Gov’t Announces SME Support Package After Consultations With Business Owners
Minister of Economic Development and Trade Mohamed Saeed | Photo: The President’s Office
The government has unveiled a series of concessions to support small and medium enterprises (SMEs) over the next two years, following consultations with business owners on financial and operational challenges.
Economic Development and Trade Minister Mohamed Saeed announced the measures at a press conference at the President’s Office, after recent discussions between President Dr Mohamed Muizzu and SME representatives. Business owners raised concerns over access to finance, taxation, customs procedures and foreign exchange availability.
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The Minister said several state institutions will coordinate the implementation of the measures, including the Maldives Inland Revenue Authority (MIRA), Maldives Customs Service, Maldives Ports Limited (MPL) and Maldives Airports Company Limited (MACL).
As part of the package, the government will allocate MVR 500 million to support SMEs next year. Over the past two years, authorities have disbursed MVR 349 million in small loans to 595 businesses across ten sectors, including women-led enterprises, mariculture, fisheries and tourism.
The Ministry of Finance and Planning has also cleared MVR 13 billion in outstanding state payments, with MVR 5 billion paid to SMEs, easing liquidity pressures on businesses supplying goods and services to the government.
To address foreign currency constraints, Bank of Maldives has expanded dollar support for import payments. The bank now provides up to 50 per cent telegraphic transfer support for bills below USD 2,500, up to 30 per cent for bills between USD 2,500 and USD 5,000, and 15 per cent for payments exceeding USD 5,000 at the official exchange rate.
Meanwhile, MIRA has increased engagement with small businesses, offering tax guidance to 2,291 enterprises in the Malé area and introducing relief measures for businesses with outstanding tax liabilities.
The government said the concessions will be rolled out gradually over the next two years, with operational details to be implemented through the relevant agencies.
