Finance Minister Announces Reforms to Aasandha Scheme

Minister of Finance Dr Mohamed Shafeeq announced plans to reform the Aasandha health insurance scheme to ensure it better benefits those most in need.

During a press conference yesterday, Dr Shafeeq stated that the government will review and amend existing laws and regulations, which, he argued, currently afford unfair advantages to wealthier citizens over those with lower incomes. He highlighted that the Aasandha scheme, funded by the state, needs adjustments to better serve deserving individuals and reduce inefficiencies.

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The government’s spending on Aasandha has been rising annually, with a 60% increase over the past five years. Last year’s expenditure on the scheme grew by 40% compared to 2018. 

The statistics indicate that most of this year’s budgeted MVR 1.9 billion for Aasandha has already been used. The Aasandha Company has previously revealed plans to revise its policies to emphasise private insurance options.

In addition to these reforms, Dr Shafeeq outlined new financial measures to support economic growth without imposing additional burdens on the public. He discussed modifications to monetary policies and state-owned enterprise management, noting ongoing discussions with key stakeholders. The minister expressed optimism that these measures would soon produce positive outcomes.

Dr Shafeeq also underscored the government’s commitment to repaying the USD 500 million Sukuk. He noted the increasing reliance on US dollars, particularly in trade and transportation sectors, as the Bank of Maldives (BML) reported. To address this, the government aims to enhance dollar inflows and ensure that the central bank can support commercial banks.