In this article we share the Malta’s initiatives to regenerate the economy post Covid-19
Malta’s initiative to boost economy post COVID-19
One might be as bold enough to say that Malta has won the fight against COVID-19, after reports of having one of the most reactive health systems in Europe during the period and an RO that is now below 0.8.
However, without a doubt, the Maltese economy like many others around the globe has been impacted. The Maltese government, like most countries around Europe, has been announcing several incentives to counter economic hardships.
Throughout the pandemic, the Maltese government has announced and rolled out several schemes to support the Maltese economy and its residents. These schemes consisted of benefits to; Employers and employees who lost work during the period; Parents who could not work since schools were closed; Companies that had to suspend their business due to national laws imposed; Companies who lost 25% of their business due to the pandemic; Citizens who lost their job during the pandemic, Persons with disabilities or people who were highly vulnerable and Companies that incurred costs to initiate teleworking.
The most recent announcement by the Prime Minister of Malta, in mid-June 2020, was focused on regenerating the economy. These incentives have been the largest financial initiative to date, with the ultimate goal to drive a large volume of revenue towards impacted businesses on the island.
Companies that were struggling with rents during the COVID-19 period were offered grants of up to €2,500 to help them cover costs incurred during the closed period.
Citizens over the age of 16 are to receive €100 to spend at bars and restaurants, hotels, and retail outlets. This incentive is aimed at re-fueling the local economy and incentivizing residents of Malta to go out and not be so fearful of the virus.
Further to this, fuel prices were slashed to enable better transportation of people and goods across the island.
To encourage real estate growth, stamp duty for property buyers was slashed to 1.5% whereas tax for sellers was also reduced.
Tax refunds will be given to several families who have struggled during this period.
€3M of funds were also assigned to NGOs on the island who have struggled with funding during this period, along with €2M that was allocated to elderly homes that had to take extreme precautions during this period.
Further to this, a €400M investment into Maltese infrastructure to modernizing Business incubators and work hubs was also pushed forward to help the Maltese economy.
Malta is part of the EU, which means that part of the funding assigned to assist in economic regeneration has come from the EU. However, the remit of allocation of the funds is decided nationally, and the Maltese government is doing a great job at ensuring that its citizens and local economy recover from this pandemic swiftly as summer 2020 approaches.