News Desk
MALE, Maldives — During a ceremony to mark the 59th anniversary of Maldives’ independence, President Dr. Mohammed Muizzu outlined several critical initiatives and policies aimed at enhancing governance, combating corruption, and bolstering the economy. The speech covered topics ranging from asset recovery and loan restructuring to economic diversification and international trade agreements.
Asset Recovery Efforts
President Muizzu emphasized the introduction of an asset recovery law specifically targeting funds associated with the Maldives Marketing and Public Relations Corporation (MMPRC).
“We will introduce an asset recovery law specifically and collectively to recover money from the MMPRC. Work is underway,” he said. He highlighted the government’s commitment to eradicating corruption and recovering MVR 13 billion owed to the state. This includes US$513 million in uncollected land rent and US$102 million in TGST from previous administrations.
The President also mentioned that MVR 3.3 billion in GST and MVR 1 billion in corporate income tax had not been collected, but the current administration is actively pursuing these funds. He assured that the government would use legal measures, including court action, if necessary, to recover the money, aiming to reduce the country’s debt.
Loan Restructuring and Debt Management
The President acknowledged the significant contributions of China and India in assisting with the Maldives’ debt repayment efforts. India has deferred a $50 million loan and provided food quotas for two more years. China has given the green light to defer loans from the Exim Bank for various development projects for the next five years, with no interest payments during this period.
“China’s Exim Bank has given the green signal to repay the loans taken for various development projects without paying interest for the next five years,” he said. Additionally, negotiations underway with the UAE to defer the loans for the next five years. These measures are part of the government’s broader strategy to secure economic sovereignty and manage foreign debt responsibly.
Diversifying the Economy
President Muizzu announced initiatives to diversify the country’s economy, reducing its heavy reliance on tourism. He revealed plans to launch the country’s first international bunkering service next month, expected to add $400 million to the GDP within the first year. This initiative aims to reduce national debt, increase revenue, and create jobs.
The President also mentioned a proposal to establish a solar city under the Special Economic Zone. The project aims to generate 100 MW of electricity, significantly reducing fuel consumption. With the maximum electricity requirement for Male’ area being about 150 MW, this project could reduce the area’s electricity demand by 50%.
Free Trade Agreements
The President discussed ongoing efforts to implement the Free Trade Agreement (FTA) with China. The government is working to implement the Free Trade Agreement signed with China before the end of September, he said, which would make 298 fisheries items and 7,897 value-added items duty-free, providing substantial opportunities for private companies and individuals.
The signing of an FTA with Turkey is nearing completion, expected to reduce or exempt duties on 53 items, facilitating the expansion of local businesses.
Free trade talks with the UK are also underway, and there is renewed optimism for establishing a free trade agreement with India.
Addressing Dues and Compensation
President Muizzu highlighted that previous governments had paid MVR 2.4 billion in compensation for various civil cases, often for political purposes. He clarified that his administration has not paid any compensation in its first eight months in power. The President mentioned that MVR 119.7 million had been released for cases resolved after the current government took office.
“We have not paid a single rufiyaa in compensation in the last eight months since this government came to power,” he said. He emphasized the importance of economic sovereignty and using funds judiciously, prioritizing the country’s long-term economic stability over short-term political gains.
Promoting an Inclusive Society
President Muizzu emphasized that true freedom is intertwined with compassion and kindness within society. He stressed the importance of establishing an inclusive society where everyone has equal opportunities.
A key aspect of this initiative is a newly introduced loan scheme of MVR 100 million for women, with 25 percent reserved for people with disabilities. The President stated that the government would prioritize the needs of disabled individuals, ensuring they can earn and contribute to society.
Combating the Drug Epidemic
Addressing the drug epidemic, President Muizzu highlighted the government’s commitment to tackling this issue comprehensively.
He mentioned plans to implement significant changes to the Drugs Act to better address the epidemic. Additionally, he emphasized the importance of not excluding drug addicts but instead providing them with necessary treatment and support to reintegrate into society. The government is working on establishing community rehabilitation centers as part of this effort.
Amendments to the Gang Crimes Prohibition Act
The President also discussed the government’s efforts to bring about important amendments to the Gang Crimes Prohibition Act. These amendments aim to curb gang-related activities and enhance public safety.
Affordable Housing Loans
President Muizzu announced that the government will begin issuing housing loans in October with an interest rate capped at 5 percent. He highlighted that facilitating housing is one of his administration’s major promises and noted that almost all necessary preparations have been completed for these loans. The loans will be available under three categories based on location: up to MVR 6 million in the city, up to MVR 3 million in urban centers, and up to MVR 1 million on the islands. These loans are intended for new construction, renovation, and the completion of unfinished houses, aiming to address the diverse housing needs of the population.
Infrastructure Expansion and Sustainable Development
In line with the sustainable development concept, the President discussed plans to construct two additional bridges to connect essential land areas in the Male’ region needed for housing. This initiative follows discussions with a delegation of government officials during a recent visit to China, which helped facilitate the necessary arrangements. However, the project does not include connecting Giravaru Falhu to Uthuru Thila Falhu. The goal is to begin construction of these bridges in 2026 and to complete them by 2029. This extension is significant as Uthuru Thila Falhu is earmarked for a major agricultural project aimed at expanding the economy, said the President.
Rasmale’ Housing Project
The President also provided an update on the Rasmale’ housing project, which has been resumed. The project plans to construct 30,000 housing units in Rasmale’ with the assistance of various soft loans from China. This initiative is part of the broader strategy to provide adequate housing and improve living conditions for the citizens of the country.
Government’s Social Initiatives and Progress
In reviewing his administration’s work, President Muizzu shared statistics on the progress of cabinet meetings and deliberations made over the past eight months. The Cabinet has held 17 meetings, resulting in 225 decisions, while the Economic Council has convened 56 times, making 176 decisions. The Social Council has held 16 meetings and made 48 decisions, reflecting the government’s active engagement in addressing social issues and implementing policies for the welfare of the people.
The event, held at the Social Centre, was attended by the Speaker of Parliament, Members of Parliament, and Government Ministers.
