8 | The Japan Times | Wednesday, February 20, 2019 (Sponsored content) Japan’s innovative gateway to the EU and Africa The islands’ geographical location and world-leading approach to innovative industries, such as fi nancial services, gaming and blockchain, make it the ideal base for investors looking to make the most of this year’s EU-Japan Economic Partnership Agreement. PHOTO: DOI – Malta PHOTO:

The signing of the EU-Japan Economic Partnership Agreement has turned the attention of investors toward a small, Mediterranean archipelago: Malta, a country intent on “leading the way” in future economic and trade relations between Europe and Japan, said the islands’ Prime Minister Joseph Muscat when meeting Prime Minister Shinzo Abe in 2018. Its economy is one of Europe’s strongest, noted Minister of Finance Edward Scicluna. “Our economy is growing rapidly, in 2017 at over seven percent and in 2018 at just under six percent. Investors are seeking us, rather than us seeking them,” he said. Malta has geographical advantages for those investors, not least as the ideal gateway to Europe, he explained: “We have the Euro currency, so if you do business with Malta, you do business with all of Edward Scicluna Silvio Schembri the EU. And Malta is one of the easier EU countries Minister of Finance Parliamentary Secretary for Financial in which to do business — it shares a language and a Services, Digital Economy and Innovation lot of business values with the U.K., which is moving away from the EU. Malta is also a base to operate in to issues faced at any point in a project’s life cycle. industries. “We are studying a project to get a cou- Africa and the Middle East.” Partly to guarantee excellent support, it has estab- ple of accelerators that could work with us in order Parliamentary Secretary for Financial Services, lished an Institute of Foreign Direct Investment to encourage local and foreign startups. We have Digital Economy and Innovation, Silvio Schembri, Studies to provide high-quality research and train- support from universities, entrepreneurs and the gave more reasons for the country’s ascendancy: ing in FDI management. private sector, and the access to fi nance is good, so “Malta offers stability in its economy, legislation and According to Galea: “Malta’s success is driven by the situation is encouraging,” said Galea. politics. It is also small, nimble, fl exible and excels different factors. First, I would point to our diver- Maltese Prime Minister Joseph Muscat meeting Japan’s Prime Minister Shinzo Abe in Tokyo in August . at innovation, be it technological, legislative or oth- sifi ed economy. Manufacturing, tourism and hos- The blockchain island erwise. We are welcoming and have a dynamic rela- pitality, fi nancial services, e-gaming, engineering, One of the reasons behind this funding accessibil- and have enacted three new bills for this sector to ecosystem includes MGA’s own European Gaming means the sector will fi nd a welcoming home here. tionship with investors.” As a result, Malta is at the plastics, aviation, maritime, information technol- ity is that, “The Maltese fi nancial services sector is fl ourish. These are focused on market integrity, con- Institute of Malta, set up with the Malta College of We also see simulation racing as an area for continu- vanguard of cutting-edge industries, such as fi nan- ogy, pharmaceuticals and life sciences, for example: robust and prospering,” stated Schembri. “Not one sumer protection and industry protection, and give Arts, Science and Technology to address training ing encouragement.” GamingMalta is also focused cial services, gaming and, most recently, blockchain. they have all seen tremendous growth and there is of our banks needed a bailout during the global certainty, clarity and transparency for virtual assets needs. on building on the country’s reputation as a digital “We put experts and the best legal minds together room for more in every sector.” Another benefi t for fi nancial crisis, for example,” said Scicluna. “They and cryptocurrencies,” said Schembri. New innovations are constantly being introduced creative hub. “We already have successful video and take modern ideas from birth to fruition, way investors, he stated, is: “We have a cluster approach. are quite conservative, they stood fi rm and this is Fintech is already having an impact on Malta’s as gaming develops. For example, a new gaming law gaming companies here and we want to ensure that ahead of many other countries,” said Scicluna. We try to build an ecosystem and attract a number what they have to show for it: high liquidity and fi nancial sector. In 2018, the ’s was enacted in 2018 that gives the regulator more structures are built to give further and sustainable This approach makes Malta ideal for Japanese of companies from the same niche. A great example profi tability above the EU average.” (MSE) innovation, digital and fi ntech arm — MSX fl exibility in its operations. As a result, Farrugia is impetus to this sector. By working closely with the investors, according to Schembri: “Historically, would be aviation, for which we have created a one- Over two decades, the contribution of fi nancial — announced it was developing two platforms for not worried about the introduction of cryptocur- sector, we can enhance the digital gaming ecosys- we have a good relationship. Our prime ministers stop shop that benefi ts all stakeholders. Also, what services to GDP has risen dramatically, with Malta listing and trading security tokens in partnership rencies to gaming, “We have a strong reputation as tem and attract key talent to Malta,” he said. have huge mutual respect for each other and we really differentiates us from a number of other com- now fi rmly established as a global fi nancial hub, with leading crypto-exchanges Binance and Okex. a regulator and our role will be to keep that momen- Testament to Malta’s creative potential is the are determined to build on that. If we look at our petitive countries is that we have a very good labor especially in asset management, insurance and “This should place the MSE into a new league — we tum,” he said. Alongside the government, MGA was recent relocation of the weeklong Trojan Horse present export-import relationships with Japan, force and regulatory framework, plus great incen- private-sector fi nance, said Kenneth Farrugia, chair- really are trailblazers here,” stressed Joseph Portelli, also responsible for establishing the independent Was a Unicorn (THU), an internationally renowned there is, for example, a huge success with our highly tives and communications at all levels.” man of FinanceMalta, the public-private initiative executive chairman of MSE, who believes Malta can nonprofit GamingMalta foundation, which pro- gathering of digital artists, to the islands. The 2018 respected tuna exports and we have to replicate that Scope for exports is another benefit. “Malta promoting the country as a center for international be the “Silicon Valley of the Mediterranean.” motes Malta as a center of excellence for remote edition brought over 1,000 creatives and creators success in other areas. There is a lot of opportunity offers countless possibilities for Japanese compa- fi nance. Farrugia explained why the world’s leading This is just the latest modernizing step from MSE. gaming, and liaises with authorities to improve from all corners of the world to Malta, including for both countries to act together.” nies, especially ones wanting to enter Africa, as our players in those sectors moved to Malta: “Our thrust “Since my appointment as chairman three years ago, Malta’s attractiveness to investors and enhance the executives from the world’s top entertainment in fi nancial services was driven by innovation. We I decided we had to take certain approaches that gaming ecosystem. companies. “THU is set to become a vital show- “We put experts and the best legal minds together and take developed very strong legal and regulatory frame- will be different from the traditional ones,” said GamingMalta’s role is to position the country as case of Malta’s digital creative ecosystem, which is works quickly, giving us fi rst-mover advantage.” Portelli. “Within three years, I believe we could be the “home of gaming excellence,” said Ivan Filletti, expected to grow and gain further global recogni- modern ideas from birth to fruition, way ahead of many In addition, “We are cost competitive in compari- one of the world’s fi rst blockchain-compatible stock its head of operations and business development. tion in the years ahead,” stated Filletti. The driv- other countries.” son to other European fi nancial centers — salaries exchanges. We are nimble and agile, so should be “We do this by engaging with all key stakeholders, ing force behind Malta’s creative industries is skills here are about 25-30 percent lower. Then, it’s the able to move quicker than others,” he said, add- and by connecting the dots within the different transfer, with companies operating out of Malta Edward Scicluna, Minister of Finance accessibility of our regulator, which is very pro-busi- ing that he would love to look for synergies with parts of the gaming ecosystem, both locally and benefi ting from expertise gained in the e-gaming ness and meticulous. On top of Malta’s overarching Japanese exchanges for further modernization. internationally, to promote, strengthen and accel- sector, in areas such as analytics, data mining, per- The fi rst port of call for Japanese investors should location and the good shipping links that we have economic and political stability, the continuous dia- erate growth in gaming,” he said. One of the ways sonalization and customer experience, as well as be Malta Enterprise, the islands’ economic devel- with Africa are not offered by any other country,” logue between industry, policymakers and regula- Driving the global e-gaming sector the organization achieves this is through network- the monetization of content. opment agency that is responsible for attracting noted GaIea. In addition, through Malta Enterprise, tors has been very important,” he said. Malta hopes its blockchain sector will repeat its ing events and international roadshows, which The relocation of most of the world’s major play- foreign direct investment (FDI), helping compa- companies can develop links with partners in over That dialogue has been central to Malta’s lat- fi rst-mover success in gaming. “Today we host the also attract investors and give startups a platform. ers in blockchain and cryptocurrencies to Malta nies to grow, encouraging exports and advising the 60 other countries, as it is the national contact est innovative step — its transformation into biggest cluster of gaming companies in the world,” In addition, GamingMalta is increasingly reaching on the back of the island’s groundbreaking fi ntech government on business-related policies. “The role point for the world’s largest business support body, Blockchain Island and intention to be at the fore- said Scicluna. In 2017, gaming contributed 11.3 out to non-gaming, mainly technology, companies regulations brings new opportunities for innovators of Malta Enterprise is very important,” said its CEO Enterprise Europe Network. front of fi ntech and the digital economy. “It will be percent of Malta’s GDP. “Malta was one of the fi rst to raise awareness of the skills and knowledge that in gaming, said Filletti — particularly in terms of Mario Galea. “We support 60 percent of the com- One of the organization’s goals is to retain and the future and Malta went for it,” explained Scicluna. European countries that regulated online gaming the sector has brought to Malta. game license verifi cation, game token monetization ponents of the Maltese economy at the moment.” build on Malta’s established industries, such as Using its experience of establishing world-class reg- in 2004,” explained Heathcliff Farrugia, CEO of the Looking to the future, Filletti is excited about the and the management of what can be millions of The organization’s staff have a wide variety of manufacturing, which represents 20 percent of ulatory frameworks for other fi nancial services and Malta Gaming Authority (MGA), the independent dynamic e-sports sector. “Malta has all the right assets within a game. In addition to gaming, Malta’s skills and backgrounds, allowing it to work with gross domestic product (GDP). The country’s inno- gaming — and after detailed discussion between all regulator responsible for the governance of all credentials to become an e-sports hub and the transformation into Blockchain Island opens up investors in all sectors to ensure their requirements vative qualities have been key for manufacturing to stakeholders — the country set up the world’s fi rst Maltese gaming activities. “Now, we have a very government is strongly backing this,” said Filletti. opportunities in many other industries — as Prime are understood and met from the start of any proj- move up the value chain into world-leading niches, holistic legislative framework for distributed ledger strong gaming ecosystem that includes top busi- “Our advanced information technology infrastruc- Minister Muscat said, “The time had come for Japan ect. It is equally concerned with the long-term suc- such as makeup packaging, he said. Equally impor- technologies (DLTs), including blockchain, in 2018. ness-to-business services, so any fi rm or startup ture and an ever growing e-sports community, cou- to give serious attention to the potential of Malta as cess of investments and endeavors to fi nd solutions tant is attracting new entrepreneurs and young “We have a new Malta Digital Innovation Authority, that comes here has what it needs,” he added. That pled with Malta being a natural tourist destination, a foreign direct investment location.”

Welcome to your home in Europe!

www.maltaenterprise.com

PAGE: 8 (Sponsored content) Wednesday, Thursday, February May 20, 4, 2017 2019 | | The The Japan Japan Times Times | B2| 9 www.global-insight.net MALTA Financial services guardian MFSA protects players

As the single regulator for all fi nancial services activities in the country, the Malta Financial Services Authority is a pivotal fi gure in the fast-growing sector, working around the clock to ensure companies comply with strict legislation.

As banks and fi nancial services providers across institutions, including courts and regulatory author- have here already; the competencies, knowledge, member countries must have the same standards and what are the particular reasons why Japanese the world find regulatory spotlights shining on ities. Malta has also been heavily infl uenced by its experience, passion and integrity are impressive. of application. businesses should take note of the current their operations like never before, Malta’s industry rulers — the Phoenicians, Byzantines, Arabs, French, Looking ahead, we need to increase our human We must also increase awareness and public momentum of the Maltese economy? guardian is meeting a series of challenges head-on English … this gave us a degree of resilience. resource capacity. We need to invest more in train- knowledge of this problem. It is an area in which and with confi dence. Malta has a deeply embedded level of resiliency. ing, particularly in fi ntech. Fintech will affect all you must constantly improve. The projections of the economy, in line with the Responsible for regulating and supervising credit We are small and have been punching above our sectors that we regulate. We need to improve our The reality of laundered money is the source itself vote of confi dence in the Maltese economy from and fi nancial institutions, investments, trusts and weight for centuries. Since our independence in corporate image — we need to become more of an must be tackled, the crime itself where the money the credit-ratings agencies, is for the next three years, insurance businesses on the island, the Malta 1964, we have been fully focused on our economic ‘employer of choice,’ our employer branding needs originates from must be addressed. Secondly, we will perform at an above annual average growth Financial Services Authority (MFSA) has created development. to be improved. robust systems of checks and balances must be rate — at least 5-6 percent. That is very reassuring. a streamlined and effi cient environment that has Now, we have managed to shift our economy We want young graduates to look to us as an allowed industry players of all sizes to fl ourish amid from that of a low-cost manufacturing centered attractive employer. The MFSA is an enriching work “Within the next couple of months, we will publish a healthy competition. economy, to high-end services focused (aviation, environment and affords individuals true job satis- Headed by charismatic and dynamic CEO, maritime, fi nancial services, gaming, information faction. I want there to be an emotional component ntech strategy which will comprehensively explain the Joseph Cuschieri, the MFSA continues to go from technology, logistics). between the employer and the employee. vision of the MFSA. We are the regulator and need to lead, strength to strength as it ensures operators comply Today, Malta is one of the most agile and nimble with stringent compliance legislation and meet economies. Our size enables us to adapt quickly to The Wall Street Journal recently commended the so whoever operates under our regulations, understands international industry best practices. the environment around us. We are very quick to Maltese financial services sector for its robust In addition to housing Malta’s Companies implement legislation. policies, diligence in tackling money laundering what is expected. We need to be the guiding beacon.” Registry, the MFSA’s tasks include the issuing of Given our size, politicians and policymakers have whilst embracing an extroverted, globalist and Joseph Cuschieri, CEO, Malta Financial Services Authority (MFSA) guidance notes and the monitoring of local and Joseph Cuschieri their ears closer to the ground, compared to other internationally integrated approach. What are international developments in the ever-expanding CEO, Malta Financial Services Authority (MFSA) jurisdictions. Our administration is very accessible. your thoughts on ensuring stringent fi nancial pol- put in place to reduce the risks. The credit ratings agencies are praising our bank- sector. We are readily available to listen to investors and icies and best practices while remaining an attrac- ing standards, the stability of our economy, how we By working with relevant parties on legislative about cryptocurrency only, it is only a component their challenges. tive fi nancial services hub for foreign players? Could you offer us an overview of the key role of are handling public debt, our defi cit — our public matters, the industry watchdog encourages and within the chain. Fintech will revolutionize fi nan- This approach helps us to adapt and overcome the MFSA in the continuous modernization of fi nances have been in surplus for the past two years. promotes the highest standards of compliance, as cial services products. The future is now — in the crises. Malta, in the fi nancial crisis (of 2008), was The fi ght against money laundering is a global the Maltese fi nancial services sector in line with This means we can invest more in infrastructure well as playing a major role in quality training. sense that those financial services institutions, hit, but not as bad as other jurisdictions. Our resil- problem. There was an article in the Financial Times governmental objectives, including a particular and the upkeep of the country, catering for the Here, Cuschieri expands on the role of the MFSA banks, insurance companies and other operators ience and conservative — sound — banking sec- recently which estimated that $1 trillion has been focus on blockchain technology and the signing infl ux of foreign workers. and why industry players from Japan and beyond must embrace the technology otherwise they run tor ensured that. No banks needed to be bailed out. laundered through the global fi nancial system — into law of various legislations aimed at develop- My message to Japanese investors is Malta is a should seize the moment and explore the myriad the risk of falling by the wayside. I want the MFSA We are forward-looking and open to business. If you that is a big, big challenge. ing the industry? great place to do business. The environment is very of opportunities Malta has to offer. to be up there, to be a thought leader in the tech- have a good idea, we will make it happen. In focusing on Europe, we also know it is a local friendly. It is geographically centrally located and nological space. problem and money laundering has become more The MFSA is, as of Nov. 1, 2018, regulating crypto- very accessible to mainland Europe. We can be a You were appointed to the position of CEO in April A key consideration for any foreign entity entering sophisticated than ever before. There are compli- assets. We are pioneers in this fi eld. That is a good hub or a link for Asian fi rms to establish their busi- 2018. What is your personal vision and mission for In meeting with the Japanese Prime Minister a new market is belief in the structures and com- cated structures in place to avoid regulating and start, but more needs to be done. We need to lead nesses. We have many multinationals already. the organization? Shinzo Abe, Maltese Prime Minister Joseph petencies of the regulating bodies. What are the tracking of funds. I do not believe we will ever get the way forward. We need to articulate our vision — They are overly satisfied with our legislation, Muscat stated that the time is at hand for Japan core strengths and challenges facing the MFSA? rid of money laundering, but, what we can do, is to show that this is the vision of the MFSA for fi ntech. fi scal frameworks, incentives, connectivity, infor- We need to become a top-tier regulator. We need to regard Malta as a serious destination for foreign have strong lines of defense. Within the next couple of months, we will publish a mation and communications technology infrastruc- to have new technology as a critical mission within direct investment and a destination from where We can also discuss the streamlining of its services to We need strong, solid systems in place that mini- fi ntech strategy which will comprehensively explain ture — these are all positive aspects. Our ecosystem the organization. We need to use the latest tech- Japanese multinationals can run their European cater to international players and the training and skills mize the risk of money laundering. The way to do the vision of the MFSA. is structured in a way to truly accommodate these nology for our regulatory activities. Also, we need operations. What are your thoughts on Malta as development of its staff. I entered the MFSA at the right that is to have proper structures constantly under We are the regulator and need to lead the way, multinationals, particularly those also focused on to invest in advanced technological platforms. a business hub, in comparison with other EU time to ensure it becomes a technologically advanced, review. We need to have the right technological plat- so whoever operates under our regulations under- creating a digital economy space. Technology will unlock the MFSA’s true potential. It countries such as the Republic of Ireland and top-tier regulator — one of the most respected financial forms which will offer us more information. stands what is expected within the sector. We need will make us more effi cient as a modern regulator. Luxembourg? institutions in Europe. To do that, we need to invest not Ultimately, it is about how you manage intel- to be the guiding beacon. I want us to be one of the most modern regulators only in technology, but in our people. ligence, collect data, store, manage and process in the world. Malta has a very rich history and established We need to invest in the development of skills of it. You have to innovate all the time. There must What are your future projections for the Maltese We must fully embrace fintech. Fintech is not democratic traditions. We have sound, democratic the future. I am very impressed with the skills we also be more European-wide collaboration. All economy, given the current strong GDP growth, www.mfsa.com.mt

Gozo: Experience the Magri Image: Ross difference for yourself

Blessed with a wealth of history, culture and natural beauty, the island of is building its economy by diversifying into new tourism sectors and other innovative industries, and by making itself more accessible to both tourists and investors.

Just 5 kilometers from the larger island of Malta egy brings with it signifi cant opportunities, many lies Gozo, one of the Mediterranean’s hidden gems of which should interest Japanese investors. whose economy is growing at above 5 percent a year. “It’s the best part of Malta. When you step Sustainable development is key onto it, you can see and feel that there’s some- Sustainability in economic development is vital thing different here,” enthused Minister for Gozo to Caruana. “With tourism, we’re not after more Justyne Caruana. And as the pristine little island visitors. A next step I’m really keen on is upmarket, gains increasing international recognition, more specialized tourism. and more investors and tourists are experiencing Our offering of hotels is excellent but I would that difference for themselves. love to see the construction of a grand upmarket The tourists are coming for its scenic hotel, for example. The richness of our ruins and Dominating Gozo’s skyline, the newly renovated Cittadella contains a number of historic buildings, including a baroque cathedral. beauty, untouched countryside, some of the remains will be key in the future but we are diver- Mediterranean’s best diving experiences and a sifying who we can attract,” said Caruana. That perfect coastline that has received recent acco- diversifi cation encompasses sectors the island is fl eet, make it more user-friendly, and introduce Abode on the Rock festival attracting about 1,500 Those firms are drawn by new initiatives that lades from, amongst many others, the New York well suited to, such as religious, business, sports, new IT and online e-ticketing systems,” she international music fans. include a park for small- and medium-sized enter- Times, Conde Nast Traveler and Travel + Leisure medical and wellbeing tourism. explained. The ferries are also increasingly used for prises, a research and innovation hub, and a “cash magazine, which named Gozo’s Ramla Bay as To make Gozo more accessible, all of its physical The ferries are used by millions of tourists every work travel, as Gozo’s rejuvenation extends far back” of 6,000 euros made to businesses for every one of the world’s seven most beautiful red-sand infrastructure is being upgraded, she said: “This year, but are also being used by a growing num- beyond tourism. “Our economy is diversifying. job they create on Gozo. In addition, the island’s beaches. requires a high level of engineering and technol- ber of young Gozitans who had moved away from Manufacturing was our strength in the 1970s small size and high quality of life makes it very safe, Justyne Caruana Beyond its natural assets, it is also rich in cul- ogy, and we would welcome Japanese expertise. home. “We noticed that the perception of a lot of but we are moving towards very different jobs. and fosters creativity, innovation and productivity. ture and heritage, “Divers can explore undiscov- Minister for Gozo For instance, our port is too small, so we’re looking young people was there was nothing to do here. Although unemployment is next to zero, we are It would be easy for a stunning island like Gozo ered Roman remains and a Phoenician wreck, for into its reorganization and expansion.” The gov- We have changed this, with the creation of a spe- investing in the private sector to enhance people’s to sit back and rely on tourism for future eco- example. On land, we have the Ggantija temples Cittadella, an ancient fortified city that domi- ernment has long-term plans to create a tunnel cial program of events and activities. Instead of work possibilities. The digital sector and fi nancial nomic growth. However, “Gozo is beautiful but it — the oldest freestanding stone structures in the nates the skyline, this new museum is in line with link to Malta, but in the meantime it is modern- coming for a couple of hours to visit their parents, services are two examples of areas in which we are also needs to progress in a sustainable way. We are world. An upcoming European Union-funded the island’s long-term regional development izing the services of the Gozo Channel Co., which they now come for the weekend,” said Caruana. seeing movement,” she noted. here to work, we are very fl exible, we are very open project is a new museum and we are fi nalizing the strategy that aims to preserve and enhance Gozo’s runs the ferries that take 30 minutes to reach the The fi rst-class nature of the events Gozo is now “We’ve done a lot of work on attracting compa- and we have an ambitious development strategy tenders for that at the moment,”stated Caruana. strengths, while developing it in a sustainable bigger island. “We have a new call for tenders — hosting means these Gozitans are joined by young nies to move here and some big names are com- that I’m looking forward to sharing with the world,” As with the recent renovation of Gozo’s manner and making it more accessible. This strat- open to private participation — to optimize the attendees from all over the world, with 2018’s ing, which we will announce soon,” Caruana said. she stressed. This special feature is produced by Global Insight

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