PwC Malta has released its second Economic Outlook for 2024, providing insights into global
economic trends and projections for the coming fiscal years.
This edition highlights moderate global growth projections at 2.7% and 2.6% for 2024 and 2025
respectively, masking slowdowns in traditionally stronger growth economies such as China and the US,
compared with continued robust growth in India and a marginal pick-up in the relatively slower
growing Euro area.
Meanwhile, in Malta, official GDP data for Q1 suggest a marginal slowdown in Malta’s Quarterly GDP
growth, down from 8.7% in Q1 2022 and 6.4% in Q1 2023, to 4.6% in Q1 2024.
The slowdown in output witnessed in Q1 2024 appears relatively broad-based across sectors, with
manufacturing, ICT, professional services and retail all slowing down in this quarter, while real estate
and construction registered up-ticks in performance.
From an expenditure perspective, consumption of food and beverages has registered a decline
compared to the same quarter in the previous year, similar to expenditure on housing and furnishings.
This contrasts with strong growth in spending in restaurants, hotels and recreation.
Furthermore, in line with official GDP data, economic sentiment survey data also point to a less upbeat
outlook amongst local businesses in Malta during 2024.
Meanwhile, on the fiscal side, Malta has been running some of the highest deficits in Europe since
Covid, and in July the European Commission has recommended an Excessive Deficit Procedure (EDP).
However, despite the recommended EDP, Malta’s financial position in terms of the debt-to-GDP ratio
remains strong.
Ultimately, forecasts for Malta show a mix of relatively robust, yet slowing – economic growth, with
rising consumer pressures and indications of sector-specific slowdowns. This could suggest that while
economic activity overall remains relatively healthy, sentiment may appear to be dipping as price
pressures begin to affect consumption behaviour in certain local sectors.
To read the full report, click here.
Month: August 2024
Dr Michela Pulis awarded the BOV prize in Medicine 2024
Dr Michela Pulis has been honoured with the prestigious BOV Prize in Medicine for 2024, in recognition of her outstanding academic performance. Dr Pulis achieved the highest marks in the final qualifying examinations in Medicine during the Academic Year 2023/2024, securing this esteemed award.
Established in 2006 through a collaboration between Bank of Valletta (BOV) and the Faculty of Medicine at the University of Malta, the BOV Prize in Medicine aims to promote excellence in medical education by acknowledging and celebrating the achievements of exceptional students.
Dr Pulis was presented with a commemorative certificate and a monetary award by Charles Azzopardi, Head CSR (Corporate Social Responsibility) at Bank of Valletta. The presentation took place in the presence of Professor Stephen Montefort, Head of the Department of Medicine and Deputy Dean of the of the Faculty of Medicine and Surgery at the University of Malta.
“We extend our heartfelt congratulations to Dr Pulis for her remarkable accomplishments. We are confident that her dedication and excellence will greatly contribute to the field of medicine and inspire others to strive for higher achievements,” said Charles Azzopardi. “Since its inception nineteen years ago, the BOV Prize in Medicine has been dedicated to fostering academic growth and producing distinguished medical professionals whose expertise will benefit the broader community.”
Professor Montefort also congratulated Dr Pulis on her outstanding results, noting that this award serves as an encouragement for students to push their boundaries and validate their hard work in pursuit of excellence. “Dr Pulis’s persistence, dedication, and genuine interest in the field of medicine have driven her to achieve the top results among 140 students, earning her this prestigious recognition,” remarked Professor Montefort.
Time is up. Timely action to address genuine concerns is required.
The Malta Chamber presents its Pre-Budget 2025 proposals
“The country urgently needs a cohesive Economic Vision with clear milestones and deliverables,” stated CEO Dr Marthese Portelli during the presentation of The Malta Chamber’s Pre-Budget 2025 Document in Valletta, urging the Government to Connect, Plan and Reform.
Accompanied by President Chris Vassallo Cesareo and several Council Members, Dr Portelli emphasized that while economic indicators like GDP growth, per capita income, and unemployment rates are important, they often fail to capture the broader societal costs of pursuing growth at any cost — a hallmark of the current economic model. She stressed the importance of shifting from a superficial assessment of economic performance to a broader and deeper analysis of the population’s well-being, now and in the foreseeable future, to ensure that economic policies prioritise sustainable development and enhance the quality of life for all citizens.
In his opening statement, President Chris Vassallo Cesareo stated that it is crucial to move away from labour-intensive activities to an economic model that is not dependent on population growth. It is also critical to invest in worker training and upskilling, as well as to invest in technology to boost efficiency and increase productivity.
Dr Portelli further highlighted the need for diligent management of taxpayer funds, underscoring the Government’s obligation to ensure a good return on investment and avoid wasteful spending that provides little or no value to taxpayers.
The Malta Chamber has identified 12 key policy areas requiring urgent attention, with three critical proposals outlined for each. A summary of these priorities is presented in the accompanying graphic.
Throughout the presentation, The Malta Chamber conveyed a strong sense of urgency, calling on the Government to move beyond mere listening and adhere to principles of good governance. “The erosion of good governance is severely impacting ethical businesses and society at large. Government must decisively address unethical practices that undermine fair competition due to inadequate enforcement. Ethical businesses have had enough of this unfair competition,” Dr. Portelli asserted.
This year, The Malta Chamber’s focus is twofold: first, the tangible transformation of the current economic model into a well-being economy that benefits society as a whole; and second, the elimination of unethical operators whose misconduct is undermining ethical businesses.
The Malta Chamber has consistently raised these issues in various fora year after year. While there have been sporadic improvements, much work remains to be done. The table below outlines the status of the proposals presented in last year’s pre-budget document. Of the 219 proposals submitted last year, only 1.8% have been fully implemented, 18.7% have been partially implemented, while 74.9% remain pending without a decision. Only 4.6% were rejected.
Finally, The Malta Chamber of Commerce, Enterprise and Industry reiterates that over the past years, it has presented numerous documents and proposals, consistently highlighting these concerns and offering solutions. These include:
1. Ethical Business Calls for Change – A Manifesto for Good Governance: A policy document with 60 proposals on good governance and best ethical standards and practices for the country, aimed at guiding necessary political, social, and economic reforms.
2. Time to Step Up – Recommendations for the Next Legislature 2022-2027: A pre-electoral manifesto published in March 2022, featuring 100 recommendations in the lead-up to the 2022 general election.
3. Step Up and Act Now – Prosperity beyond GDP: A pre-budget 2024 proposal document published in September 2023, containing over 250 proposals.
The Malta Chamber of Commerce, Enterprise and Industry insists that “Time is up” and that Government needs to go beyond ‘listening’. Timely action to address genuine concerns is required. Weak policy responses to major red flags have induced a culture of complacency and lack of healthy ambition within the public sector that is impacting the performance of businesses and ordinary citizens as well. Critical issues need to be dealt with expeditiously: CPR is called for.
BOV Asset Management seminar celebrates milestones and charts future plans
BOV Asset Management (BOVAM) hosted a seminar for Bank representatives showcasing its latest developments, milestones achieved, and its strategic outlook. Key company figures shared insights into BOVAM’s impressive growth trajectory and future plans.
Mark Agius who heads the function reflected on BOVAM’s journey so far. “From our beginnings as Valletta Fund Management in 1995 to our rebranding in 2016, BOVAM has continually evolved to position itself at the forefront of the local investment landscape”, he said. Listing the key milestones achieved to date he stated, “Achieving EUR 1 billion in assets under management in 2019 and launching our Capital Guaranteed products in 2023 are merely a few of BOVAM’s milestones, a testament to our commitment to innovation and excellence as we continue to push for continued success in the ever-evolving and challenging local financial environment”.
Comprehensive Market Analysis
During the seminar the BOVAM Portfolio Management team discussed the current state of local and global markets, focusing on several key areas. Recent trends in foreign equities were put under the spotlight, highlighting both the opportunities and risks in developed and emerging markets, with a particular focus on market volatility due to the potential impact of geopolitical events, and how BOVAM is positioning its funds to maximize returns while mitigating risks.
Further insight into the fixed income landscape showed how interest rate movements and inflationary pressures are affecting the bond markets, illustrating how BOVAM’S fixed income funds are navigating the current low-yield environment and focusing on selective opportunities in corporate and sovereign bonds.
The Portfolio Management team also reviewed BOVAM’s multi-asset strategies, examining how diversified portfolios are being managed to balance growth and stability. The team highlighted their approach to asset allocation, which is designed to adapt to evolving market conditions and client needs.
Staff Engagement
One of the key initiatives aimed at ensuring engagement of seminar participants in the challenging and complex world of investments was a creative and educational quiz. This was designed to refresh knowledge about BOVAM funds, using interaction and audience participation technique to entice curiosity and disseminate knowledge. The winning team received gift vouchers as a reward, making the event an enjoyable and memorable experience.
Forward-Looking Outlook
The seminar put forward expectations for the remaining part of the year and for the coming year 2025. This emphasised the importance of agility in portfolio management to respond to both anticipated and unforeseen market changes. Reflecting on the seminar’s success, Geoffrey Ghigo, Head Personal Channels said, “This event is a clear example of BOVAM’s unwavering commitment to both our clients and BOV representatives across all BOV Group touchpoints. We believe in investing in our people as much as we do in our products and services, thereby ensuring that we remain at the forefront of this competitive industry.”
BOV Launches New Corporate Social Responsibility Foundation
Bank of Valletta has just launched a new foundation, the Bank of Valletta (BOV) Foundation, a non-profit making organisation aimed primarily at benefiting the general public and Maltese society at large. The Foundation was launched during a press conference presided over by BOV Chairman Dr Cordina and CEO Kenneth Farrugia, who signed the deed. Present were also Ernest Agius, Chief Operations Officer at BOV responsible for the Bank’s Corporate Social Responsibility (CSR) program, as well as members of the Foundation’s Board of Administrators.
Community engagement and corporate philanthropy have always been a top priority for the Bank throughout its 50-year history, a commitment that was consolidated back in 2005 with the establishment of the BOV Community Programme. Over the years the Bank has played an active role in making a positive impact on Maltese society, and the setting up of this new Foundation is a consolidation of all these efforts. The purpose of the Foundation is to implement the Bank’s CSR Strategy based on five pillars: supporting vulnerable members of Maltese society, fostering quality education, protecting Maltese heritage, promoting ethical and responsible conduct and speaking up for the environment.
The administration and management of the Bank of Valletta (BOV) Foundation is vested in the foundation’s Board of Administrators. The Board will see to the day-to-day affairs of the Foundation, managing its assets and ensuring that the objectives set out by the Foundation are reached. The Board of Administrators are Martin Galea (Chairperson), Ernest John Agius, Godfrey Swain, Antoinette Caruana and Anita Mangion.
Sustaining our commitment to Maltese society – Dr Gordon Cordina, Chairman
Speaking during the signing ceremony, Chairman Dr Cordina said, “Bank of Valletta has always played a critical role in shaping the Maltese economy, more so today as a systemically important Bank that services a large percentage of the population. With deep roots in many aspects of Maltese society, the communities that we operate in remain important stakeholders for us. The BOV Foundation is another step in the right direction in our efforts to be leaders and innovators in the financial sector, and a catalyst for positive change.”
Contributing to the wider needs of the community – Kenneth Farrugia, CEO
CEO Kenneth Farrugia elaborated further, “Five decades of banking services have enabled our Bank to forge an important and close-knit affiliation with the Maltese economy, servicing personal and business clients in the process and contributing from a social responsibility perspective to the wider needs of the community. The setting up of this foundation is a bold statement of intent by the Bank. We are building on our successes, strengthening the Bank on multiple fronts, and at the same time ensuring that society reaps the benefit of this success.”
A Foundation built on the Bank’s community reach-out programme – Ernest Agius, COO
“Bank of Valletta’s community reach-out programme has always offered tangible support to various aspects of community life. Through this Foundation we will continue to support people in need, ensuring an adequate level of health and quality of life. We will also be approaching education holistically to boost financial literacy, preserving and promoting the treasured work in artistic, creative and architectural sectors, promoting ethical and responsible conduct together with business and sports alliances, and becoming sustainability heroes by tailoring products and initiatives aimed at safeguarding the environment.”
Spearheading an exciting new initiative – Martin Galea, BOV Foundation Chairperson
Speaking about his appointment, Martin Galea said, “I am proud to have been appointed as Chairperson of the BOV Foundation. It is an exciting time to be spearheading this initiative, and I look forward to seeing first-hand the positive impact that the Foundation will have on Maltese society.”
BOV supports the restoration of iconic Gianni Vella paintings
Bank of Valletta announced its support towards Marsa Holy Trinity Church in a significant restoration project involving four iconic paintings by the renowned Maltese artist Gianni Vella. These monumental works, dating back to 1912, are now being carefully restored to their original glory.
The four paintings, each measuring an impressive 2.25 metres by 4 metres, are located in the choir of the Holy Trinity Church and represent Vella’s early ecclesiastical phase. The artworks being restored include St John baptising Christ in the River Jordan, Abraham Genuflecting in front of the three Angelic Visitors, The Sending of the First Apostles, and God Breathing Life into Adam.
These paintings showcase Vella’s mastery of translucent glazes, a technique that characterized his early work before he transitioned to a bolder, impasto style influenced by Italian Macchiaioli artists. Rather than drawing influence from Cali, Pisani or Palombi, Vella’s work comes closer to that of Silvio Galimberti and Francesco Grandi.
The conservation work, undertaken by Pierre Bugeja of Prevarti Co Ltd, has already seen the successful completion of two of the works of art, The Sending of the First Apostles and God Breathing Life into Adam, now returned to their pride of place within the Church.
Ernest Agius, Chief Operations Officer, accompanied by Charles Azzopardi, Head CSR & Events, visited the Church on the day that the works of art were reinstalled in their original locations within the church. They were given a warm welcome by Father Dominic Mangani, Parish Priest of Marsa Holy Trinity Church.
Ernest Agius, expressed his enthusiasm, stating, “It’s truly inspiring to see these historic artworks restored to their former beauty. This project is a testament to our commitment to preserving Malta’s rich cultural heritage, and it is truly an honour to play a part in ensuring the longevity of these masterpieces so that they can be enjoyed by future generations.”
Charles Azzopardi also commented on the significance of the restoration. “Our collaboration with Marsa Holy Trinity Church reflects our dedication to supporting the arts and the community. By restoring these paintings, we are not only preserving important works of art but also contributing to the cultural and spiritual fabric of Malta.”
Expressing his gratitude for the Bank’s support, Father Dominic Mangani expressed his gratitude for the restoration efforts. “These paintings are integral to the history and identity of our Church and our community. The restoration has revived their spiritual essence, and we are deeply thankful to the Bank for their support in preserving this invaluable part of our heritage.”
The remaining two paintings, St John Baptising Christ in the River Jordan and Abraham Genuflecting in Front of the Three Angelic Visitors, are currently undergoing restoration and are expected to be completed in the coming months.
Gross Mismanagement and Failure in Upholding Good Governance
Complete breakdown in the distinction between Government, civil service and political party in power
The Malta Chamber of Commerce, Enterprise, and Industry has long advocated for the principles of good governance, emphasizing transparency, accountability, and the separation of Government, civil service, and political parties. These values are essential for maintaining Malta’s reputation as a credible jurisdiction. The Malta Chamber is deeply concerned about the ongoing erosion of these principles, as evidence by the alleged identity cards racket. Government’s silence on this issue raises suspicions about the severity of the scandal and its potential to severely damage Malta’s international standing.
The identity card scandal is a symptom of broader governance failures. The Malta Chamber has consistently emphasized the importance of good governance and has issued two documents outlining several recommendations: “Ethical Business Calls for Change” and another titled “A Strong Transparency, Accountability, and Ethical Governance Framework for Members of Parliament”. These documents provide recommendations to protect institutional integrity. Unfortunately, these recommendations have largely been ignored, as evidenced by the continuing governance breakdowns.
The fallout from these failures in governance is not only affecting the public sector, but it is also impacting ethical businesses. Businesses rely on official documentation, such as ID cards, for their proper functioning, and management of commercial risk. The lack of good governance has slid to abysmal level, resulting in ethical companies being faced with higher commercial risk arising from uncertainty on the veracity of official document. This situation exemplifies the damaging consequences of poor governance, leaving businesses vulnerable to repercussions from government negligence.
Moreover, The Malta Chamber is alarmed by the blurring of lines between Government, civil service and the political party in power. This lack of crucial separation leads to the collapse of democracy. The lack of transparency in employment contracts, unclear procedures for handling high-ranking officials under investigation, and the frequent turnover of CEOs and Chairpersons within public institutions further destabilise these entities and undermine public trust.
The Malta Chamber warns that the long-term implications of these governance failures could be devastating for Malta’s international reputation, business environment and public confidence. The lack of trust in critical systems signals a deeper crisis in governance that threatens the nation’s security and stability.
At this crucial juncture The Malta Chamber demands immediate government action to restore good governance. This includes ensuring transparency in all appointments and processes, addressing the blurring of lines between Government, civil service and the political party in power, and also rebuilding the public’s trust in Malta’s institutions. Without urgent reforms, the nation risks further damage to its reputation and undermining the foundations of its success.
BOV elevates talent with exclusive London training
Bank of Valletta continues to invest in the professional growth of its employees, reinforcing its commitment to excellence in the financial industry. As part of this effort, BOV Asset Management sent four of its Financial Advisors to London for an exclusive two-day training program at Insight Investment Management (Global) Limited and Fidelity International. This training initiative is part of the Bank’s ongoing efforts to support its employees’ professional development and ensure that they remain at the forefront of modern industry trends. As the official representative of Fidelity in Malta, BOV values this partnership and the opportunity it provides for advanced training and insights.
Fostering Expertise at Insight Investment Management
The training began with an in-depth session at Insight Investment Management. The BOV employees had the opportunity to meet Ms Cathy Braganza, Senior Credit Analyst of the Vilhena High Yield Fund, a firm favourite among local investors. Valuable insights were shared on the Fund’s current bullish stance, highlighting attractive yield levels and low default rates. The focus on companies with robust growth potential and stable cash flows provided the team with fresh perspectives on high-yield investment strategies.
Expanding Horizons at Fidelity International
The BOV representatives engaged in a series of presentations at Fidelity International’s offices. Ms Cornelia Furse, Portfolio Manager, delivered an insightful presentation on the Fidelity Sustainable Global Equity Fund, emphasizing the importance of sustainable investments aligned with the United Nations Sustainable Development Goals. The session served to highlight the Fund’s commitment to making a positive environmental and social impact while achieving strong financial performance. Ms Libby NcNie, Fixed Income Investment Specialist, provided an overview of the Fidelity Euro Corporate Bond Fund, detailing the rigorous in-house research and strategic analysis used to identify optimal investment opportunities in a fund that emphasises favourable Environmental, Social, and Governance (ESG) characteristics.
Commitment to Continuous Learning and Development
“At BOV, we believe in nurturing our talent and providing opportunities for continuous learning and growth,” explained Mark Agius, Head BOV Asset Management who accompanied the BOV team of employees. “BOV Asset Management remains dedicated to empowering its employees through regular, high-quality training programmes both locally and internationally. This initiative, which has become a staple appointment in our diaries, not only enhances our employees’ skills but also reinforces our commitment to excellence and innovation in the financial sector. By investing in its people, the Bank works towards fostering a culture of excellence that benefits its customers and the broader community.”
HSBC Malta Foundation raises awareness for the conservation of the endemic Maltese Honeybee
The Foundation for the Conservation of the Maltese Honeybee (KNM), in partnership with HSBC Malta Foundation, is proud to announce the release of a new A6 postcard promoting the National Insect Initiative. This initiative aims to raise awareness and support for the conservation of the endemic Maltese Honeybee.
The Maltese Honeybee (Apis mellifera ruttneri), a unique subspecies evolved in isolation on the Maltese Islands, faces significant threats due to hybridisation and the accidental introduction of the Varroa mite in 1992. Conservation efforts are critical to preserving this locally adapted subspecies from extinction.
The Maltese Honeybee is currently a candidate to be classified as a National Species, an initiative of the KNM Foundation. If successful, it would join only five other local species holding this prestigious status. The Foundation for the Conservation of the Maltese Honeybee (KNM) is dedicated to preserving the unique Maltese Honeybee through education, conservation, and advocacy.
Highlighting these efforts, the new postcard features the Maltese Honeybee on a flower of the indigenous Mediterranean Thistle (Galactites tomentosa) on the front, and on the endemic Maltese Pyramidal Orchid (Anacamptis pyramidalis urvilleana) on the back, drawn by local artist and architecture student Karl Farrugia. The postcard’s design integrates elements symbolic of Malta, including the white and red colours of the Maltese flag and a detail from the Maltese Cross. A QR code links to an educational video about the Maltese Honeybee, available at https://youtu.be/PYmKpkSzJTQ.
This postcard, sponsored by HSBC Malta Foundation, will be available at HSBC branches across Malta and Gozo starting this August, with additional copies distributed in schools at the beginning of the new academic year in September.
Glenn Bugeja, on behalf of HSBC Malta Foundation said, “We are proud to support the call for the Maltese Honeybee to be declared the National Insect of Malta. We firmly believe that this elevated status would help raise awareness about this special pollinator, leading to better conservation efforts.”
Dylan Farrugia, President of the KNM Foundation, added, “As the initiative to declare the Maltese Honeybee continues to gather traction, we are proud to once again partner with HSBC Malta Foundation, who have generously renewed their support for our cause.”.