Maldives News Bulletin - Volume 125

President Dr Mohamed Muizzu has decided to implement measures to address the country’s fiscal and monetary challenges, based on recommendations from his Cabinet. This decision was made following comprehensive deliberations on a proposal presented by the Ministry of Finance during the most recent Cabinet meeting.

Deliberating on the details of dues owed by the government to companies and solutions that can be offered to such large vendors, the President decided that these dues should be repaid from its revenue. The decision stated that, depending on the amount of money to be paid to vendors each month, the payments would be conducted in a transparent manner, starting with the oldest bills. It also recommended determining the number of bills below a certain threshold that the government would repay monthly, and maintaining records of both halves separately.

Additionally, following consultations with his Cabinet, the President decided to explore avenues for vendors to transfer unpaid dues to treasury bonds (T-bonds), which would generate additional revenue for vendors.

Measures will be provided for those interested in leasing lands, offsetting payments owed to the state, particularly taxes owed to the Maldives Inland Revenue Authority (MIRA). A taskforce comprising stakeholders will be established to lead efforts in recovering funds owed to the state. Furthermore, the President will review loan options presented by the Ministry of Finance and seek additional loan options, including short-term loans.

The recent Cabinet session also concentrated on measures to fortify the foreign exchange market and boost the demand for the local currency, the Maldivian Rufiyaa. The decision to push legislative reforms allows the state to levy import duties in US dollars on businesses that generate revenue in foreign currencies. Further reforms will enable the state to collect employee pension contributions from such companies under the Pension Act of Maldives (8/2009) in US dollars, as well as mandate that corporate income tax be payable exclusively in US dollars.

^{Source: The President’s Office}

Minister of Economic Development and Trade Mohamed Saeed has announced that the government will initiate international bunkering services in the Maldives on September 12.

At a press conference, Minister Saeed emphasised the strategic significance of the Maldives’ location along major international maritime routes. The Minister expressed optimism that the introduction of these services will significantly contribute to the nation’s economic development.

Aiming to start bunkering services in the nation, a term sheet has been signed with a multinational energy and commodity trading company, Vitol Bunkers. The project, in collaboration with Vitol Bunkers, recognises the Maldives as a key global bunkering destination, positioning the country prominently on the world bunkers map.

Explaining the changes of some dates of the project, Minister Saeed stated that the changes were brought following the delays which were caused due to unfavourable weather conditions. The Minister affirmed that with the current pace of the works, the services will commence on September 12.

Minister Saeed also highlighted the government’s ongoing efforts to revitalise and expand the economy. The Minister revealed that the Agriculture Economic Zone project is scheduled to commence in December, with the objective of producing 80 percent of ten types of imported goods. The project, valued at USD 200 million, represents a substantial investment in the country’s agricultural sector.

Additionally, the State Trading Organisation (STO) and Maldives Ports Limited (MPL) signed a Memorandum of Understanding (MoU) to collaborate on providing enhanced services to vessels offering bunkering services in the northern Maldives. The agreement marks a significant step towards boosting maritime services in the region, which is a crucial route in international shipping.

^{SOURCE : PSM}

Vice President Hussain Mohamed Latheef has stated that since assuming office, President Dr Mohamed Muizzu has prioritised the advancement of human resources and capacity building within the Government and State Institutions, particularly at leadership levels. He made these remarks while speaking at the official launch event of the second training cohort of the Maldives Leadership Programme, known as the “Maldives Executive Leadership Programme.”

Speaking at the ceremony, the Vice President extended sincere gratitude on behalf of the Maldivian Government to His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates and Ruler of Abu Dhabi, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice President of the United Arab Emirates and Ruler of Dubai, His Highness Sheikh Mansoor bin Zayed Al Nahyan, Vice President and Deputy Prime Minister of the UAE, as well as to the Government of the UAE, for their unwavering support and invaluable assistance to the Maldives’ development agenda over the past decades.

Continuing his remarks, the Vice President stated that the Government recognises the importance of developing future-ready government leaders and policymakers equipped with the knowledge, skills, and best practices necessary to adapt to global changes and transformations.

He added that the Government is committed to developing their leadership skills and making them change agents within the Government who can engage, lead, innovate, and enhance the Government’s success. The Vice President stated that it is with this understanding that the Government is committed to building institutional capabilities and enhancing organisational performance through collaborative initiatives and joint efforts with friendly and neighbouring countries.

The Maldives Executive Leadership Programme launched on Tuesday, consists of two-day workshops conducted in the Maldives focusing on better policymaking and strategic leadership. The two-day session will cover two of the five modules included in the programme.

As part of the programme, participants will complete a portion of their training in the UAE and visit selected government agencies, gaining valuable insights into the reform and modernisation programmes undertaken by UAE government authorities.

^{Source: The President’s Office}

President Dr Mohamed Muizzu has designated FENAKA Corporation Limited as a subsidiary of State Trading Organisation (STO) Public Limited, based on recommendations from his Cabinet.

To facilitate this transition, STO will acquire 100% of the shares of FENAKA Corporation Limited. This decision was made following comprehensive deliberations on a proposal presented by the Ministry of Finance during the most recent Cabinet meeting.

This decision was made following consultations with the Cabinet to enhance the utility sector, ensuring efficient and standardised service delivery to the public. Additionally, it aims to strengthen the operations of FENAKA Corporation Limited and empower it financially.

For the decision to come into effect, STO will implement the necessary amendments to the company’s general rules and regulations, as well as reforms to strengthen governance within the STO group in accordance with best practices. The company will also streamline business processes and implement changes at its sole discretion.

This decision allows STO to optimise the workforce of FENAKA, exploring opportunities to reassign employees to other areas rather than terminating their employment, in alignment with the Administration’s core policies.

A committee comprising representatives from the Ministry of Finance, the Privatisation and Corporatisation Board (PCB), and STO will be established to streamline and share information regarding the timeline of the efforts leading to the implementation of the change.

Following consultations with his Cabinet, the President has decided to complete the transfer of full ownership of FENAKA Corporation Limited to STO by the end of this year.

^{Source: The President’s Office}

President Dr Mohamed Muizzu stated that focusing on youth is a key priority for the Administration. He made these remarks during a gathering of the People’s National Congress (PNC).

The President stated that a significant part of the Government’s manifesto is devoted to providing housing and employment opportunities for the youth to enhance their quality of life.

Speaking at the occasion, the President highlighted the significant initiatives undertaken by the Government to strengthen the country’s economy. He noted that efforts have been made to increase the income of the people, boost the value of the dollar, and enhance revenue. He emphasised that every moment of the Administration’s term will be dedicated to serving the people.

The President highlighted the Governor of the Maldives Monetary Authority’s (MMA) statement regarding forthcoming regulatory changes designed to benefit the public.

He emphasised that these adjustments would mitigate currency speculation in the informal market, thereby strengthening dollar reserves within the country. Furthermore, he announced that, following the Cabinet’s recommendation, businesses with substantial dollar revenues will be required to remit corporate income tax in dollar-denominated terms.

Speaking on the occasion, the President stated that the Government has undertaken several initiatives over the past nine months to reinforce religious practices. He added that the Government aims to cultivate a robust generation, ensuring children do not fall victim to anti-Islamic influences prevalent in the changing world.

The President assured the public that the Government would not interfere in the judiciary. He assured that the Government will promptly implement any verdict that the judiciary delivers, provided it resolves the matter independently.

^{Source: The President’s Office}

Ministry of Finance has disclosed that it has sold Treasury bills (T-bills) worth USD 117 million to cover government expenditure. As such, it has sold four T-Bills worth USD 117 million.

The Finance Ministry sold a T-bill worth USD 84.7 million with a maturity period of 28 days, a T-bill worth USD 1.3 million with a maturity period of 98 days and a T-bill worth USD 15 million with a maturity period of 182 days as well as a T-bill worth USD 19 million t with a maturity period of 364 days. The Ministry noted that the interest rate on the T-bills ranges from 3.50% to 4.60%.

T-bills are a short-term financial instrument. The Finance Ministry issues T-bills at discounted prices in the local currency, with the face value repayable at the end of the specified repayment period.

The T-bills issued by the government is usually bought by the banks, Maldives Pension Administration Office, as well as public and private companies.

^{Source: PSM}

The Ministry of Social and Family Development has revealed that councils can collaborate with the Ministry to establish “Isravvehinge Naadhee” or senior citizen homes on the islands.

The Ministry is presently working to establish specialised centres for the elderly across the country.

President Dr Muizzu has committed to expanding the role of senior citizens in society and enhancing services for them. In line with this commitment, the government has decided to establish island centres in various regions.

The Ministry said that the first centre under the initiative opened in February. It was named “Isravvehinge Naadhee,” and it is located in the building previously used by the National Centre for the Holy Quran.

It also said that another centre is scheduled to open in Hulhumale’ in September, with plans for a similar centre in Addu City in the future.

Speaking to PSM News, Deputy Minister Mariyam Lahfa Khaleel emphasised the importance of senior citizen centres for the health and well-being of the elderly. She noted that the senior citizen centre in the capital, Male’ City, is already serving many seniors, and the ministry aims to establish more such facilities across the country.

Additionally, Deputy Minister Lahfa highlighted that the ministry is working closely with councils of various islands to develop these centers. She also said that local councils are taking the initiative in the preparation of the centres.

The Ministry said that various programmes for senior citizens are being conducted in collaboration with government institutions and civil society organisations. The centres are also serving those experiencing mental illnesses, providing them with opportunities to participate in various activities.

^{Source: PSM}

The Ministry of Higher Education, Labour and Skills Development has initiated discussions with relevant authorities to extend retirement age to 75.

Extending the retirement age to 75 for those who wish to remain in employment or return to employment is a Presidential pledge of President Dr. Mohamed Muizzu.

Ministry of Higher Education, Labour and Skills Development disclosed it has commenced consultation meetings with relevant state agencies to begin the practical framework to develop a law that will govern the retention and re-employment of persons wishing to remain in or return to employment, up to the age of 75 years.

The Ministry notes that discussions will be held with relevant authorities including the security forces and independent institutions.

The Ministry states that the purpose of these meetings is to obtain information on the rules and regulations being followed by the agencies regarding the maximum age of retirement or retention in employment. Additionally, the meetings also aim to seek the views of the agencies on the bill that is currently being drafted by the Ministry. The Ministry states that it aims to send the drafted bill to the Attorney General’s Office within a month.

The Civil Service Commission, with the introduction of a new policy, has now opened the opportunity for technical and administrative employees who had to leave their jobs the opportunity for reinstatement. The government notes that this opportunity’s purpose is to address the difficulties in recruiting professionals and provide opportunities for experienced people in various fields.

^{Source: PSM}

The Privatisation and Corporatisation Board (PCB) has begun revisions to the human resources (HR) guidelines for State-owned Enterprises (SoEs) to ensure that only qualified employees are hired.

The PCB began a series of working meetings to amend the HR guidelines on August 25, with another session scheduled for August 29. The meetings are attended by representatives from SOEs, who provide input and suggestions for the new guidelines.

The PCB said that the updated HR guidelines will prevent overstaffing and curtail wasteful spending, as well as eliminate practices that lead to corruption in recruitment and salary payments. In addition, the new guidelines will ensure that employees are both educated and experienced.

The PCB assures that the revised guidelines will align with the standards of an effective HR system, detailing procedures, committee roles, salary structures, and administrative frameworks.

^{Source: PSM}

The Government is to bring transformations to the national health insurance system, with a focus on enhancing societal welfare.

Aasandha Company Limited, which is responsible for providing health insurance to all citizens, currently administers a system that delivers services uniformly to all individuals, regardless of their socio-economic status. This approach has led to inefficiencies and challenges in delivering services in a sustainable and cost-effective manner.

The Government’s financial support to Aasandha has been progressively increasing, with contributions rising from USD 116.7 million in 2023 to USD 123 million this year. As Government expenditures on Aasandha’s services continue to grow, concerns have been raised about the sustainability of these expenditures. Experts have urged for reforms to address the wasteful expenses within the system.

Therefore, the government has decided to undertake necessary reforms to Aasandha, aiming to reduce the inequality gap in providing healthcare services and stabilise the economy

Speaking on the government’s decision to commence the efforts to bring reformations to the Aasandha system on October, Minister of Finance Dr Mohamed Shafeeq acknowledged the essential role of Aasandha for residents and assured that any changes will be implemented only after thorough consultation with the public, ensuring that no modifications will adversely affect residents. The Minister reiterated the government’s commitment to reducing wasteful expenditures associated with Aasandha.

Furthermore, Minister Dr Shafeeq outlined the government’s efforts to identify and eliminate wasteful spending within Aasandha. The Minister added that efforts are ongoing to ensure financial assistance to individuals seeking treatment assistance.

He stated that an important step of this initiative will include stopping the various ways in which the company incurs wasteful expenses. He further revealed that if an individual has alternative health insurance, Aasandha will cover only the remaining costs not covered by the other insurance

^{Source: PSM}