In a recent news conference Minister for the Economy, European Funds, and Lands, Silvio Schembri, proudly proclaimed that the Maltese Government is one with a social heart and a powerful economic vision.
Minister Schembri acknowledged the persisting global challenges, including the conflicts in Ukraine and Gaza. Despite these external pressures, Malta’s economic growth forecast for 2024 is around 4%.
One of the cornerstones of this economic vision is the focus on the digital economy. Malta has already earned recognition, ranking sixth in the Digital Economy and Society Index (DESI) report by the European Commission.
The technology industry in Malta, excluding the gaming sector, has shown significant growth, expanding by 300% over the past decade.
The budget outlines several initiatives designed to modernise the country further, with particular attention to nurturing start-ups. These start-ups, according to Minister Schembri, hold the key to fostering innovative projects and potentially birthing revolutionary companies.
To support this ecosystem, Malta has introduced various schemes, including:
Business Start: Offering grants of up to €10,000 for small start-ups in their initial phases.
Startup Finance: Providing financial support of up to €400,000 for promising start-ups.
Kick Start: Offering funding of up to €100,000 for start-ups rooted in technical and scientific research.
Venture Capital Fund: A €10 million fund to support local entrepreneurs with innovative ideas or products.
Seed Investment Scheme: Tax incentives for Maltese companies that invest in start-ups.
In addition to these schemes, Malta is creating DiHubMT, a €7 million investment to establish a space for start-ups and scale-ups to access the tools and resources necessary for product development.
Video game development and virtual financial assets are also areas of focus. Malta is home to a growing number of companies in these sectors, with plans to increase the industry’s contribution to the GDP to 1% by 2028.
European funds play a pivotal role in supporting businesses in Malta, with allocations of €100 million aimed at fostering economic growth.
Photo Source: Wendy Verbraeken, DOI.
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