These are the business proposals by third parties ADPD and Momentum

As Malta hits the electoral polls in two weeks, third parties ADPD and Momentum are attempting to position themselves as alternatives not only politically, but economically. Here is a look at their electoral manifestos to let you know where they stand on all business issues.

Both parties argue that Malta’s current economic model is overly dependent on construction, speculative development and political patronage. However, the two parties diverge significantly in how they propose reshaping the economy.

While ADPD frames its proposals around sustainability and social restructuring, Momentum places heavier emphasis on innovation, governance reform and competitiveness.

Momentum’s manifesto contains some of the most detailed business and innovation proposals among the third parties.

A central pillar of the party’s economic programme is a push to expand Malta’s research and development sector. The party proposes establishing a dedicated National Centre for Research aimed at increasing Malta’s R&D investment from the current level of around 0.51 per cent of GDP closer to the European average of 2.24 per cent.

The party argues that Malta is lagging behind Europe in research and innovation investment and warns that this is contributing to brain drain among younger professionals and researchers.

To encourage private-sector investment in innovation, Momentum proposes a major tax incentive for companies investing heavily in research, development and innovation (RD&I). Under the proposal, companies investing at least 10 per cent of their annual turnover into RD&I would benefit from a 0 per cent tax rate on intellectual property income for the first five years, capped at 10 per cent thereafter.

The manifesto specifically frames patents, research and intellectual property as future economic growth drivers and says Malta should compete as a knowledge-based economy rather than relying on traditional industries.

Momentum also proposes the establishment of a dedicated Ministry for Science, Innovation and Research, elevating innovation policy into a standalone ministerial portfolio.

The party sees academia as a crucial partner for industry, urging stronger collaboration through targeted incentives for joint research projects between businesses, the University of Malta and MCAST.

Other proposals aimed at strengthening Malta’s innovation ecosystem include reforms allowing non-resident researchers greater access to funding, improved conditions for academics working on European-funded projects and more competitive salary structures for researchers.

Momentum aims to diversify away from what it describes as an overdependence on construction and traditional industries. The manifesto proposes shifting economic focus towards technology, creative industries, research and innovation-driven sectors.

The party proposes creating a local venture capital ecosystem to prevent high-potential startups from relocating abroad. Momentum says many Maltese startups currently struggle to scale locally because growth capital is limited.

To address this, the party wants to introduce targeted tax incentives encouraging the formation of Maltese venture capital funds and reducing regulatory barriers for investment into early-stage companies.

Momentum also places strong emphasis on artificial intelligence and fintech legislation. The party proposes industry working groups focused on AI, patent financing and emerging technologies in financial services.

The manifesto further states that Malta should support implementation of the EU AI Act and position itself as a “responsible AI economy”.

In terms of taxation, Momentum proposes several targeted incentive schemes. Maltese nationals returning to Malta after more than five years abroad would qualify for a maximum 15 per cent flat income tax rate for their first 10 years back in Malta.

Fresh graduates would also qualify for a maximum 15 per cent tax rate during their first five years after graduation.

The party also proposes excluding employee share-option schemes from capital gains tax to encourage wider employee ownership within companies.

On energy and sustainability, Momentum proposes incentives for investments in wind, wave, solar and geothermal energy, alongside support for battery storage systems and energy security infrastructure.

The party looks to reduce tax rates for businesses and individuals with strong tax compliance records, effectively rewarding consistent and transparent tax behaviour.

Governance reform forms another major part of Momentum’s business proposals.

The party looks to create a public online register of all government and ministerial meetings with lobbyists and interest groups, modelled on the EU Transparency Register.

Momentum also proposes publishing all government transactions through a real-time online spending ledger and creating searchable repositories for all government contracts and variation orders.

The party argues that stronger transparency is essential to restore investor confidence and reduce political patronage.

ADPD, meanwhile, approaches economic reform from a markedly different direction.

The Green Party repeatedly frames Malta’s economic model as environmentally unsustainable and socially damaging. Much of its manifesto critiques overdevelopment, speculative construction and what it describes as excessive prioritisation of short-term economic growth.

ADPD proposes stricter planning controls, stronger environmental protections and a significant reduction in development pressure on ODZ land and open spaces.

The party also promotes what it describes as a “social and ecological economy”, centred around cooperatives and community ownership models.

Among its more detailed proposals is support for worker-led buyouts of SMEs operating in green sectors, allowing employees to acquire businesses when owners retire.

ADPD proposes expanding housing cooperatives, converting unused government buildings into cooperative housing and community gardens, and creating Community Land Trusts aimed at keeping housing and renewable energy projects affordable.

The party argues these measures would reduce land speculation and construction waste while encouraging more community-oriented economic structures.

On labour policy, ADPD advocates for the introduction of a living wage, arguing that Malta’s current minimum wage remains insufficient for dignified living standards.

The party also proposes launching discussions around a Universal Basic Income system.

Additionally, ADPD supports a four-day work week and stronger family-oriented policies aimed at improving quality of life rather than simply increasing household income through longer working hours.

Like Momentum, ADPD focuses heavily on political financing and lobbying reform.

The party aims to lower the maximum political donation limit from €25,000 to €5,000 annually per donor. It additionally calls for stricter regulation of lobbying activity and mandatory publication of meetings between ministers, officials and private interests.

Although both parties differ in tone and economic philosophy, they share several common themes: reducing political influence in business, improving transparency, diversifying the economy and moving away from Malta’s dependence on construction-led growth.

For Malta’s business community, the proposals present a mixed picture. Some businesses may welcome the focus on innovation, transparency and higher-value sectors. Others, particularly in development and traditional industries, may view stricter regulation, labour reforms and sustainability requirements as potentially increasing costs and slowing activity.

Still, both ADPD and Momentum are attempting to push the debate beyond short-term economic growth, arguing instead for long-term resilience, institutional credibility and a more sustainable economic model for Malta.