Alex Borg proposes €350 million cultural district, and data, AI and ‘newspace’ investment plan

PN leader Alex Borg announced a series of economic proposals centred around artificial intelligence, data, and “newspace” industries, as well as the creative sector, including plans for a €350 million cultural district in Marsa and a €12 million investment package aimed at developing Malta as a hub for AI and space-related industries. Speaking during a press conference on Wednesday, Borg said the PN has always believed in creating new economic sectors capable of benefiting Malta in the long term. He said previous Nationalist governments had established industries such as gaming, pharmaceuticals, financial services, maritime and aviation, which remain key pillars of Malta’s economy today. “That economic vision created quality jobs and added value to Malta’s economy,” Borg said. Referring to another economic proposal announced by the PN, Borg said the party intends to develop a Mediterranean Maritime Fuel hub at Hurd’s Bank. He said the project would allow the LNG tanker currently operating in Marsaxlokk to relocate offshore together with the fuel station, while also giving “new breathing space” to residents in Marsaxlokk and Birżebbuġa. Borg said that the investment could generate around €450 million over three years. Borg said the PN’s latest proposals are intended to create greater added value in the economy without increasing pressure on Malta’s infrastructure and families. “Through these investments, we will put more money in people’s pockets and improve quality of life,” he said. He announced that the PN would focus particularly on the data, AI and “newspace” sectors, alongside the creative economy. Borg said a future PN government would invest €12 million in the AI, data and newspace industries over five years. He described the sector as a rapidly expanding global market, citing European Space Agency estimates which placed the global market at around €400 billion in 2024, including €78 billion generated in Europe alone. According to projections cited by Borg, the €12 million investment could generate around €100 million for Malta’s economy within five years, eventually reaching around €200 million annually after a decade. “Malta can attract these types of industries through a strong regulatory framework and create high-value careers, modern jobs and economic growth without placing pressure on the population and infrastructure,” Borg said. He added that Malta “cannot afford to be left behind” while other countries continue investing heavily in emerging technologies and industries. PN candidate Jerome Caruana Cilia said that Malta can no longer continue growing simply through volume. “The truth is simple. Malta cannot keep growing by increasing the number of people, cars and pressure. We need to focus on quality and sustainable economic growth that creates more added value. We need an economy that creates more value and less burden,” Caruana Cilia said. Caruana Cilia described the newspace sector as “a real and current market that is growing rapidly.” He argued that Malta’s size could become an advantage because the country is agile and does not have entrenched interests linked to major satellite operators or large aerospace corporations. “Malta is not a space nation, meaning it has no satellites or vested interests it needs to protect,” he said. He said Malta already has versatile professional sectors, including legal and financial services firms with international experience, which could support the development of the industry. Caruana Cilia compared the proposal to Malta’s historic development of ship registration, gaming and financial services. “In the 1960s Malta opened a new path through ship registration. Later we scaled up financial services and gaming. Now the time has come for the next leap,” he said. He said the PN wants Malta to attract foreign direct investment from companies involved in geospatial technologies, artificial intelligence, cybersecurity and data services. Caruana Cilia said that the PN would introduce modern legislation regulating space activities, establish a central authority for the sector and seek to upgrade Malta’s status with the European Space Agency from a cooperating state to an associate member. The PN would also integrate the sector into educational institutions including the University of Malta, MCAST, and others, he said. “Very risky is not being ambitious. Very risky is being late. When a global market grows at this speed, if Malta waits, it loses. We believe in a Malta that leads, not follows,” he said. PN leader Borg then turned to the PN’s proposals for the creative economy, describing culture, the arts and innovation as sectors which should become major sources of employment and income rather than “just a hobby.” “Malta has local talent and we must maximise it by giving artists the tools and opportunities to thrive in their own country,” he said. Borg announced plans for a major “Port District” (Port Distrett) cultural project in Marsa and the Grand Harbour area, intended to transform the zone into a national cultural centre. The project would include two major facilities: a National Hall and a Marsa Expo Centre. According to the PN, the National Hall would serve as a permanent home for Malta Philharmonic Orchestra performances, opera, ballet, dance and artistic productions, while the Marsa Expo Centre would host large-scale exhibitions, conventions and cultural events. Borg said the overall investment would amount to around €350 million and could generate approximately €110 million annually. PN candidate Julie Zahra described the project as a long-term legacy investment for future generations. “This is a gift that a PN government wants to leave to Malta’s artistic and creative communities,” she said. She criticised the Labour government for failing to properly understand the sector’s potential over the past 13 years. “The Port is not just a cultural district. It places culture at the centre of economic growth,” Zahra said. Zahra explained that the district would include creative spaces, promenades, public and civic areas, as well as mass transport connectivity linking Marsa, the Grand Harbour and surrounding urban areas. Zahra said the proposed National Hall would finally provide a permanent home for the Malta Philharmonic Orchestra. The planned complex would include a main hall with a capacity of 1,700 people, a secondary theatre seating 600 people, a flexible black-box performance space, large-scale recording facilities and backstage infrastructure for cultural productions. She added that the proposed Expo Centre would host major conventions and events throughout the year and would have a capacity of up to 15,000 people. The PN also accused the Labour government of failing to implement its own 2022 electoral pledge related to the newspace sector. “Newspace was included in Labour’s 2022 manifesto, but it remained shelved. We will implement it,” the PN said.