Momentum's vision for a just economy in Malta l Carmel Asciak

Day after day we are told Malta’s economy is doing well, our GDP is increasing, we are receiving top ratings from credit rating agencies, and that everything is just perfect. Yet, many people struggle to make ends meet. The minimum wage remains too low and owning a basic home is becoming a distant dream unless people work their heart out for most of their life to be able to repay their house loan (and this in a period of low interest rates).

For Momentum, the economy is not just about numbers and ratings but about being just for everyone. We need policies that work for all, not ones where the rich get richer and the poor get poorer.

Momentum is introducing bold and forward-looking policies aimed at reshaping the economy to foster innovation, safeguard the environment, and prioritise the well-being of all citizens.

A key element of Momentum’s economic strategy is to establish Malta as a hub for innovation and creativity. One example is the introduction of tax incentives for companies generating economic activity based on intellectual property. Businesses investing at least 10% of their annual turnover in research, development, and innovation would be eligible for significant tax breaks. Income derived from intellectual property will be taxed at 0% for the first five years.

Momentum also recognises the importance of sustainable energy solutions, advocating for investment in wind, wave, solar, and geothermal power. Regional collaboration, also with North Africa, will be explored to ensure Malta’s energy security with a focus on sustainability.

A successful economy ensures fair wages for workers. Momentum proposes gradually raising the minimum wage to €360 per week, an increase of €139 from the current rate, to better reflect the cost of living. Studies, including those by Caritas, confirm that the current minimum wage is inadequate. This increase will help alleviate poverty and improve the quality of life for workers.

For Malta to grow, infrastructure must keep pace. Companies employing a significant percentage of foreign nationals will contribute to local community development through an infrastructure fee. Small businesses with fewer than 50 employees will be exempt from this fee.

Momentum is committed to addressing wage inequality and the influx of unskilled third-country workers. By introducing quotas based on detailed labour market analysis, the party seeks to prevent wage suppression caused by an oversupply of labour.

To attract Maltese nationals working abroad and retain graduates, tax incentives will be introduced. A flat tax rate of 15% for returning professionals during their first 10 years in Malta will encourage talent to return, bolstering the economy and reversing the brain drain that has impacted the country in recent years.

An efficient and transparent public sector is vital for economic growth. Momentum proposes a full audit of the public service workforce to identify inefficiencies and redundancies. Excess workers will be offered retraining or voluntary severance packages. Those opting for severance will face a five-year exclusion from future public sector employment, including government agencies and authorities.

Momentum also advocates for greater transparency in the public sector. By increasing the resources of the National Audit Office, the party aims to ensure that all public transactions are transparent, accessible, and subject to scrutiny, fostering trust in government and ensuring that taxpayer money is spent responsibly.

Housing is another critical issue. Momentum proposes the establishment of a property register, containing detailed information on property transactions and a tax on the second vacant residential property. A person’s residence and his/her second residential property, even if vacant, will not be subject to such tax. This policy is primarily aimed at persons and companies, who hoard several vacant units. The aim is to reduce property price inflation and generate funds for social housing. All properties that are rented out will not be taxed. This should encourage owners to either sell or rent empty homes, making housing more affordable. It should also reduce the number of unfinished structures that remain an eyesore sometimes for years.

Momentum’s economic policies present a vision for Malta’s future based on innovation, fairness, and sustainability. By investing in people, encouraging creativity, and fostering a competitive economy, the party aims to create an environment where individuals and businesses thrive. Through smart public sector reform, fair wages, and affordable living, Momentum seeks to ensure that economic growth benefits all. The full list of proposals can be found on our website.

These ideas and policies did not emerge randomly but resulted from months of preparation and discussion. They began with Vision Circles, where people from all walks of life came together to share their ideas. These ideas were then refined by local experts to develop solid policies. We invite you to join us for our Vision Circles and be part of the discussion. Register for our next VC to be held on 12 April at by visiting out website partitmomentum.org. You will have the opportunity to shape policies that benefit society.