PL proposes AgriTech and vertical farming to tackle land constraints

Under a Labour Party (PL) government, Malta would prioritise agricultural resilience and address spatial constraints by investing into AgriTech, establishing a Future Food Innovation Lab, and the integration of vertical farming. 

This was explained during an event on Monday addressed by Economy Minister Silvio Schembri, Deputy Prime Minister Ian Borg, and PL candidate Clint Azzopardi Flores, who outlined sections of the PL’s electoral manifesto focused on technology and the economy. 

Schembri explained that the PL’s economic model is targeting investments that require less people and less space, attracting high-quality jobs for skilled workers who earn higher salaries.

Building on Malta's experience in igaming, Schembri highlighted the government's interest in the prediction markets sector, pointing out that this fast-growing sector has exploded globally in the last two years but remains unaddressed by any other EU member state.

Schembri added that the PL would introduce a 60% tax credit split over four years for investments on automation, advanced machinery, and digital sectors. Through a €120 million budget over the next two years, the government anticipates at least €200 million in private investment, though Schembri noted that actual figures would likely be much higher.

In a government investment of €160 million, Tax on SMEs with a revenue of up to €1 million would be lowered from 35% to 25% for reinvested projects, Schembri explained.

The minister added that Malta will continue to invest into advanced manufacturing, with a specific focus on semiconductors, which he described as the heart of the modern economy. 

Schembri added that a PL government would invest into the maritime sector by introducing a free trade zone logistics hub connecting the freeport to the airport, while also increasing investment into the aviation sector.

Schembri asserted that the government intends to continue to invest in sectors such as MedTech, FinTech, AI, Virtual Reality, and big data, aiming to remain ahead on the European Innovation Scoreboard.

Noting that €100 million were invested into digitisation and AI in 2026, Schembri insisted that the government remains committed to continue to dedicate the same amount yearly over the next five years, totaling an investment of  €500 million.

Deputy Prime Minister Ian Borg highlighted the PL's goal to encourage more businesses to use AI, aiming to raise the adoption rate from 20% to 40%. As a result, Borg explained that the government plans to prepare the workforce by investing in AI training programs in partnership with OpenAI and Microsoft, which Schembri connected to the recently introduced AI for Everyone scheme.

Borg noted that the government’s economic growth allows Malta to be more selective in its investments, especially surrounding high-quality tourism. He insisted that only a PL government can guarantee that Malta will maintain economic stability, pointing out that the country’s economy has tripled since 2013.

PL candidate Clint Azzopardi Flores explained that the government plans to attract investment without adding pressures on the population and infrastructure, such as through the E-residency scheme which would give a digital basis for entrepreneurs who want to establish businesses in the EU.