Compared to last year, when Covid measures had begun to be phased out, “the situation has improved tremendously,” Zahra said.

“I think at this moment in time hotels and the restaurants have got a good complement of staff, most of whom  are coming from third countries.”

Although this is the case, he clarified that there still isn’t an excess of workers for restaurants and hotels to choose from. “It is still a challenge, but I do not think it is as difficult or as bad as it was when we re-opened in May of last year.”

Zahra pointed out how last year businesses had to deal with a situation where occupancy went from “0 to practically 100% all at once… Hospitality everywhere, not just Malta, had reduced their staff because we did not know when Covid was going to finish.”

Asked whether the significant €9.90 increase in the cost-of-living adjustment (COLA) negatively affected businesses, Zahra did not believe that this was a “major issue.”

“I think that everybody was expecting it, it was something that was factored into… The strong demand has enabled hoteliers to achieve a better room rate and consequently able to absorb the increase in COLA.”

When speaking about the effect rising prices had on restaurants and hotels, Zahra said that the price increase would be more visible in a restaurant than it would be in a hotel.

Considering that consumers will visit a restaurant more frequently than a hotel, Zahra said that the consumer will be more shocked by a price increase in a restaurant on a day-to-day basis, rather than a hotel increasing its price. The consumer might visit a hotel very infrequently, therefore, they would be more accepting if the price of a hotel room increased from their last visit.

“Psychologically speaking, it has more of an effect in the restaurant business when you have a price increase than it does when you have a price increase in the hotel industry.”

The post Hotels and restaurants are better equipped with staff than last year – MHRA first appeared on The Malta Business Weekly.

The minister was addressing a press conference to give an update on the building contractors licensing legislation, which was passed by Parliament earlier this year.

The regulation of the sector was first introduced by the minister back in March of this year.

Azzopardi said that this proposal is still in its early stages and that currently the government is in talks with insurance providers, since a new formula needs to be created.

With the modifications to the government’s original proposals that were made today, anyone who holds such a licence will now be required to make sure that every job is covered by a current insurance policy that will compensate for any loss or damage that anyone may suffer as a result of any act or omission on the part of the contractor or employees while the works are being performed.

Building and Construction Authority CEO Jesmond Muscat gave more details.

Proposed major changes, which are going to be implemented, include that contractors must now be 21 years of age, and no longer 18, to qualify for a licence. Additionally the applicant’s financial stability together with a police conduct certificate will also be taken into consideration with the application for licensing.

If an applicant has been found guilty of a serious crime, such as misappropriation or fraud in the five years before applying, he will not be eligible for such a licence, Muscat said.

Muscat said that this new legislation will ascertain that everyone knows their responsibility on construction sites.

Finally, if a person is found guilty of a crime against the Act or against the rules, the Court will be given more authority to impose the suspension or revocation of a licence. Despite this, the right to appeal will be available to anybody who feels wronged.

The post Building contractors will be required to be insured, minister says first appeared on The Malta Business Weekly.

The site is located at St Joseph Farm, which faces two roads, Triq il-Mithna and Triq Depiro-Gourgion, right on the edge of the development zone. The application includes the proposed demolition of existing structures and uprooting of existing vegetation, excavation of 3 basement private parking levels and the construction of 163 garages, 17 maisonettes at level 0, 18 apartments at level 1, 18 apartments at level 2 and overlying 12 penthouses. The application was filed after a Planning Control Application had been approved.

Although this development was objected to by a number of Lija residents and the local council, the PA granted a permit for this development in January 2022, after the case officer report recommended that this development be granted.

Following this decision, NGO Din l-Art Helwa (DLH) filed an appeal with the EPRT in February 2022.

In DLH’s appeal it argued that there has been a “Failure to ensure protection and enhancement of existing characteristic context, rural landscape and locality’s amenity,” and there has been a failure to adhere to Local Plan Limitations, among other points. However, the EPRT rejected all points brought forward by DLH.

The Lija local council had objected to this development before it was approved and said that the development will serve to “significantly alter” the character and integrity of this area on the edge of the Lija development zone.

The council highlighted that the density of the development, the intensification of traffic activity in the area, and the visual amenity impacts are considered to be inappropriate.

At the time the council was not alone in its concerns. The Superintendence of Cultural Heritage (SCH) had said: “Given the location, any development application proposed on this site should adopt an adequate transitional solution between the rural area in ODZ and the schemed area within the development zone. The SCH therefore recommends a more sensitive treatment in volumes as well as in design, in order to mitigate the impact of such development onto the surrounding landscape.”

The post Tribunal rejects appeal against Lija four-storey development facing ODZ land first appeared on The Malta Business Weekly.

Aquilina insisted that, although the messages were coming from the BOV number, there was no security breach. “The banks can’t stop it from happening because we’re not in control of the technology being used.”

“The real issue with security is with the telecom companies, bluntly,” he said.

“We live in an industry where there is a lack of legislation to enforce security controls on telecom companies. We’ve been in contact with the Malta Bankers Association (MBA), the Malta Communications Authority (MCA) and the telecom companies. Bluntly, without legislation, telecom companies don’t have the initiative to enforce or implement security controls.”

“Abiding by legislation will cost telecom companies money, yes undoubtedly, but we live in an age where messaging and phone calls are used on a daily basis.”

The SMS spoofing BOV scam is when a client receives an SMS from the BOV number, which would usually have an alarming message asking people to click on a link.

“The victims are sent an SMS, they are given an alarming or a warning message which prompts an alert or an immediate response from them, which draws the innocent minded, the naïve person, or the person who is not educated enough to actually click on the link,” Aquilina said in an interview with The Malta Independent on Sunday.

Links in SMSs are a “red flag”

Aquilina said that not only BOV was subject to these scams; other banks were victims too.

“These attacks are not on the bank; these attacks are being made on the general public in Malta who have bank accounts with local institutions.”

“It’s not the same for everyone, it’s different and these scams are evolving.”

He said that first clients used to receive an SMS from an unknown number asking the person to click on the link; however, now the scams have evolved and they are using the bank’s own number.

“That will then lead to a website which will most likely impersonate some features of a bank. There have been very elaborate ones which completely clone the look and feel of the bank’s website.”

Aquilina highlighted the biggest issue as being the SMS and caller ID spoofing. This is when the scammer gets in contact with customers but they do it by impersonating the bank’s number.

Asked about any red flags that the public need to watch out for, Aquilina said that links in SMSs are always a red flag, as the bank will normally not ask you to access your internet banking through an SMS link.

He also said that the bank will never ask you to authenticate your card through the website.

“If you have any questions at all contact your bank. I know that customer service centres are very busy. It is better to not click the link, and wait to get in contact with your bank, to confirm if it is truly from your bank.”

However, he also pinned this problem on the lack of education and awareness there is for the general public. “We’re educating our children but we’re not educating the general public. There is not enough investment to put out cyber awareness to the general public, and that’s a sad thing.”

Later on in the interview, he said: “Links can be very misleading; links can use the name of your bank within the link. These are fake. All banks are trying to bring down these fraudulent websites as soon as they are aware that they exist.”

“If it looks suspicious don’t trust it… If it looks too good to be true, it is too good to be true, it is fake. If you really believe it’s true, contact your bank.”

Asked how many scams had been reported, he said that this was not his area; however, he knows that there has been a “great deal” that customer service has had to address.

The retrieval of funds is difficult and not guaranteed

When pressed and asked why the bank could not just block these suspicious transactions, Aquilina said that BOV is fully compliant with secure customer authentication under the second version of the Payment Services Directive (PSD2)

Therefore, if the client has gone through all the steps to actually authorise the transaction, then the bank will not interfere as the transaction has been authorised.

He then pointed out how the bank informs its clients not to give their card details out to anybody. “The bank is never going to ask you for your CVV2. Do not provide it!… It’s in the terms and conditions as well, do not share this information.”

“You have a secure login ID, you use it once to get in you use it a second time to authorise the transaction, so effectively clients or the general public who are falling for SMS phishing which is based on Internet banking are actually providing the fraudster with their codes not once but twice.”

That being said, he highlighted how “there is a shift in liability from the bank to the client.”

Furthermore, he said that it is hard for the banks to recover the funds as usually funds are transferred overseas.

He said that, in most cases, to request the funds back, a police case would need to be filed with the authorities. However, to receive the funds back they would completely rely on the cooperation of the foreign bank and authorities.

“Sometimes the staff communication is difficult and once again, we are at their mercy because our client supplied the fraudster with both codes, and secure customer authentication took place.”

Asked if they have had any success in retrieving funds he said that they have managed but not 100%.

Asked whether people are refunded if the bank is not successful in pulling back their funds, he said “for the most part” no.

“Banks are spending a lot of human capacity to try and assist all clients in the retrieval of their funds. It’s difficult and it’s something that is very time-consuming but we are doing it as are other banks.”

He clarified that banks still cannot do everything possible for their clients as SMS and called ID spoofing is out of their control.

Aquilina had said that since the victim inputted their secure login ID and their one-time password (OTP) this authenticated the transaction and therefore, “for the most part,” clients will not get a refund.

On the Malta Financial Services Authority (MFSA) website it says that the bank can choose to reject a refund if “it can prove you had actually authorised the transaction. However, your bank cannot simply say that use of your password, card or PIN conclusively proves you authorised a payment.” When Aquilina was asked why BOV’s terms and conditions do not recognise what the MFSA is saying, he disagreed and said that it does.

“It’s not just one password, it’s not just one pin that is being used. To register on Internet bank you have to register your mobile phone. So you have multi-factor authentication, you have your phone, you have your pin code, and you have also the secret number which is your user ID.”

“We know that the fraudsters managed to extract from clients their user IDs and their OTPs not once but multiple times. (The bank) is completely in line with regulations, for secure customer authentication for the execution of financial transactions.”

He added that BOV is constantly working, even with the MBA, “to bring down any malicious sites.”

“No breach of security,” it is not the real BOV app

A Times of Malta article, highlighting an experience of a victim who had thousands stolen from them, describes the scam like this: “The message included a link to a fraudulent website where customers are instructed to verify their identity by logging into their BOV mobile app and carrying out a test transfer.”

A separate victim informed The Malta Independent on Sunday that they had experienced the same scam.

Considering both victims’ claim that they used their BOV mobile app to input their details, Aquilina was asked whether this shows that there has been a security breach with BOV.

Aquilina responded and insisted that “there has been no breach of security at BOV.”

He clarified that this would not be the BOV mobile app, but it would be a website impersonating a bank website.

“I don’t have the website or the proof of the messages, I would need the SMSs message, I would need to inspect it and I would need to see the link. The links would most likely lead to a website which impersonates BOV’s website or mobile app, not the actual app, or website.”

The post Telecom companies are to blame for SMS spoofing bank scams, BOV says first appeared on The Malta Business Weekly.

More companies have been open to offering reduced hours so that employees can allocate more time to family responsibilities, she told this media house in an interview.

Overall, she said that there needs to be good communication between the employer and employee to balance out the needs of the employer with the needs of the employee: “In all this, we seem to forget that the connection between an employer and an employee is a relationship which needs to be nurtured. The employee is essentially offering a service to the company and is getting paid for this service along with being offered other conditions that govern such a relationship. In any relationship, if either party is not satisfied or fulfilled then grievances arise so both parties need to ensure that the other half is engaged and content.”

Public officers will soon be able to request a four-day week, without reducing their hours, after the Office of the Principal Permanent Secretary announced the Flexi-Week scheme.

Asked about the MEA’s position on the four-day working week and whether this should be something that is implemented in the private sector, she said that “there is certainly more demand for a flexible work organisation in various forms in the private sector. In general, employers do not resist such flexibility as long as productivity is not affected”.

She explained how in manufacturing distributing 40 hours over four days was already in practice and she said that there should not be any issues with it as long as productivity does not decrease.

“It is not an issue as long as it is a win-win situation which safeguards the productivity and competitiveness of enterprises.”

“However, conditions vary between companies and sectors, and one cannot expect a common solution for all enterprises. Certainly, there are already companies that afford to provide full flexibility – for example full remote working – to many of their employees, whereas others need their labour force to be fully present to be able to operate.”

Foreign labour

Bondin said that there is currently a high demand for foreign labour as more Maltese young people are leaving Malta to work abroad and there’s been a significant change in Malta’s demographic due to Malta’s low fertility rate.

MEA has been sensitive to the rapid change in Malta’s demographics over the past decade as more young people seek employment abroad combined with a fertility rate which is the lowest in Europe, and among the lowest worldwide, Bondin said.

Bondin was referred to an interview with The Malta Independent on Sunday in which President George Vella questioned whether Malta, as the most densely populated country in Europe, could continue importing “more foreigners to keep the economic wheel turning”.

The MEA president said that “some economic sectors depend exclusively on foreign workers to sustain their businesses… our economy is generating a demand for low-skilled jobs, thus requiring more foreigners on a relatively low pay”.

“What needs to be done is that there needs to be a strategic cohesive thrust across all sectors rather than such sectors working in silos. We have been saying that we should focus on high-value-added business so it is now about time that we devise a national plan that will enable us to actually implement this.”

Public sector vs private sector jobs

Bondin was also referred to what CEO Malta Chamber of SMEs Abigail Agius Mamo told The Malta Independent on Sunday: that the government taking employees away from the private sector is a “significant problem”.

Asked whether this was the case and how the private sector’s workforce could be improved, Bondin said that “it is not just a matter of migration from the private to the public sector that is creating labour shortages”.

She said that there is a shortage of workers for jobs where teleworking is not possible, such as catering, health, manufacturing and others.

“What will affect negatively the private sector is if teleworking in the public sector is perceived to be simply the same pay for fewer productive hours.”

“Also, mobility to the public sector should be the result of productive vacancies, and not just a desire by employees to work in the public sector. Otherwise, there are many companies in the private sector that have introduced similar measures with the difference that in the private sector, productivity is expected to remain the same or increase once such measures are introduced, and there are the necessary controls to ensure that this is the case. It is hoped that this will likewise be the case in the public sector.”

Maltese workers leaving, shortage of skilled workers

In light of the increased cost of living, people are demanding better wages. This has also led Maltese people to leave Malta as they might find better opportunities abroad. Bondin was asked why employers are not offering more competitive packages to retain local workers.

Malta is competing for “scarce human resources with other countries”, she responded.

“There may be many factors which are influencing youths to work abroad, not necessarily related to higher wages: disillusionment with the local political situation; new experiences; cost of property and rentals; better career prospects; well-being issues, etc.”

During Bondin’s MEA Annual General Meeting speech, she spoke about the importance of good governance and how the current political scandals may have a negative effect on retaining skilled workers.

Asked about this she said: “The MEA has been campaigning for an improvement in governance for years and has also issued position papers on how we can improve governance structures.”

She gave a few examples of proposals the MEA had published in its position paper, which can be found on its website.

“Examples of these are full disclosure of persons holding positions of trust, including contracts, remuneration and reporting of hours and duties performed, having a leaner and full-time Parliament, separation of business from party financing – state-funding political parties, refraining from issuing direct orders etc. and full disclosure of government contracts.”

The “scarce human resource” has led to there being a shortage of skilled workers in Malta. Asked about this issue, she said that there is a “mismatch” between the skills of this generation and the needs of the industry.

“Moreover, our economy is generating a demand for low-skilled jobs, thus requiring more foreigners on relatively low pay.”

“High wage inflation is not always matched by productivity, thus affecting our competitiveness.”

She added that there is also a need for more students to follow STEM (science, technology, engineering and mathematics) subjects in this industry. She also thought it fit to mention “the phenomenon of underemployed graduates.” 

Effect of the COLA increase, no update on COLA stabilisation

In the 2023 Budget, the Cost of Living Adjustment (COLA) was an unprecedented €9.90 per week.

Asked how businesses have responded to this significant increase, she said that many businesses would have increased their wages by more than the COLA anyway, “due to labour market pressures.”

“Although businesses operating in low value-added sectors have been negatively affected by the extraordinary increase in COLA due to the unprecedented spike in inflation, which, it needs to be said, has been subdued due to government’s subsidisation of energy prices, many businesses would still have increased wages by more than COLA due to labour market pressures.”

Before the 2023 Budget, the MEA proposed that the COLA should be stabilised to minimise the impact on businesses each year.

The proposal is for a minimum and a maximum COLA amount which can be given out per year – from €2.50 to €6 a week – for a five-year period. And then in the sixth year, the balance will be paid out, where if it is owed to the employees it will be over and above the COLA for that year and if owed to the employers will be reduced from the COLA of that year. MEA is proposing that this will be implemented for Budget 2024.

In response, Economy Minister Silvio Schembri said that if all stakeholders involved in the COLA agree to change the mechanism then the government will not stop this from happening.

Asked for an update and whether stakeholders have shown their support, Bondin said the “MEA did not propose a change in the COLA mechanism. What was recommended was to leave the mechanism unchanged but to introduce a stabilising element to reduce the volatility caused by sudden changes in the price level.”

“For example, the abnormal high inflation during 2022 destabilised even the collective agreement in the public sector to the extent that the government had to negotiate additional increases for lower grades with the unions.”

The post MEA sees increase in demand for reduced working week first appeared on The Malta Business Weekly.

The results of the survey were revealed by the Chamber on Wednesday whilst celebrating its 175 year anniversary. The survey received replies from 120 family businesses.

President of The Malta Chamber Marisa Xuereb spoke about the important role family businesses have in Malta’s economy.

She said that the Chamber has been committed to supporting them through a number of initiatives, such as the training courses for family businesses which were launched in June 2022.

She said that in spite of all the challenges many family businesses face, especially right now, these businesses have a tendency to fall short of the basic need to have good governance.

Energy and Enterprise Minister Miriam Dalli was also present at the press conference and she said that this survey was another milestone marking the continuation of what was started six years ago with the beginning of the family business office.

She mentioned how there were 259 family businesses registered with the Chamber, and in reality there are actually more operating in the country. She added that family businesses make up 75% of the businesses in Malta which make them the “backbone of our economy”.

Therefore, she said, the government will continue providing support to give more importance to good governance. She said that through the family business office, there is a lot of guidance and incentives which help support family businesses.

She said that the government is focused on making sure that these family businesses carry the meaning of continuity as the vision is a long-term strategy. She said that family businesses must give more importance to good governance in order to achieve this.

She also said that under the family business grant the support more than tripled in a year.

Chairperson of The Malta Chamber Family Business Committee Silvan Mifsud presented the results of the survey.

In the survey, respondents were asked whether the family business has a functional BOD, out of 115 respondents to this question, 96 respondents (83%) reported that they have a BOD that meets regularly to discuss whilst the rest (19 respondents, 17%) said they did not.

Mifsud said that those who said that they did not have a functional BOD had a very backwards-looking mindset when making decisions about the future direction, such as taking matters as and when they arise and as necessary and informal discussions.

Mifsud said that family businesses need to find a balance and compromise when there is conflict. He said that these businesses can only survive if the “’we’ is greater than the ‘me’ ”. He added that it is extremely important that family businesses find a place to discuss business matters.

In order for family businesses to transform themselves they need strategic planning to make sure that they are all on the same page.

Asked whether they have a strategic plan, out of 114 respondents, 38 respondents (33%) said that they have one which is regularly reviewed. 57 respondents (50%) said that they do not have one but they want to get there, and 19 respondents (17%) said that they do not need it.

Mifsud also spoke about the importance of resilience which comes through succession planning, and it was important to note that businesses understand that this needs to be treated as a journey, not an event.

Asked whether they have written a succession plan, out of 108 respondents, 38 respondents (35%) said that they have and 70 respondents (65%) said that they do not have one.

He said that this is important as it gives peace of mind to business owners, and allows businesses to scale up through governance whilst making sure that there are enough checks and balances to do so.

He said that it is never too early to start the succession planning journey.

Asked about family business priorities, retaining one’s present labour force, having regular and timely reporting of financial performance and key KPIs and improving financial performance to survive, he said that these were all very much inward-looking, here and now.

He mentioned how it was encouraging to see that improving digitalisation and being environmentally friendly are pretty high up.

He pointed out that anything linked to future thinking, like increasing the involvement of the next generation was too far down on the importance list.

Pursuing strategic acquisitions or mergers, Beefing up your board of directors with independent and non-executive directors and increasing investments in innovation and R&D were given the least importance.

More statistics revealed that 50% of family businesses who declared that they have a functioning BOD, then do not have a written strategic plan or feel that they do not need one.

95% of those family businesses who declared that they do NOT have a functioning Board of Directors, do not have a written strategic plan.

73% of family businesses that declared that they do NOT have a written strategic plan also have no written succession plan.

51% of those family businesses that declared that they have a written strategic plan also have a written succession plan.

When comparing the priorities of family businesses with a BOD as opposed to those who do not, the ones with a functioning BOD gave greater importance to timely financial reporting as they would need to report to the Board as opposed to those not having a Board.

Also, those with a board gave more importance to adapting their business model.

When comparing the priorities of family businesses that have a strategic plan, those that have given more importance to the training & reskilling of their workforce and the re-thinking of their business model than those family businesses with no written strategic plan.

Lastly, when comparing the priorities of family businesses with a succession plan, family businesses with a succession plan gave more importance to the training and re-skilling of their employees and the increased involvement of the next generation than those family businesses that do not have a written succession plan.

Dr. Joseph Gerada, Regulator at the Family Business Office, drew attention to the vital role that family businesses play in the Maltese economy. In his remarks he pointed out that “Facts now show us that family businesses locally have developed, and some have grown to become great businesses over the years. However, it is also clear that this growth requires planning ahead and this is one aspect that family businesses must focus on. This is what we mean by charting your course, it is ensuring the continuity of your business and its continued success”.

During the first panel on the importance of good corporate governance and planning, Marthese Portelli, CEO at The Malta Chamber, discussed the survey results and how they show that many family businesses lie at either end of the  corporate governance and strategic planning spectrum. In this respect she pointed out some family businesses have a highly developed governance and planning structure with a succession plan, a functioning board of directors and a strategic plan while almost all of those family businesses with no functioning Board of Directors also have no written strategic plan.

Speaking on the same panel Kurt Muscat, Senior Advisor, EMCS, spoke about the service that EMCS Advisory together with AIS Environment have developed to give business leaders and owners a 360-degree view of their business. This service, based on the experience and knowledge of the EMCS team, enables businesses to link the various elements within their organisation, understand where they need to improve and ultimately perform better.

The survey also shows that family businesses are starting to list green initiatives and digitalisation amongst their priorities, points which were highlighted during the second panel of the event based on these subjects. Yasmin Schembri, Senior Consultant at AIS Environment, spoke about the fact that green businesses are not just good for the environment, but they are also cheaper to operate. During the event she spoke about how switching to energy and resource efficient practices is a simple way for businesses to get ahead of their competitors. In this respect she remarked that experts at AIS Environment and EMCS Advisory are skilled at finding the best and simplest solutions to help businesses thrive.

In addition to above mentioned individuals the event was also addressed by George Debono, CCO at BNF Bank, and Joanna Gatt, Executive Director at Vivian Corporation, all three of whom took part in the first panel discussion. The second panel debate was also addressed by Mr. Reuben Debono, Director at Maypole Holdings Ltd, Kurt Farrugia, CEO at Malta Enterprise and Hadrian Joseph Sammut, Chief Officer Advisory & Projects at iMovo. Both panel were moderated by Rachel Attard, Head of Media and Communications Strategist at The Malta Chamber.

The event was sponsored by EMCS Advisory and AIS Environment and Supported by BNF Bank, the Family Business Office and iMovo.

The post 17% of family businesses do not have the most basic form of governance – The Malta Chamber first appeared on The Malta Business Weekly.

He said this in response to data published by the National Statistics Office over a week ago showing that there was 3,500 fewer promise of sale agreements in 2022 when compared to 2021.

In December 2022, the number of final deeds of sale relating to residential property amounted to 1,003, a 28.8% decrease when compared to those registered a year earlier.

The value of these deeds totalled €225.1 million, 28.5% lower than the corresponding value recorded in December 2021.

Asked whether he was worried that this figure reflects the beginning of the property market bubble bursting he said: “We don’t agree with this comparison.”

He said that it is not right to compare December 2021 with December 2022, as December 2021 was the last month of the reduced tax and stamp duty schemes.

The scheme was first introduced as a temporary COVID-19 measure for promise-of-sale agreements.

The measure allowed property sellers to pay a reduced 5% rate of property tax and buyers to pay a 1.5% rate in stamp duty, on the first €400,000 of a property’s value.

Following this, the registration date of the final deed on property transactions eligible for reduced tax rates has been extended to June 2023.

He added that when comparing the month of December 2022 with previous months in 2022 and with December in other years, the outcome of these comparisons showed that “December was a normal month for sales.”

“For now there is no need to worry about any bubble.”

“At this stage, the majority of the property being built is sold. In fact, almost everything is being sold on plan. Very few are the properties that are not sold on plan,” he said.

The post Watch: Promise of sale agreements in 2022 ‘normal’, MDA chief not worried about property bubble bursting first appeared on The Malta Business Weekly.

He said that this scheme further combats excessive bureaucracy as it simplifies the process for businesses to apply for funds.

This scheme will open on 1 February 2023 and will be replacing existing schemes that will close at the end of this month, from the 2014-2020 funding program.

Schembri said that SMEs make up 95% of the businesses in Malta, which gives them an important role to support Malta’s economy. He added that SMEs offer jobs to 140,000 workers.

“Small businesses are the backbone of our country,” he said.

“That’s why when we are coming up with schemes to help these types of businesses, we are helping the entire economy of our country,” he said.

He said that these funds can be used to buy equipment which may help businesses be more efficient.

He said that this scheme is in line with the government’s strategy which focuses on digitalising businesses and making them more resilient.

Parliamentary Secretary for EU Funds Chris Bonett said that the government will also continue supporting businesses through the new program for European Funds that will launch in the coming days, which simplifies the process for more businesses to make use of European funds.

The post €2 million grant scheme for SMEs to purchase equipment and machinery announced first appeared on The Malta Business Weekly.

The document said that Malta remains the country most dependent on hydrocarbons for its energy in the European Union (EU). Hydrocarbons supply 90% of Malta’s electricity, with photovoltaic panels producing the remaining 10%.

It said that as things stand the energy mix in Malta is unlikely to change significantly and natural gas will remain the country’s main source of energy, besides the mention of more solar panels and a wind farm.

The chamber said that Malta has a continental shelf of over 70,000 km², however, most of this is underexplored. It revealed that only 13 relatively deep wells have been drilled, in comparison to Italy’s 6,000 wells over the past 70 years.

It added that Malta’s continental shelf has significant hydrocarbon potential as shown by the discoveries of gas fields in the Eastern Mediterranean.

However, Malta has still failed to attract any substantial investment from oil and gas exploration companies in the past decade, the chamber said.

The chamber is asking why has Malta failed in the sector when it is the country most dependent on hydrocarbons in the EU.

With regard to exploration licensing, the document mentions how whereas Europe as a whole is increasing the number of licences for drilling and gas production, Malta’s issued licenses have decreased.

“The contrast between Malta and the rest of Europe has its consequences and the Malta Government is now constrained to subsidise the increased price of gas at an estimated cost of 1.1 billion euros,” the chamber said.

With the increased demand for gas, the chamber found it surprising that the number of wells drilled has declined in the past two decades.

All that being said, the document mentioned how with the war in Ukraine at large and Europe’s dependence on Russia for energy, Europe as a whole is experiencing the worst energy crisis in decades due to a shortage of fossil fuels, notably natural gas.

“The sanctions imposed on Russia have led to an approximate 60% reduction in the import of Russian natural gas into Europe. Countries within the European Union have responded to the exorbitant energy prices by introducing large subsidies, price caps on natural gas, and other support packages to help consumers and utility companies.”

The chamber also brought up Malta’s target to reach net zero emissions of greenhouse gases by 2050. It suggested that besides solar and wind Malta should also consider exploring geothermal and hydrogen as energy sources.

The document addresses how geothermal and hydrogen energy could be an effective clean source of energy for Malta, however, neither of these is mentioned in the government’s plans for renewable energy sources.

Moving forward, the chamber is suggesting better administrative structures by implementing new entities. The two structures which currently exist are the Continental Shelf Department and the Oil Exploration Committee. The chamber called these two structures “relatively dormant or inactive”.

The chamber is proposing including a Malta geological service that would work as the official advisor to the government on natural resources, an oil and gas authority that will regulate the hydrocarbon exploration sector, and a national oil and gas company that will license large parts of the continental shelf.

The chamber is also asking for the profession of geologists to be recognised as currently, Malta is the only European state that does not recognise it as a profession. It is asking for the warranting board to be set up between the relevant Ministry and the Malta Chamber of Geologists.

The post Malta has not accessed its hydrocarbon potential – Chamber of Geologists first appeared on The Malta Business Weekly.

The investment began in 2020, with €20 million being invested by the end of this year, and a further €11 million is planned next year.

Teva Pharmaceutical Industries has been developing and producing medicine for over a century. Teva Malta currently produces 2.2 billion tablets a year, which are approved by the Maltese Medicines Authority and other regulatory authorities.

“The root of what Teva Malta is today trace back to 1976, and today consists of state-of-the-art bulk manufacturing and packaging facilities, warehouses, and testing laboratories which are maintained to the highest standards. The site became part of Teva Pharmaceutical Industries in 2016,” managing director Patrick Cachia said

This announcement was made during a visit today by Prime Minister Robert Abela. During his visit, he praised the company and the hard-working professionals for the work that they do.

Minister for Environment, Energy and Enterprise Miriam Dalli and Minister for Economy and Industry Silvio Schembri were also present during the visit.

Abela pointed out how this global company reaches out to 200 million patients around the world and called this a demonstration of confidence in Malta’s talent and economy.

“This investment is the result of a strong economy and an ecosystem that gives business confidence to invest and grow,” Abela said.

“The forecasts of the European Commission and the reports of international credit agencies are giving a clear message that the way we are protecting people and keeping energy and fuel prices stable is will have a positive effect on Maltese businesses,” Abela said.

Abela also noted that there are many fruitful opportunities for students who have graduated.

He also praised the company for following Environmental, Sustainable and Governance (ESG) practices.

Cachia said that this investment will continue to strengthen all the current facilities and upcoming projects.

“This is also possible thanks to the constant support of Malta Enterprise, INDIS and the Medicines Authority throughout these years, especially during the pandemic, and also in terms of training assistance to upskill more employees,” he said.

Cachia said that this investment will also help Teva Malta employ an additional 70 people, to add to the 430 employees. This will work well with the company’s recent move towards a 24/7 shift operation.

“Central to these successes are Teva Malta’s employees. The company recognises that its employees are the greatest asset, and as such it demonstrates a critical focus on employee well-being, inclusion and diversity. This has been recognised by the Foundation for Human Resource Development, which awarded Teva with the HR quality Mark for high employee-focused standards within the company. Malta is also committed to equality and diversity, with its senior leadership team split evenly between both genders, and 14 per cent of employees hailing from other various nationalities,” Cachia said.

Cachia said that so far the investments have contributed to a new purified water system, a full fabric upgrade of three granulation bays, tooling for new product introduction, new chillers, compressors and house vacuum transfer systems to assist employee protection.

Cachia also said that Teva Malta has invested heavily in future-proof IT Enterprise transformation.

For this coming year, among others, Teva Malta will invest in new production equipment, and new tooling to allow new product introduction and the extension of a laboratory.

Cachia also praised the intervention of the government to keep the price of electricity stable which was crucial for Teva Malta to maintain its competitiveness.

Cachia added that the company has also introduced a number of energy reduction initiatives including the installation of more than 700 LED lighting units, the planned installation of 1,328 photovoltaic panels, new more efficient HVAC systems, and the elimination of two diesel fuelled steam boilers. This has reduced electricity consumption equivalent to 6,000 houses in Malta annually.

The post Pharmaceutical company invests €30 million to strengthen production of medicine first appeared on The Malta Business Weekly.