Month: April 2025

As part of the celebrations for Global Money Week 2025, themed “Protect your money, secure your future”, the HSBC Malta Foundation and JA Malta teamed up once again to deliver an energetic, hands-on financial literacy experience for local students.

The Economics of Life Hackathon, hosted at St Clare’s College Pembroke, brought together 22 teams of young teens aged 12 to 14 who were eager to test their skills in budgeting, planning, and real-life money decisions. With creativity and energy buzzing in the room, students were challenged to work through a “Teen Life Planner” scenario—balancing a budget, making smart choices, and staying focused on a future goal.

It wasn’t just about numbers. The hackathon pushed students to think on their feet, work as a team, and present their strategies with confidence. Throughout the event, Duncan Triganza from HSBC Malta and Petra Ellul Mercer from JA Malta maintained high energy levels, fostering a dynamic and competitive atmosphere.

By the end of the event, it was clear that these young minds are more than capable of making savvy financial decisions when given the chance. Big congratulations go to Newark School, St Augustine School, and St Benedict School, who claimed the top three spots with their smart, strategic, and creative solutions.

Reflecting on the initiative, Matthew Caruana, CEO JA Malta commented, “Financial Capability is more than just understanding money—it’s about building a mindset that helps young people protect their future. This hackathon provides a practical and engaging platform for students to apply economic concepts in real-world scenarios which they are accustomed to.”

Glenn Bugeja at HSBC Malta Foundation added: “At HSBC Malta, we believe that financial literacy should be nurtured from an early age, giving young people the tools they need to make informed and responsible financial decisions. The enthusiasm and ingenuity displayed by the students during this hackathon are a testament to the importance of such initiatives in shaping future generations.”

This hackathon aligns with the broader efforts of HSBC Malta Foundation and JA Malta to prepare today’s youth for tomorrow’s financial realities. With the talent and energy displayed during this event, the future looks promising and financially secure. By investing in knowledge and fostering critical thinking, HSBC Malta continues to play a key role in preparing students for the financial challenges and opportunities ahead.

Bank of Valletta is reinforcing its commitment to sustainable business growth through the BOV SME Grow Green Loan, a financing solution designed to help small and medium-sized enterprises (SMEs) transition to greener operations. This initiative was highlighted by Mark Scicluna Bartoli, Head of Product Development at BOV, during the MHRA BOV Deloitte Q4 2024 Hospitality Performance and European Hospitality Industry and Investment Survey presented a few weeks ago.

BOV recognises that for SMEs, accessing financing for sustainable projects can be a challenge. The BOV SME Grow Green Loan is specifically designed to ease this financial burden, ensuring that businesses investing in environmentally friendly initiatives benefit from better lending conditions. By offering a lower interest rate, this product encourages SMEs to take decisive steps toward reducing their carbon footprint and environmental impact.

A key advantage of this loan is its ability to make green investments more affordable. SMEs can benefit from a 1% reduction in interest rates, making it a more cost-effective solution for energy-efficient systems, renewable energy projects, or other carbon-reducing initiatives. This initiative aligns with BOV’s wider Environmental, Social, and Governance (ESG) strategy to contribute to Malta’s sustainability goals.

Speaking at the event, Mark Scicluna Bartoli emphasised the importance of integrating sustainability into business strategies, highlighting how the BOV SME Grow Green Loan can help SMEs thrive in a changing economic landscape.

The Bank works closely with businesses to understand their transition plans, helping them explore options that may include a combination of bank financing and government incentives. By taking this proactive approach, BOV ensures that businesses receive the necessary expertise and resources to make informed investment decisions.

As businesses face increasing pressure to adopt greener practices, BOV is providing the financial support and advisory services needed to make this transition feasible.

Businesses interested in learning more about this financing solution can visit www.bov.com or contact  BOV Business Development Unit on 2275 7111 or via email on businessdevelopment@bov.com.

The HSBC Malta Foundation has provided financial support for the construction of a new cabin for Dr Klown at Mater Dei Hospital, reinforcing its long-standing commitment to the organisation, which it has been supporting for over a decade.

The new space serves as a dedicated area for Dr Klown volunteers, allowing them to prepare for their visits and store their attire and props. The project embodies Dr Klown’s ethos of bringing joy and laughter to children undergoing medical treatment. The cabin’s design features playful elements and vibrant colours that reflect the spirit of the organisation and its mission to provide comfort through humour.

Dr Klown is a non-profit organisation that has been active in Malta since 2010, offering professional clown doctor visits to children in hospital. Through their work, the volunteers help alleviate anxiety and create a positive environment for young patients and their families.

Eric Muscat, speaking on behalf of Dr Klown, said: “This new cabin is an essential addition to our work at Mater Dei, giving our volunteers a much-needed space to prepare before engaging with children. We are deeply grateful to the HSBC Malta Foundation for their unwavering support over the years and for helping to make this project possible.”

Glenn Bugeja, speaking on behalf of the HSBC Malta Foundation, said: “Dr Klown has been making a meaningful impact on children’s hospital experiences for many years. The HSBC Malta Foundation is proud to have supported this initiative and to continue our decade-long partnership with Dr Klown, ensuring that young patients receive moments of joy even in difficult times.”

The Facts: When analysing whether a taxable person has a Fixed Establishment (“FE”) in a Member State, reference should be made in particular to Article 11 of Council Implementing Regulation (EU) No. 282/2011 (“Implementing Regulation”). However, it is equally important to consider the extensive case law of the Court of Justice of the European Union (“CJEU”) on this subject, as the notion of a fixed establishment remains a complex and evolving concept, with various aspects still subject to interpretation and clarification through CJEU decisions.

According to Article 11(1) and (2) of the Implementing Regulation, a fixed establishment is defined by the cumulative presence of the following three elements:

A sufficient degree of permanence in that Member State.

The presence of a suitable structure in terms of human and technical resources.

These same human and technical resources must enable the establishment to receive and use services for its own needs.

Article 11 explicitly states that VAT registration alone is not sufficient to consider that a taxable person has a fixed establishment. In fact, Article 11(3) of the Implementing Regulation clarifies that:

“The fact of having a VAT identification number shall not in itself be sufficient to consider that a taxable person has a fixed establishment.”

In essence, VAT registration is an administrative obligation and should not be confused with the concept of a fixed establishment for VAT purposes.

 
Conclusion: Holding a VAT number in a Member State does not automatically create a fixed establishment.

Verdict: Statement is false.

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Authors: Brandon Gatt, Partner, Zampa Partners & Valentina Bruno, VAT Associate, Zampa Partners

The latest economic outlook for Malta issued by PwC reveals a robust performance in the face of moderate global growth projections. According to recent data, Malta’s GDP growth rate stood at 6% in 2024, although decelerating somewhat from 6.8%, and is forecasted to dip below the 4% mark by 2026. This growth is driven by sectors such as real estate, construction, financial services, and the public sector. However, traditionally higher value-added sectors such as professional services, ICT, and arts & entertainment (including i-gaming) have slowed down or even contracted slightly. In fact, official statistics for FY24 at a sectoral level suggest a negative correlation between a sector’s growth rate and that same sector’s output per employee in euro terms.

The latest global projections from the PwC Network suggest that global growth will moderate somewhat, at 2.6% in 2025 and 2026, down from 2.8% in 2024. The US economy is expected to grow at just over 2%, while China’s growth is projected to moderate to around 4.5%. Growth in the eurozone is expected to remain slow, at 1.1% in 2025, picking up marginally to 1.3% as the German economy recovers somewhat. Meanwhile, India’s economy remains robust, with growth expected to be over the 6% mark.

Despite the global moderation, Malta’s economic performance remains above its European peers. Expenditure data for FY24 indicate that this growth was driven by expenditure related more to entertainment & leisure and tourism-related activity, rather than more domestic expenditure. Furthermore, economic sentiment indicators such as The Economic Sentiment Indicator (ESI) suggest
decreasing confidence for the first two months of FY25 after a temporary upturn towards the end of 2024. However, Malta’s real GDP growth is projected to remain higher than that of the Euro Area, although the disparity is expected to narrow over time.

To access the full report, visit here.

Disclaimer: The data presented in this Economic Outlook does not reflect the recent tariffs unveiled by the US government.

Bank of Valletta recently hosted a very well-attended seminar for business representatives, focusing on one of today’s most pressing concerns – cybersecurity. This event was designed to equip business leaders with essential knowledge and tools to protect their operations from the growing risks of fraud, scams and digital attacks.

In his opening remarks, BOV CEO Kenneth Farrugia described the event as the first of its kind for Bank of Valletta, underscoring the Bank’s commitment to supporting the business community beyond the provision of financial services. “Cybersecurity is no longer just an IT concern. It is a business risk that demands attention across all sectors,” he said.  “The evolution of technology has changed the way companies operate, but it has also enabled cybercriminals to become more sophisticated, exploiting advancements in artificial intelligence and machine learning.”

Mr Farrugia stressed the role of education and awareness in building a strong first line of defence. “Cybersecurity is one of BOV’s key initiatives. We are committed to safeguarding our systems, our people, and most importantly, our customers.”

Organised by the Bank’s Business Development and Customer Value Unit, the seminar covered real-life examples of cyber incidents – from phishing emails to AI-driven fraud. BOV specialists in Payments, Cards, and Information Security delved into several critical areas. The speakers offered practical strategies to strengthen information security and defend against fraud. Attendees were also given tips on how to identify common scam tactics and implement safeguards to protect outgoing payments.

With the rise in digital transactions, businesses face increasing threats, including bank impersonation scams. These often involve criminals posing as bank employees to deceive victims into disclosing sensitive financial information. The seminar highlighted the importance of recognising red flags, adopting strong security protocols, and fostering a culture of cyber awareness within teams. The event concluded with an interactive Q&A session, giving attendees time to raise real concerns and get expert advice on shielding their businesses from cyber threats.

Bank of Valletta urges anyone who suspects that they may have fallen for a scam to report it by calling +356 2131 2020.

HSBC Bank Malta will once again join other HSBC Group sites worldwide in marking Earth Hour, demonstrating its ongoing commitment to environmental sustainability. Organised by the World Wildlife Fund (WWF), Earth Hour is a global initiative encouraging individuals and organisations to switch off lights as a symbolic act to raise awareness about climate change and energy conservation.

This year, Earth Hour took place on Saturday, 22^nd March 2025, from 20:30 to 21:30. HSBC Malta participated by turning off all external lighting at its landmark offices in Valletta and Qormi in alignment with the global initiative. The Ministry for the Environment, Energy & Public Cleanliness (MEEC) coordinated Malta’s participation, with a central event scheduled at St. George’s Square between 18:00 and 21:45. The event featured informational stalls, entertainment, and the lighting of a large ‘60’ logo with candles which represents the one hour during which lights are switched off to highlight the importance of sustainability.

HSBC Malta has actively supported Earth Hour since its inception in 2009, recognising the importance of fostering long-term environmental awareness. The initiative serves as a reminder that sustainable practices should extend beyond just one hour and become part of daily life.

Glenn Bugeja on behalf of the HSBC Malta, commented: “As a responsible corporate entity, HSBC Malta remains dedicated to promoting sustainability and reducing environmental impact. By taking part in Earth Hour, we reaffirm our commitment to tackling climate change and inspiring positive action within our communities.”

Beyond turning off lights at its buildings, HSBC Malta encouraged its people and the public to participate by switching off non-essential lighting and engaging in activities that contribute to a greener future. Whether it’s reducing energy consumption at home, participating in clean-up initiatives, or adopting more sustainable lifestyle choices, every action counts.