Economy Minister Silvio Schembri confirmed that measures will be announced in the coming days aimed at “incentivising economic activity”.

Mr Schembri was addressing a press conference, together with Malta Enterprise CEO Kurt Farrugia, to announce a scheme where the Government will provide up to 50 per cent support on businesses with a headcount of 100 or less renting industrial space.

The Government will subsidise up to 50 per cent of industrial space rental costs of up to €50,000 per year for a period of three years.

This would see a business receive a maximum of €25,000 per year, for a period of three years. 

Mr Schembri and Mr Farrugia stressed that the industrial rent subsidy announced was separate from COVID-19 related policy. 

On upcoming measures to spur economic activity, Minister Schembri said that life would have to continue, including working life and some version of a social life.

He confirmed meetings have been taking place with economic stakeholders, such as business-interest groups and workers’ unions, to understand the picture on the ground and gauge feedback of measures being considered.

He stressed that the previous wage subsidy was aimed at preventing job losses, and other measures were aimed at assisting businesses with cash-flow issues. The next step would be to encourage economic activity, he said. 

More information on the Government Industrial Rent Scheme:

The purpose of the scheme, which will be applicable between the 1st February until 31st December 2022, is to financially assist new businesses and self-employed that would like to rent an industrial space from a third party to commence a new business activity, implement growth plans, handle an increase in orders and implement innovations to increase efficiency. Companies, cooperatives and registered self-employed can benefit up to €75,000 over three years in rent subsidy through an aid intensity of up to 50 per cent of the cost.

The applicants eligible for this scheme must be engaged in the following operational activities and sectors: manufacturing, repair of machinery and equipment, maintenance and repairs of motor vehicles and other industrial activities.

Through the application, the applicant must demonstrate that during the 2 fiscal years preceding the year in which the application is submitted, they employed one hundred or less persons on a full-time contract. Furthermore, that its annual turnover did not exceed €10 million in the two 2 fiscal years preceding the year in which the application is submitted.

Malta Enterprise CEO Kurt Farrugia explained that the Malta Enterprise will determine the value of aid, if any, which will be awarded to the applicant.

"The corporation may withhold all, or part of, the assistance, if the undertaking (at group level) is subject to an outstanding recovery irrespective of any other incentive awarded by the corporation. The outcome shall be communicated to the applicant, and successful applicants will be issued a letter of approval specifying the terms and conditions of the award.

"At a time when it is becoming challenging for the Government to itself identify premises for rent for new businesses, the scheme will encourage businesses to seek rental premises from a third party, who is not related to the business, and subsequently enable them to continue pursuing their economic activities. Meanwhile, the Government will further assist through the rent subsidy, Mr Farrugia said.

The application form can be downloaded from the Corporation’s Client Portal: https://clientportal.maltaenterprise.com/login

Guidance on the filling of the application form may be obtained by contacting Business First during office hours or via email [email protected]