Vision 2050: Malta aims for hi-tech future, higher incomes and land expansion

Malta will reach the median disposable income of France within the next decade, according to an ambitious vision unveiled by the government today.

Dubbed Vision 2050, the long-term plan contains 90 initiatives that include teaching AI in schools, large-scale land reclamation, building a third terminal at the Freeport, scaling up semiconductor and generic pharmaceutical production, developing an airport cargo terminal and a mass transport system.

Although the plan speaks of developing a “green mass transportation system”, a more precise system will be identified in the final document later this year following an in-depth analysis currently underway of the different options that have been floated along the years.

The vision is intended to transform the economy and society with government targeting a median disposable income of just over €24,000 by 2035. If achieved, Malta will surpass the EU average and be at par with France.

Disposable income is what remains in an individual’s pocket after taxes are deducted. The median represents the middle point of income distribution in a country and is a better indicator of typical income. Malta currently stands at 93% of the EU average with a median disposable income of just under €19,000 in 2023.

The mission statement for Vision 2050 is to create “a safe and resilient nation, inspired by heritage and driven by progress, fostering a healthy quality of life for all”.

The document containing the 90 macro-initiatives was released today for public consultation until September. The government plans to finalise the vision by the end of the year.

Vision 2050 was drafted following a series of consultation meetings with different stakeholders, including the Nationalist Party and the Youth Advisory Forum, under the guidance of the Boston Consulting Group, a global consulting firm. The process was led by Economy Minister Silvio Schembri but once the document is finalised, coordination for implementation will fall under the Office of the Prime Minister.

The process also involved a review of more than 30 strategies published over the years covering various sectors. The analysis identified more than 1,800 measures that were then grouped into 90 macro-initiatives covering sustainable economic growth, accessible citizen-centred services, a modern education system and smart land and sea usage.

The vision was launched on Tuesday in Gozo by Prime Minister Robert Abela and Economy Minister Silvio Schembri.

KEY INITIATIVES

Tourism

• Host higher-value international meetings

• Develop new attractions such as a multi-purpose conference centre and theme park

• Target premium tourists by having more Michelin restaurants, high-end brands and VIP services

• Increase home porting by strengthening aviation connections

Gaming

• Fiscal incentives to attract emerging studios

• Establish Malta as a hub for interactive entertainment

• Host annual eSport Tier 1 tournaments

• Develop local talent through apprenticeship programmes

• Offer tax incentives to enable operators to shift to 100% renewable-powered data centres by 2035

Shipping and maritime

• Construct third Freeport terminal through land reclamation and improve infrastructure in all ports to boost annual cargo throughput

• Explore new trade routes in all ports

Financial services

• Streamline regulations to attract investment funds and develop fast-track licensing

• Attract multi-nationals’ headquarters by enhancing corporate services and adopting a digital judicial system

• Enhance curricula and educational programmes for finance and fintech

• Strengthen aviation leasing regulation

• Set up a due diligence portal and digital payments hub infrastructure

Aviation

• Establish long-haul direct connectivity to North America, the Middle East and Asia

• Increase full-service carriers (legacy carriers) share

• Provide incentives for partial/significant business relocation such as airline HQs

• Develop dedicated cargo terminal at MIA to enhance trans-shipment volumes and e-commerce

High-end manufacturing

• Aim for industry 4.0 by integrating technologies like AI and robotics into manufacturing and supply chains

• Increase the production of current manufacturing players and attract new semiconductor manufacturers

• Establish Malta as a research, testing and innovation centre with focus on marine biotechnology

• Promote growth of generic drug manufacturing

Smart construction

• Boost fiscal incentives and schemes for buildings renovation and enhanced energy efficiency

• Empower local/regional authorities in monitoring and planning construction sites and work

Healthcare

• Upgrade health infrastructure

• Establish public-private partnerships, while improving government capabilities in designing and managing PPPs

• Promote private health insurance

• Reduce non-communicable diseases such as heart disease, obesity and mental health through prevention and tailored policies

• Adopt AI-driven health platform to improve treatment decisions and telemedicine services

• Improve fertility outcomes for Maltese population by subsidising IVF treatments and promote healthier lifestyles

• Strengthen mental health programmes in schools to students and parents

Social policies

• Enhance social and affordable housing offering through specialised housing solutions

• Introduce optional supplementary pension scheme with employer matching contributions to boost retirement savings

• Refine annual pension adjustment index to align state pensions with inflation and living costs

• Extend services beyond childcare solutions and offer more flexible parental leave and work-life balance options

• Create a blockchain-powered app to incentivise citizens in adopting sustainable actions and behaviours, offering rewards for individuals

Mobility

• Expansion of the availability of shared bikes, e-scooters and microcars

• Development of green public mass transportation systems

• Subsidies on electric vehicle purchases and grants for home charging stations

• Increase routes and ferry seats for island connectivity

• Integration of public, private and shared transportation modes into a real-time platform

• Deploy delivery drones to reduce commercial vehicles from the road

Education

• Update national curricula with a focus on future-proof skills and STEM disciplines

• Develop industry-specific skills framework and career pathways to close potential skills gaps

• Facilitate the simplification and reduction of administrative tasks and offer more relevant evidence-informed training for educators

Energy

• Increase renewable energy share of 25% by 2030, mainly through photovoltaic with wind energy coming on board in the years after

• Improve energy affordability for all households

• Explore a third interconnector with the EU or North Africa

Environment

• Establish a national restoration programme focusing on natural habitats and water management

• Introduce advanced recycling technologies

• Construct a waste-to-energy plant and expand organic waste collection and processing

National identity

• Restore, preserve and repurpose historical sites

• Long-term funding programme to support film servicing industry, content creation and local artists and creatives

• Create a national heritage volunteer network

• Enhance indoor and outdoor sports facilities

• Ensure elite athletes have access to top-tier training facilities, expert coaching and financial support

Policing and defence

• Upgrade law enforcement capabilities with enhanced digital forensics, predictive policing and inter-agency intelligence

• Strengthen Malta’s maritime security by investing in more surveillance capabilities and regional defence collaborations

• Establish a dedicated government Cyber Incident Response Unit

• Implement legal framework mandating cybersecurity standards for government agencies and critical infrastructure operators

Smart land and sea usage

• Locate complementary factories near each other or key infrastructure such as placing finished product manufacturers close to airports and ports

• Enhance industrial sites with employee-focussed amenities such as childcare facilities, canteens and accomodations

• Prioritise space allocation for strategic sectors

• Enhance green spaces and transform urban areas by creating and upgrading gardens, parks and open spaces

• Explore large land reclamation initiatives to address limited land space and create additional space for country’s needs

Gozo

• Incentives for farmers and livestock breeders to adopt sustainable practices

• Expand premium accommodations with quality furnished premises

• Initiatives to attract high-value workers, start-ups and entrepreneurs

• Promote Gozo’s identity, talent and cultural assets