper cost, but this isn’t what Von der Heyden Group is about. It’s our intention to create high-end and desirable developments from the intelligence to a buildings’ sustainability, places where the world’s best workforces want to be”.

The Von der Heyden Group has a reputation in Europe for developing high-end assets with quality finishes and achieving record multiples for several award-winning projects. The Group’s proven track record in delivering landmark developments in prominent cities is testament to its legacy in real estate investment.

“Our work speaks for itself. The recent Andersia Silver project in Poznań has attracted global multi-national companies to apply for commercial space, even before the work has commenced overground. “We do not depend upon or push for presale leases to be signed. “Simply, we want the best clients at the right time” explains von der Heyden.

The state-of-the-art building is currently in the final development phase at Anders Square, in Poznań, with an estimated total investment exceeding a quarter of a billion euros. The completion of Andersia Silver is expected in 2024/2025.

 “Our proven track record for creating incredible destinations, such as the creation of Poznań’s financial district, is testament to this. 26 years ago when we were entrusted with the first project, it was the first time a private entity such as ourselves and the local government there had joined forces, and living proof the private and public sectors can work together symbiotically, honestly and harmoniously.”

Von der Heyden Group’s Andersia Silver project has recently headlined Poland’s real estate news in commencing its above-ground works and in holding its cornerstone building. The high-rise building will be the highest skyscraper at 116m and marks the fourth and final phase of Von der Heyden Group’s development and co-investor partnership project with the City of Poznań after the development of three other award-winning commercial buildings: Poznań Financial Centre, the Andersia Tower and the Andersia Business Centre, which were completed in 2001, 2007 and 2012 respectively.

Designed by world-class architects Ewa and Stanisław Sipinski, Andersia Silver will stand 26 storeys high with three underground floors, catering for over 244 parking spaces. The multi-functional commercial building will have almost 40,000 square metres of usable area and host prevalent office space.

Not one to rest on their laurels, the Group’s trusted reputation in new and emerging communities has enabled the Group to enter three new markets, including Algarve, Portugal, Reževići (Budva), Montenegro, and establish an investment in the renovation of one luxury villa in Tuscany and a future 5 *Hotel in Italy with another luxury villa planned in Menorca, Spain. 

“The old saying ‘Location, location, location’ – really is absolutely everything for us”, explains von der Heyden “Unlike many developers, we really don’t like to rush into things. In fact, rather the opposite, we are prepared to wait for the perfect opportunity in the perfect place”. Locally, the Von der Heyden Group is renowned for the revival of Malta’s 16th Century fortress Macina on the water’s edge, a landmark that gave Senglea its winning name during the Great Siege, ‘Citta Invicta’, an unconquered city. This building is today, the Cugó Gran Macina Grand Harbour Hotel in the heart of the three cities. Whilst standing as the Group’s flagship luxury boutique hotel in its hospitality arm, the establishment also hosts Hammett’s Macina, a three-time Michelin-recommended restaurant headed by award-winning restauranteur Chris Hammett in its catering arm, as well as the popular Sheer Bastion wedding and events venue.

What’s next for the Group? “We are always looking towards the next iconic project, wherever and whenever that may be. We are passionate about rehabilitating and renovating historical buildings and giving them a new lease of life. As for Malta? Well, all I can say is there is certainly some exciting news on the horizon… watch this space!”

“Our focus has always been in delivering exceptional quality, in the case of office developments, we are aware others can turn around buildings and office spaces at a cheaper cost- but this isn’t what Von der Heyden Group is about” – Sven von der Heyden

The post Building on success first appeared on The Malta Business Weekly.

The Santa Marija festa weekend proved a popular destination for many this week; however, tourism figures are not yet at pre-Covid figures, explained Joe Muscat, Chief Executive Officer of the Gozo Tourism Authority, to The Malta Business Weekly.

“From initial reports that Gozo Tourism Association has received from the local tour operators, I can say the Santa Marija weekend on the island was a very good one. Naturally, it is expected during this time of the year, being the peak of the season; however, this year, it was bolstered by the Santa Marija Feast falling on a Monday. In fact, accommodation providers reported occupancy levels  in the region of 93% to 95% during the current and past days.”

With many businesses on summer shutdown, popular booking sites such as Booking.com state that 97% of accommodation within Gozo is unavailable for the upcoming weekend.

Muscat continued, “The accommodation establishments noticed increases in arrivals on 2021 from the foreign tourists, whilst some establishments reported less domestic tourists than last year. This was expected since 2021 was a record year for the domestic market in Gozo, whereby an increase of 61.9% was registered on 2019. This was due to several travel restrictions in place to mitigate the spread of Covid-19, a factor which deterred a lot of Maltese from taking their holidays abroad.”

Muscat said, that 2022 is still a year of recovery from Covid-19. As for whether foreign tourism has compensated for the fewer Maltese people in Gozo and if the shift will mitigate the impact on tourism, he said that this question has yet to be answered.

“It is a reverse situation compared to last year.” He said that while last year more Maltese and fewer foreigners visited, this year fewer Maltese than in 2021 but more foreigners visited. During the current year, after such travel restrictions are no longer in place,  it is evident that the Maltese are opting for their summer breaks in overseas destinations. Overall, we expect that 2022 will end up better than 2021, although the figures registered in 2019 are not forecasted to be attained.”

Asked about feedback from restaurants in Gozo, Muscat said that inflation has affected spending by tourists, as restaurants have had to increase prices for food.

“People are more wary, and more intelligent in spending money at restaurants due to inflation. The feedback from restaurants has more or less been the same as previous years, however inflation will affect the tourists in these restaurants, and how much they spend,” Muscat said.

Gozo Channel Chairman Joe Cordina reported to the media that around 46,000 people travelled to Gozo over Santa Marija weekend, typically one of the busiest weekends of the year for the sister island. Approximately 11,000 more people made the trip to Gozo this year. While Cordina was satisfied with the numbers, he also noted that they still hadn’t reached record levels in 2019 when around 50,000 people visited Gozo, TVM reported.

The post Gozo occupancy 93-95% over Santa Marija weekend- GTA CEO first appeared on The Malta Business Weekly.

The future of the Maltese economy can be transformed by corporate investment in sustainable finance, explains Steve Ellul, a leading chartered financial analyst and government advisor to the Ministry for Energy, Enterprise and Sustainable Development.

Speaking to this newsroom, Ellul discussed the many barriers faced locally in reaching green EU targets and carbon neutrality. “A huge change in mentality is required even at a corporate level for us to make strides in the right direction; business models need to change. Quite simply, those that do not make such changes towards sustainability are running on a short expiry date.”

Ellul explained recent research conducted by the ministry had identified those Maltese companies that have incorporated and invested in sustainable business fare considerably better than those that have not. Such plans may include an effective ESG programme.

“Locally, there is still an element of confusion about ESG (Environment, Social, Governance), and CSR (Corporate Social Responsibility). ESG needs to be deeply ingrained into a company’s culture at the decision-making level and work as the compass of an entity. It is not the responsibility of a marketing team,” explained Ellul.

Environmental, social, and corporate governance is an approach to evaluating the extent to which a corporation works on behalf of social goals that go beyond the role of a corporation to maximise profits on behalf of the corporation’s shareholders.

“We are noticing that younger generations entering the labour market are seeking companies with a strong commitment to ESG values. Today, society has increasing expectations of the role businesses should play in tackling some of the world’s biggest challenges.

As such, corporate sustainability is about creating long-term value by implementing strategies that incorporate environmental, social and governance (ESG) dimensions and economic ones. The environmental pillar can include everything from effective water consumption, electricity use, pollution and waste. The social aspect incorporates everything from a company’s labour practices, investment in people, upskilling, health, and safety. From a governance perspective, topics such as gender pay equality, diversity, tax transparency and executive pay are discussed, forming an integral part of an entity’s sustainability plan.

Tackling this shift is no easy feat, explained Ellul. “We have many obstacles to overcome in convincing shareholders, various stakeholders and C-levels that this is the best way to do business, and not only that- future proof a business. Incentives, for example, need to target the equalisation of costs , for companies to switch to building a new office in a smart and greener way. It may cost more in the initial outlay; however, the running costs long term would be considerably less than a building that is not sustainably designed. All sectors can benefit from such a shift, according to Ellul. However, the construction industry can really transform itself with huge green potential.

“We all feel the construction sector is damaging the environment. Though, if we invested in sustainable and certified green buildings, we could entirely overhaul our landscape and create a greener Malta. Such projects have been a roaring success overseas.”

Such initiatives to pave the way for a greener Malta include the issuing of Green Bonds, which can finance net-carbon buildings by incentivising investors to invest in greener rather than conventional projects through a lower tax on interest paid on such bonds. This can be further supported by fairer taxing eco materials.

“We can meet these EU targets, but we need to make huge changes today, including primarily how and where we invest our money,” concluded Ellul.

The post ‘The key to the future is leaner and greener’ – Steve Ellul first appeared on The Malta Business Weekly.

Thynk’s Founder and CEO, Marlon Grech and around 30 of his team will join forces with global organisation RightShip when the acquisition completes over the next month. Grech will also become RightShip’s first Chief Technology Officer.

Speaking to The Malta Business Weekly, Grech explained, “This is a significant landmark for Thynk; however, one of more a natural progression as the two organisations have been working closely for years. It just felt like the right thing to do. We are all looking forward to the opportunities coming our way as part of the RightShip global team.”

RightShip CEO, Steen Lund added, “I agree entirely with Marlon’s sentiments. I am delighted we are in a position where we can announce the acquisition of Thynk Software’s maritime tech business and that Marlon and his team will join RightShip. This is a critical strategic development for RightShip as we gain our own in-house technology competence that will underpin our long-term growth objective of being an industry-leading ESG-focused digital maritime platform.

Both organisations clearly have the same vision and are passionate about implementing zero-harm practices in the maritime sector. Grech explained, “This is a subject we are both fully aligned about, and a topic we very much connect upon as we enter into this new acquisition”.

Founded in October 2013, Thynk defines itself as having a “passion for software, innovation and building products that improve users’ everyday lives”. Grech brings with him decades of experience from top IT firms overseas. Marlon was based in London, working on cutting-edge FinTech solutions for the world’s biggest banks and investment institutions before setting up Thynk locally.

RightShip is an ESG-focused digital maritime platform providing expertise in global safety, sustainability and social responsibility practices. With the mission to drive operational improvements in the worldwide shipping industry, more than 3,000 people use RightShip’s due diligence, environmental and inspections services to help them manage risk and improve overall maritime safety standards. Steen Brodsgaard Lund joined RightShip as CEO two years ago and has over 30 years of experience in the maritime industry. He spent 21 years with A.P Moller Maersk, responsible for the Maersk Line network in the Americas, Oceania, Asia, the Middle East and Africa.

He was also the Executive Vice President and Head of Asia Pacific for Germanischer Lloyd. Following the creation of DNV GL in 2013, he returned to Singapore to lead the regional operation of the newly merged company until 2017. Lund subsequently headed Radio Holland’s activities in Asia and, since early 2019, served as CCO and CDO at Executive Ship Management. Lund is an ardent advocate for the digitalisation of the maritime industry.

The two entities were working together harmoniously prior to  the acquisition. RightShip launched its innovative Platform 18 months ago after close collaboration with Thynk. The market and customers have widely accepted the new platform, demonstrating a degree of dependability upon which RightShip will capitalise.

Lund concluded, “Over the past 20 years, RightShip has grown purely organically worldwide. This new acquisition provides RightShip with an exciting opportunity to solidify our foundation as a digital product builder. Having the ‘ready-made’ technology expertise that Thynk bring allows RightShip to secure increased value for our customers allowing us to grow faster than if we built this capability internally, from the ground up.”

The post RightShip acquires local Maltese software firm, Thynk’s Maritime Technology business first appeared on The Malta Business Weekly.

“The feeling is of unimaginable anger and frustration, and at the same time, absolute helplessness is soul destroying,” Bezzina said. She said that the culprit must be caught. Bezzina appealed for whoever spots the dog to contact the Commission so that they can check if it is chipped and figure out a definite cause of death, something we urge all readers should see the poor thing to do. It’s imperative to find out who could cause such suffering to an animal, one we would presume was killed in such a barbaric manner. Dear readers, don’t hesitate to get in touch with the Office of the Commissioner for Animal Welfare on 2292 8618; if you have any information, they have said the person reporting any information could choose to remain anonymous.

As a collective nation, it is for each and every one of us to remain vigilant for such incidences of abuse or neglect and feel comfortable reporting without fear of repercussions. Whether it’s something as utterly horrific as this dog at sea or chained dogs left out in the blistering sun. We can all do our bit to help animals too. We all know temperatures are peaking and that we share our islands with thousands of stray cats.

Hundreds of kind-hearted souls trap neuters and release these felines with minimal financial backup and limited neutering vouchers each year. Volunteers feed the cats daily and tend to their needs, trying their best to rehome kittens and curb populations from escalating out of control.- Although some may already feel that they are. Government must step in more to help.

This week,  Parliamentary Secretary for Fisheries, Aquaculture and Animal Welfare, Alicia Bugeja Said uploaded a Facebook post offering neutering vouchers, yet more vouchers are needed, and desperately so.

Help with food, sheltering and medications is required at a minimum and more government intervention is required, how can it be millions are spent on bridges, flyovers and continuous development, yet we cannot help Malta’s stray populations?

Mahatma Gandhi famously said that “the moral progress of a nation and its greatness can be judged by how it treats its animals”. If that’s the case, let us pray someone is looking at Malta’s most vulnerable stray populations and trying to find solutions to support, fast- both for the cats and the volunteers who give up their spare time to help when others so quickly close their eyes and walk on by.

The post Editorial: Animal welfare is everyone’s business first appeared on The Malta Business Weekly.

You have recently been elected chair of the Malta Bankers’ Association for the coming term, what do you hope to achieve during your tenure?

They are very challenging times. An economy recovering from the pandemic, war on the doorstep of Europe with serious side-effects, interest rate normalisation and inflationary pressures, plus competition on banks coming from various directions, including tech disruptors and how regulators and supervisors are reacting to all this. Then our local spotlights, like how the banks can improve their approach to better serve the needs of our families, businesses, etc., strengthening Malta’s reputation, ensuring sustainable economic growth …. quite an agenda!

You will also represent the entity on a European level. What topics do you hope to bring to the fore with the European Banking Federation (EBF)?

Unsurprisingly perhaps, there’s a lot in common between our agenda and that of the EBF. Last week I was in Frankfurt for an annual dialogue meeting that brings together the EBF and the ECB, and many of the above challenges resonated right across big and small banks all over the continent. A general feeling is that Banking Union is still far from realised and European banks are at a competitive disadvantage with the US, and the ripple effects also reach our shores. Add to that the need for regulation to be proportionate and overall supporting economic development.   

Many feel there is a huge skills gap in Malta when it comes to specific roles in finance and banking, is this true?

Yes, there is a skills gap. Not sure if it can be described as ‘huge’ but certain segments and specialisations in the financial services industry are lacking more than others. These include Risk Management, Compliance, Technology, Cyber Security, Digital Innovation, Financial Regulation and Sustainability. But I would say that general upskilling is required in other areas too, even the more ‘established’ roles.

If so, how can we address this?

It must be multipronged, timely and across various levels. Starting with academic education at University and MCAST and, as importantly, ensuring the availability of training programmes that specifically address the skills gap. The opportunities are endless, with online tuition, webinars and similar web-based resources. Equally important is the need to have persons with expertise and experience ‘imported’ to Malta, which is how skills and talent are transferred particularly given our limitations as a small financial centre. And that also requires the financial services industry to grow and develop more.

Malta recently shifted itself off the grey list, are we out of the woods? What lessons can be learnt from this? What is the next step?

There are emerging areas of high AML risk to watch out for. Geopolitical tensions, disruptions in trade and supply-chains and Covid-19 vulnerabilities where government funds and international financial assistance risk being exploited or misdirected, are all fertile ground for criminal activity. Add to that the increased use of crypto-currency, bypassing of sanctions regimes and cyber-attacks. Other phenomena at a more domestic level include real estate development and so-called reputation laundering, usually to be found in large-scale fund-raising, entertainment, and sports events. Above all, we need to protect our reputation jealously.

Beneficial Ownership (BO): How big of a problem is it in Malta and what are the reasons why people would hide their ownership of companies?

Lack of accurate company ownership information and deficiencies by those obliged to obtain such information were key contributors to Malta’s greylisting. Concealment of beneficial ownership is always a red flag for potential criminal activity, tax evasion and money laundering, especially when accompanied by complex corporate structures and use of jurisdictions known for weak regulatory enforcement. But there can be plausible reasons why people would want to cloak beneficial ownership, such as children and particular family situations. I would say that the problem in Malta was about international companies making use of our jurisdiction, rather than business firms owned by locals.  

Money-laundering prosecutions have certainly increased, but have they increased enough?

Clearly, we are seeing more prosecutions but I do not have statistics against which this can be measured to say whether it is ‘enough’. However, money laundering prosecutions are only one cog in the wheel. There is a whole chain of suspicious activity reporting, follow-up and enforcement actions that need to work together, across the entire spectrum of subject persons, from which successful prosecutions can result. This also requires education, awareness and the possibility of new instruments such as investigations into unexplained wealth.

Are Malta and local banks doing enough to keep up with a consumer shift towards digital banking?

The banking landscape has changed and the move to digital is irreversible. While the shift is not unique to banking, FinTechs, like Revolut and Klarna, and the BigTech platforms, from Amazon to Tiktok, are entering the financial services value chain without actually becoming ‘banks’. This is redefining ‘banking’ and creates an awareness to look at tech firms as partners besides competitors. Maltese banks are at different stages of their digital transformation journey and keeping abreast of consumer trends is the new constant.

Marcel Cassar joined APS Bank as CEO in January 2016. His career started in 1987 with Price Waterhouse Malta, followed by MIBA/MFSC, now the MFSA (1991-1996). He was General Manager at Lombard Bank Malta p.l.c. (1996-2004) and First EVP and CFO at FIMBank p.l.c. (2004-2015). He currently occupies the position of Chair of the Malta Bankers’ Association (MBA) and has also previously served on the board of the MBA, including as Deputy Chair (2017-2018) and Chair (2018-2020), leading to a seat on the board of the European Banking Federation. Mr. Cassar is a CPA, a Fellow of the Malta Institute of Accountants, holds an MBA from the University of Wales and Manchester Business School (1995) and has lectured and supervised in the M.A. Financial Services course at the University of Malta.

The post The banking landscape has changed, the move to digital is irreversible – MBA Chair first appeared on The Malta Business Weekly.

In April, the annual rate of inflation as measured by the RPI was 5.67%, up from 4.43% in March of this year. The annual rate compares inflation in a particular month with the same month of the previous year and could be influenced by seasonal effects.

The report identified that the highest annual inflation rates in April were registered in Housing (15.06%) and Food (9.19%). On the other hand, the lowest annual inflation rates were registered in Water, Electricity, Gas and Fuels (0.00%) and Clothing and Footwear (1.92%). It also noted the largest upward impact on annual inflation was registered in the Food Index (+1.98 percentage points), largely due to higher prices of take-aways.

 The second and third largest impacts were measured in the Housing Index (+1.19 percentage points) and the Recreation and Culture Index (+0.62 percentage points), mainly on account of higher prices of house maintenance services and hire of premises, respectively. An impact is a measure showing the change in inflation as a result of the inclusion of an index. Such an impact takes into account both the weight and the annual rate of inflation by group.

The RPI measures monthly price changes in the cost of purchasing a representative basket of consumer goods and services and is closely linked with the Cost-of-Living Adjustment (COLA) increases and periodic rent payment adjustments. A closely related measure of price movements is the Harmonised Index of Consumer Prices (HICP). The RPI focuses on private households only whereas the HICP covers private households, institutional households (such as retirement homes) and foreign visitors to Malta.

Back in February, the country’s Central Bank warned the projected annual inflation in Malta would accelerate in 2022, reflecting higher prices for services and food. In its publication Outlook for the Maltese Economy 2021-2024, the Central Bank of Malta said it had revised its inflation predictions upwards by 0.7 percentage points for 2022, to reach 2.7%.

“The upward revision in 2022 reflects stronger than projected inflation outcomes in recent months, as well as the intensification of import price pressures brought about by global supply-chain disruptions. It also reflects the increase in prices of several food items during the start of the year,” the bank said in its report.

The rise in food prices is projected to continue in 2022, largely due to higher inflation for unprocessed food. Processed food prices are also expected to increase sharply, reflecting the indirect impact of higher energy prices and poor harvests globally. The bank also warned that retailers are expecting to raise sales prices. However, import price pressures are expected to gradually normalise over the course of the year “as the current mismatch between global demand and supply dissipates”.

The post Food prices soar as April inflation hits 5.67%, NSO figures show first appeared on The Malta Business Weekly.

“Certainly, we can expect this to affect the business community, as banks are treading very cautiously when it comes to lending; we will see buyers looking for credit from trade suppliers and other means of borrowing. Businesses need to proceed with caution to mitigate risks. After all, we know credit costs money.”

Busuttil explained the current scenario: “At present, we already see interesting shifts in patterns. In a recent survey at MACM, we identified the Average DSO – Days Sales Outstanding, also referred to as ‘the payment collection ratio’ across all the Maltese business sectors as of 31 December 2021, was 84.60 days. MACM notes that there has been an increase of 4.92 days compared to the previous year’s DSO figure, which stood at 79.68 days. It must be noted that a DSO of 84.60 days is still relatively high when compared to the average DSO of other European countries, which reads 52 days for B2B, 31 days for B2C and 62 days for the Public sector (Intrum Justitia Late Payment Report – 2022).

“I believe advances in technology, such as digital payment solutions, will be integral for ensuring suppliers are paid in a timely manner. Unfortunately, we are still experiencing issues with a heavy cheque and cash dependency here in Malta. One key way to help our creditors in the business community is by encouraging them to continue thorough due diligence and KYC checks.”

On the subject of how can businesses help reduce the risks associated with lending, Busuttil continued: “At MACM, we have recently announced a strategic partnership with Infocredit Group, a leading provider of business intelligence and innovative risk management solutions. This partnership is equipping MACM with an additional service offering for Maltese businesses.”

The Infocredit World Platform is designed to provide access to the members of the MACM network, allowing them to search Corporate Data for more than 200 million companies worldwide and order an investigation report at preferential prices.

MACM and Infocredit Group will provide high-quality and cost-effective credit and compliance solutions using the latest cutting-edge technologies through a shared common vision. As a result, local businesses dealing with foreign suppliers and clients will be able to purchase International Credit Reports on companies registered anywhere in the world. These reports can assist Maltese businesses in trading diligently and securely with foreign companies, as they can provide sufficient, accurate and reliable data for confident decision-making and strategic thinking.

“This step is a landmark for our entity. The Maltese business community will also be able to comply with AML regulations and gain access to comprehensive KYC and Enhanced Due Diligence reports. These reports will offer critical insight and analysis to assist members in leveraging their money-laundering risks during client onboarding or before entering new business relationships. Additionally, certificates and official documents can also be obtained,” concluded Busuttil.

The MACM, set up in 2001, is a member-owned, not-for-profit organisation made up of Maltese organisations hailing from different sectors of the Maltese economy. Today, MACM represents a substantial share of the Maltese economy. Moreover, the major players in the various Maltese industries are members of MACM. The mission of MACM is achieved by several actions, including fostering and facilitating the exchange of credit information; encouraging efficient service in the collection of amounts due;  disseminating valuable and instructive articles and ideas concerning credit management techniques; promoting economy and efficiency in the handling of estates of insolvent, distressed or bankrupt debtors; promoting, supporting or opposing any legislative or other measures which impact the aforesaid interests represented in these and other developments.

The post ‘We can expect a rise in credit requests’ – Josef Busuttil, MACM first appeared on The Malta Business Weekly.

The intervention is timely. A report in 2020 identified marine science and ocean literacy topics were poorly represented in school curricula across the world and called for an integrated approach starting with the youngest students, supported by additional training for teachers. Mokos et al., 2020 define ocean literacy as understanding the ocean’s influence on people and people’s influence on the sea. It is an emerging need necessary for ensuring the sustainability of the sea and its resources. The UN has declared a Decade of Ocean Science for Sustainable Development, and one of the priority research and development areas is ocean literacy. How are we, in Malta, fitting into this? These are the questions we need to be asking.

The ocean influences weather and climate and plays a significant role in mitigating the worst effects of climate change by absorbing, moving, and storing heat and carbon. The ocean has captured more than a quarter of human-generated CO2 – up to 2 to 3 billion tonnes a year. According to WeForum, Earth would be uninhabitable to humans; most of the oxygen in our atmosphere originated in the ocean without the sea. Today, 80% of it is produced by phytoplankton – microscopic marine plants that drift across the sea. Wouldn’t it be great if the people helping to tackle climate change, the people working to make a difference and create new and sustainable ways of working in the maritime sector, were a generation we had helped educate about such topics along the way? We cannot assume such knowledge on such crucial issues is readily available to all; we know that is not the case.

From an economic point of view, the maritime industry continues to be a mainstay for Malta’s continued growth and development, and the country must ensure it remains so in a post-Covid 21st-century world. Unfortunately, as also identified by the MMF, the industry suffers from an “out of sight, out of mind” situation – hence the general lack of awareness about its importance. Indeed, most of the economic activity performed by the industry happens out at sea or in the confines of the Maltese harbours and immediate hinterland.

Nevertheless, as part of its mission, the Malta Maritime Forum strives to “fly the flag” of the entire industry, which also includes port and terminal operators, vessel towage providers, ship agencies, bunkering operators, pilots, tank-cleaning facilities, docking operations mooring personnel, dockers, cargo hauliers, professional services providers and suppliers of yachting services, among many other activities.

Ultimately, for an island country surrounded by sea, we must come together and work on refreshing the sector’s image as an industry where many can work in Malta and make a positive change.

The post Editorial: The need for ocean literacy first appeared on The Malta Business Weekly.

“I was recently honoured to open a seminar organised by the Malta Maritime Forum (MMF) and the WestMed National Hub for Malta which discussed the very topical subject of theskills gap which is currently afflicting the Blue economy. The seminar, which was aptly held on World Maritime Day, was aimed principally at suggesting concrete and lasting solutions to the very thorny issue of skill shortages in the industry which has acted as a serious bottleneck to future sustained expansion across all sectors represented by the Forum.

The constraints are evident and pervasive at all levels with companies having to resort to procuring skills from abroad, often at a higher cost. In fact, members of the Forum consistently report shortages of land-based persons across diverse sectors: terminal operations, ship-repair and ship agencies, to mention but a few. Not surprisingly, we also hear of shortages in sea-faring personnel in merchant shipping, superyachts and the cruise liner industry because potential entrants are put back by the prospect of spending long periods away from home and family.” The skills gap is the result of a combination of factors explains Zammit McKeon.

“To start with, the“cadet scheme”as it was known then, gave successful results in terms of quantity and quality of qualified sea-faring personnel. The cadets underwent years of academic study on maritime subjects including the laws of the sea, navigation and engineering but part of their course entailed periods of service at sea on Sea Malta ships or on other vessels as coordinated by the Nautical School. The path from cadet to qualified master/engineer took between six to seven years.

The scheme hinged around the Nautical School, which was run very professionally despite financing constraints. However, once it was decided to discontinue the Nautical School (with its function transferred to other educational bodies), crucial sea-time opportunities for cadets were lost and cadets were left on their own to seek shipping lines interested and willing to take them on.

Unfortunately, this situation still prevails to the detriment of our children and our industry.  Possible solutions exist through tangible and concrete collaboration between all relevant stakeholders (public and private) with a view to encourage shipowners, registered under the Malta flag, to take on a number of cadets who qualify from a professional nautical school.

Besides, the MMF believes that the skills gap in the maritime industry may be partly alleviated through more appropriate career guidance structures which are crucial determinants in life-altering decisions which our children are obliged to make upon choosing their future career paths.

Much to our regret, the maritime industry did not feature in theI Choose – Nagħżel il-Karriera Tiegħiinitiative for 2021. Besides, the current National Curriculum does not include any subject related to the Blue economy despite its economic and strategic importance to the country.”

Zammit McKeon outlines potential solutions: “The authorities need to ensure they are preparing the skills the maritime industry needs in the near future. This necessitates serious planning and forecasting exercises performed in close cooperation with the industry.

The MMF has gone on record to call for a centralised Training and Certification Department within the Authority for Transport with a strong and consistent vision which would need to be imparted to anyone potentially interested in pursuing a career in the maritime industry indicating a straight-forward, logical, coherent and attainable path within the framework of our education system.

The way forward, according to the MMF is for the relevant stakeholders (both public and private) to come together and join the dots to eliminate, as far as possible, labour market frictions that hamper employers from the necessary talent and skills that sustain their business models.

Our young people need to be made aware of the rewarding career opportunities that the Blue economy has to offer. The education authorities need to invest in the latest technologies to provide updated teaching, qualifications and a learning environment that makes the effort of the student worthwhile indeed. Employers need to provide apprenticeship schemes, industrial placements and on-the-job training to our young people, support them to live up to the challenges of the working world.

A clear direction towards the future will encourage young people to follow that path, safe in the knowledge that stable and rewarding opportunities await them after their student days.

Clearly, the MMF will continue to give its contribution so that the maritime industry will remain a prime mover for this country for the benefit of all, especially our young people.”

The post ‘We urgently need to bridge the skills gap in the Blue economy’ – chairman, MMF first appeared on The Malta Business Weekly.