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COVID-19 EU PolicyWatch

Database of national-level responses

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

Factsheet for case MT-2020-45/1171 Updated – measures in Malta

Malta Enterprise administers business re-engineering consultancy

Country Malta , applies nationwide
Time period Temporary, 02 November 2020 – 31 December 2023
Type Other initiatives or policies
Category Reorientation of business activities
– Change of production/innovation
Author Luke Anthony Fiorini (University of Malta) and Eurofound
Case created 23 September 2020 (updated 30 June 2021)

Background information

COVID-19 had a marked negative financial impact on several sectors in Malta. By means of a tripartite agreement, a package of measures to save jobs and organisations was agreed and announced by the Government on 24 March 2020. Amongst the measures in this package, wage subsidies were offered to sectors which were worst hit. During a 'mini budget' announced on the 8 June 2020, which aimed to regenerate Malta's economy, government announced another package of measures. Amongst the new measures announced, was a business re-engineering consultancy administered by the Malta Enterprise.

Content of measure

Whilst announced in June, details of this measure remain limited (September 2020).

In view of the COVID-19 pandemic, government acknowledged that organisations will have to modify the way that they operate. Via the Malta Enterprise, Government first offered a measure which subsidised the purchase of technological equipment for the purpose of fostering teleworking. This measure has now ended. This new measure acknowledged that some organisations, especially micro and small enterprises might require assistance in drafting new business plans and in exploring technological options. In view of this, Malta Enterprise is providing a maximum of €5,000 per business to be used to undertake reengineering exercises with approved companies. A total budget of €2.5 million has been allocated to this measure. It is envisaged that the measure will aid in fostering a digital economy.

Updates

The following updates to this measure have been made after it came into effect.

27 April 2021

Changes to this scheme, now termed 'Change to Grow' were announced by the Prime Minister, Robert Abela. Primarily, the scheme was announced to now be open to self-employed and micro organisations. Furthermore, the cap on support provided by this scheme was doubled from €5,000 to €10,000 per project.

03 November 2020

Whilst previously announced, the actual details of the scheme were published by the Malta Enterprise at the beginning of November 2020.

It was announced that the aid from this scheme shall be awarded to companies employing between 10 - 250 people and will be received in the form of a cash grant covering 50% of the costs incurred up to a maximum grant of €5,000 per advisory service per undertaking. Beneficiaries may only be supported once through this measure during any 18-month period. This incentive shall be available until the 31 December 2023.

The Malta Enterprise signed an agreement with The Malta Chamber of Commerce, Enterprise and Industry to compile a recommended list of service providers who can as consultants for the Business Re-Engineering & Transformation Scheme. Organisations that opt for a service provider who are found on the recommended list will have their application fast tracked as the due diligence process of the Service provider would have been carried out by the Chamber.

Use of measure

No information is available.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public support service providers
National funds

Social partners

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

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

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

  • Only employers' organisations
  • Main level of involvement: Unknown

Involvement

By means of a tripartite agreement, a package of measures to save jobs and organisations was agreed on 24 March 2020. This was the third but most significant package of measures announced by the Government. Following this agreement, social partners remained in direct contact with the government highlighting their proposals of what was felt was still necessary to save the Maltese economy and jobs. In view of this, on the 8 June 2020, the government announced a 'mini budget' to help the Maltese economy to recover from the effects of the COVID-19 pandemic. Essentially, this was the fourth package of measures announced by the government. The current measure formed part of this package.

Views and reactions

The fourth package of measures, of which the current measure formed part of, received public support from an array of social partners. Those positive and vocal about it were primarily business associations, including the Chamber of Commerce, the Chamber of SMEs, the Malta Employers' Association, the Malta Hotels and Restaurants Association (MHRA), the Malta Developers Association (MDA) and the Association of Catering Establishments.

Changes to this scheme announced in April 2021 were hailed by the Malta Chamber, an Employers' Association, where it was pointed out that this organisation championed this scheme since its inception. The updates to this measure were announced during a conference where other measures were also announced. Reacting to this package of measures, the Malta Chamber of SMEs was quoted as stating that "The schemes announced today are the result of intense consultations and numerous meetings with different sectors to assess the COVID-19 impact and their specific needs." (Times of Malta, 2021)

Sources

Citation

Eurofound (2020), Malta Enterprise administers business re-engineering consultancy, case MT-2020-45/1171 (measures in Malta), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.