Maldives News Bulletin - Volume 177

Constitutional amendments passed today are crucial for protecting our nation’s independence, sovereignty, and stability: President

In a video message tonight, President Dr Mohamed Muizzu emphasised the significance of today’s constitutional amendments passed by the People’s Majlis, describing them as crucial for both the nation and its people. He stated that these amendments would strengthen the country’s independence and sovereignty whilst creating a framework for national stability.

The President explained a key change regarding territorial modifications. Previously, such changes required a two-thirds majority approval from the People’s Majlis. The new amendment strengthens this requirement to a three-quarters majority. Additionally, the country’s maritime territory can now be defined up to the Exclusive Economic Zone (EEZ), and any changes to these territorial boundaries will require both a three-quarters majority in the People’s Majlis and approval through a public referendum.

A significant addition to the Constitution now requires parliamentary approval before any foreign military personnel can be deployed within Maldivian territory.

Regarding public referendums, the President highlighted another important change. Whilst the People’s Majlis could previously amend referendum-related articles, the new amendment mandates that any changes to matters involving public referendums must first be approved through a public referendum itself.

The President emphasised two other crucial amendments: the inclusion of the ‘Anti-Defection’ law into the Constitution to improve political stability, and the addition of presidential responsibilities for developing short, medium and long-term national development plans.

President Dr Muizzu described these as critical decisions made with patriotic fervour and national spirit, serving to protect Maldivian citizens’ rights whilst safeguarding the country’s independence, sovereignty, development and stability. He concluded the message by expressing his gratitude to the Members of Parliament for their role in passing these significant reforms.

SOURCE : The President’s Office

The Vice President meets with the Member of Parliament for Gdh. Faresmaathodaa and Fiyoaree Council President

Vice President Uz Hussain Mohamed Latheef met with the Member of Parliament for Gdh. Faresmaathodaa Constituency, Ashraf Rasheed, and Fiyoaree Island Council President Faizar Rasheed. The meeting was held on Tuesday at the President’s Office.

Discussions at the meeting centred on the development needs of Fiyoaree, as well as the most pressing needs of citizens. As such, the Member of Parliament and the Council President stated that the youth of the island have requested for new turf at the island stadium in addition to a youth centre. Additionally, they communicated that the citizens have raised the issue of a lack of ATM services in the island, lack of facilities in the island school and the need for a fully functional health centre that provides services around the clock.

Speaking in the meeting, the Vice President assured that the Administration would seek to implement solutions, in coordination with relevant agencies. He also assured that citizens would benefit from the President’s plans to expand ATM services to all islands.

SOURCE : The President’s Office

President ratifies Sixth Amendment to the Constitution of Maldives

President Dr Mohamed Muizzu has ratified the Sixth Amendment to the Constitution of the Maldives. Passed by the 20th Parliament during its 52nd sitting on November 20, 2024, the amendment introduces five significant changes to the constitutional framework.

The amendment adds subsection (e) to Article 73, specifying new conditions for the removal of Members of Parliament. A member will lose their seat if they defect from the political party under whose ticket they were elected, join a political party after being elected as an independent candidate, or voluntarily leave or are expelled from their political party while in office.

Changes to Articles 3(a) and 3(b) establish that any modification to the territory of the Maldives must be enacted through a law passed by at least three-fourths of all members of Parliament. The territory includes the Maldives’ land, airspace, sea, seabed, and territorial waters as defined by law.

Amendments to Article 115(e) expand the President’s powers, granting authority to determine key national policies, provide advice and guidance to state agencies, and formulate national development plans and strategic visions.

Article 251(c) now regulates the use of Maldivian territory for military purposes by non-nationals. Such use is allowed only through agreements or arrangements approved by a parliamentary majority, except for military exercises conducted under contractual terms.

A new subsection has also been added to Article 262(b), requiring a public referendum to confirm popular support for laws altering the country’s territory or for constitutional amendments passed by Parliament.

The Sixth Amendment aims to strengthen political accountability, safeguard national sovereignty, and ensure public participation in critical national decisions.

The ratified amendments have been published in the Government Gazette and are now in effect.

SOURCE : The President’s Office

Previous administrations talked about reforms, but took no action: Finance Minister

Finance Minister Moosa Zameer has criticised previous administrations for discussing financial reforms without taking concrete action. In an exclusive interview with PSM News, he highlighted President Dr Mohamed Muizzu’s commitment to curbing wasteful spending by Ministries and State-owned companies. He also praised the President’s decision to halt the printing of money, describing it as a challenging but necessary step towards economic reform.

Minister Zameer emphasised the importance of increasing state revenue alongside prioritising cost-efficiency and savings. He commended the President’s economically sound decisions, which aim to strengthen the financial sector. A key reform includes transitioning to a targeted subsidy system, aligning with practices in developed nations. While acknowledging the challenges this shift may bring, the Minister assured that it would deliver long-term benefits.

He also outlined plans to import medicines in bulk to reduce wasteful expenditure by Aasandha Company Limited, noting that medicine costs in the Maldives are 7 per cent higher than in neighbouring countries. Additionally, he explained that the 1 percent increase in Tourism Goods and Services Tax (TGST) was implemented to minimise losses for businesses, with the Government expecting to generate an additional USD12.97 million in revenue.

The Minister further revealed ongoing efforts to address loan-related issues and noted the establishment of a more robust system for managing state expenses.

SOURCE : PSM

Gov’t to introduce co-pay system to strengthen health services

The 2025 state budget introduces key reforms to strengthen the Maldives’ health insurance system, emphasising increased contributions from insured individuals. These changes, scheduled to begin in April, aim to enhance the country’s healthcare infrastructure and improve access to essential services.

A significant aspect of the budget is the restructuring of the subsidy system, which will direct more funding to Aasandha and medical welfare services, ensuring vital support reaches those most in need whilst improving overall healthcare delivery.

Individuals earning over USD3,894 monthly, or those liable for income tax, will contribute to the health system through a co-payment mechanism for certain services at pharmacies and Government hospitals. This progressive system ensures wealthier individuals contribute a larger share, creating a more equitable healthcare structure. Contributions will vary based on income levels, with higher earners paying a greater proportion of costs.

Additionally, higher-income individuals will share the cost of non-essential medications for outpatient services. To prevent financial hardship, the budget implements a cap on total out-of-pocket expenses. Contribution rates will be determined by income categories, with exemptions for vulnerable groups, including children under 18, senior citizens over 65, and individuals with chronic illnesses.

Currently, the health sector’s annual expenditure stands at USD389.4 million, with between USD129.8 million and USD194.7 million allocated to Aasandha and medical welfare services. The revised subsidy system targets resources to those most in need, whilst engaging higher-income earners to support a more sustainable and equitable healthcare system for all.

SOURCE : PSM

The President and First Lady depart for an unofficial visit to the UK

President Dr Mohamed Muizzu and First Lady Madam Sajidha Mohamed departed for the United Kingdom on Wednesday evening on an unofficial visit.

During the visit, the President will personally cover all expenses related to the trip, including those associated with administrative duties, as well as family and personal matters.

SOURCE : The President’s Office

Health Minister confident in revolutionary transformations to health sector 

The Minister of Health, Abdulla Nazim Ibrahim, has expressed confidence in achieving revolutionary changes in the health sector under President Dr Mohamed Muizzu’s leadership. In an interview with PSM News, Minister Nazim emphasised the considerable progress made in healthcare since the current Administration took office, despite significant challenges.

He explained that the Administration’s healthcare policies were thoughtfully designed to tackle existing problems, which has led to substantial improvements in nationwide healthcare services. Minister Nazim reaffirmed the Government’s vision to develop a healthcare system that provides quality services to all citizens, regardless of population size or geographical location.

The Minister highlighted several key initiatives, including expansion of services at regional hospitals, introduction of air ambulance services, and the import of high-quality medicines. He also reinforced his commitment to completing ongoing projects within the sector.

Discussing recent reforms to the national health insurance system, Aasandha, Minister Nazim explained that measures to reduce unnecessary expenditure would allow savings to be reinvested in the sector’s development, promoting sustainable growth.

The Minister emphasised that the swift implementation of effective health policies during President Dr Muizzu’s first year demonstrates the Administration’s focus on healthcare. He noted that the 2025 state budget, the first proposed by the current Government, reflects the President’s dedication to transforming healthcare in the Maldives.

SOURCE : PSM

Parliamentary Budget Committee approves USD3.7 bln State Budget 2025 

The Parliament’s Budget Committee has approved the Government’s proposed USD3.7 billion State budget for 2025. 

The committee passed the budget without modifications but required the Government to submit detailed information about the included projects to Parliament. The approval was secured with 15 out of 19 committee members voting in favour.

Deputy Speaker Ahmed Nazim put forward a general recommendation to improve transparency and accountability in the Public Sector Investment Programme (PSIP). His proposals include categorising PSIP programmes based on specific criteria and submitting a comprehensive list of actionable projects to Parliament by February 2025. Furthermore, the Government must provide a separate list by March 2025 identifying feasible and non-feasible projects, alongside quarterly progress reports for ongoing projects throughout the year.

The budget, submitted to Parliament on 31 October, allocates USD3.2 billion in total expenditures, comprising USD2.3 billion for recurrent expenses and USD862.3 million for capital expenditures. Of this, USD804 million is specifically earmarked for PSIP projects.

The Government expects to receive USD2.57 billion in revenue and donations whilst implementing strict measures to save USD428 million through reduced State expenditure. Officials have highlighted that this budget represents the lowest deficit in recent history and aims to achieve sustainable reductions in national debt levels over the long term.

SOURCE : PSM

World Cargo Airlines joins MPL’s sea-to-air cargo services

World Cargo Airlines, a Malaysian carrier, has partnered with Maldives Ports Limited (MPL) to support its sea-to-air cargo services. This innovative system allows goods to arrive in the Maldives by sea and then be transported to global destinations by air. The initiative is a collaboration between MPL, Maldives State Shipping (MSS), Maldives Airports Company Limited (MACL), and international airlines.

The sea-to-air service offers a faster alternative for moving goods from exporting countries to select destinations. The Maldives benefits significantly from its extensive flight connections, especially to Europe. Most goods, primarily from Bangladesh, are shipped by sea and then airlifted to their final destinations.

With the addition of World Cargo Airlines, MPL now partners with 12 airlines to provide this service. Introduced as one of the first economic initiatives under the current Administration, the sea-to-air service is rapidly growing, with MPL reporting that it has already generated USD3 million in revenue.

SOURCE : PSM

16 Maldivians awarded Australia Awards Scholarships for 2025

Sixteen Maldivians have been awarded Australia Awards scholarships to pursue master’s degrees in critical fields such as finance and economics, social work, criminal law, public health, and gender in development. The recipients will begin their studies in Australia in 2025.

High Commissioner of Australia to the Maldives, David Jessup, hosted a reception to honour and bid farewell to the new scholars. The event welcomed National Security Advisor and esteemed Australian alumnus, Ibrahim Latheef, as the Chief Guest. More than 100 members of the Maldives-Australia Alumni community attended the gathering. Also present were Australia’s National Children’s Commissioner, Anne Hollonds, and three Australian students studying in the Maldives under the New Colombo Plan.

This year, 16 scholarships were awarded, up from 12 in 2023 and eight in 2022, reflecting a growing dedication to enhancing educational ties between the two nations. Since the 1960s, over 700 Maldivians have benefited from Australian scholarships, including the Australia Awards, solidifying Australia’s reputation as a top destination for Maldivians seeking tertiary education.

Earlier that day, the Maldives National University and the University of Melbourne signed a Memorandum of Understanding (MoU) on research cooperation. The Australia Awards programme continues to empower Maldivian professionals to address key challenges and make meaningful contributions to their communities.

SOURCE : PSM