As the new year begins, the Maldivian government has introduced and revised a set of services aimed at strengthening the business environment and supporting national economic activity, with a particular focus on small and medium enterprises. President Dr Mohamed Muizzu announced that targeted measures to support and promote SMEs will take effect from 1 January, reflecting the administration’s emphasis on enabling entrepreneurs and growing private sector participation across key industries, including trade, logistics, hospitality, and local services.
The measures stem from concerns raised by SME representatives during a meeting with the President on 17 December last year, and include several operational improvements designed to reduce costs and delays for importers and smaller businesses. A major change is the expansion of the demurrage-free period for imported goods from 80 hours to 124 hours, which is expected to ease pressure on cash flow and inventory planning for businesses that rely on timely access to supplies. Complementing this, customs clearance services will be extended to a 24-hour operation, supporting faster turnaround for shipments and helping businesses maintain consistent service delivery, particularly in sectors where supply continuity is critical.
Additional reforms include enabling individuals to submit their own customs declarations, a change that can streamline administrative processes for smaller operators and reduce dependency on third-party intermediaries. The government will also introduce registration requirements for businesses renting accommodation to locals and work visa holders, supporting clearer standards and improved oversight in the broader accommodation segment. Alongside these steps, stronger rules will be implemented to address customs pricing practices, supporting a more transparent trading environment, while authorities will also address the irregular use of vehicles imported under duty exemptions for projects to ensure concessions are used as intended.
For the tourism and hospitality industry, the combined impact of faster clearance services and reduced demurrage exposure can be particularly meaningful, as resorts and other accommodation providers frequently import time-sensitive goods such as food and beverage items, operational supplies, and technical equipment. More predictable logistics can reduce operational interruptions, support consistent guest experiences, and help businesses plan procurement more efficiently, especially during peak travel seasons when demand can surge. The broader improvements also reinforce the Maldives’ positioning as a high-service destination by supporting stronger supply chains that underpin resort operations and the wider visitor economy.
Several measures have been approved for phased implementation, including proposed amendments to give priority to SMEs in government tenders, opening stronger opportunities for smaller businesses to participate in public procurement. From February onwards, waste disposal fees for SMEs will be reduced by the Waste Management Corporation (WAMCO), providing cost relief and supporting more sustainable business operations. The government will also introduce affordable storage solutions for SMEs in three regions across the country, an initiative expected to strengthen distribution capacity and improve access to storage infrastructure beyond the capital area.
Over the next two years, the government will take special efforts to implement SME-focused measures, with the stated aim of creating a more favourable environment for smaller businesses to flourish. The overall package signals an approach that combines operational efficiency, regulatory clarity, and targeted cost support, steps that can strengthen competitiveness, encourage investment confidence, and help Maldivian enterprises expand their contribution to national growth.
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