Issue link: https://maltatoday.uberflip.com/i/542972
maltatoday, SUNDAY, 19 JULY 2015 News 3 Scicluna wants press 'at the service' of investment MIRIAM DALLI MALTA'S economic growth hing- es on attracting foreign invest- ment and tapping into markets beyond Europe, Finance Minister Edward Scicluna said of his hopes to tap into Asian and African markets beyond Libya. "There is strong interest by Mal- tese companies who were operat- ing in Libya but are now seeing huge opportunities in other Afri- can countries, including Ethiopia. With a growing economy, for ex- ample, Maltese companies could tap into technology and printing markets," he said. Scicluna said Malta had the ideal location to start "exporting" health and educational services. The finance minister, closing a series of media conferences on the latest Standard and Poor's credit rating, said the Labour gov- ernment was seeking investment from beyond European frontiers. But he played down claims by the PN that the memorandum of understanding with Chinese telecoms giant Huawei to start 5G testing in Malta had not been quantified. "These arguments are ridicu- lous. Why else would Huawei want to come to Malta? To sun- bathe and swim in the summer? It is seeking opportunities beyond Europe and in Africa. They have offices in Frankfurt and the UK chased them. So should we close our doors if the biggest telecom- munications giant wants to come to Malta?" Scicluna however refused to place a price on the Huawei deal, referring journalists to the econ- omy minister, before adding that like Microsoft, Huawei gave Malta positive branding. "When Micro- soft opened their office in Malta no one had asked them how much money they would be putting on the table because that is not how things are done. The investment came afterwards," he said. Huawei plans to test 5G tech- nology in Malta, having already signed the 5G-PPP coalition, a project of the European Commis- sion to deliver solutions, architec- tures, technologies and standards for the next generation communi- cation infrastructures of the com- ing decade. But Scicluna appeared to be wary of the media's "constant hovering" over investors, who he said "could be put off" by prying questions. "I'm not saying that questions shouldn't be raised or that the media shouldn't report about stories like Gaffarena, because they are extremely important. But we should put everything in its proper context. A few incidents which took place, such as chasing after an investor with a mic... on their own I have no problem with it, but taken together..." Scicluna trailed off. 'Germany not a bully' Scicluna once again sprang to the defence of Germany's hardline stance on Greece's demands for a new bailout, dispelling claims that Germany had bullied the coun- try into accepting a difficult pro- gramme of reforms. "Those who were present for the Eurogroup meetings know that this wasn't the case. The media have a different picture of what was going on, depending by whom the statements were made. The reality is that all member states were on the same side on this one," he insisted. Reacting to concerns that the latest Greek deal was too tough to be seen through by the Syriza government, Scicluna said that in all probability it would not suc- ceed, because the departure point by the Greeks was one of "black- mail". "The deal requires ownership. Talking about it being imposed is not fair. Agreeing to a third bail- out was a solid sign of solidarity and it's obvious that the deal can't be agreed to without conditions," he said. Greece had pushed for a haircut on their billion-euro debt, a pro- posal that was strongly opposed by Eurogroup members, but Sci- cluna insisted that what should be given importance was not the amount of debt but the interest requested on that debt. mdalli@mediatoday.com.mt 'Any investment should be welcomed with open arms,' says finance minister over Huawei memorandum "I'm not saying that questions shouldn't be raised... A few incidents which took place, such as chasing after an investor with a mic..." - Edward Scicluna says that the press should not be hounding potential investors to quantify investments, but welcoming their interest in Malta. PHOTO: RAY ATTARD Maltese businesses unlikely to be hit by fresh Greek austerity TIM DIACONO MALTESEOWNED businesses are unlikely to suffer any noteworthy rip- ple effects of the fresh round of auster- ity measures just approved by the Greek Parliament. "The exposure of Maltese business to Greece isn't high, and indeed no businessman has yet approached us to voice concerns about the latest auster- ity measures," Malta Chamber of Com- merce president Anton Borg confirmed with MaltaToday. Premier Capital, owned by brothers Marin, Beppe and Melo Hili, operates 21 McDonald's restaurants in Greece and indeed acquired a development licence to enter the Greek market in 2011, when austerity meas- ures had already hit the country. "We were conscious that we were entering a market with an enormous potential and a changeable environment," a company spokesperson told MaltaToday, adding that they will continue to invest in deliv- ery innovation and staff training. She pointed out that their Greek Mc- Donald's restaurants, led by managing director Victor Tedesco, served 6.7 mil- lion customers in 2014 and 3.4 million customers between January and June this year. The Greek Asso- ciation of Branded Food Service Chains has warned that the austerity reform to raise VAT on food service from 13% to 23% would amount to the "kiss of death" for the sector. Yet, the Premier Capital spokesperson sounded a more optimistic tone. "We have experienced VAT rate fluc- tuation and changes in customer spend- ing power in Greece before," she said. "In this latest scenario, our commitment to our customers, to our team and to the Greek market remains consist- ent. We will ensure cus- tomers continue to enjoy the same best value they expect from McDonald's as we continue to operate an efficient business." The restaurant VAT hike could also indirectly impact the Greek subsidiary of Miller Distributors, Malta's major newspaper and magazine distributors. "Since we print and distribute interna- tional newspapers and magazines, the impact of these new austerity measures is intrinsically related to their impact on tourism to Greece," the company's chief executive, Malcolm Miller said, while specifically noting the 10% VAT rise. "Greek tourism dipped while their government was negotiating with its creditors, but it is now back on track. It is unlikely that the new austerity measures will significantly impact tourism, but it is still too difficult to predict how it will pan out. These new austerity measures are going to be very difficult to implement." Malta's national lottery company Maltco has also allayed fears that the Greek austerity measures could disrupt its operations, despite the fact that the majority of its shares are owned by In- tralot, a Greek gaming company. A Maltco spokesperson explained that Intralot's Greek business contributed less than 3% to its total turnover in 2014 and less than 2% in the first quarter of 2015. The Greek economic crisis has hit local business in the past, with Go plc decid- ing in 2012 to write off their investment in the Greek telecommunications com- pany Forthnet. In 2014, Go indirectly injected €6 million into Forthnet, but a financial expert confirmed with Mal- taToday that any impact on the Maltese telecommunications company would be "insignificant". Melo Hili – the Hili brothers operate 21 McDonald's restaurants in Greece