AGP Executive Report

SOE Profit Watch: Male’ Water and Sewerage Company (MWSC) reported a 33% profit drop in 2025 after a sharp 2024 surge, with revenue down to MVR 1.37bn and profits falling to MVR 145m. Public Sector Hiring: Maldives Transport and Contracting Company (MTCC) says its workforce has grown by more than 2,000 since the current administration took office, even as the government directed SOEs to cut staff by 33%. Tourism Airfare Pressure: Cabinet directed Island Aviation Services Limited (IASL) to reduce tourist airfares, despite the airline operator already posting losses. Tourism Connectivity: Russia agreed to increase flights to the Maldives, with additional Russian carriers expected to start operations. Tax & Tourism Rules: Parliament passed amendments raising withholding tax on non-resident construction contractors to 10% and approved foreign currency law changes; it also moved ahead with GST on services by foreign tour operators/booking platforms after calls for tourism-industry consultation. Digital Finance: President launched Maldives Premier Bank’s digital platforms, including its MPB Plus mobile app and internet banking. Waste Services App: WAMCO launched an official app for waste-collection services, payments, and customer support. Consumer Sentiment: Maldives Business School and the University of Michigan launched the Maldives Consumer Sentiment Index to track month-to-month economic expectations.

Tourism Policy & Airfares: Cabinet directed Island Aviation Services Limited (IASL) to reduce tourist airfares, a move aimed at easing high travel costs as Middle East disruptions continue to weigh on arrivals. Parliament & Tax Reform: MPs passed Foreign Currency Act amendments raising the foreign-currency deposit threshold to USD 25m for businesses, and approved a hike in withholding tax on non-resident construction contractors from 5% to 10%, projected to add about MVR 251m annually. Public Finance & Jobs: Government set up an MVR 600m startup fund (Kumevi Fund via SME Digital) for workers affected by “rightsizing” of loss-making SOEs, while Finance Minister Hassan Zareer said hiring into SOEs has risen and the public sector is “bloated” at 53% of the workforce. Banking & Payments: Maldives Premier Bank was inaugurated and launched its digital platforms, while Parliament passed a National Payment Switch amendment giving the MMA authority to route transactions through a single switch to improve interoperability. Business Intelligence: Maldives Business School and the University of Michigan launched the Maldives Consumer Sentiment Index to track month-to-month shifts in household expectations. Waste & Digital Services: WAMCO rolled out an official app for waste collection services and payments, and Parliament passed Waste Management Act amendments removing a plastic-bag fee on bulk packs over 50 bags. Corporate & Industry Risk: ACC urged stronger financial reporting in sports associations, warning corruption risks remain high without public disclosure and mandated reporting frameworks. Logistics Costs: Maersk increased peak season container surcharges for imports from East Asia to Maldives and Sri Lanka by USD 400 per container. Cyber Insurance Gap: A report highlighted that cyber policies may not cover physical factory damage when ransomware disrupts production. Maritime Security: A cargo ship was boarded by pirates off Somalia; crew reported safe and international forces are investigating.

Tourism Tax Overhaul: Maldives Finance Ministry says it consulted the IMF on Destination Principle GST collection from foreign tour operators and offshore booking platforms, aiming to minimise impact on Maldivians as a Majlis bill moves toward taxing foreign services consumed in-country. Banking Launch: President Muizzu inaugurated Maldives Premier Bank and launched its digital platforms (MPB Plus and internet banking), with MMA Governor Munawar also pushing for Maldivians to take over 80% of senior banking roles in five years. Public Finance & Jobs: Finance Minister Hassan Zareer told Parliament that 4,938 employees were hired into SOEs since the current administration began, while he defended “right-sizing” and a MVR 600m startup fund for redundant workers. Payments Modernisation: Parliament passed an amendment to the National Payment System Act to create a National Payment Switch under MMA, routing designated transactions across banks and payment providers. Waste & Environment: Majlis passed a Waste Management Act amendment removing a plastic-bag fee on bulk packs over 50 bags, alongside new waste-policy and standards provisions. Trade & Regional Links: Maldives’ UAE ambassador met Sharjah Chamber to explore investment and trade in areas like fish processing, dates and tourism. Mariculture Expansion: Fisheries Ministry designated 10 more mariculture zones, adding new areas across Thaa, Meemu, Faafu, Dhaalu and Gaafu Alifu atolls. Aviation & Tourism Promotion: Visit Maldives and MACL signed on as official aviation partner for World Travel Awards Asia, Oceania & Indian Ocean 2026 at CROSSROADS Maldives on 27 September.

Banking & Finance: President Dr. Mohamed Muizzu inaugurated the Maldives Premier Bank (MPB), launching its mobile app and internet banking, as the ninth licensed bank to start operations; the MMA governor also set a goal to lift Maldivians’ share in senior banking roles to over 80% within five years. Payments Infrastructure: Parliament unanimously passed an amendment to the National Payment System Act to establish a National Payment Switch under MMA, routing designated bank and payment-provider transactions to improve interoperability across cards, wallets, QR and POS. Tourism Tax & GST: MPs are considering a GST amendment that would require foreign tour operators, overseas travel agents and offshore booking platforms to register with the Inland Revenue Authority and charge 17% Tourism GST from Oct 1, 2026. Construction & Tax Policy: Government proposals would double withholding tax on payments to foreign contractors from 5% to 10%, aiming to create a more level playing field for Maldivian contractors. Environment & Waste: Parliament passed a Waste Management Act amendment removing the MVR 2 plastic bag fee on bulk packs over 50 bags, while expanding waste-management planning requirements. Fisheries & Food: Fisheries Ministry designated 10 additional mariculture zones to expand the sector beyond the existing four areas. Aviation & Tourism Promotion: MACL was named official aviation partner for World Travel Awards 2026, with branding support planned at Velana International Airport. Data Security: MTCC filed a police complaint over an alleged leak of sensitive data from the “Male’ Taxi Line” app after service disruptions.

Tax & Competition: The government is set to double withholding tax on payments to foreign contractors from 5% to 10%, aiming to give Maldivian firms a more level playing field in construction tenders. Tourism Tax Push: A separate proposal would introduce GST on services supplied by foreign tour operators, travel agents and offshore booking platforms, bringing more inbound tourism activity into the Maldives tax net. FX Pressure: Maldives’ official foreign currency reserves fell to USD 638.03m by end-July, down from USD 1.33bn in March, as large external obligations were repaid and banks struggled to meet dollar demand at official rates. Energy Financing: The ADB approved a USD 50m loan to support fuel procurement under an energy security emergency project, targeting diesel for electricity/water and fuel for transport of food and medical supplies. Tourism Connectivity: A high-level Maldives delegation led by Tourism Minister Mohamed Ameen is in Russia to boost tourism cooperation and air connectivity, including talks with tour operators and travel trade partners. Digital Assets & Tourism: Visit Maldives will host the inaugural Digital Ownership Summit on 12 Dec 2026, focusing on tokenised real-world assets and how they could shape tourism and investment. Healthcare Skills: Universal Foundation awarded four 2026 medical scholarships to address specialist training needs, aligned with the Health Ministry’s priorities. Humanitarian Real Estate: Maldivian Red Crescent unveiled plans for “The Crescent Tower” in Hulhumale’, a 14-storey commercial development designed to fund its humanitarian programmes.

ADB Energy Security Loan: The Maldives signed a USD 50m ADB deal to ease fuel-import pressure, targeting diesel for electricity and water, plus fuel for transport of food/medical supplies and inter-island logistics. FX Reserves & Dollar Strain: Official foreign currency reserves fell to USD 638.03m by end-July, down from USD 1.33b in March, as big external debt repayments and an India currency swap repayment hit reserves while banks struggle to meet dollar demand. Monetary Policy Oversight: Parliament’s Public Accounts Committee met with MMA officials on monetary measures to mop up excess MVR, including raising the minimum reserve requirement from 10.5% to 11% from September and aiming for 13% by year-end. Tourism Tax Push: The government moved to levy GST on offshore booking platforms and foreign tour operators using the destination principle, with an estimate of over MVR 1.6bn annually; MP Abbas warned tourism shouldn’t be “milked dry” as occupancy pressures mount. Digital Payments & Startups: FasterCapital backed Roam Dhuniye via EquityPilot to speed eSIM adoption for travelers, while a Maldives–India UPI link via Favara supports faster cross-border payments for tourism-linked spending. Infrastructure & Connectivity: MTCC was contracted for a Vilimale’ dinghy jetty (MVR 14.91m) and coastal protection works (MVR 45.66m), and a tourism delegation led by Minister Mohamed Ameen heads to Russia to boost air connectivity and trade ties. Housing Progress: Rasmalé reclamation is now 55% complete, with 556.54 hectares reclaimed so far toward 1,009 hectares.

Monetary Policy Scrutiny: Maldives Monetary Authority (MMA) officials briefed Parliament’s Public Accounts Committee in a closed-door session on new monetary measures, including a plan to lift the minimum reserve requirement from 10.5% to 11% in September and gradually to 13% by year-end. FX Pressure & Reserves: Official reserves fell to USD 638.03m at end-July (down from USD 1.33bn in March) as large external debt repayments were settled in April, while the dollar shortage keeps pushing banks to struggle at official rates and the black-market rate stays above MVR 20. Tourism Tax Push: A GST amendment would require offshore booking platforms and foreign tour operators to pay GST in the Maldives, with government estimates pointing to over MVR 1.6bn annually; MP Mohamed Abbas warned tourism shouldn’t be “milked dry” as occupancy has reportedly slid sharply. Digital Payments Boost: Maldives and India’s UPI are now connected via Favara, enabling easier QR payments for Indian tourists and helping smaller island businesses accept foreign digital payments. Tech Cost Drop: Synetecs’ Thaana AI update claims 35x more usage for the same cost, adds Dhivehi/English support, and introduces Bank of Maldives card tokenisation for recurring payments. Russia Market Outreach: A high-level Maldives tourism mission heads to Russia (Aug 17–21) to strengthen air connectivity and travel trade ties, with Russia remaining a top source market. Tokenised Assets Summit: Visit Maldives will host the inaugural Digital Ownership Summit on 12 Dec 2026, focused on tokenised real-world assets and how they could support tourism and investment under Maldives 2.0. Tourism Revenue Snapshot: MIRA says state revenue rose 8.73% to MVR 22.7bn in Jan–Jul, with TGST leading and dollar revenue topping USD 976m amid FX stress. World Travel Awards Partners: Visit Maldives named STO Energy as energy partner and Jalboot as transportation partner for WTA Asia, Oceania & Indian Ocean 2026.

Tourism Tax Push: The government has submitted an amendment to the GST Act that would require foreign booking platforms, offshore tour operators and overseas travel agents to pay GST on services supplied to the Maldives, aiming to apply the “destination principle” and capture revenue from overseas transactions; the estimate projects MVR 1.6bn in annual gains, with MVR 2.8m one-off setup costs and MVR 5.1m yearly operating costs, once MIRA sets simplified registration and payment arrangements. Public Finance Snapshot: MIRA reports total state revenue of MVR 22.7bn for Jan–Jul, up 8.73%, with USD 976m in dollar revenue; TGST remains the top driver at USD 486m. Energy Security Funding: The ADB has approved a $50m emergency loan to strengthen Maldives energy security amid fuel shortages linked to West Asia conflicts, supporting reliable electricity and water services. Port & Logistics Moves: Maldives Ports Limited plans an online auction of unclaimed goods at Malé Commercial Harbour (bids Aug 25–26) and is also consulting clearing agents and lorry drivers ahead of the Malé-to-Thilafushi harbour relocation. Tourism Industry Support: Visit Maldives named STO Energy as energy partner and Jalboot as transportation partner for the World Travel Awards 2026 in the Maldives.

ADB Support: The Asian Development Bank approved a $50 million emergency loan to help the Maldives shore up energy security amid fuel shortages linked to West Asia conflicts, aiming to keep reliable electricity and water services running. FX Pressure & Policy: The Maldives Monetary Authority sold more USD than it received in July as tourism inflows softened and demand for travel, medical and Umrah dollars jumped; it also increased dollar supply to banks for three weeks while Parliament reviews Foreign Currency Act changes. Port & Trade Logistics: Maldives Ports Limited is consulting lorry drivers and clearing agents ahead of relocating Malé Commercial Harbour to Thilafushi, targeting faster clearance under a modern multi-purpose port plan. Cargo Connectivity: Raya Airways launched scheduled cargo flights between Penang and Velana International Airport, twice weekly with Boeing 767-200 freighters, expected to boost transshipment cargo links. Education Payments: Bank of Maldives urged customers facing online payment declines for exam and education services to contact the bank so merchants can be correctly classified. National Recognition: President Muizzu awarded posthumous National Award of Recognition to football coach “Saanthi” and conferred Dhiyamigili Dynasty honours to litterateur Kashima Shakir. Infrastructure Outlook: Muizzu said 2027 is set to be a landmark year as most major projects are expected to complete, including modern island council buildings.

Cargo & Connectivity: Raya Airways has started scheduled cargo flights to Velana International Airport (VIA), running twice weekly between Penang and Malé with Boeing 767-200 freighters (about 46 tonnes per flight), with 80–90% expected to be transshipment cargo—boosting VIA’s role as a regional freight hub. Infrastructure Delivery: President Muizzu says 2027 will be a “landmark” year, with most development projects expected to be completed, including modern council offices for around 100 islands by mid-2027. Port Operations Planning: Maldives Ports Limited is consulting lorry drivers and clearing agents ahead of relocating the Malé Commercial Harbour to Thilafushi, aiming for faster cargo clearance at the new multi-purpose port. FX Pressure & Banking Moves: MMA reported it sold more USD than it received in July, citing weaker inflows and higher demand; it increased dollar supply to banks by 51% for three weeks, while Parliament considers easing foreign currency conversion rules. Education Payments Fix: Bank of Maldives says some education exam payments may be declined due to merchant coding, and urges customers to contact the bank for correct classification. Waste Management Upgrade: The Environment Ministry handed WAMCO 22 pickups to expand island waste collection, including door-to-door services for atoll capitals and urban centres. Tourism Outlook: Tourism Minister Mohamed Ameen says Visit Maldives Year 2027 will target new markets and community opportunities, citing strong 2025 visitor satisfaction and return intent. Community Funding: BML announced the five Bank Fund 2026 recipients, each receiving MVR 200,000 for local development projects.

Tourism & FX policy: Tourism and Civil Aviation Minister Mohamed Ameen says Visit Maldives Year 2027 will back tourism growth by targeting new markets and island communities, while Visit Maldives Corporation’s Q3 briefing points to strong intent to return (85%+) and high satisfaction (80%+). Foreign exchange access: Economic Development, Transport and Trade Minister Mohamed Saeed says official USD transactions and bank allocations have surged since 2021, with state support for merchants’ FX rising to 30–40% (from ~5%). Dollar-rate pressure debate: MDP leader Mohamed Nasheed urged the government to engage the opposition “without acting big,” warning dollar reserves are “empty,” black-market rates are rising, and the resort 20% revenue conversion plan could hurt investors. Fiscal strain: The Finance Ministry reports subsidy spending has overshot by MVR 335m (MVR 3.23bn spent vs MVR 2.89bn budgeted for the year), driven by utilities and fuel-price pressures. Community finance: Bank of Maldives named five Bank Fund 2026 recipients, each receiving MVR 200,000 for projects from digital hubs and eco-parks to agro-processing and school makerspaces. Aviation infrastructure: Island Aviation reopened tendering for Dharavandhoo Airport’s terminal expansion under contractor-financing, with proposals due Sept 10 and an 18-month delivery target. Bilateral business links: Maldives and UAE leaders discussed trade, development and regional security in a phone call, while Sri Lanka’s Port City Colombo held an investor forum in Malé for senior Maldivian business leaders.

Aviation & Infrastructure: Island Aviation Services has reopened the tender to expand and redevelop the passenger terminal at Baa’s Dharavandhoo Airport under a contractor-financing model, with expressions of interest due Tuesday night and full proposals due Sept 10; the contractor will have 18 months to deliver a modern terminal with a larger arrivals hall, self-service check-in kiosks and three boarding gates. FX & Banking: Economic Development, Transport and Trade Minister Mohamed Saeed says official USD transactions are rising fast, with bank-card spending up from about USD 10m (2021) to around USD 39m now, and the state covering 30–40% of merchants’ foreign exchange needs (up from ~5%). Tourism Strategy: Tourism and Civil Aviation Minister Mohamed Ameen says Visit Maldives Year planning will target new markets and island communities, citing strong 2025 survey results (over 85% intend to return; over 90% would recommend). Public Finance Pressure: Finance Ministry data shows subsidy spending has overshot allocations by MVR 335m, reaching MVR 3.23bn as of Aug 6, while student loan disbursement is lagging at 15.7% of the year’s budget. Community Funding: Bank of Maldives named five recipients for Bank Fund 2026, awarding MVR 200,000 each to projects ranging from a digital innovation hub in Dhidhdhoo to an agro-processing hub in Laamu. Currency Politics: Opposition-linked dollar scarcity claims drew a response from Minister Saeed, who argues headlines are driving black-market activity and instability.

Foreign Exchange Rules: Maldives Parliament approved amendments to the Foreign Currency Act, raising the threshold for mandatory foreign-currency deposits (USD 15m to USD 25m) and tightening how Category-A tourism earners convert USD, with details now heading to the Public Accounts Committee. Dollar Shortage Politics: Economic Minister Mohamed Saeed pushed back on opposition claims of dollar scarcity ahead of a planned MDP protest, saying MMA/BML are issuing dollars to businesses, students and patients while black-market activity is being driven by headlines. Banking Support: Bank of Maldives extended higher US dollar allocations for telegraphic transfers for three weeks after MMA increased bank FX allocations by 51%, aiming to ease import funding for SMEs. Scams Watch: Maldives Police reported 53 scam cases (Aug 2–8) with losses of MVR 475,275.76, with e-commerce and foreign-currency scams leading; police urged caution over messaging-app fraud. Community Funding: BML named five recipients under Bank Fund 2026, backing projects from a digital innovation hub in Dhidhdhoo to agro-processing and makerspaces. Aviation Skills: MACL inaugurated the Aviation Institute of Maldives and graduated 29 students from an Airport Security & Management programme. Health Safety: MFDA warned of a counterfeit Opdivo cancer injection batch (8081399), banning import/sale/use and urging pharmacies and buyers to verify batches. Tourism & Business Links: Port City Colombo held an invitation-only investor forum in Malé to court Maldivian investors for Sri Lanka’s Special Economic Zone.

Foreign Exchange Policy: Parliament has approved amendments to the Foreign Currency Act, raising the threshold for mandatory foreign-currency deposits from USD 15m to USD 25m and tightening rules for Category-A tourism establishments, while easing conversion burdens for fully Maldivian-owned businesses. Dollar Rate Pressure: Opposition leader Mohamed Nasheed is demanding the black-market USD rate fall to MVR 19 within 10 days (and MVR 17 in a month), as Economic Minister Mohamed Saeed says protest claims are driving black-market activity. Central Bank Support: Bank of Maldives extended higher USD sales for telegraphic transfers for three weeks after the MMA boosted allocations by 51%, aiming to ease import-related shortages. Scams & Security: Police report 53 scam cases (Aug 2–8) with losses of MVR 475,275.76, while MFDA warned of a counterfeit Opdivo cancer injection batch (8081399) in the market. Aviation & Jobs: MACL inaugurated the Aviation Institute of Maldives, with 29 students graduating from an airport security and management programme. Tourism & Business: Visit Maldives and Ooredoo Maldives signed as Digital Partner for World Travel Awards 2026; Maldives tuna exporters report 20% growth after the UK suspended a 20% tuna tariff. Health & Trade Finance: ADB approved a USD 50m emergency loan to the Maldives for fuel imports amid Middle East-driven price spikes.

Foreign Exchange Overhaul: The government has submitted amendments to the Foreign Currency Act to drop the USD 500-per-tourist exchange option for resorts and make it mandatory to convert 20% of monthly dollar revenue with local banks; the Public Accounts Committee has set a one-day deadline to review the bill. Parliament Push: The Majlis has extended its session by a week to expedite the land seizure bill and also expects to pass the Foreign Currency Act amendments during the extension. Dollar Supply Support: The Maldives Monetary Authority raised weekly USD allocations to commercial banks by 51% for three weeks to ease foreign-currency access for importers. Black-Market Pressure: Economic Minister Mohamed Saeed dismissed reports of an official rate change to MVR 25 as “fake news,” while opposition leader Nasheed demanded the parallel USD rate fall to MVR 19 in 10 days. Budget Snapshot: State revenue and grants rose 9.3% to MVR 26.5 billion as of Aug 6, driven mainly by higher tax collections. ADB Fuel Lifeline: The Asian Development Bank approved a USD 50m emergency loan to support fuel imports amid Middle East-driven price spikes. Tourism Trade Signals: Tourist arrivals slipped 8% in early August, while Maldivian tuna exporters reported 20% growth after the UK suspended tuna tariffs. Corporate Governance Reminder: Dhiraagu and other shareholders were urged to update tax residency status to ensure correct dividend withholding. Banking Confidence: Bank of Maldives warned that false rumours could harm correspondent banking relationships and long-term financial stability. Business Expansion: Maldivian expanded Aviareps’ India mandate to pan-India, aiming to boost sales and visibility in a market that delivered nearly 190,000 arrivals in 2025. Fisheries Operations: MIFCO introduced fuel-on-credit for fishing vessels, and the Fisheries Ministry set sea-cucumber export quotas under CITES rules.

FX & Banking: The Maldives Monetary Authority (MMA) boosted weekly US dollar allocations to commercial banks by 51% for three weeks to ease importers’ access to foreign currency. Tourism FX Rules: MMA also moved to amend the Foreign Currency Act, removing the USD 500-per-tourist option and requiring resorts to convert 20% of monthly foreign-currency revenue into MVR (with other categories largely staying on 20%). Market Confidence: Bank of Maldives (BML) warned that rumours about the dollar rate could harm correspondent banking relationships and disrupt services for customers abroad. Policy Pushback on “Fake News”: Economic Minister Mohamed Saeed said claims of an official rate change to MVR 25 are baseless and blamed sensational headlines for worsening black-market dollar expectations. Tax & Revenue: MIRA collected MVR 3.4 billion in July, led by income tax (MVR 1.66b) and GST (MVR 1.04b), with additional recovery of outstanding dues. Fisheries & Exports: The Fisheries Ministry set export quotas for CITES-listed sea cucumber (amberfish) processors after completing the required non-detriment finding, and consulted exporters on CITES compliance. Fishing Fuel on Credit: MIFCO will supply fuel on credit to fishing vessels, with bills deducted from fish purchases and payments to fishermen within 48 hours. Jobs & Skills: National Career Services launched the “My Career Portal” to connect job seekers and employers, supported under the World Bank-funded SAILS project. Trade & Diplomacy: Maldives and the US discussed expanding trade and investment ties, while BRICS central bank talks highlighted linking CBDCs and fast payment systems to speed up cross-border payments. Security: Maldives Police seized 144kg of narcotics and arrested 1,875 people in drug enforcement operations across the first seven months of the year.