A New Scheme Gives Eligible Businesses Cash Grants For Major Digitalisation
Back in June 2022, the Maltese Economy Minister, Hon. Silvio Schembri announced a set of new support measures for businesses looking to enhance their digital capabilities. One of these measures is called the Digital Intensification Grant Scheme.
Based on the fact that Maltese businesses are having to compete on an EU-wide and oftentimes global scale, this grant seeks to assist businesses looking to invest in new technologies. Through the intended investment covered in this support measure, businesses would be able to obtain new or enhanced digital capabilities. This should allow them to grow locally and internationalise their products and services.
Which Businesses are Eligible to Apply for this Scheme?
The primary recipients of this scheme are businesses that operate in the manufacturing or tourism sectors. However, any business activity that could prove increased resilience and growth as a result of eligible digital investments would also be considered.
Manufacturing industries could benefit greatly from the Digital Intensification Grant Scheme. This scheme has been kept deliberately broad in order to encompass all software, hardware, and training necessary to make recipients ready for the transition to the so-called 4th Industrial Revolution.
By investing in this inevitable transition, manufacturing businesses will be able to take advantage of emerging technologies, such as digital twinning, modular design, and predictive maintenance. It will also be easier to export goods to competitive international markets that have already come to expect such capabilities from suppliers.
Transformations are also being seen in the global tourism sectors. Covid-19 intensified the speed of these changes, so it has become more important than ever before to invest in the right digitisation technologies. Technological tools, such as ones that are able to process big data and provide insight into customer profiles, have become vital tools for Maltese businesses looking to compete with neighbouring tourism destinations
By identifying and investing in appropriate hardware and software, tourism-based businesses can increase the efficiency of limited or costly resources. By lowering the cost of utility bills and administrative processes, enterprises can maximise client experiences and be sustainable even during low seasons.
What are the Main Benefits of this EU Grant Scheme?
Maltese businesses could benefit by tapping into this cash grant in a number of ways. No matter the industry in which your business operates, you can use eligible digital solutions to streamline operational processes and minimise costs and waste. You can also introduce or enhance automated processes to reduce the strain on your staff and increase staff retention.
The eligible expenditure that applies to this scheme includes:
- Investments and solutions related to product lifecycle management
- Life cycle analysis
- Cloud Based Platforms
- Internet of Things (IoT)
- Cyber security and data protection
- Cyber-physical system
- Augmented reality
- Artificial intelligence (AI)
- Circular manufacturing
- Autonomous solutions
- Big data and data management
- Decision support systems
Whilst this list is indeed comprehensive, it is not exhaustive. This means that if you plan to make an investment in digital hardware or software which is not listed above but will enhance the digitalisation of your enterprise, you may still be considered for support.
Through this grant, Maltese businesses will be able to gain super insight into their existing and prospective customer market segments. This ability is essential in order for them to compete with international tech giants and manufacturing behemoths that invest significantly in analytics and data management.
How Much Money can my Business Get from this Grant?
The Digital Intensification Grant Scheme is a non-refundable cash grant that is meant to support a business’ own investment. Any applicant can receive up to €200,000 to purchase eligible hardware, software, and training to use the acquired solutions.
Maltese businesses of all sizes can apply for this grant, however, the aid intensity varies according to several factors.
- This grant can cover up to 35% of eligible costs for micro and small business projects based in Gozo. The maximum intensity for medium or large Gozitan businesses is 25% or 15% respectively.
- Micro and small business projects that are based in so-called assisted areas could receive a cash grant for up to 30% of eligible costs. Medium or large businesses operating in these areas could apply for up to 20% or 10% of costs respectively.
- If the project is not undertaken in Gozo or in an assisted area in Malta, the maximum aid intensity is 20% or 10% for small and micro or medium businesses respectively. In this case, large businesses are ineligible for any support.
No matter the size of the business or project, eligible expenditure must be completed within 24 months from the signing of the grant agreement.
Making the Most of the Digital Intensification Grant Scheme
The NM Group Advisory team is able to assist you in applying for the necessary funds to reach your objectives.
Get in touch with one of our representatives today to discuss all the funding opportunities available for your specific business.