Maldives News Bulletin - Volume 174

President ratifies 1st Amendment to Tobacco Control Act

President Dr Mohamed Muizzu has ratified the First Amendment to Act No. 15/2010 (Tobacco Control Act). The amendment was passed in the 48th sitting of the 20th Parliament on 12 November 2024. 

The bill prohibits the import, sale, free distribution, and use of electronic cigarettes (e-cigarettes), vaping devices, and products designed for use with such devices in the Maldives. 

Additionally, upon ratification and implementation of this bill, the following will also be prohibited: 

- Tobacco use in all Government institution buildings and their premises 

- Fines for both users and property owners or operators if tobacco is used illegally in business or service establishments, with potential suspension of smoking permits and temporary suspension of business licences 

- Sale of any tobacco products to persons under 21 years or involving persons under 21 in tobacco sales transactions 

- Selling tobacco products without verifying the buyer’s age through ID or official documentation proving they are over 21 

- Advertisement of any tobacco products 

- Display of tobacco products or their packaging in retail locations visible to the public, with such displays being considered advertising 

- Growing any tobacco plants or producing tobacco products in the Maldives 

- Importing tobacco plants, seeds, or any parts that could be used for growing tobacco and manufacturing any tobacco products in the Maldives 

- Illegal advertising, sponsorship, or promotion of tobacco products 

- Illegal import, export, distribution, or sale of tobacco or tobacco products 

The import and sale of e-cigarettes, vaping devices, and products designed for such devices are prohibited, and fines have been established for law violations. 

Following the President’s ratification of the First Amendment to the Tobacco Control Act, it has been published in the Government Gazette today. The provisions related to electronic cigarettes and vaping devices (Section 10-2) will take effect on 15 December 2024, while other provisions will be effective from 15 November 2024. 

SOURCE : The President’s Office

The President meets with the UN Secretary General, on the sidelines of COP29

President His Excellency Dr Mohamed Muizzu met with United Nations Secretary-General H.E. António Guterres on the sidelines of the 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC). 

During their meeting, President Dr Muizzu emphasised the critical need for international financial support in tackling climate change and managing debt burdens faced by Small Island Developing States (SIDS). The President also expressed gratitude for the UN’s ongoing advocacy for SIDS. 

Secretary General Guterres reiterated his commitment to addressing SIDS’ vulnerabilities and noted efforts to engage international financial institutions in this endeavour. 

The meeting concluded with both leaders affirming their commitment to continued collaboration on climate resilience and other development priorities. 

SOURCE : The President’s Office

President Dr Muizzu calls for promises to be transformed into tangible action, at the Leaders’ Summit of SIDS at COP29

President His Excellency Dr Mohamed Muizzu has stated that ambitions without finances are only aspirations, and the current financial system fails to meet the urgent needs of Small Island Developing States (SIDS). He made these remarks at the Leaders’ Summit of Small Island Developing States (SIDS) on Climate Change at the 29th Conference of Parties (COP29) of the United Nations Framework Convention on Climate Change (UNFCCC). 

President Dr Muizzu noted that climate change erodes years of development gains and calls for transformations. He made three calls for action to ensure that the current financial architecture meets the urgent needs of SIDS: 

1. Unified global support from the UN, MDBs, international financial institutions, and the private sector. 

2. New innovative financial solutions, linking debt forgiveness to climate resilience milestones and rewarding efforts with redefined creditworthiness. 

3. COP29 is to establish a new climate finance goal reflecting actual needs and conclude discussions on the international carbon market mechanism. 

Speaking at the event, the President highlighted some of the Maldives’ transformational actions, including economic, urban development, and electricity. He emphasised that SIDS has advocated for climate action for decades, calling for solidarity and demanding that words and promises be transformed into action. 

SOURCE : The President’s Office

Low-carbon development is no longer a choice, but a necessity – President Dr Muizzu

President His Excellency Dr Mohamed Muizzu has described the International Zero Carbon Island initiative as a crucial step forward in the global push for climate action. He made these remarks at the launch event organised by Shandong Province, China, on the sidelines of the 29th Conference of the Parties (COP29) under the United Nations Framework Convention on Climate Change (UNFCCC). 

President Dr Muizzu acknowledged President Xi Jinping and the Chinese government’s commitment to green and low-carbon development and their continued support for the Maldives’ environmental efforts. He highlighted China’s goal of achieving carbon neutrality by 2060, praising it as an inspiring example of leadership and commending China’s role in advancing global climate action. 

The President emphasised that low-carbon development is a necessity, given the escalating impacts of climate change. He underscored the urgency of reducing emissions and protecting the environment, stressing that the Maldives and other vulnerable nations are determined to be active leaders in driving a sustainable future rather than merely victims of climate change. 

Highlighting the importance of multilateral cooperation, President Dr Muizzu stated that the Maldives’ participation in global forums serves as a reminder that small island nations are committed to shaping a sustainable and resilient future. He affirmed that the Maldives would take control of its destiny by embracing leadership in climate action. 

He expressed confidence that the forward-thinking, low-carbon policies implemented will provide valuable insights and serve as a model for the Maldives and other island nations striving for sustainability and resilience in the face of climate change. He stressed that climate action requires a collective effort and called on COP29 countries to agree on a climate finance goal. 

Following the event, President Dr Muizzu and H.E. Ding Xuexiang, Vice Premier of the People’s Republic of China, had a brief meeting to discuss further strengthening cooperation. 

SOURCE : The President’s Office

President states that early warning systems are an investment in livelihoods and prosperity

President His Excellency Dr Mohamed Muizzu highlighted that the Maldives view early warning systems as an investment in livelihoods and prosperity, stating they are morally and economically essential. He made these remarks while speaking at the High-Level Event on Delivering Early Warnings for All and Addressing Extreme Heat at COP29, organised by the United Nations Secretary-General. 

President Dr Muizzu highlighted the Maldives’ leadership as the first nation to develop a national strategic roadmap for early warning, reflecting the country’s commitment to the Sendai Framework. The President noted that the country’s 20-year development plan will focus on climate resilience, disaster preparedness, and early warning. 

The President outlined the Maldives’ recent achievements, including a disaster loss database to track climate impacts and digital data collection for swift response. He stated the Government’s priorities, including enhancing the Common Alerting Protocol (CAP) and impact-based forecasting systems. 

President Dr Muizzu called for international support and resources, particularly in marine forecasting, to strengthen the Maldives’ resilience against climate threats. 

SOURCE : The President’s Office

Minister Ihsaan stresses need for enhancing capabilities to prevent cyber crimes

Minister of Homeland Security and Technology Ali Ihusaan underscored the critical need to enhance capabilities to manage cyberspace and prevent cybercrimes during his address at the Cyber Expo 2024 inauguration ceremony. 

At the ceremony, Minister Ihusaan stressed that the annual increase in cybercrimes is a global issue, noting that the financial losses from these crimes exceed trillions of dollars. The Minister highlighted that the Maldives also faces the risk of various cybercrimes and emphasised the importance of increasing and strengthening preventive capabilities. He added that increased investment in the field is essential. 

Meanwhile, Commissioner of Police Ali Shujau disclosed that the rate of cybercrimes in the Maldives is also increasing. Recognising the losses incurred by victims of these crimes, the Commissioner called for unified efforts from all authorities and institutions to enhance cybersecurity. 

The Cyber Expo 2024 is an exposition organised by experts in the field and relevant institutions. It aims to showcase crimes committed in cyberspace and new innovations to curb such crimes. The expo features a special challenge, and the Maldives Police Service (MPS) has announced that awards will be given to individuals who complete it. 

SOURCE : PSM

The President meets with the President and Chair of the Board of Directors of the Asian Infrastructure Investment Bank (AIIB) on the sidelines of COP29

President His Excellency Dr Mohamed Muizzu met with Mr. Jin Liqun, President and Chair of the Board of Directors of the Asian Infrastructure Investment Bank (AIIB), on the sidelines of COP29 today. 

During the meeting, the President expressed gratitude for AIIB’s ongoing support, which has been instrumental in Maldivian development projects. He noted the Maldives’ ambitious long-term objectives, such as the 20-Year Development Master Plan. He emphasised the importance of continued AIIB support to achieve these goals and advance climate adaptation initiatives. 

Mr Jin reiterated AIIB’s commitment to supporting the Maldives’ sustainable development and resilience efforts. 

In conclusion, the leaders discussed the importance of diversifying resources sustainably and agreed to enhance future cooperation in areas aligned with the Maldives’ climate and development goals. 

SOURCE : The President’s Office

Maldives calls on wealthy nations to share SDR reserves with smaller countries

Maldives has called on wealthy nations to share Special Drawing Rights (SDR) reserves with small island nations. Speaking at the high-level side event “Operationalising Global SIDS Debt Sustainability Support Service: Resilient Prosperity in the Face of Climate Crisis”, Minister of Climate Change, Environment and Energy, Thoriq Ibrahim, represented the Maldives on behalf of President Dr Mohamed Muizzu. The Minister emphasised the urgent need for bold financial innovation to transform Small Island Developing States (SIDS) vulnerabilities into resilience. 

The SDR, an international reserve asset introduced by the International Monetary Fund (IMF) in 1969, supplements the official reserves of its member countries. It represents a potential claim on the freely usable currencies of IMF members. A total of USD 943 billion has been collected in the fund to aid countries in need. 

At the event, Minister Thoriq emphasised the importance of reviewing the SDR framework to provide financial assistance to small island nations to support their initiatives to become more resilient to climate change. He added that this initiative would further reduce the debt issues small island nations face. 

Minister Thoriq proposed possible modifications to the SDR framework in his address, including wealthy countries redistributing their unutilised SDR reserves to small island nations. The minister stated that this change would help smaller countries increase their foreign reserves and overcome financial challenges. 

Minister Thoriq also highlighted the Debt Sustainability Support Service (DSS), introduced by President Dr Muizzu and the Prime Minister of Antigua and Barbuda, Gaston Browne, at the fourth International Conference on Small Island Developing States (SIDS). DSS focuses on small and developing countries to enhance economic and climate change resilience. The Minister stated that under the DSS, if small countries achieve specific targets in building resilience against climate change, efforts could be made towards debt forgiveness. 

COP29 presents a significant opportunity for the Maldives to share its climate change resilience initiatives and efforts to achieve the Sustainable Development Goals (SDGs). Throughout the conference, President Dr Muizzu advocated for addressing the challenges Small Island Developing States faced. 

SOURCE : PSM

MoU signed with ADGM for technical assistance in IFC development

The government has signed a Memorandum of Understanding (MoU) with the Abu Dhabi Global Market (ADGM) Registration Authority to receive technical assistance in developing the International Financial Centre in the Maldives. The MoU was signed by the Minister of Economic Development and Trade, Mohamed Saeed, and the CEO of the ADGM Registration Authority, Hamad Sayah Al Mazrouei. 

Minister Saeed emphasised that this MoU marks an important step in the Maldives’ efforts to become a regional leader in investment and finance, further strengthening the country’s economic landscape. He also noted that establishing the International Financial Centre aligns with President Dr Mohamed Muizzu’s vision and will be crucial in attracting significant foreign investments to the Maldives. 

Under the terms of the MoU, the ADGM Registration Authority will provide support in four key areas: developing legal and procedural frameworks for bank registration, offering training programmes for the financial sector, enhancing the financial centre’s management systems, and providing technical assistance for the centre’s registration process itself. 

In addition to this collaboration, the Ministry of Economic Development and Trade has also signed an MoU with the Qatar Financial Centre to provide further assistance in various aspects of the financial sector, including those related to the International Monetary Fund. 

The Government’s broader development plan includes creating a special economic zone (SEZ) in Funadhoo, which will house the International Financial Centre. This initiative is part of the third phase of the Velana International Airport (VIA) expansion project, which will also involve the construction of new bridges to enhance connectivity. 

The establishment of the International Financial Centre in the Maldives is expected to significantly transform the country’s financial industry and create new investment opportunities.

SOURCE : PSM

Economic Minister predicts boom in economic activity next year

The Minister of Economic Development and Trade, Mohamed Saeed, has predicted a boom in economic activity next year. He highlighted this during the “Transforming Tomorrow” ceremony, held to launch several significant initiatives by the Housing Development Corporation (HDC). 

In his address, Minister Saeed reflected on the complex economic and financial situation when President Dr Mohamed Muizzu assumed office. He highlighted that despite the lack of funds allocated for projects in this year’s state budget, steps were taken to overcome the challenges with the President’s counsel. 

The Minister stated that the most considerable portion of the state budget 2025 has been allocated for housing and expressed optimism about achieving 7% economic growth next year. 

During the ceremony, Minister Saeed elaborated on the Maldives’ economic situation. He noted that when the current Administration assumed office, the Sovereign Development Fund stood at USD 2 million but has since increased to USD 78 million. He further revealed that efforts are underway to give the fund legal authority. 

Additionally, the Minister anticipated that the GDP, which currently stands at USD 6.5 billion, will increase to USD 10 billion by 2028 and expressed confidence that the upcoming year holds promising economic prospects.

SOURCE : PSM

USD 646 million in annual subsidies unsustainable: Construction Minister

Minister of Construction and Infrastructure Dr Abdullah Muththalib has revealed that the Government’s annual expenditure of USD 646 million on essential service subsidies is unsustainable. He announced that the upcoming budget will focus on transforming the subsidy system by redirecting support from state-owned companies to provide direct assistance for the most vulnerable populations. 

Many state-owned companies rely heavily on Government subsidies due to their inability to generate sufficient revenue. Minister Muththalib pointed out that the present system, which subsidises essential services such as fuel and electricity, places a substantial financial burden on the state. 

The Government’s solution involves a more targeted approach to subsidies, ensuring they reach those most in need. This strategic shift is projected to yield annual savings of USD 129.4 million. Additionally, the government plans to optimise state-owned companies through size reduction, mergers, or liquidation of underperforming entities while developing specific legislation for essential service providers. 

This reform has received strong support from international financial institutions, which have long criticised the current system for favouring wealthier segments of society. According to a recent World Bank report, the richest 40 per cent of Maldivians benefit from 43 per cent of subsidies, while the poorest 10 per cent receive merely 8 per cent. The proposed reforms address these disparities and ensure subsidies effectively reach their intended beneficiaries. 

SOURCE : PSM

38 projects completed despite budget constraints: Construction Minister

Minister of Construction and Infrastructure, Dr Abdulla Muththalib, has stated that the current Administration has ensured the completion of 38 developmental projects despite budget constraints, affirming that an additional 26 projects will be completed by year-end. 

Speaking on a PSM News programme, Minister Dr Muththalib explained that the biggest challenge in executing projects was misallocating the budget. The Minister noted that whilst the previous Administration had initiated several projects across the islands, these were halted due to a lack of secured finances. He emphasised that the current Administration strives to ensure the expeditious completion of projects according to schedule. 

Furthermore, he assured that the state budget 2025 will prioritise addressing housing issues and facilitate the implementation of several projects pledged by President Dr Mohamed Muizzu. 

The Government has proposed a state budget worth USD 3.7 billion to Parliament, which includes USD 2.3 billion for recurrent expenditures and USD 862.3 million for capital expenditures. The Government expects to receive USD 2.57 billion in donations and collect USD 428 million in savings through stringent measures to reduce state expenses. 

The budget includes USD 804 million for 695 Public Sector Investment Programme (PSIP) projects. Of this amount, USD 493 million has been allocated for 396 ongoing projects and USD 104 million for 62 projects which have not yet commenced practical works.

SOURCE : PSM

MIFCO reports 35% increase in revenue

Maldives Industrial Fisheries Company (MIFCO) has reported revenue of USD 20.8 million from the sale of its ‘Fasmeeru’ products in the previous year, reflecting a 35% increase compared to the USD 16.7 million earned in the prior year. This was disclosed in the company’s financial report. 

Sales of canned and pouched meat also saw a notable rise, with MIFCO earning USD 18.6 million from these products, up from USD 14.8 million in 2022. Under its Fasmeeru brand, MIFCO’s veal products gained popularity, generating USD 1.6 million in revenue last year, compared to USD 1 million in 2022. The company’s frozen fish sales also increased, bringing in USD 679,172 from USD 526,520 the previous year. 

In line with the growth in domestic sales, the Maldives’ fish exports also saw an uptick, with exports of frozen shrimp, canned and pouched fish, and fish meal all rising. 

Looking ahead, the Government aims to export a more significant proportion of the fish received by MIFCO as value-added products, which is expected to increase revenue, potentially doubling it significantly.

SOURCE : PSM

Tourist arrival jumps to 1.7 million; a notable progress

The Ministry of Tourism has revealed that Maldives has welcomed over 1.7 million tourists, marking a remarkable increase of 9.5% compared to last year. 

According to the latest tourism update report, this figure was reached as of 11 November, compared to 1.5 million visitors during the same period last year. 

The statistics further indicate that from 1-11 November, Maldives welcomed 63,397 tourists, representing a 9.9% increase compared to last year. The report shows that China remains the top source market with 243,628 visitors, followed by Russia with 193,197, the United Kingdom with 149,478, Germany with 132,674, and Italy with 117,942 visitors. India also contributed significantly, with 105,470 tourists. 

With an average of 5,763 tourists arriving daily, this steady influx has encouraged the Government to set an ambitious target of attracting two million tourists by year-end. To achieve this goal, the Maldives must welcome an additional 271,955 tourists, a target the Government expects to meet in December. 

SOURCE : PSM

MIRA receives USD112 million in October; 30.5% more than expected 

The Maldives Inland Revenue Authority (MIRA) received USD 112 million in October, marking a 14.2% decrease compared to last year. In contrast, the revenue exceeded this year’s October forecast by 30.5%. 

The latest statistics released by MIRA indicate that the decrease in revenue from October last year is attributed to the postponement of collections for Goods and Services Tax (GST), Airport Tax and Fees, Green Tax, and changes to the Tourism Land Rent Fees deadline. 

MIRA revealed that revenue exceeded anticipated amounts due to increases in GST, Green Tax, Export Quota Fees, and Airport Tax and Fees collected, along with fees from land sales and exchanges during the month. The fees related to land sales and exchanges are variable, as they are levied when the Government leases an island. 

Additionally, MIRA noted that a 2.1% increase in tourist arrivals generated more revenue from the tourism industry. The Government’s efforts to secure previously uncollected funds also increased revenue. 

The statistics show that GST was the most significant revenue contributor in October this year, amounting to USD 70.7 million, with Income Tax as the second-largest source at USD 7.49 million. Furthermore, USD 5 million was collected as Green Tax, USD 4.92 million as Airport Development Fees, USD 6.14 million from the sale and exchange of leased land, and USD 17.9 million from other taxes and fees. 

SOURCE : PSM

HDC launches several transformative projects for Hulhumale’ 

The Housing Development Corporation (HDC) has launched several projects that will bring revolutionary transformations to Hulhumalé. The Minister of Economic Development and Trade, Mohamed Saeed, officially inaugurated the projects at a special ceremony titled “Transforming Tomorrow.” 

The major projects launched by HDC include: 

- Rasmalé Project 

- Development of Row Houses 

- Social Housing Project 

- Development of Modern Prefab Homes 

- Farukolhufushi Gated-Community Private Luxurious Living 

- Development of SOE office building and SME building 

- Development of HDC building 

- Development of an Elderly Care Facility 

- Establishment of parking building 

- Development of Hulhumalé Isle Adventure Park 

- Development of the History Centre 

- Development of the Knowledge Park 

- Development of Nooveli Island Retreat in Galufalhu 

- Development of Kinaaria: Destination Island in Kudagiri 

- Development of the Smart Warehouse Complex 

- Tree Planting Project: Scenic City 

During the ceremony, a Memorandum of Understanding (MoU) was signed regarding the Isle Adventure Park design consultancy and the provision of operational training for the park. The Managing Director of HDC, Fazul Rasheed, and the Director of City Investments Private Limited signed the MoU. 

Speaking at the ceremony, HDC Fazul, the managing director, stated that the launch of these projects marked the beginning of a new chapter for the corporation. He noted that the projects will be pivotal in bolstering economic growth and making life more convenient for Hulhumalé residents. He disclosed that the primary objective of these projects was to sustainably increase the company’s revenue, expressing optimism about a potential threefold increase. 

SOURCE : PSM