Small and medium businesses will get a chance to bump up their cyber security through a new government scheme that will grant them up to €60,000 each.

The scheme is intended to encourage more companies to continue digitalising their business while investing in software and hardware that protects the data of the company and its clients and prevents data breaches, data theft, ransomware and hacks.

Titled 'Cyber+Alt', the scheme was launched on Monday by Economy Minister Silvio Schembri and EU funds Parliamentary Secretary Chris Bonett and will be operated by the Malta Information Technology Agency (MITA).

A total of €2 million are available - half of which are EU funds and the other half are government funds. Around 33 businesses will be granted funds and the scheme will operate on a first-come-first-served basis until the funds are used up.

Businesses that qualify for the grant will be able to claim up to 80 per cent of costs when they implement projects that enhance their business's cyber security and will get the first 20 per cent of the grant up front, upon signing the contract, to help them begin implementation.

A call for applications for the scheme will open four times by the end of this year - in July, September, November and December - and the businesses that get the grant must complete the projects by the end of September next year.

The scheme is titled Cyber+Alt. PHOTO: Matthew Mirabelli.

'It's like leaving your door open at night'

The vast majority of businesses in Malta are considered small and medium enterprises and they contribute substantially to economic growth. Very encouragingly, most of them are digitalising their operations and have shifted to offer online services, Minister Schembri said, adding that however most of them were also not conscious of how rapidly things can go downhill online.

"We want to help businesses go digital but we are also launching this scheme to help protect them," he said.

"Operating an online business that is not protected against cyber attacks is like running a shop that you leave open at night. It's like leaving your shop or your house at the end of the day without locking the doors and windows."

Bonett said the theft was no longer limited to physical theft, and even a minor data breach could be detrimental to a lot of work and investment.

"We all know this, but the reality is that SMEs are either unaware of the issue or find it hard to finance cyber security," he said.

"That's why this scheme will be valuable: it is an investment in the future of the economy."

He said the government will also try to acquire more funds to operate similar schemes.

EU funds junior minister Chris Bonett said even a minor data breach could be detrimental to a lot of work and investment. PHOTO: Matthew Mirabelli.

'An urgent challenge' - MITA CEO

MITA CEO Emanuel Darmanin meanwhile noted that cyber security has become a "primary, crucial and urgent" challenge.

A study carried out last year revealed that 48 per cent of small and medium enterprises do not have adequate cyber security, he said, and 71 per cent of these do not even have a budget allocated for it.

MITA is primarily tasked with protecting the government's data and online systems, but is now tapping into EU funds to provide help to private businesses, he said.

The economy depends heavily on small and medium enterprises and cannot afford to have their systems unprotected, he added.

MITA CEO Emanuel Darmanin. PHOTO: Matthew Mirabelli.

Businesses that get the funds will be chosen on several criteria, including project excellence, impact and sustainability, and will not get funding unless they score at least 50 per cent of the eligibility points.

But if they do not make the cut they will be able to modify their applications and submit them again.