Maldives Moves Forward with Digital Transformation, but Spending Raises Questions

02 Feb, 2025
1 min read

MALÉ, Maldives — The Maldives government has set the groundwork for an ambitious digital transformation strategy, following a Cabinet decision on Sunday aimed at modernizing the country’s ICT sector and strengthening government technology policies. However, questions persist over procurement choices and fiscal priorities as the administration moves ahead.

President Dr. Mohamed Muizzu approved the initiative after discussing a proposal from the Ministry of Homeland Security and Technology at a Cabinet meeting held at the President’s Office. The plan seeks to expand the ICT sector’s role in the economy, enhance digital public services, and accelerate technological development.

To support these efforts, the government has outlined a series of measures, including legislative reforms to facilitate digital projects, the establishment of a national data-sharing platform, and the creation of a sovereign cloud for secure data storage. Additionally, the initiative includes expanding e-government services, introducing electronic identification systems, and integrating technology-focused education into school curricula. A “Local First” policy has also been proposed to prioritize Maldivian companies in government ICT procurement.

Despite these commitments, concerns have been raised over the government’s adherence to the “Local First” principle. The same ministry that introduced the policy recently awarded two major contracts to foreign companies: Malaysia’s Bestinet for an expatriate database system and Thailand’s Control Data for a civil registration and identification management system.

Further scrutiny has been drawn to the government’s expenditure on a recent state visit. The President’s Office disclosed that President Muizzu’s January trip to Estonia, cost MVR 1.37 million ($89,000). Estonia previously collaborated with the Maldives Monetary Authority (MMA) on the development of the Instant Payment System (IPS), known as “Favara,” launched in August 2023 under the Maldives Payment System Development (MPSD) project.

The Cabinet has set timelines for implementing its digital policies and is considering additional measures to achieve its objectives.

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