Economy Minister Says New Measures Will Push Firms Towards Automation

Economy Minister Silvio Schembri has defended the government's decision to raise costs on non-EU workers, framing it not as a population reduction exercise but as a deliberate push for businesses to invest in automation and technology.

Responding to a question posed by MaltaToday at a press conference on Thursday, Schembri outlined 10 economic initiatives beyond the budget speech. The headline measure is a 60 per cent tax credit on eligible investment in automation, artificial intelligence, and digitalisation, with the government committing €120 million to the scheme, capped at €15 million per business and spread across four years.

The budget also included a reduced corporate tax rate of 25 per cent, down from 35 per cent, for companies with a turnover of up to €1 million, on the condition that profits are reinvested into the business. Schembri acknowledged that foreign workers remain essential to the economy, whilst insisting that the country should now prioritise value over volume.

The measures targeting third-country nationals in Monday's budget included the removal of free public transport and free childcare, as well as increases in driving licence fees.