Capital Projects and Business Incentives

The Minister noted that further investments in the country’s infrastructure will be entered into.

Capital Projects

The Minister announced a number of Capital projects. These include the following:

  • Investment of €215 million to set up a new national airline.
  • Extension of the freeport zone by over 30,000 sqms in order to facilitate vessels larger than 400 meters long to berth in the freeport.
  • Further capital investments will be made in the onshore power supply project aimed at ensuring that vessels shall no longer be required to keep their engines on to have access to electricity, resulting in decreased air and sound pollution.
  • Additional investments shall be made in the road network mainly around Pembroke and Msida Creek. Moreover, investments in ferry landing sites in Cospicua, Bugibba and Sliema are to be made.
  • Capital expenditure projects shall continue around the ports and €6 Million have been budgeted for this. Indeed work continues to be carried out on the piers of Pinto and Lascaris with an investment target of €25 Million.

The Government also announced that it shall be exploring and investing in a number of projects in the energy and diversification sector.

Furthermore, the Government remains committed to setting up an air field in Gozo aimed at improving connectivity between the two islands, which should also allow for niche tourism in sky diving and drone testing.

Business Incentives

  • The Minister announced that INVEST EU shall be extending its assistance to small and medium-sized enterprises through the access to financing from local banks whereby a reduced rate of interest and collateral requirements are offered. €9.5 Million in EU Funds for regional development and €7 Million in National Funds shall be allocated towards this scheme.
  • The Business Enhance scheme shall be allocated €15 Million towards the private sector with the aim of incentivizing digitalization, which shall also be available for self-employed businesses.
  • An allocation of €20 Million towards the RRP scheme shall be made for the construction industry to further focus on the renovation of commercial buildings, particularly to encourge retrofitting and energy efficiency.
  • The Minister announced that a new Central Data Repository will be launched in order to eliminate bureaucracy for business and eliminate the requirement to submit the same documentation to a number of different regulatory bodies.
  • When it comes to start-ups, the Minister noted two new incentives – the Venture Capital Fund, targeting startups particularly those in the technology and innovation sector, as well as the Seed Investment Scheme, which shall provide a tax credit for companies that invest in start ups.  Furthermore, it was announced that Malta Enterprise shall also extend the iStartup Finance Scheme, iSkills Development Scheme, the Rent Subsidy Scheme, The Innovate Scheme, the Smart and Sustainability Scheme and the Investment Aid for Energy Efficiency Projects.