The Labour Party said that Malta is now in a position to become more selective about the investment it attracts, as the country's next economic phase should focus on attracting industries that require taking up less land and fewer workers, but create more skilled and higher-value jobs.

During a press conference on Monday, Deputy Prime Minister Ian Borg, Economy Minister Silvio Schembri and Labour candidate Clint Azzopardi Flores said that Labour's next economic plan will focus on sectors such as artificial intelligence, aviation, advanced manufacturing and logistics, adding that Malta must now shift towards higher-value industries requiring less land and fewer workers while maintaining economic growth and full employment.

Borg said Malta had benefited from economic growth and reached a situation of full employment and record job creation.

He said Malta had faced major international crises in recent years, including wars and inflationary pressures, but government remained close to the people throughout those challenges.

Borg defended the government's decision to maintain stable energy prices despite rising oil and gas prices caused by international conflicts, including the war involving Iran, saying Labour is once again committing itself to keeping energy prices stable.

He also referred to schemes introduced during periods of inflation, including the Stabbilta Scheme announced by Schembri, which he said helped families during difficult periods.

Borg said that Labour's "Int Malta" manifesto is built around key economic goals for the next five years, including average annual economic growth of 4%, with more than two-thirds of economic growth generated by digital sectors, services and manufacturing.

He said the government aims to keep unemployment close to 3% and among the lowest in the Eurozone, while also seeking to place Malta among the most advanced countries in terms of business use of artificial intelligence.

Borg said Labour wants 40% of Maltese businesses to adopt AI within the next five years.

He also described tourism as having reached a "critical mass," saying government is now focusing on the type of tourism Malta wants to attract and where investment should be prioritised.

Schembri said Malta's economy is not static but dynamic, adding that governments must anticipate future needs rather than react only to present challenges.

He contrasted Malta's current situation with 2013, saying that at the time the country's main challenge was unemployment and economic growth, while today Malta is operating in a context of full employment.

"In 2013 the economy stood at €7 billion. Today it has reached €25 billion, and management must therefore be different," Schembri said.

He said Malta now needs to attract industries requiring less land and fewer workers but more specialised skills and higher productivity.

Schembri referred to Malta Vision 2050, saying the country plans to further develop sectors such as aviation through initiatives including an aviation academy and aircraft leasing.

He also outlined plans for a free trade zone logistics hub connected to both the Freeport and the airport, saying space for the project has already been identified and work has begun on it.

Schembri said government is focusing on advanced manufacturing, microelectronics and subsectors of pharmaceuticals, referring to the €210 million investment by Vantive and Baxter, which he said will create high-quality jobs.

Schembri also pointed to strong growth in sectors such as blockchain, fintech and AI, saying the digital sector had grown five times faster over the past four years.

Referring to the European Digital Capacity Index published by Politico based on the DESI report, Schembri announced that Malta ranked fourth in Europe behind Denmark, Sweden and Finland.

He quoted the report as describing Malta's digital governance as highly coordinated and politically driven, resulting in strong performance across multiple areas.

Schembri also spoke of several manifesto proposals aimed at supporting SMEs and technological investment.

Among them, he referred to a reduced 25% tax rate for SMEs with revenues below €1 million, backed by €160 million over the legislature.

He said Labour also plans to allocate €100 million towards artificial intelligence initiatives linked to what he described as the "fifth industrial revolution", alongside a wider €500 million investment in AI, robotics, quantum technology and other technological sectors.

Schembri said Labour's "AI for Everyone" measure had already attracted strong international interest, with other countries contacting him to understand how it could be implemented.

He also spoke of a tax credit scheme aimed at encouraging digitalisation and innovation within Maltese factories, with projects eligible for up to €15 million each and a total allocation of €120 million over the next two years.

Schembri said the scheme is expected to generate at least another €200 million in investment during the coming two years.

Schembri additionally referred to plans to strengthen Malta as a family office hub by improving fiscal and regulatory structures within the Malta Financial Services Authority, with the aim of attracting wealthy international families and businesses.

He also spoke about projects linked to vertical farming, Agri-tech and food laboratories, as well as the strategic importance of semiconductors, saying Malta had already reached an agreement with IMEC to allow Maltese technicians to train abroad.

Schembri said that government wants to continue exploring sectors linked to blockchain, crypto, tokenisation, gaming and carbon credits.

He also described prediction markets as an emerging sector Malta could potentially develop through its experience in gaming and financial services.

Schembri said Labour's economic plan is "clear, costed and strategic," adding that the government aims for Malta's economy to reach €30 billion by the end of the next legislature.

Azzopardi Flores referred to plans for a "Malta e-residency" concept aimed at attracting businesses seeking to establish a digital base in Europe without significant impact on infrastructure or the environment.

He said Labour also plans to continue reducing bureaucracy through electronic services, business process reengineering and the introduction of AI and the "once only principle" within public administration.

Azzopardi Flores said that Labour's manifesto includes targets for thousands of public sector workers to be using AI tools by 2027.

He also referred to investment in automation, cybersecurity and digitalisation, as well as measures intended to leave more money in the hands of self-employed workers through SME-focused grants and tax measures.

Azzopardi Flores said Labour's economic proposals would continue generating quality jobs and sustainable economic growth.