President Dr Mohamed Muizzu has reaffirmed his administration’s commitment to expanding opportunities for small and medium-sized enterprises, outlining a series of measures aimed at strengthening business ownership, encouraging local production and empowering more Maldivians to participate in the economy.
Speaking during the Nation Chat programme, President Muizzu said one of the Government’s key priorities is to create an environment in which ordinary citizens can establish, grow and sustain businesses. He emphasised that the administration would continue listening to the concerns of entrepreneurs and responding to the challenges faced by the business community.
The President highlighted the Maldives Expo as an important platform for local producers, entrepreneurs and businesses to showcase their capabilities, introduce new products and reach wider markets. He expressed satisfaction with the increased participation at the latest edition, noting that the number of participants had doubled compared with the previous event and that businesses were presenting a broader range of locally produced goods.
“I want to create opportunities for small businesses. I want to create opportunities for medium-sized businesses to empower the people. This time, God willing, what we are seeing is double the number we saw last time. I am very pleased to see people participating by producing a greater variety of products. We have already facilitated various measures to expand the small and medium-sized business sector,” President Muizzu said.
At the Maldives Expo participant award ceremony, the President announced three major measures designed to provide further support to micro, small and medium-sized enterprises. These include tax relief for eligible SMEs that have not yet become profitable but are currently required to meet tax obligations.
The Government has also decided to increase the tax registration threshold to USD 97,103.65, with amendments to the relevant laws and regulations planned to bring the change into effect. The measure is expected to reduce the regulatory and financial burden on smaller businesses while allowing entrepreneurs greater flexibility during their early stages of development.
President Muizzu also announced plans to remove import duties on materials required by SMEs for manufacturing their products. The initiative is expected to lower production costs, improve the competitiveness of locally manufactured goods and encourage more businesses to enter value-added industries.
The measures form part of the Government’s broader economic strategy to expand domestic production and diversify the Maldivian economy. The administration has set a target of increasing the manufacturing sector’s contribution to gross domestic product to 15 per cent by 2030, placing greater emphasis on local enterprise, entrepreneurship and productive economic activity.
Several reforms have already been introduced during the year to ease pressures on SMEs. These include amendments to the Employment Act exempting eligible small and medium-sized businesses from quota fees, addressing a longstanding challenge faced by businesses in meeting employment-related costs.
With stronger incentives, reduced operating burdens and greater opportunities for local producers, the Government is seeking to build a more inclusive business environment in which Maldivian entrepreneurs can expand their operations, create employment and contribute more significantly to the country’s long-term economic growth.
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