Malta FM offers 23% pensions uplift, targets investments with VC fund framework, Digital Innovation Hub

Clyde Caruana, Malta's minister for Finance and Employment, has presented the government's Budget for 2023, and outlined plans including a pensions uplift of 23% for certain government sector workers, alongside development of a Venture Capital fund framework, New Business Incubation Center and an EU supported Digital Innovation Hub.

The proposed 23% pension uplift would apply to those in the police, armed forces and civil protection who meet the eligibility criteria. Broadly speaking they would need to work an additional four years beyond 25 years of service to qualify. 

Caruana said the Budget commitment comes after reviewing the success of an incentive scheme introduced in 2016 for people who stayed in their jobs after reaching retirement age. This, he said, had "borne fruit", hence the latest proposal.

The minister also outlined several measures intended to foster investment in the economy.

A study is underway on the establishment of a framework for venture capital, aimed at helping establish industries in Malta.

A new Business Incubation Center will be supported to act as a "top quality touch-down facility for start-ups" that are continuing to diversify the economy.

The government will continue to offer cash grants for small and medium sized enterprises. Additionally, Malta is participating in the InvestEU initiative - the programme that runs through 2027 and aims to trigger some €372 billion in investments across the Union using an EU budget guarantee.

And a Digital Innovation Hub (DIG) funded by European funds has been accepted by the European Commission. The DIH also targets SMEs and start-ups in areas such as artificial intelligence, Cyber High Performance Computing (HPC) and cloud solutions.

The full Budget statement is available here: https://finance.gov.mt/23/Documents/Budget-2023-Diskors.pdf

The developments envisaged under the new Budget come some four months after the jurisdiction was removed from the FATF grey list.