Maldives News Bulletin - Volume 124

The Chairperson, Aruni Goonetilleke and CEO Noel Gregor PatersonJones of the Development Bank of Maldives Limited have paid a courtesy call on His Excellency President Dr Mohamed Muizzu. The meeting took place at the President’s Office on Monday

At the meeting, President Dr Muizzu, the Chairperson and CEO of the Development Bank of Maldives Limited had a fruitful discussion about ways to improve and diversify the Maldivian economy, drawing on the Chairperson and CEO’s extensive knowledge and experience in the field.

Chairperson Aruni Goonetilleke is a financial services expert with over 25 years of experience in global financial markets, specializing in business origination, governance, credit assessment, and risk management in emerging markets.

Her background includes transformational roles in Corporate Banking, Credit, Risk Management, and Internal Audit across international and Sri Lankan banks. She holds a Master of Laws (LL.M) from Harvard University.

CEO Noel Gregor Paterson-Jones has been a key figure in green investments, leading the establishment of the National Infrastructure Fund in Saudi Arabia as Chief Investment Officer. He also chairs the Electric Vehicle Africa Fund and manages clean energy projects in Southeast Asia, demonstrating his expertise in green finance and infrastructure development. He holds a Master of Philosophy (MPhil) from Oxford University, U.K.

The Development Bank of the Maldives Limited was established on May 16, 2024, in alignment with the President’s Pledge.

^{SOURCE : The President’s Office}

Minister of Foreign Affairs Moosa Zameer has confirmed that the government has received approval in its efforts to secure funds from various countries.

During a press conference held on the government’s ongoing efforts to improve the economy, Minister Moosa Zameer highlighted the government’s initiatives to strengthen bilateral relations with multiple nations and international organisations.

He elaborated on recent discussions with China’s Foreign Minister regarding the facilitation of favorable loan repayment terms and mentioned similar discussions with India’s External Affairs Minister.

Providing further details on the government’s funding efforts, Minister Zameer noted that official visits have been made to several Middle Eastern countries. He confirmed that these efforts have been positively endorsed, demonstrating the government’s commitment to obtaining additional financial resources. The Minister expressed optimism about achieving tangible results from these initiatives in the near future.

Additionally, Minister Zameer indicated that the Maldives’ dollar revenue could be enhanced through the current governmental measures. He acknowledged that addressing the financial challenges exacerbated by the COVID-19 pandemic requires time and assured that ongoing collaborative efforts are expected to effectively resolve these issues.

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President Dr Mohamed Muizzu has unveiled plans to develop the first-of-its-kind smart classes at Majeediyya School.

He announced that some of the classrooms in the 40-classroom extension building, which will be developed for Majeediyya School next year on the land previously occupied by Dharumavantha School, will be built as smart classes.

The President made these remarks while speaking at the ceremony to inaugurate the “Sahthavee Bina” monument, marking the countdown for the 100th anniversary of Majeediyya School.

Speaking at the ceremony, the President also revealed plans to transform Darul Uloom, the cherished old school hall of Majeediyya School alumni, into a National Education Museum. He emphasised that this museum would serve as a medium to pass down the rich history of the nation’s educational journey to future generations.

Furthermore, the President encouraged students to approach all their endeavours

with unwavering resolve. He urged them to pursue success guided by the righteous path of Almighty Allah and to remain steadfast, even in the face of challenges.

At the ceremony, President Dr Muizzu emphasised the significance of the educational journey. He stated that its true purpose is to educate and train individuals to serve the nation, build their lives, and contribute to their community. He added that the purpose of studying and educating is to contemplate how to prepare to serve their nation.

The President inaugurated the “Sahthavee Bina” monument to mark the countdown for the 100th anniversary of Majeediyya School. After the ceremony, President Dr Muizzu viewed a photo gallery at Darul Uloom, the school hall.

Majeediyya School is the oldest educational institution in the country. The “Sahthavee Bina” monument, unveiled on Sunday night, symbolises the academic shelter of the school. The school alumni made all efforts to build the monument.

^{SOURCE : The President’s Office}

Minister of Economic Development and Trade Mohamed Saeed has expressed strong confidence in the country’s economic growth for both this year and the upcoming year.

Speaking at a press conference at the President’s Office, Minister Saeed projected positive economic growth for the near future.

He acknowledged the economic challenges faced when President Dr. Mohamed Muizzu’s government assumed office and emphasized the president’s commitment to revitalising and expanding the economy.

Minister Saeed highlighted the efforts of the Cabinet and the Economic Council in fostering economic growth. He outlined initiatives aimed at reducing state expenditure and ensuring revenue stability. The Minister also announced that a report detailing changes in financial systems and fiscal estimates for the next three years is forthcoming.

This report will reflect ongoing efforts by Parliament and the Development Bank of the Maldives and will include significant updates related to the Foreign Investment Bill. Minister Saeed expressed optimism that these policies will positively impact economic growth this year and next, contributing to a more stable and enhanced economy.

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Minister of Finance Dr. Mohamed Shafeeq has announced that new financial measures aimed at bolstering the nation’s economic development and growth will be implemented in a way that avoids placing any additional burden on the public.

Speaking at a press conference held at the President’s Office, Minister Dr. Shafeeq outlined the government’s extensive efforts to address the current economic challenges.

He revealed that modifications have been made to financial policies and the management of state-owned enterprises (SOEs) as part of these efforts, with ongoing discussions involving key stakeholders. The Minister expressed optimism that these initiatives would soon yield positive results.

Minister Dr. Shafeeq also emphasised that the government’s fiscal strategy includes a priority focus on ensuring the repayment of the USD 500 million Sukuk. He highlighted the increasing reliance on dollars, particularly in the trade and transportation sectors, as observed by the Bank of Maldives (BML).

In response, the government is committed to boosting dollar inflows and ensuring the central bank can provide other commercial banks with the necessary support.

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Attorney General Ahmed Usham has revealed the government’s plan to amend several laws in an effort to address the ongoing dollar shortages.

In a media briefing, Attorney General Usham outlined that the government aims to implement these amendments within the next three weeks. He explained that a comprehensive Cabinet-level meeting was held to discuss the issue, leading to decisions on several key measures. Specifically, amendments are to be made to the Maldives Pension Act and the Tax Administration Act.

Detailing the proposed amendments, AG Usham stated that the primary objective is to facilitate businesses that generate income in dollars by allowing them to make governmental payments in dollars.

The amendment to the Tax Administration Act will enable companies earning revenue in dollars to pay corporate income tax in the same currency. Similarly, the amendment to the Pension Act will ensure that individuals receiving their salaries in dollars will also have their pension contributions made in dollars.

Additionally, changes will be introduced to the regulations governing payments to the Maldives Customs Services (MCS), allowing these transactions to be conducted in dollars. Usham expressed confidence that these measures will help mitigate issues related to currency exchange on the black market.

The government has announced these amendments will be presented to Parliament within the next two to three weeks.

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The Ministry of Fisheries and Ocean Resources has announced that illegal fishing activities will be closely monitored as line fishing resumes across the Maldives.

Line fishing, a traditional practice in the Maldives, was previously suspended following a directive from the European Union (EU) calling for reforms.

The practice, which was permitted between 2012 and 2019, was halted but has now been reinstated by the ministry. The renewed line fishing activities will specifically target species such as bigeye tuna, yellowfin tuna, and swordfish, with licenses for these activities now available.

The Ministry has also outlined regulations for the processing and export of dead sharks caught during line fishing. Although sharks typically comprise 3 to 4 percent of the total catch, the Ministry has implemented measures to reduce shark bycatch. These include setting lines at a depth of 60 meters and allowing only the processing of dead sharks.

To ensure compliance and prevent illegal fishing, the Ministry will enforce several strict measures.

Fishermen will be required to depart from designated harbors, obtain departure clearance before setting out, and install cameras on their vessels.

Additionally, all vessels engaged in line fishing must be equipped with tracking devices that detect the proximity of other similarly equipped vessels, a measure aimed at curbing the illegal exchange of fish at sea.

Line fishing will be permitted within 100 miles of the Maldives’ Exclusive Economic Zone (EEZ), with specific restrictions. It will not be allowed in the northernmost region of the country, where most of fishermen are currently active.

Instead, line fishing will be permitted from the eastern and western regions of Addu City to the southern part of Alifushi in Raa Atoll. The Ministry noted that the reopening of line fishing will bring significant benefits to the Maldives, with many fishermen already expressing interest in resuming the practice.

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The State Electric Company Limited (STELCO) has announced plans to develop an electric vehicle charging system, aiming to encourage the use of electric vehicles.

Reiterating the objectives of President Dr. Mohamed Muizzu to reduce the carbon footprint, Managing Director of STELCO Hussain Fahmy stated the company strives to ensure full support in achieving this overarching goal.

As such, he revealed that the company is determined to increase the demand for electric vehicles and provide full support and utmost convenience to individuals willing to purchase the vehicles, and those already utilising electric vehicles.

Under these efforts, Fahmy disclosed plans to establish an electric vehicle charging system next to STELCO’s Head Office. He stated that significant discussions were held with the Ministry of Cities, Local Government and Public Works, expressing optimism on the ministry’s full support. This station, he said, would be equipped to cater to twowheelers and four-wheeled vehicles.

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Maldives Ports Limited (MPL) and Qatar Airways has signed a Memorandum of Understanding (MoU) on the provision of cargo services in MPL’s sea-to-air transshipment services.

The MoU was signed by the Chief Executive Officer (CEO) of MPL Mohamed Wajeeh Ibrahim and the General Service Agent of Qatar Airways; Ace Travels Maldives’ Managing Director Mohamed Firaq. Under the agreement, Qatar Airways will provide sea-to-air cargo transshipment services.

Speaking at the signing ceremony, MPL’s CEO Wajeeh stated following the launch of the sea-to-air services in May, the Maldives has re-exported 25,191 clothing packages to various destinations across the globe, including Italy, Germany, Unites States of America (USA), Canada and Turkey. The first shipment was a garment shipment from Bangladesh.

The CEO underlined the government’s objective of expanding the economic activity of the nation and increasing the revenue. He revealed the sea-to-air transshipment services generated a revenue of USD 20,000 within a month.

Managing Director of Ace Travels Maldives Firaq stated he saw a bright future for the sea-to-air services. Highlighting that Qatar Airways operates its flights to various destinations worldwide, Firaq said that the airline had the capacity to carry 50 tonnes of goods.

Sea-to-air transshipment services were introduced with an aim to shorten the duration involved in shipping merchandise by sea and provide prompt assistance. This hybrid model, provided in collaboration with MACL and other international airlines, aims to meet demands within the commercial industry efficiently. MPL highlighted the key benefit of increased flights to various countries resulting from this service, typically offered by foreign countries to expedite the export process.

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Bank of Maldives (BML) has announced the reversal of the US dollar transaction limits that were announced earlier on Sunday.

The decision came after the bank’s regulatory authority, Maldives Monetary Authority (MMA) issued instructions to amend the earlier changes.

The initial measures introduced by BML included the suspension of foreign transaction allowances for both existing and new debit cards, as well as new credit cards, when linked to MVR accounts. Additionally, for existing Standard and Gold credit cards, the monthly foreign transaction limit was reduced to USD 100.

These changes sparked widespread criticism, with many individuals voicing their concerns on social media. In response, BML has now lifted the previously announced dollar limits. As a result, BML debit and credit cards will have a foreign transaction allowance of USD 250. Furthermore, Maldivians residing abroad will be granted a monthly allowance of USD 750.

In an earlier statement, BML explained that the initial changes were based on a year-long analysis of card usage. The bank noted that it had purchased approximately USD 60 million in foreign currency from customers this year, while card usage far exceeded that amount.

BML clarified that customers using USD credit cards and debit cards linked to USD accounts remain unaffected and can continue to use their available balances. The bank also recommended that customers with recurring international payments consider linking their debit cards to USD accounts to facilitate overseas transactions.

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The TTM Awards & Gala 2024 took place at Adaaran Select Hudhuran Fushi on the evening of 22nd August 2024, announcing this year’s award winners and highlighting outstanding achievements within the hospitality industry. This year’s event expanded to include four new categories:

Editor’s Choice: Best Spas, Editor’s Choice: Best Restaurants, Editor’s Choice: Best Resort for Sports & Fitness, and TTM Top Producers – Airlines, bringing the total to 28 award categories. The expanded categories reflect the diverse and unmatched excellence within the Maldives’ tourism and hospitality sector.