The age of criminal responsibility is being raised from 12 to 14, Parliamentary Secretary for Justice Owen Bonnici said.
Speaking in Parliament during the debate on amendments to the criminal law, he said that parents would continue to be responsible for the actions of children aged under 14.
The UN Human Rights Council and the Council of Europe had on many occasions criticised Malta on the low age of criminal responsibility.
He said procedures in court would remain the same, but penalties may be reduced by a grade or two in the case of convictions for those aged between 14 and 16.
Proceedings may still be instituted personally against those under 14, but the focus in their case would be on setting them on the right path.
Dr Bonnici said the State had not yet been able to provide a proper facility for youngsters found guilty of crimes who would be best served if they were incarcerated for a period of time, but not in a prison.
It was intended that a halfway house would be created between the Juvenile Court, which currently deals with offenders aged between 12 and 16, and the normal criminal courts.
The State had relied on Church-run institutions. If it were not for Church homes that took in minors who committed a crime, the State would not have any place to put offenders who were younger than 14 after they have been sentenced by the Juvenile Court.
Dr Bonnici said the Juvenile Court, which decided some 100 cases a year, was not well-equipped to deal with certain cases. Some cases were quite serious and sometimes the necessity of a legal aid arose.
This presented a problem considering that the tribunal was not housed within the court buildings in Valletta, he said.
Dr Bonnici said that the government was studying the possibility of forming a tribunal which had more of a protective and educational streak to it. However, the right message had to be passed on to young offenders from the onset.
Clyde Puli (PN) said he was pleased to hear Dr Bonnici raise some points the Opposition had spoken of, and said they were prepared to work hand in hand