Maldives News Bulletin - Volume 162

Discover latest updates of the Government

Date: October 34, 2024 | Issue 162

President announces special measures in line with the economic reform agenda 

President Dr Mohamed Muizzu has announced special measures in line with the economic reform agenda proposed as part of the 2025 national budget. As an initial step, the President stated he will not be taking 50 percent of his salary as President. 

The President shared this news via a post on his official X account on Wednesday evening. 

Additionally, the President announced the following measures, which will be in effect for a two-year period: 

1. A salary reduction of 10 percent for all politically appointed individuals. 

2. A salary reduction of 10 percent for all staff of state-owned enterprises, excluding banks. Consequently, the take-home salaries of heads of these enterprises will be capped at MVR 90,000. 

3. A proposition to relevant bodies to reduce the salaries of heads of independent institutions by 10 percent. 

4. A proposition to the heads of the Judiciary and Parliament to reduce their salaries by 10 percent.

The President further revealed that individuals earning less than MVR 12,000 will be exempt from these measures. 

President Dr Muizzu has launched an ambitious programme to address pressing economic issues and strengthen governance. 

SOURCE : The President’s Office 

“Every dollar invested in SIDS can produce transformative change” – says the Vice President at CHOGM 

Vice President His Excellency Uz Hussain Mohamed Latheef has called for action to attract private sector engagement in development efforts. He called for these actions while speaking at the Commonwealth Business Forum: Island Leaders Round Table, ahead of the 2024 Commonwealth Heads of Government Meeting (CHOGM). 

The Vice President proposed actions to ensure long-term resilience for SIDS and foster prosperity for all, by fostering an enabling environment to attract private sector, collaborations centred on sustainability, and efforts to strengthen private sector to better facilitate business-to-business interactions. 

Highlighting the Maldives’ natural beauty and diverse ecosystems, the Vice President conveyed that the Maldives faces immense challenges on the climate front and in accessing finance. He however added that the Maldives refuses to be defined by its vulnerabilities and that the Maldives, and other Small Island Developing States (SIDS) should be in charge of their own destinies. 

Speaking further, the Vice President relayed President His Excellency Dr Mohamed Muizzu’s bold and ambitious vision for a more resilient and prosperous Maldives, with a vision of transforming into a developed country by 2040. He also noted the efforts to diversify the economy, including new sectors like ICT, finance, renewable energy, among others. 

Conveying the need for the Commonwealth business community to support the Maldives, the Vice President invited the Commonwealth business community to partner with the Maldives in the transformative journey towards shared prosperity. 

The Vice President is in Samoa on an official visit to attend the Commonwealth Heads of Government Meeting (CHOGM). A high-level government delegation accompanies the Vice President. 

SOURCE : The President’s Office 

The President sends message of condolence to the President of Türkiye following the attack on the headquarters of Turkish Aerospace Industries

President His Excellency Dr Mohamed Muizzu has conveyed condolences to the bereaved families and loved ones, and prayers for the swift recovery of those injured following the

tragic attack on the headquarters of Turkish Aerospace Industries near Ankara.

In his message to His Excellency Recep Tayyip Erdoğan, President of the Republic of Türkiye, President Dr Muizzu expressed his sorrow on learning about the attack and condemned it on behalf of the Government and the people of the Maldives.

The message concluded with affirmation of Maldives’ solidarity with the brotherly and sisterly people of Türkiye.

SOURCE : The President’s Office

Parliament Speaker cuts salary by 50% in support of President

Speaker of Parliament Abdul Raheem Abdulla has decided to take only 50% of his salary in support of President Dr Mohamed Muizzu’s decision to reduce state expenditure. The strategic measures announced by the President are in line with the economic reform agenda proposed as part of the 2025 national budget.

In a social media post, Speaker Abdul Raheem affirmed that he fully supports President Dr Muizzu’s decision to reduce the salaries provided by the Government by 10%, noting that the initiative aims to improve the economic situation of the country. He further announced that he will forgo 50% of his salary, expressing his support.

Under the economic reform agenda, President Dr Muizzu has decided to implement several measures to reduce state expenses. These include a pay reduction of 10% for politicians and independent institutions. However, civil servants and individuals earning less than USD 778 will be exempt from the pay cuts.

SOURCE : PSM

Maldives to Co-Chair 2026 Commonwealth Ministerial Meeting on Small States

Maldives is set to co-chair the Commonwealth’s Ministerial Meeting on Small States (CMMSS) to be held in 2026. The decision was announced during the ongoing Ministerial Meeting of Small States ahead of the Commonwealth Heads of Government Meeting (CHOGM) in Samoa.

In a statement released by the Ministry of Foreign Affairs, the Maldives is set to assume the role of co-chair of this meeting along with the host country of CHOGM in 2026. As co-chair, the Maldives will focus on continuing the advocacy efforts in support of the interests of Small States. The Ministry stated that this role will further enhance the Maldives’ efforts in championing the cause of Small Island Developing States (SIDS) on the global stage.

During the ongoing meeting of the CMMSS on the margins of CHOGM, Minister of Foreign Affairs Dr Abdulla Khaleel engaged with foreign ministers from Commonwealth member states. The discussions primarily focused on pressing issues facing small states, including economic vulnerability, climate action, and access to finance.

Furthermore, Minister Dr Khaleel underscored the need for financial reforms to address the challenges faced by small states. The Minister urged stronger commitments on climate finance ahead of COP29 and called for enhanced access to finance and debt sustainability solutions. He also highlighted initiatives such as the SIDS Debt Sustainability Support Service and stressed the importance of economic diversification for the long-term resilience of small states.

The Commonwealth Ministerial Meeting on Small States is a key gathering held on the sidelines of CHOGM, bringing together foreign ministers from across the Commonwealth to engage and foster partnerships to promote resilience and sustainable development of small states. This year’s Commonwealth Ministerial Meeting of Small States is co-chaired by Samoa, as the host country, and Eswatini.

SOURCE : PSM

Vice President pays courtesy call on the Samoan Prime Minister

Vice President His Excellency Uz Hussain Mohamed Latheef on Wednesday paid a courtesy call on the Prime Minister of Samoa, Hon. Fiamē Naomi Mata’afa.

The Vice President expressed his gratitude to the Prime Minister for the warm hospitality extended to the delegation and the excellent preparations made to ensure the success of CHOGM 2024.

The Vice President and the Prime Minister discussed avenues for addressing the shared challenges as Commonwealth members and fellow Small Island Developing States (SIDS), including climate change, sustainable development, and safeguarding unique cultures. The Vice President commended Samoa’s leadership in the Alliance of Small Island Developing States (AOSIS) and in organising CHOGM 2024.

The Vice President and the Prime Minister further discussed areas of cooperation, including the environment, climate change, tourism, economic, and trade. The Vice President is currently in Samoa on an official visit to attend CHOGM 2024. The Maldives established diplomatic relations with Samoa on 2 August 1993.

SOURCE : The President’s Office

Maldives advocates for investment opportunities for small countries

Minister of Foreign Affairs Dr Abdulla Khaleel has asserted that small nations should be afforded the opportunity to attract investment through internationally recognised private enterprises. He made this statement at an event convened on the margins of the Commonwealth Heads of Government Meeting 2024 in Samoa.

During the meeting, Minister Khaleel underscored the importance of enabling small nations to attract investments from internationally recognised private enterprises. He articulated that the contributions of small countries are essential for realising global development objectives.

The Minister further emphasised the necessity of enhancing access to financial assistance for these nations and advocated for their increased engagement in the international arena. Additionally, he noted that the Maldives is actively investing in emerging sectors, such as artificial intelligence and technology.

SOURCE : PSM

Gov’t submits supplementary budget of USD 330.7 million

Minister of Finance Moosa Zameer has submitted the supplementary budget to cover state expenses, worth a total of USD 332 million, to Parliament. The budget includes USD 97.3 million in recurrent expenses and USD 227 million in capital expenditures. 

Following the submission of the supplementary budget, Minister Zameer noted that the state budget was approved by the previous Administration. The Minister stated that the previous Administration did not prepare the budget in a way that would allow economic reforms to be implemented. He added that the current administration has submitted the supplementary budget in accordance with legal requirements, considering upcoming projects and anticipated expenses. 

The supplementary budget was proposed as the state budget is insufficient to fulfil the visions of President Dr Mohamed Muizzu and his Administration. Contributing factors include expectations of increased time and costs for implementing reforms, higher-than-expected expenses for medical consumables, anticipated increased spending on indirect subsidies, and a rise in loans issued under the student loan scheme. Additionally, USD 129.7 million of the supplementary budget is allocated to carry out Public Sector Investment Programme (PSIP) projects without any halts. 

The supplementary budget consists of an additional USD 28.6 million for state-owned enterprises (SOEs), an additional USD 42.2 million for the contingency budget, USD 29.7 million for student loans, USD 13 million for medical consumables, USD 17 million to assist with medical treatment, USD 66.1 million for subsidies, and USD 1.5 million for salaries.

The Ministry of Finance stated that the supplementary budget will be financed through project loans, the sale of Treasury bills, and internal loans. Specifically, the Government plans to secure USD 64 million from international sources and USD 194 million from internal sources. 

An additional USD 3.6 billion will be added to this year’s state budget when the supplementary budget is passed. Last year, a supplementary budget of USD 421 million was approved to cover state expenses.

SOURCE : PSM

Vice President calls on the Commonwealth for unified climate action to safeguard the future

Vice President His Excellency Uz Hussain Mohamed Latheef emphasised the urgent need for a unified response of the Commonwealth to the escalating climate crisis. Delivering his statement at the CHOGM Climate Breakfast: Building Consensus for Climate Finance Targets in the Commonwealth, the Vice President highlighted the severe impacts of global warming, which are disproportionately affecting the most vulnerable populations, especially those of the Commonwealth.

The Vice President stressed the importance of mobilising predictable, adequate, and sustainable climate finance to support ambitious climate action. He called for a new collective quantified goal on climate finance that exceeds the previously agreed USD100 billion per year, incorporating essential sub-goals for loss and damage response, mitigation, and adaptation. He also highlighted the need for changes in the international financial architecture to better cater to the development needs of vulnerable nations, including Small Island Developing States (SIDS).

The Vice President stressed on the need for a new collective quantified goal on climate finance that needs to be agreed and concluded at COP29. Acknowledging the significant barriers many Commonwealth nations, like the Maldives, face in accessing necessary funds, Vice President Latheef praised the Commonwealth Climate Finance Access Hub for its support to the Maldives.

Before concluding, the Vice President called for ambitious submissions of new Nationally Determined Contributions (NDCs), guided by the global stocktake, and urged Commonwealth members to steer back towards a 1.5-degree pathway, and to act decisively for future generations, for people and the planet.

The Climate Breakfast was organized by the Commonwealth Secretariat, as part of the Commonwealth Heads of Government Meeting (CHOGM) being held at Apia, Samoa. Vice President Latheef is leading the Maldives delegation to CHOGM.

SOURCE : The President’s Office

Message from His Excellency Dr Abdulla Khaleel, Minister of Foreign Affairs, on the occasion of United Nations Day

The United Nations was the answer to a call for action to heal divisions and build peace. It was the change that offered people hope and made the world a better place. Its founding document, the Charter of the United Nations, which entered into force 79 years ago today, serves as a path for a world where peace and security, human rights, rule of law, and sustainable development prevail. These principles endure even today and remain an anchor for cooperation and solidarity. 

Since becoming a member of the United Nations in 1965, the Maldives has been a firm believer in the multilateral system. This prestigious platform affords Small Island Developing States (SIDS) such as the Maldives, the opportunity to voice their needs and concerns. 

At the United Nations, we have been a leading voice for SIDS, a strong advocate for climate action, human rights and sustainable development. Yet, outdated global systems, old and new conflicts, climate change, financing gaps and economic inequality continue to challenge the relevance of the United Nations. 

The world needs a United Nations that is ready to step up and put meaning into its words and actions. A United Nations that can stop exploitation, suffering, climate change and environmental degradation. A United Nations that can boldly act against Israel’s genocidal acts in Palestine. A United Nations that is representative and fit for purpose. A United Nations that is reformed, representative and responsive. A United Nations that can uplift people.

Guided by the values that unite us, the 2030 Agenda for Sustainable Development, The Antigua and Barbuda Agenda for SIDS (ABAS), and the Pact for the Future, we are assured that the United Nations will continue to deliver for its Member States – “we the peoples”.

SOURCE : Ministry of Foreign Affairs

Foreign Minister Dr. Khaleel sends Independence Day greetings to the Foreign Minister of Zambia

Minister of Foreign Affairs, Dr. Abdulla Khaleel has sent a message of felicitations to the Minister of Foreign Affairs and International Cooperation of the Republic of Zambia, Hon. Mulambo Hamakuni Haimbe on the occasion of the Independence Day of Zambia.

Minister’s message reads as follows:

“The Government and the people of Maldives join me in extending warm greetings and sincere felicitations to Your Excellency, the Government and the people of Zambia on the joyous occasion of the Independence Day of Zambia. 

It is my sincere hope that the friendly relations that exist between our two countries will continue to progress in the years ahead. 

Let me also convey my best wishes for Your Excellency’s good health and well-being and continued progress and prosperity for the people of Zambia. 

Please accept, Excellency, the assurances of my highest consideration.”

SOURCE : Ministry of Foreign Affairs

Government to cancel contracts for 22 islands leased for tourism

Minister of Tourism Ibrahim Faisal has announced the Government’s decision to amend the Tourism Act in response to the longstanding issue of islands leased for tourism development that have remained undeveloped. He highlighted that some islands have been leased for 20 to 30 years without any progress in opening them to tourists.

In response to inquiries from parliamentarians, Minister Faisal reported that 58 islands leased for tourism development have not been developed for various reasons. He mentioned that a proposal has been submitted to the Economic Council outlining potential actions regarding these islands. Furthermore, he indicated that the Attorney General is actively working on amendments to the Tourism Act.

Minister Faisal emphasised that the decision to amend the legislation arises from the observation that legal terminations often lead to insufficient changes through the court system. The amendments aim to address this inadequacy.

Additionally, the Minister noted that some islands where development has halted are in significant arrears in payments to the state. To address this, the Ministry of Tourism is working to provide the necessary assistance to those affected. He also stated that he has sought the Attorney General’s advice on the cancellation of agreements for 22 islands where no progress has been made.

The Government is committed to expanding tourism across the country and enhancing the industry’s profitability. The Ministry of Tourism is actively striving to attract foreign investment in the sector.

SOURCE : PSM

Minister Ihsan commits to meaningful change with Tobacco Act implementation

Minister of Homeland Security and Technology Ali Ihsan has stated that the Government is committed to implementing the Tobacco Control Act, emphasising its intention to effect meaningful change during its term. He made these remarks at a press conference held at the President’s Office.

Minister Ihsan emphasised that, despite the existence of various regulations and laws regarding tobacco use and products, the main issue is that the current legislation does not effectively address the problem. He indicated that, under the initiative of President Dr Mohamed Muizzu, the Government has proposed amendments to the Tobacco Act, which include increasing the duty on tobacco products, raising the minimum age for selling tobacco products to 21 years, and banning vaping.

Minister Ihsan acknowledged that certain laws face challenges in implementation, stating that the amendment to the Tobacco Control Act will impose greater responsibilities on enforcement agencies to uphold the law. He assured the public that law enforcement agencies will act in accordance with the provisions of the Act and emphasised that there will be a marked improvement in the effectiveness of enforcement efforts regarding tobacco control.

Some parliamentarians have expressed concerns that increasing the duty on tobacco products may lead to higher cigarette prices and the emergence of a black market. The Minister acknowledged receiving reports of such a market already emerging but assured that he would not allow it to proliferate.

SOURCE : PSM

Gov’t proposes fine of USD 1,302 for sale of e-cigarettes and vapes

The Government has proposed an amendment to the Tobacco Control Act to impose a fine of USD 1,302 for the sale of e-cigarettes and vaping products, and USD 325.75 for their use. The bill was introduced in Parliament by Parliamentarian Ahmed Aifan on behalf of the Government.

This amendment aims to prohibit the use and sale of vapes while instituting stringent measures against violators. Under the proposed amendment, the sale of tobacco products to individuals under the age of 21 will be prohibited, along with any participation in such sales. Additionally, retailers will be required to display warnings at points of sale. Currently, the minimum age for selling tobacco products is set at 18 years.

The amendment further stipulates that the advertisement, public display, and transportation of tobacco products in public view will be banned in the Maldives. The manufacture of tobacco and any tobacco-related products will also be prohibited.

Moreover, the proposed amendment prohibits the import, sale, free distribution, and use of vaping devices such as e-cigarettes. Should such items be imported into the Maldives, a fine of USD 3,257 will be levied, along with a fine of USD 651 for each individual item. The bill specifies a fine of USD 1,302 for selling any type of vaping device and a fine of USD 651 for each item sold. Additionally, a fine of USD 325.75 will be imposed for the use of any vaping device.

Furthermore, any individual who sells or distributes a vaping device to a minor will face a fine of USD 3,257, in addition to penalties for the sale and distribution of such devices. Under this amendment, all individuals engaged in the import, export, and sale of tobacco products—both in bulk and individually—will be required to obtain a special licence, which will not be granted for tobacco-related businesses alone.

The amendment is anticipated to be approved and will come into effect on 15 November, as outlined in the bill submitted to Parliament.

SOURCE : PSM

Gov’t aims to boost tourism bed capacity with Hanimaadhoo Airport development

Minister of Tourism Ibrahim Faisal has emphasised the efforts being exerted by the Government to increase the bed capacity for tourism in Hanimaadhoo, Haa Dhaalu Atoll, by the time the development of Hanimaadhoo International Airport is completed.

In response to queries raised by parliamentarians, Minister Faisal reiterated President Dr Mohamed Muizzu’s pledge of developing the tourism industry. Highlighting those 15 hectares of Vaikaramuraidhoo, Haa Alif Atoll, was among the first islands the current administration allocated for tourism, the Minister stated that the development of tourism on the island has also been contracted.

Furthermore, Minister Faisal anticipated that the development works of Hanimaadhoo International Airport will be completed by March 2025. The Minister revealed plans to increase the bed capacity of the island by then, by introducing an additional 4,000 beds.

Moreover, Minister Faisal disclosed that decisions have been made to hold investor forums in various countries, aiming to seek potential investors to expand tourism nationwide. The Minister underscored the crucial importance of providing information on investment opportunities in the Maldives’ tourism industry. He additionally stated that providing information on specific projects to investors will play a significant role in elevating the development of the tourism industry.

SOURCE : PSM

MMPRC Heads Towards a New Era in Marketing with Inaugural Tourism Symposium 2024 by Visit Maldives

Maldives Marketing and Public Relations Corporation (MMPRC/Visit Maldives) has successfully conducted the inaugural ‘Tourism Symposium 2024 by Visit Maldives’, today, 22nd October 2024, at Crossroads Maldives, initiating a new era in marketing. This symposium served as a pivotal platform for industry leaders to convene and address the pressing challenges and opportunities shaping the nation’s tourism landscape.

“I’m confident that by embracing new ideas and working together, we can build an even stronger and more diverse tourism sector. Let’s continue to innovate and create unforgettable experiences for every visitor that comes our way,” highlighted MMPRC’s CEO & MD Ibrahim Shiuree during the opening remarks.

Next, the Honourable Minister of Tourism, Ibrahim Faisal, gave his remarks, focused on the future of the tourism sector in the Maldives. “To ensure the long-term sustainability of our tourism industry, we must adapt to evolving trends, address emerging challenges, and embrace innovative approaches,” the Minister said.

The Chairperson of MMPRC, Mr Abdulla Giyas Riyaz, spoke next during this landmark event, stating that “Together, we can build a masterpiece where the Maldives not only thrives but leads, inspiring travellers and setting benchmarks for excellence, delivering a masterclass like no other across the world.”

This one-day event attracted a diverse array of key figures, policymakers, industry leaders, and stakeholders in the Maldives. Attendees delved into critical topics ranging from sustainability and diversification to health and safety, collaborative dialogue, and innovative solutions. The event further featured an insightful panel discussion, moderated by the Deputy Managing Director of MMPRC, Mr Zihuny Rasheed. The panel featured prominent high-level government delegates such as MMPRC CEO & MD, Mr Ibrahim Shiuree; Minister of State for Tourism, Mr Munim Anees; Minister of State for Health, Ms Khadeeja Abdul Samad Abdulla; Minister of State for Fisheries and Ocean Resources, Ms Aminath Hussain Shareef; and Deputy Minister of Economic Development and Trade, Mr Ahmed Salim Saeed. This exclusive panel discussion gave valuable insights from policy experts on strategies for a resilient and sustainable tourism sector, with the Minister of Tourism also participating in offering answers to questions from the audience at the end of the panel discussion.

Participants of the Tourism Symposium by Visit Maldives had the opportunity to network with stakeholders, gain valuable insights, and collaborate on innovative strategies. The symposium further included interactive sessions with presentations and in-depth discussions to allow participants to work together to develop effective promotional campaigns, address industry challenges, and drive actionable recommendations for the future of the industry. MMPRC presented the tentative marketing plan for 2025 for the Maldives, and participants were able to actively engage in offering ideas and insights on how best to integrate all aspects of tourism into the plan for a comprehensive marketing plan that appeals to travellers from around the world.

With Crossroads Maldives as the event location, in collaboration with Jalboot Marine Services, Visit Maldives was also able to showcase a comprehensive solution for MICE tourism, ensuring effortless travel and an unforgettable experience for visitors. With its idyllic setting and inspiring spaces, the event encapsulated the Maldives as an ideal destination for large-scale MICE events that seamlessly integrate business with leisure.

Visit Maldives is committed to working closely with industry stakeholders to achieve the national tourism target and to supporting the Maldives tourism industry through more initiatives like this symposium. The Tourism Symposium by Visit Maldives 2024 was preceded by the conclusion of the highly acclaimed Global DATA Forum 2024 held earlier this week at Bandos Maldives. Our goal is to continue facilitating innovation, public-private collaboration, and sustainable growth in the Maldives tourism industry through global promotion and innovative events.

SOURCE : Visit Maldives

Maldives and China discuss protecting the marine ecosystems

The Maldives and China have held significant discussions relating to protecting their marine ecosystems.

The discussions took place between Deputy Speaker of Parliament Ahmed Nazim and the Governor of China’s Shandong Province, Zhou Naixiang. The Deputy Speaker met with the Governor during his visit to participate in the Global Ocean Development Forum.

During the meeting, both leaders discussed the crucial need for global unity in preserving and protecting the marine environment. They also stressed the significance of exerting collective efforts to protect the marine environment from pollution. Furthermore, Deputy Speaker Nazim thanked the Governor for inviting him to attend the forum.

In addition to the Deputy Speaker, the Minister of Fisheries and Ocean Resources, Ahmed Shiyam, attended the meeting. The delegation from the Maldives also attended a banquet hosted by the Governor for all participants of the forum.

SOURCE : PSM