Government maintains commitment to making Malta centre of excellence for Blockchain
Strategy
The government has reinforced its commitment to making Malta a centre of excellence for Blockchain technology. It believes this technology could be a leading engine for growth within the economy.
In the coming months, the government will be building a Blockchain lab within the Malta Information Technology Agency, as well as providing civil servants with training on the use of this technology.
A government portal will be launched with the aim of communicating with all those interested in Blockchain and cryptocurrencies.
Help for companies investing in the technology by the government will continue in the upcoming year, creating a Blockchain hub.
Sustainability of iGaming
A new regulatory framework will be created in 2018 to provide more incentives for growth within this sector in a way that creates more added value while safeguarding responsible gaming.
This will involve the approval of a new law which introduces the concept of VAT Grouping – applicable to iGaming and financial services sectors.
Entities that are legally independent, with a fixed establishment in Malta, and which have financial, economic and organisational ties between them can register as a single taxable legal identity. This will result in VAT exemption on acquisitions between members of the entity.
Opportunities from Brexit
The government has set up a working group in order to assess how Malta can benefit from the United Kingdom’s withdrawal from the European Union, such as attracting companies that need to relocate to an EU member state.
In particular, insurance companies have been attracted and the financial services sector continues to grow.
Tourism
More localities will be identified by the Malta Tourism Authority (MTA) as touristic areas, despite not traditionally being thought of that way, so that regeneration can take place.
The government is committed to breaking more records in the number of cruise liner passengers, while concurrently improving infrastructure in order to cater for the increase in people.
Commitment to restructuring Air Malta and bring it back to viability was stressed by the government, citing Enemalta as an example of previous restructuring success.
A new entity for the management, study, protection and preservation of cultural heritage will be set up.
Manufacturing
Recent measures by Malta Enterprise have attracted 14 more investment projects, amounting to roughly €200 million. The government is committed to strengthening the manufacturing sector.
In the coming months, a change in the schemes of MicroInvest and BusinessStart will be effected. Assistance provided in the MicroInvest scheme will increase from €30,000 to €50,000 for those enterprises based in Malta. Those establishments based in Gozo will benefit from assistance of up to €70,000.
In the case of enterprises where the majority of shareholders are self-employed women, assistance may also go up to €70,000.
The scheme will be widened to include companies that do not employ more than 50 full-time workers.
Pharmaceutical sector
The research, scientific affairs and innovation section within the Medicines Authority will be launching training programmes aimed at improving the competence of the pharmaceutical industry, especially with regard to science and regulation and medicine safety. The government has generated a 25 per cent increase in the number of pharmaceutical companies registered with the Medicines Authority.
The Medicines Intelligence and Access Unit within the authority will be working on reducing the price of medicinal products.
A training programme will be launched for all those working in state laboratories in order for the government to get a better return on its investment within the sector.
Citizenship-by-investment scheme
This will be extended for the upcoming year while a separate scheme offering citizenship to people based on merit, such as excellence in research, science, sports, art and culture will also be established.
Reduction of bureaucracy
Work to reduce bureaucracy will continue with the aim of further reducing it by 30 per cent for the upcoming year.
Offsetting of payments
The government will be launching a scheme to introduce, where possible, the offsetting of payments which companies owe the government against payments the government owes those same companies. This is intended to improve the cash-flow of companies providing services to the government. In circumstances where legal and administrative obstacles are in place, this will not be possible.
Social security forms and online VAT returns
The possibility for companies employing more than 30 people to submit social security forms and VAT returns electronically will be extended to companies that employ 10 or more people.
Court reform
Reform is set to continue with a proposal for the Justice Department to provide statistical information together with an analysis aimed at generating a better-informed snapshot of efficiency levels.
Investment in the legal aid agency will continue in order to assist the most vulnerable people within society.