Expat Workers Send Over USD 500 Million Abroad Each Year, Says Economic Minister

Minister of Economic Development and Trade Mohamed Saeed has disclosed that expatriate workers in the Maldives send over USD 500 million abroad annually as remittance.

Speaking on Public Service Media (PSM)’s ‘Raajje Miadhu’ programme, Saeed described the high level of remittance as an enduring issue that the Maldives has faced for years.

advertisement

advertisement

advertisement

advertisement

He recalled that during the Progressive Party of Maldives (PPM) administration, of which Saeed was a member, a two per cent tax on remittances was introduced. However, this tax was abolished by the Maldivian Democratic Party (MDP) when it assumed office in 2018.

Saeed commented, “We proposed and implemented a two per cent tax to enhance the Maldives’ foreign currency inflow. We also introduced a credit guarantee scheme through the MMA to support Maldivian contractors. Wasn’t it the MDP administration that abolished these measures?”

He also highlighted the current People’s National Congress (PNC) administration’s initiatives to reduce foreign currency outflow, noting that the Maldives spends between USD 500-600 million annually on fuel imports. Saeed indicated that the development of a solar city and increased use of renewable energy are expected to help mitigate these costs.

In addition, Saeed mentioned the administration’s plan to start making payments for imports in Chinese and Indian currencies. This initiative is set to commence “very soon” with India, aiming to alleviate the demand for US dollars.

The Maldives is home to a significant number of migrant workers, including many who are undocumented. The country has also seen a notable number of migrants engaging in illegal business activities. According to Maldives Immigration, 3,222 migrants have been deported between November 17, 2023, and August 25, 2024.