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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-2022-27/3033 Updated – measures in Malta

Schemes to enhance digitalisation amongst enterprises

Country Malta , applies nationwide
Time period Temporary, 28 June 2022 – 29 December 2023
Context Green Transition, Digital Transformation, European Semester
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery into a green future
– Support for spending, stimulus packages
Author Luke Anthony Fiorini (University of Malta) and Eurofound
Measure added 07 February 2023 (updated 07 November 2023)

Background information

Two schemes were launched by government in order to boost the digital transformation of organisations. These were termed the SME Digitalisation Grant Scheme and the Digital Intensification Scheme. The former focuses on small and medium enterprises, while the latter focuses on larger and more ambitious projects.

The schemes, which are funded by the European Union's Recovery and Resilience Plan, aim to aid organisations with the digital transformation. They address organisations that lack digital tools and others that wish to improve their current digital offerings.

Content of measure

The SME Digitalisation Grant Scheme is open to micro, small, and medium-sized organisatons. This scheme offers grants of up to €50,000 for investments in any digital intervention. The measure provides organisations an aid rate of 50% for organisations based in Malta, and 60% for those in Gozo.

The Digital Intensification Scheme targets larger projects. While it is open to all organisations and sectors, funds are prioritised for those in the manufacturing and tourism sectors. Provided grants are up to €200,000 and the level of aid can range between 10% and 30% depending on the organisation's size and location. In Gozo, the rate of aid is 5% higher.

The total budget for these schemes is €15 million.

Updates

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

01 January 2023

Updated documentation for the SME Digitalisation Grant scheme notes that the allocated budget is set at €5 million and that digitalisation investments should be concluded within 24 months from the Grant Agreement. The deadline for applications were also extended to 29 December 2023. The eligible expenses were also specified, these include the development of e-commerce websites, as well as the purchase of various digital solutions, including buying off-the-shelf software, custom software, hardware, cloud computing and cyber security systems. Training related to the purchased products can also be claimed.

The Digital Intensification Grant was also extended up until 29 December 2023.

Use of measure

No available data.

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
European Funds
National Recovery and Resilience Facility

Social partners

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

Trade unions Employers' organisations
Role Consulted Consulted
Form Unknown Unknown

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

  • No involvement
  • Main level of involvement: Unknown

Involvement

During a conference organised to announce the launch of these measures, the Junior Minister for European Funds Chris Bonett stated that the measures were designed following consultation with social partners in order to "hear their views to draft the best schemes possible for businesses." Further information on this was unavailable.

Views and reactions

No views regarding these measures appear to have been published. Malta's main employer associations, including the Malta Employers Association (MEA), the Malta Chamber, and the Malta Chamber of SMEs, have all previously expressed their beliefs that accelerating Malta's digital transformation was a priority. A 2021 survey by the Malta Chamber of SMEs noted that the majority of member organisations intended to build resilience following the COVID-19 pandemic, with 53% of respondents aiming to make the business more digital.

Sources

  • 29 July 2021: Newsbook - €15 million schemes for digitalisation projects for businesses launched (newsbook.com.mt)
  • 24 November 2021: Malta Chamber SMEs - SMEs embracing Sustainability and Digitalisation (www.smechamber.mt)
  • 01 January 2023: SME Digitalisation Grant Scheme Guidance Notes (fondi.eu)

Citation

Eurofound (2023), Schemes to enhance digitalisation amongst enterprises , measure MT-2022-27/3033 (measures in Malta), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/MT-2022-27_3033.html

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