Malta Budget 2024: Focus on Maritime & Aviation sectors

With a strategic focus on infrastructure development, research and innovation, and sustainable practices, the nation is sending a clear message to the world that it is ready to not only maintain but also enhance its position as a key player in these crucial sectors.

In the latest Malta Budget 2024 speech delivered by the Minister of Finance, various key points pertaining to the maritime and aviation sectors were highlighted. This article shall delve into Malta’s strategic vision for advancing the growth of these crucial industries in the year 2024.

 

Maritime Sector

• Malta has firmly established itself as the world's sixth largest ship registry. Looking ahead to the upcoming year, Malta is set to enhance its maritime sector even further with planned amendments to the Merchant Shipping Act and the introduction of a new policy dedicated to superyachts.
• The maritime sector is also experiencing an expansion in ship maintenance and repair. Efforts to clean and maintain port seabeds persist with the goal of accommodating a wider range of activity among ships of a certain size.
• Over the past few months, dredging operations were successfully carried out at a cost of EUR 7 million. Looking ahead to the upcoming year, there are expectations for ongoing work valued at EUR 6 million, indicating a sustained commitment to these essential operations.
• Investment amounting to EUR 25 million will be allocated to the ongoing expansion of Pinto and Lascaris Wharves. 
• The commencement of the project to construct a new cargo facility in the Ras Hanzir vicinity near Kordin is now underway.
• Work is presently in progress to install systems enabling large vessels like passenger or cargo ships to turn off their engines while docked in our ports. This initiative aims to reduce air pollution and enhance the quality of life for residents in the southern region of Malta and around Port il-Kbir.
• Work has also commenced on the implementation of shore-to-ship systems at Port il-Kbir, aimed at promoting cleaner air for the residents in the vicinity.

 

Aviation Sector

• In the aviation sector, the registration of aircraft is steadily increasing, with the current count reaching 856 aircraft registered in Malta. This represents a notable increase from the previous figure of 750 aircraft registered in the country. 

• The upcoming implementation of the new aviation policy and the Air Navigation Act was also announced. 

• The Government is also actively engaged in enhancing the financial infrastructure in the coming months to promote aircraft leasing. To achieve this, amendments will be introduced to pertinent legislation and a specialized framework will be developed to attract banks offering these services, ensuring comprehensive support for this initiative.

In the Budget Speech, the Minister of Finance highlighted the forthcoming launch of a new national airline in 2024. The Government is currently in active discussions and negotiations with the European Commission to secure the long-term viability of this project. Acknowledging the pivotal role this national airline will assume in bolstering the country's infrastructure and its capacity to stimulate economic growth, the Government has allocated an initial investment of EUR 215 million to facilitate its operational debut on March 31, 2024.

How can BDO help

If you are eager to delve deeper into the measures introduced by the Government in the 2024 Budget for these industry sectors, we encourage you to reach out to BDO's legal team. Their expertise and insights can provide you with a comprehensive understanding of the intricate details and implications of these budgetary provisions, ensuring that you stay well-informed and can navigate the opportunities and challenges within these sectors effectively. BDO's legal team stands ready to provide the clarity and guidance you need to make informed decisions in the evolving landscape of these industries.

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Article written by Ms. Daphne Vassallo, Junior Lawyer and Dr. Claudia Borg, Junior Lawyer