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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure MT-2020-20/1165 – measures in Malta

Cash grant for companies to produce products related to COVID

Investment Aid COVID Products

Country Malta , applies nationwide
Time period Temporary, 12 May 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Reorientation of business activities
– Change of production/innovation
Author Luke Anthony Fiorini (University of Malta) and Eurofound
Measure added 21 September 2020 (updated 22 September 2020)

Background information

COVID-19 had a negative impact upon the majority of organisations in Malta. In response to this impact on the economy, the Government produced a variety of measures to aid organisations to get back on their feet. One such measure was the Investment Aid COVID Products measure which provide a cash grant to support organisations to increase or initiate production of COVID-19 relevant products.

Content of measure

Administered by the Malta Enterprise, the measure provided organisations with a cash grant (and the possibility of an additional tax grant) not exceeding 80% of the eligible costs to support organisations to carry out investment projects to increase or initiate production of COVID-19 relevant products or to diversify existing production to be able to produce COVID-19 relevant products.

Costs need to have been incurred after 1 February 2020 and investments need to be completed within a period of six months. The grant can be increased by an additional 15% if the project is completed within two months or if the organisation is carrying out the project in collaboration with another organisation established in another Member State which is also providing funding.

Amongst the supported investments are:

  • assets procured to develop, manufacture and provide COVID-19 relevant products; wage costs of individuals engaged in the development of tools, processes and solutions for the manufacturing of relevant products; wage costs for those developing data collecting and processing tools supporting issues related to COVID-19;
  • costs incurred for trial runs of the new (or diversified) production facilities such as cost of materials required for trial runs of production facilities and cost of data sets acquired to test data processing and collection solutions.

Use of measure

This incentive has a cash budget of €10,000,000 and a fiscal budget to be awarded as tax credit of €1,500,000. The overall budget is hence of €11,500,000.

Target groups

Workers Businesses Citizens
Does not apply to workers Companies providing essential services
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

The measure was announced by the Government and did not result in any public comments by employer associations or unions. The measure was approved by the European Commission. Malta notified to the Commission under the Temporary Framework a scheme to support investments in the production of coronavirus-relevant product

Views and reactions

No views / reactions from social partners, including employer associations or trade unions were published. The Malta Employer's Association which carried out a survey of members' views of Government measures did not include this measure in their survey.

Sources

Citation

Eurofound (2020), Cash grant for companies to produce products related to COVID, measure MT-2020-20/1165 (measures in Malta), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/MT-2020-20_1165.html

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