PRESS RELEASE BY THE MINISTRY FOR THE ECONOMY, TECHNOLOGY AND STRATEGIC PROJECTS Malta miegħek: Ten initiatives for a more productive, competitive economy generating greater[...]

Following the Budget announced on Monday, Minister for the Economy, Technology and Strategic Projects Silvio Schembri presented ten initiatives to make the economy more productive, competitive and innovative.

Minister Schembri explained that these measures aim to encourage quality investment, reduce bureaucracy and generate greater added value, ensuring that economic progress continues to support investment in families and quality of life, in line with Malta Vision 2050.

Lower tax for small companies that retain or reinvest their profits

From next year, small companies with a turnover not exceeding €1 million will be able to benefit from a reduction in the tax rate from 35% to 25% on profits retained or reinvested in the business. Profits distributed as dividends will remain subject to a 35% tax rate, encouraging companies to continue investing in their future.

More than €100 million for artificial intelligence and digitalisation

More than €100 million will be allocated to the digital sector next year. A scheme with an allocation of €120 million will also become operational by the end of this year, offering a 60% tax credit on eligible investment in automation, artificial intelligence and digitalisation.

A more direct approach to attracting quality foreign investment

The strengthening and restructuring of the FDI Unit within Malta Enterprise to identify concrete opportunities and establish direct contact with investors and chief executives. The first visit is scheduled for the coming weeks and will take place in London, United Kingdom.

€20 million in European funding for business transformation

An additional €20 million in European funding will be allocated next year to further support business investment, digitalisation and technological upgrades, with a focus on productivity, efficiency and international competitiveness.

An updated national artificial intelligence strategy and further training

Building on Malta's adoption of a national artificial intelligence strategy several years ago, an updated strategy running until 2030 will be launched next month. It will include more than 80 concrete measures, with the ambition of having 40% of businesses using AI within five years. This complements the AI for All programme, which has attracted almost 50,000 registrations, with 32,000 participants already having successfully completed the course.

Expanding the Business Wallet to reduce bureaucracy

The Business Wallet has already connected seven entities within its first few months. The platform will add six more entities by the first quarter of next year. The platform will eventually open to the private sector.

Economic diversification into innovative sectors

An initial €2 million fund for companies developing video games and interactive entertainment, alongside schemes to attract international accelerator programmes in fields such as EdTech and chip design.

A policy on solar panels in industrial areas

Better integration of energy and sustainability into industrial development plans through a forthcoming policy encouraging the use of solar panels and greater energy efficiency in industrial areas, while taking account of businesses' operational needs and technical considerations.

A national industrial policy and a stronger operational framework

A bill to strengthen the operational framework of Malta Enterprise and INDIS Malta will be tabled in Parliament in the coming days. At the same time, a call will be issued for the formulation of Malta's first industrial policy, providing long-term direction for investment, infrastructure, technology and skills.

A study and consultation on land reclamation at Bengħajsa

A call has been issued for a detailed study, alongside broad consultation, into the possibility of land reclamation near the Freeport to create an area dedicated to maritime activity. The process will examine economic feasibility, environmental impacts, connectivity and infrastructure requirements before a decision is taken on the project.

"These initiatives give concrete form to our ambition for Malta Vision 2050. We are investing in our businesses' ability to compete, in people's skills and in the sectors that can create tomorrow's opportunities," concluded Minister Silvio Schembri.