The Seed Investment Scheme was officially launched this afternoon at a press conference held in Castille.
The scheme, which will come into effect in August, is the result of collaboration between the Ministry for Finance, Ministry for the Economy and MIMCOL, the Malta Investment Management Company Limited.
Mimcol CEO Stanley Mifsud said that the scheme is expected to generate €5 million in funds for start-ups. He explained that every start-up company can take up to €250,000, 0r 35% in tax credit while the scheme can fund up to €750,000 for start-up companies. The scheme will start off in August and those interested can approach Mimcol for more details on the applications.
Mimcol Chairman Adrian Said said that this scheme is an innovative one and not only for Malta. He explained that Mimcol has been working upon the initiative for the last year, observing similar measures abroad. The aim is for start-ups to have better access to funds.
Addressing the launch, Prime Minister Joseph Muscat said that this scheme comes at a time when the country is experiencing a very strong economic growth. He said that this will result in more work for the public, while referring to the latest employment statistics which show that fewer people are registering for work. The project was first introduced as a budget measure in November last year. Dr Muscat said he is disappointment at the level of engagement shown by the banks and insisted that it is crucial for banks to realise that the public will judge them not on their own profit, but at how these entities are improving the country’s economy. Access to finance was one of the country specific recommendation by the EU for Malta, he added.
Praising the initiative, Minister for Finance Professor Edward Scicluna said that this is an example of how tax can be used as an incentive.
Minister for the Economy Chris Cardona said that this sector has already achieved a lot of good results, but the government still has a lot of objectives to reach in the near future. “It is essential to address the challenges that the industry faces,” he added. He said this is a scheme aimed for those small business who need some encouragement to invest more.
