Maldives News Bulletin - Volume 158

President announces master plan for the application of AI for economic advantage

On recommendation from the cabinet, President Dr Mohamed Muizzu has announced the formulation of a master plan, per regional best practices, on applying artificial intelligence for economic advantage. The master plan consists of risk management in utilising AI and the design of a legal framework on AI technology.

The decision was made after deliberations during the cabinet meeting held on October 16, 2024.

At the meeting, President Dr Muizzu also decided that the Ministry of Homeland Security and Technology and the Ministry of Economic Development and Trade would present relevant documentation to the cabinet upon formulating the master plan.

SOURCE : The President’s Office

Local Government Ministry announces nationwide public works units

Minister of State at the Ministry of Cities, Local Government and Public Works, Uz Moosa Fathuhee Adam has announced the ministry’s plan to set up public works units nationwide.

In an interview with PSM News, the State Minister emphasised these units’ crucial role in executing public works, particularly in the islands. He stated that 15 public works units are scheduled to be established in various atolls next year, with the overarching goal of having these units available nationwide.

Additionally, he mentioned that a mobile public works unit is already being created. Currently, public works units have been established in nine locations, including the capital Male’ City and Kulhudhuffushi City in Haa Dhaalu Atoll, as well as islands in Laamu Atoll.

SOURCE : PSM

COP29 to feature the most side events for Maldives

Minister of Climate Change, Environment, and Energy Thoriq Ibrahim has disclosed that this year’s COP Summit is set to feature the most side events for Maldives. The 29th COP summit, the foremost international conference on climate change, will take place from November 11 to 22 in Baku, Azerbaijan.

Minister Thoriq said that the Maldives will play a significant role in this year’s COP summit, hosting four side events in preparation. These include a collaboration with the Asian Development Bank (ADB) on renewable energy and a side event focused on “Sustainable Coral Reef Management,” emphasising the importance of reef protection as the chair of the Atolls Nation at COP. He also mentioned plans for an event advocating for funding for the Loss and Damage Fund and launching the Maldives’ biannual transparency report.

Before the summit, the Government will hold a special event to gather insights from Maldivian youth on environmental issues. The feedback from this meeting will be used to prepare a statement representing the youth of the Maldives.

A senior delegation from the Maldives is expected to attend the COP summit, although the government has not yet disclosed details. Last year, the COP-28 meeting in Dubai saw participation from the President and a senior delegation from the Maldives.

SOURCE : PSM

President initiates a comprehensive master plan to address tobacco consumption

Following the Cabinet’s recommendation, President Dr Mohamed Muizzu has decided to develop a comprehensive master plan to combat tobacco consumption in the Maldives. 

This master plan will include additional measures alongside the enforcement of existing tobacco control laws and regulations to achieve a permanent solution to tobacco use over the next four years. The President has directed that the first draft of the master plan be presented at the Cabinet meeting on October 27, 2024.

This decision was reached after extensive deliberations during the most recent Cabinet meeting.

The Cabinet’s recommendation emphasises the master plan’s focus on promoting a smoke-free society. Key initiatives include empowering social workers, introducing incentives for non-smoking islands, and providing financial support for social activities on these recognised islands.

Additionally, the President has instructed relevant authorities to ensure the availability of free smoking cessation programs at all health centres for individuals seeking assistance.

SOURCE : The President’s Office

President conveys condolences over the sudden demise of a 13-years-old student

President Dr Mohamed Muizzu has conveyed his heartfelt condolences following the sudden passing of thirteen-year-old Huravee School student Fathimath Shima Mohamed.

In a message shared on his official X account, President Dr Muizzu expressed his profound sorrow and concern upon learning of Fathimath Shima Mohamed’s untimely demise while at school.

The President prayed for Allah the Almighty’s blessings on her soul and wished for patience and strength for her parents, family, friends, and fellow students during this difficult time.

Vice President Uz Hussain Mohamed Latheef also expressed condolences to the family of the deceased.

SOURCE : The President’s Office

President confers the most prestigious awards of the ‘Maldives Sports Awards 2024’

President Dr Mohamed Muizzu presented the prestigious awards at the Maldives Sports Awards 2024 on Thursday evening, hosted at the Social Centre.

The Ministry of Sports, Fitness and Recreation organised the event, which was attended by First Lady Sajidha Mohamed, senior government officials, and athletes.

The Lifetime Achievement Award was presented to recognise the services of the late Ahmed Hafiz and Abdul Sattar Hassan.

Fathimath Dheema Ali was awarded “Sportswoman of the Year - Gold”, while Fathimath Nabaha Abdul Razzaq was conferred “Sportswoman of the Year - Silver”, and Aminath Nabeeha Abdul Razzaq was awarded “Sportswoman of the Year - Bronze”. President Dr Muizzu awarded these accolades.

The President also conferred the titles of “Sportsman of the Year - Gold” on Mohamed Shaffan Ismail, “Sportsman of the Year - Silver” on Azneen Rashaadh, and “Sportsman of the Year - Bronze” on Nibaal Ahmed.

At the end of the event, the President posed for a group photo with the two most honoured awardees.

Vice President Uz Hussain Mohamed Latheef attended the event and presented selected special awards. Minister of Sports, Fitness and Recreation Abdullah Rafiu addressed the event, highlighting the government’s plans to enhance further and develop the sporting field.

The Maldives Sports Awards, first established in 2022, aims to recognise and celebrate the achievements of Maldivian athletes.

SOURCE : The President’s Office

Finance Ministry to sell T-Bills worth USD 273 million

The Ministry of Finance has announced the upcoming sale of Treasury bills (T-bills) totalling USD 273 million to support government expenditures. This issuance will consist of four separate T-bills.

The offerings include a USD 123.7 million T-bill maturing in 28 days, a USD 11 million T-bill maturing in 98 days, a USD 54 million T-bill maturing in 182 days, and a USD 78 million T-bill maturing in 364 days. The interest rates on these T-bills range from 3.50% to 4.60%, and they will be sold on October 20.

T-bills are short-term financial instruments issued at discounted prices in local currency, with the face value paid back at maturity. While this structure benefits investors, it does not directly benefit the state. Typically, these T-bills are purchased by banks, the Maldives Pension Administration Office, and various public and private companies.

Additionally, the Government is planning to introduce measures to boost revenue. Proposed amendments to existing laws have been submitted to Parliament, including increases in three taxes: the Tourism Goods and Services Tax (TGST) on tourism facilities. Changes will affect the Value Added Tax Act, the Maldives Tourism Act, and the Maldives Airport Tax and Fees Act, resulting in higher TGST, green tax, airport development tax and fee rates.

According to the Finance Ministry, if the proposed amendments pass, they are expected to generate an additional USD 169 million in revenue and contribute up to a 3% annual increase in national productivity or GDP.

SOURCE : PSM

New Foreign Currency Regulation to enhance banking system: Governor

Governor of the Maldives Monetary Authority (MMA) Ahmed Munawwar has underscored the crucial significance of the newly introduced Foreign Currency Regulation in enhancing the banking system’s operations. He made the statement in a panel discussion organised by MMA at the Maldives National University (MNU).

During the discussion, senior officials from MMA provided information on the new Foreign Currency Regulation and the Money Exchange Regulation. Governor Munawwar noted that while USD 4.5 billion flows into the Maldives yearly, the central bank receives only 23% of this amount through taxes and other sources. He indicated that the overall demand for the Maldivian currency, Rufiyaa (MVR), could be augmented by reducing the quantity of dollars that do not enter the banking system. He explained that this was one of the reasons for the new regulations being introduced.

Although businesses have approved and welcomed these regulations, Governor Munawwar mentioned that many have sought clarification on the procedures for depositing and exchanging funds in banks. In response, the governor revealed that local banks cannot issue enough dollars to meet the demands of the tourism sector and must resort to borrowing from foreign banks to fulfil these needs.

Furthermore, Governor Munawwar disclosed that while USD 4.5 billion enters the Maldives annually, USD 2 million has been collected in the country’s banking industry. He expressed optimism about improving banking operations if a greater volume of foreign currency were to enter the system.

According to the new Foreign Currency Regulations issued by MMA, all tourism facilities registered with the Maldives Inland Revenue Authority (MIRA) are mandated to channel their incomes via national banks. Additionally, resorts and safaris must exchange USD 500 per head through local banks, while guest houses are required to exchange USD 25 per guest. While MMA has imposed these regulations, it has given businesses a three-month grace period, aiming not to burden them.

While MMA has imposed these regulations, it has given businesses a three-month grace period, aiming to not burden them.

SOURCE : PSM

Screening begins for thalassemia patients awaiting bone marrow Transplants

Minister of Health Dr Abdulla Nazim has announced that the screening process has commenced for thalassemia children scheduled to undergo bone marrow transplants next year. 

The Minister made the remarks at the ceremony to launch the Thalassemia Prevention and Control Master Plan.

Minister Dr Nazim highlighted the Government’s efforts to control and prevent thalassemia during the past ten years. 

The Minister noted that efforts were made to increase awareness of thalassemia among school students and to screen them. He also stated that blood banks were established in four locations under these efforts.

Furthermore, Minister Dr Nazim lauded the Government’s efforts to continue providing opportunities for thalassemia children to receive bone marrow transplants. He revealed that 14 children have already been sent abroad for treatment and confirmed that the screening process for those scheduled to undergo bone marrow transplants next year has begun.

The Government aims to send a certain number of children to undergo bone marrow transplants annually. The Ministry of Health reported that 40 children who are eligible to undergo the transplant have been listed. Those children have compatible bone marrow donors within their respective families. Currently, there are 944 registered thalassemia patients in the Maldives, with 659 children living.

Families of thalassemia patients often encounter numerous challenges in accessing necessary treatments, such as bone marrow transplants. In response, the Government has implemented various measures to alleviate these issues and ensure that services are accessible within the country. As such, the Ministry has stated that bone marrow transplant services will be offered in the Thalassemia Hospital, which is to be established in Hulhumalé, fulfilling President Dr Mohamed Muizzu’s pledge.

SOURCE : PSM

Government launches hazardous chemical management facilities nationwide

The government is establishing specialised facilities for hazardous chemical management throughout the Maldives, with the first centre now operational in Addu City. 

Proper management of these chemicals is crucial for public health, as past incidents of inadequate oversight have underscored the need for effective measures.

Minister of Climate Change, Environment, and Energy Thoriq Ibrahim highlighted the significant volume of hazardous chemicals imported into the Maldives, making effective management systems essential. WAMCO has been entrusted with the Addu City facility, and another hazardous chemical management facility is being developed in Vandhoo, Raa Atoll.

The Ministry of Environment is implementing a phased approach to ensure safe disposal nationwide, with additional facilities planned in Thilafushi.

New regulations have been introduced to ensure safe chemical disposal, addressing severe health risks associated with improper handling. The Maldives’ commitment to safe chemical management is reinforced by its participation in the Minamata Convention on Mercury, which mandates the phasing out mercury-containing devices and adherence to environmentally sound disposal standards, supported by financial assistance under the treaty.

SOURCE : PSM

New regulation to hold parties accountable for tender breaches

The Ministry of Finance has introduced a new rule imposing fines on bidders, suppliers, and contractors participating in state tenders. This regulation clarifies penalties for offences not previously specified in the Finance Rules and Finance Act.

The new rule outlines 16 offences, including submitting falsified documents, concealing information, and obstructing other bidders. The Procurement Appeal Board will investigate and act against violations.

Under the rule, offenders may face fines of up to 2.5% of the total bid price, with penalties assessed based on the severity of the offence. Suspension from bidding can last from 3 months to 1 year for first offences, 2 to 3 years for second offences, and up to 5 years for further violations. Suspension may be extended if new offences occur within three years of a prior suspension.

Affected parties will be informed of the reasons for fines and suspensions and will have five business days to respond. They also have the option to request a review under the new regulations.

SOURCE : PSM

New regulations spell out compensation framework for workplace incidents

The Labour Relations Authority (LRA) has announced a minimum compensation of USD 91,149 for individuals who die due to workplace incidents. The LRA has introduced the “Workplace Safety and Health Regulations,” which outline the compensation framework for injuries, disabilities, and fatalities during employment.

Workers who sustain injuries—resulting in either temporary or permanent disability—or lose their lives due to work-related activities are entitled to compensation that covers medical expenses, lost wages during treatment, and damages associated with disability or death.

Employers must provide appropriate medical treatment to injured employees to facilitate their recovery. Compensation for lost wages during the period of absence can be claimed upon submission of a sick note from a registered healthcare provider. The compensation amounts are determined by the severity of the disability, with permanent disabilities eligible for compensation for a minimum duration of 10 years, ranging from USD 82,034 to USD 1.2 million. In the unfortunate event of a worker’s death while on duty, the deceased’s heirs may seek compensation. If the death results from an accident without contractor negligence, the heirs are entitled to USD 32,553; in cases involving negligence, this amount increases to USD 65,106. 

Furthermore, a minimum compensation of USD 95,056 is stipulated for fatalities directly linked to job-related activities, with a maximum cap of USD 1 million. Contractors are required to assist in facilitating the filing of compensation claims.

SOURCE : PSM

Government aims to start operations of Development Bank this year

Minister of Economic Development and Trade Mohamed Saeed has revealed the Government’s goal of commencing operations of the Development Bank of Maldives (DBM) within this year.

Maldives Monetary Authority (MMA) issued the licence required for the DBM on October 13. The licence was issued under the condition that the DBM begins operations before October 12, 2025. The bank is 100% state-owned. MMA has stated that commencing services from the DBM will significantly enhance the financial sector.

In a statement, Minister Saeed said efforts are underway to recruit employees for the bank. The Minister also disclosed that the Government aims to ensure the bank is operational before year’s end.

President Dr Mohamed Muizzu announced the formation of the DBM on May 16. In July, the request to obtain the licence required to create the bank was submitted to MMA.

The Government decided to establish the DBM to align with its strategic policies. Its primary objectives include funding infrastructure projects, investing in sustainable economic and social development, and addressing the challenges of financing Public Sector Investment Programme (PSIP) projects through syndicated financing. Additionally, it seeks to promote greater foreign exchange retention within the nation’s banking system, fostering economic stability and growth.

The DBM will enhance the financial system and facilitate essential development funding in collaboration with international and other financial entities and investors. Key objectives for the Development Bank include reducing wealth disparities, improving housing, alleviating the state’s debt burden, and revitalising underdeveloped areas. The bank will provide loans, equity financing, fund syndication, and risk insurance.

Focusing on five priority areas—energy and food security, housing, environmental protection, tourism, and marine economic activities—the Development Bank is poised to play a vital role in securing financing for various industries.

SOURCE : PSM

Government commits to sports advancement with $14.6 million investment 

Minister of Sports, Fitness, and Recreation, Abdulla Rafiu has announced that the government has spent USD 14.6 million to develop sports in the Maldives so far.

Speaking at the Maldives Sports Awards 2024, the Minister detailed that this significant investment, made from November of last year to October 10 of this year, has been directed towards establishing facilities to promote sports. He emphasised that this expenditure reflects the government’s commitment to advancing sports in the country.

Minister Rafiu praised the commendable results and achievements of the national teams this year, which he believes inspire hope and encouragement for the future. Since last November, various sports disciplines have participated in 74 international events, resulting in the Maldives’ national teams securing 22 medals, including nine golds, nine silvers, and four bronzes.

He also noted that nine international tournaments were hosted in the Maldives from January to October this year, with two more scheduled before the end of the year.

SOURCE : PSM

Government to clear path for safer sports with insurance pla

Minister of Sports, Fitness and Recreation, Abdulla Rafiu, has announced plans to introduce a special insurance scheme for national team players.

Speaking at the Maldives Sports Awards 2024, Minister Rafiu stated that the necessary funds for the insurance scheme have already been allocated for inclusion in next year’s budget. He emphasised the Government’s commitment to providing numerous opportunities for sports associations and athletes.

“The Government also established a system in February this year to ensure immediate treatment for players injured during tournaments,” the Minister noted.

Additionally, he highlighted that compulsory medical facilities have been introduced in stadiums hosting national and international competitions, making these services available to sports associations and players. He also mentioned that discussions have commenced with the Ministry of Education to launch the Maldives Presidential National Fitness Programme.

SOURCE : PSM

Chinese tourist numbers surge by 45%

There has been a remarkable 45% increase in Chinese tourists visiting the Maldives, with no other competing country showing similar growth. So far this year, 233,332 tourists from China have travelled to the Maldives, marking a significant rise compared to the same period last year.

According to the latest Tourism Update Report from the Ministry of Tourism, China has become the largest source of tourists for the Maldives, representing 14.8% of the market share. Notably, more than 12,000 Chinese tourists arrived in the first 16 days of this month.

In comparison, Russia ranks as the second-largest source of tourists, with 172,142 visitors recorded this year. This results in a difference of 61,190 tourists between the two countries. Overall, the Maldives has welcomed 1,573,991 tourists this year, a 9.5% increase from 1,437,220 during the same timeframe last year. The influx of tourists in October has also risen by 7.6%, with 81,964 arrivals this month compared to 76,172 in October of the previous year.

Current statistics indicate that the Maldives receives an average of 5,123 tourists daily. The Government has set an ambitious target to attract 2 million tourists by the end of this year, and this goal is anticipated to be met by December.

SOURCE : PSM