AGP Executive Report

Money & Banking Crackdown: The Maldives Monetary Authority (MMA) revoked Express Money Exchange Pvt Ltd’s foreign exchange licence after regulatory breaches, warning others to follow money-changing rules and enforcement will follow. Dollar Shortage Debate: MMA Governor Ahmed Munawar said a Rufiyaa-only approach for domestic transactions could ease USD pressure if fiscal and monetary fundamentals are kept in check. Black-Market Dollar Fines: Parliament’s Public Accounts Committee approved penalties for advertising or selling black-market dollar rates, with fines up to MVR 500,000 for promoters and up to MVR 1 million for inflated-rate trading. Mental Health with AI: The National Drug Agency is partnering with China’s Yunnan University to explore AI-assisted mental health assessments and expand culturally practical drug rehabilitation support. SIDS Forums in Malé: The Maldives will host the SIDS Global Business Network Forum and the inaugural Island Investment Forum on Aug 23–25, with 200+ participants from 30+ countries. Education Infrastructure: Construction of the new seven-storey CHSE building is set to start by year-end, after architectural approvals.

Maldives–Türkiye Trade: The Preferential Trade Agreement with Türkiye took effect Aug 1, with duty concessions and duty-free access for selected goods, aiming to boost the Maldives’ creative sector by lowering the cost and improving access to production materials. Dollar Shortage: MMA Governor Ahmed Munawar says the USD crunch could be eased by enforcing Rufiyaa-only for domestic transactions—if fiscal and monetary fundamentals are kept in line. Education Infrastructure: Construction of the new seven-storey CHSE building in Malé is set to start late this year, with 15 classrooms and science labs. SIDS Forums: The Maldives will host the SIDS Global Business Network Forum and the inaugural Island Investment Forum Aug 23–25, with 200+ participants from 30+ countries. FX Crackdown: MMA revoked Express Money Exchange’s licence over illegal foreign exchange deals, as authorities push harder against black-market dollar pricing. Public Finance: Government spending on salaries, allowances and pensions hit MVR 9.38b as of Aug 13, up 11.2% year-on-year. Tobacco Control: Health Minister Geela Ali outlined a consultation-driven plan for the five-year national tobacco control campaign and cessation support.

Public Finance: The Finance Ministry says state spending on salaries, allowances and pensions for public sector workers hit MVR 9.38 billion as of Aug 13, up 11.2% year-on-year, with recurrent spending rising 19.3% to MVR 28 billion. Dollar Crackdown: The Maldives Monetary Authority revoked Express Money Exchange’s licence over illegal foreign exchange activity, as Parliament backs tougher penalties for advertising or trading black-market dollar rates. Trade & Tourism Policy: A bill before the Majlis would require foreign travel sellers to collect 17% TGST from Oct 1, while separate foreign currency law amendments aim to make off-rate currency buying and selling an offence. Regional Connectivity: Customs’ role is expanding beyond revenue and borders, with calls for better digital systems and advance information to keep goods moving. SIDS Investment Push: The Maldives will host the SIDS Global Business Network Forum 2026 and the Island Investment Forum in Malé Aug 23–25 with 200+ participants from 30+ countries. Fisheries Support: The “Aaruveri Matching Grant Scheme” launches with MVR 278 million for fisheries businesses and individuals.

Addu Health & Safety: Addu City is set to build the Maldives’ first cytotoxic medical waste facility under an agreement with Addu Equatorial Hospital and WAMCO, targeting safe treatment and containment of chemotherapy-related hazardous waste, with construction in Hithadhoo expected to be operational within a year. Fisheries Funding: The fisheries ministry launched the MVR 278 million “Aaruveri Matching Grant Scheme” under the World Bank-backed TransFORM project, offering up to 40% grants across seven windows including fish meal, renewable energy for vessels and processors, mariculture, infrastructure, and value-addition. Dollar Crackdown Debate: The Maldives Monetary Authority revoked Express Money Exchange’s licence over illegal foreign exchange, while Parliament’s Public Accounts Committee approved tougher penalties for black-market dollar advertising and trading—sparking pushback from opposition leaders and the Maldives Journalists Association, which warn the move could curb media freedom and worsen confidence. Trade & Customs: Customs minister Ihusan said customs’ job now goes beyond revenue and borders, stressing digital systems and faster clearance for regional connectivity; separately, the Maldives signed an MoU with Nepal, Bhutan and Bangladesh to exchange pre-arrival customs information. Tourism & Travel: Velana International Airport handled about 1.62 million passengers in Q2, with international, domestic and seaplane traffic all rising; the Maldives also confirmed it will host SIDS Global Business Network Forum 2026 and the inaugural Island Investment Forum in Malé from Aug 23–25. Public Appointments: Former Atoll Council president Hassan Faihath Qudhrathulla was appointed Deputy Managing Director of FDC, and Yazmeed Mohamed took over as CEO of the Maldives Pension Administration Office.

Fisheries & Jobs: Maldives launched the World Bank-backed “Aaruveri Matching Grant” under the TRANSFORM Project, with MVR 278 million in non-reimbursable grants (40% of approved project costs) to boost energy efficiency, sustainable production, mariculture, value-added fish processing, and opportunities for women and youth. Foreign Exchange & Media Freedom: Parliament’s Public Accounts Committee approved Foreign Exchange Bill amendments that would criminalise public reporting/advertising of black-market dollar rates, with fines up to MVR 500,000, drawing sharp pushback from opposition leaders and the Maldives Journalists Association over press freedom and enforcement gaps. Tourism & Connectivity: Velana International Airport handled about 1.62 million passengers in Q2 2026, including 1.04m international, 242k domestic, and 341k seaplane travellers, as the expanded terminal supports growth. Governance & Diplomacy: The Foreign Ministry denied claims of consulates in Addu and Bengaluru, saying no decision has been made to establish a consulate outside Malé without broad consultations. Health & Waste: Addu City signed an MoU to build the Maldives’ first dedicated cancer treatment waste storage facility for cytotoxic waste, with construction targeted for completion this year.

Dollar crackdown sparks media backlash: MDP leaders and the Maldives Journalists Association warn that proposed Foreign Exchange Bill amendments could criminalise reporting and advertising black-market dollar rates, with fines up to MVR 500,000, arguing it won’t fix the crisis but will silence press freedom. Airport traffic update: Velana International Airport handled about 1.62 million passengers in Q2 2026, including 1.04m international, 242k domestic and 341k seaplane travellers, with a new terminal boosting capacity. Drug rehab gets AI push: The National Drug Agency signed an MoU with Yunnan University to use AI for addiction treatment, rehabilitation and mental health support, citing over 10,000 people affected. Cancer waste facility for Addu: An MoU sets up the Maldives’ first dedicated storage centre for chemotherapy cytotoxic waste in Addu City, with WAMCO tasked for sustainable operations. Tourism leadership in region: Visit Maldives CEO Ibrahim Shiuree elected to PATA’s Executive Board, as PATA expands its board with new members across Asia Pacific. Public health: Maldives Cabinet targets a generational smoking ban and tobacco-free athletes for national teams.

Foreign Affairs: The Foreign Ministry has denied claims that India plans to build a consulate in Addu City, saying no decision has been made on any consulate outside Malé and urging responsible reporting. Tourism & Connectivity: Tourism Minister Mohamed Ameen says Russia has agreed to increase flights to the Maldives, with more Russian airlines expected to start services. Transport Costs & Tourism: The Cabinet will review and reduce domestic airfare rates for tourists on Maldivian, but officials warn frequency and connectivity must improve too. Public Health: HPA reports 10 new measles cases in Greater Malé, bringing total confirmed cases this year to 226, with vaccination and isolation guidance reiterated. Economy & Policy: Parliament passed amendments raising withholding tax on payments to non-resident construction contractors from 5% to 10%, and approved Foreign Currency Act changes that lift the USD 15m to USD 25m threshold for required foreign currency deposits. State Sector Jobs: MTCC says its workforce has grown by over 2,000 since the current administration took office, despite earlier downsizing instructions for SOEs. Waste Services: WAMCO launched an official app for waste-collection registrations, service requests, payments, and complaint tracking. Business & Travel Tech: Resort Life Travel unveiled AI tools to help travellers plan Maldives holidays using live resort data. Local Infrastructure: Work to vacate the site for the new Malé Market Complex is planned within one month to clear the way for construction.

Public Health: Maldives recorded 10 new measles cases in Greater Malé over the past week, bringing confirmed infections this year to 226. Health authorities report 15,552 people vaccinated so far and urge residents to seek care early, wear masks at facilities, and avoid public transport and gatherings if symptomatic. Tourism & Policy: Parliament passed Foreign Currency Act amendments raising the foreign-currency deposit threshold for some businesses to USD 25 million (from USD 15 million) and easing requirements for fully Maldivian-owned firms. Tax & Construction: Parliament also approved a move to raise withholding tax on payments to non-resident construction contractors from 5% to 10%, expected to add about MVR 251 million annually. Economy & Jobs: Government set up an MVR 600 million startup fund (Kumevi Fund) for employees dismissed under “rightsizing” of loss-making state firms, to help them start businesses via SME Digital and support from the Business Center Corporation. Waste Services: WAMCO launched an official mobile app to manage waste-collection services, requests, complaints, and payments through eFaas. Business & Travel Costs: Cabinet directed IASL to review and reduce tourist airfares, though the airline already operates at a loss. Maritime Trade: Maersk increased peak season container surcharges for Maldives imports from East Asia, adding USD 400 per container from late August.

Tourism Tax Overhaul: Maldives Finance Ministry says it sought IMF advice on taxing foreign tour operators and offshore booking platforms under the “Destination Principle,” with a bill before the People’s Majlis to require registration and charge 17% Tourism GST from Oct 1, aiming to reduce offshore value leakage. Digital Banking Push: President Muizzu launched Maldives Premier Bank’s MPB Plus mobile app and internet banking, as the new Tier 1, 100% Maldivian-owned bank officially inaugurated operations. Public Sector Reshuffle Fallout: Finance Minister Hassan Zareer told Parliament the government is “right-sizing” state-owned enterprises, citing 4,938 hires since 2024 and saying redundant staff can access an MVR 600m startup fund. SOE Workforce Debate: Zareer also said public sector employment is “bloated,” claiming 53% of the workforce is in the state sector. Tourism Enforcement: Tourism ministry moves against tourism leaseholders over unpaid rent and fines, warning of possible lease action under the Tourism Act. Waste Law Update: Parliament passed amendments to the Waste Management Act, including removing the MVR 2 fee on bulk plastic bag packs over 50. Health Funding: HPA launched 3m MVR annual funding for tobacco-control awareness projects by community groups. Regional Ties: Maldives ambassador to UAE met Sharjah Chamber to explore trade and investment in areas like fish processing, dates, and tourism.

Banking & Jobs: President Dr. Mohamed Muizzu inaugurated the Maldives Premier Bank, the country’s ninth licensed bank, and launched its mobile app and internet banking. Localisation Push: MMA governor Ahmed Munwar said expatriates hold 40% of banking management roles today, aiming to cut that to 20% in five years so Maldivians hold over 80% of senior posts. Tourism Compliance: The Ministry of Tourism and Civil Aviation moved to act against tourism leaseholders that have not paid outstanding rent and fines, urging settlement while noting possible lease termination under the Tourism Act. Waste Policy: Parliament passed a Waste Management Act amendment removing the MVR 2 plastic bag fee on bulk packs over 50 bags, alongside new waste-planning and standards provisions. Health Funding: HPA launched a MVR 3 million annual tobacco-control fund from the Public Health Fund for community and civil society programmes. Mariculture Expansion: Fisheries designated 10 more mariculture zones, bringing the total beyond the earlier four areas. Data Leak Case: MTCC filed a police complaint over an employee accused of leaking ‘Male’ Taxi Line’ app data after service disruptions.

Tax and tourism rules: The government is set to tighten the tax framework for foreign businesses, including doubling withholding tax on payments to foreign construction contractors from 5% to 10% to “level the playing field” for Maldivian firms, and proposing GST on services by foreign tour operators and offshore booking platforms. Healthcare push: StatePharma MD Dr Shah says medicine shortages persist due to long-standing neglect in import, storage and stock management, and points to a new ERP and e-logistics system to improve island-wide availability. Aid and finance: The Maldives secured a $50m ADB loan for energy security to ease fiscal pressure from higher global fuel prices. Housing progress: Rasmalé reclamation is reported 55% complete, with 556.54 hectares reclaimed so far. Search and rescue: A US aircraft sweep found no new findings in the Friend4 sinking search; three Maldivians remain missing. Tourism and aviation: A high-level Maldives delegation heads to Russia to boost tourism cooperation and air connectivity. Humanitarian development: Maldivian Red Crescent unveiled plans for The Crescent Tower in Hulhumalé to fund humanitarian programmes. Local buzz: A croissant-Magnum fusion craze has gone viral, driving up demand for both items across the Maldives.

Energy Security: ADB approved a USD 50 million loan for Maldives’ Energy Security Emergency Assistance Project to ease fiscal pressure from higher fuel imports and subsidies. Local Infrastructure: MTCC has been contracted to build a dinghy jetty and coastal protection in Villimalé, with works scheduled over the next five to six months. Housing Progress: The Housing Ministry says 55% of Rasmalé reclamation is done, with 556.54 hectares reclaimed so far, as the flagship project faces renewed scrutiny over delays. Tourism & Diplomacy: Tourism Minister Mohamed Ameen leads a high-level mission to Russia to boost tourism cooperation and air connectivity, including talks with tour operators and media in Moscow and St. Petersburg. Digital Economy: FasterCapital backs Roam Dhuniye through EquityPilot to speed traveler eSIM adoption and improve international mobile connectivity. Finance & Policy: Parliament’s Public Accounts Committee met MMA officials on monetary measures, including plans to raise the minimum reserve requirement. Tax Reform: Government amendments aim to apply GST to foreign booking platforms and offshore tour operators, targeting over MVR 1.6bn annually. Health Supply: StatePharma held talks with India’s Serum Institute on strengthening vaccine and essential medicine supply for the Maldives. FX Pressure: Maldives revenue rose to over USD 976m in seven months, while the black-market dollar rate remains far above the official peg.

Monetary Oversight: Maldives’ Public Accounts Committee held a closed-door session with senior Maldives Monetary Authority officials on new monetary measures, including plans to lift the minimum reserve requirement from 10.5% to 11% in September and gradually to 13% by year-end. FX Pressure: A fresh debate continues as the black-market dollar rate climbs far above the official peg, with officials and lawmakers pointing to speculation and policy history behind the gap. Tourism Tax Push: Government amendments would apply GST to services supplied to the Maldives by offshore booking platforms and foreign tour operators, with an estimated annual gain of over MVR 1.6bn. India Links: Maldives reaffirmed its strong partnership with India on India’s 80th Independence Day, while a high-level Maldives delegation is also set for a Russia tourism mission. Digital Economy: Visit Maldives will host the inaugural Digital Ownership Summit on tokenised assets in December, aligned with Maldives 2.0. Tech for Locals: Synetecs upgraded Thaana AI, expanding Dhivehi/English support and cutting the effective cost of usage. Search Update: A US Navy P-8A Poseidon was spotted flying low over the search zone for three missing crew after the “Friend 4” capsized. Tourism Caution: Lawmaker Abbas warned tourism shouldn’t be “milked dry” as GST changes and market shifts squeeze resort occupancy.

Tourism Tax Push: The government has submitted a bill to charge GST on services supplied to the Maldives by foreign booking platforms and tour operators, aiming to raise over MVR 1.6bn a year and start registration once MIRA sets simplified payment arrangements. Revenue Watch: Maldives Inland Revenue Authority data shows state revenue topping USD 976m in the first seven months, up 8.73%, with TGST the biggest driver. FX Pressure: The dollar surge in the black market (reported up to MVR 22) is widening the gap with the official rate, adding cost pressure for import-dependent businesses. India Ties in Focus: President Dr. Muizzu used India’s Independence Day to pledge deeper Maldives–India cooperation, while world leaders including Macron and Putin sent greetings to India. Energy Support for Islands: The ADB approved a $50m emergency loan to strengthen Maldives energy security amid fuel shortages linked to West Asia conflicts. World Travel Awards Prep: Visit Maldives named STO Energy as energy partner and Jalboot as transportation partner for WTA 2026. Seismic Update: Maldives Met says a Sumatra quake poses no danger to the Maldives.

India 80th Independence Day Diplomacy: World leaders including Maldives President Muizzu sent greetings to India, praising its democratic journey and expanding global role, while Muizzu reiterated plans to deepen the Maldives–India strategic partnership. Regional Finance & Energy: The ADB approved a $50m emergency loan for Maldives energy security amid fuel shortages and higher costs linked to West Asia conflict. FX Pressure & Policy Moves: MMA sold more USD than it received in July as tourism inflows softened; it boosted dollar supply to banks and Parliament is considering easing foreign-currency conversion rules. Ports & Trade Logistics: MPL met lorry drivers and clearing agents ahead of relocating Malé Commercial Harbour to Thilafushi, aiming for faster cargo clearance; Raya Airways also began scheduled cargo flights from Penang to Velana. Tourism Safety & Travel Disruption: UK travel advice was updated for Maldives swimming risks from strong tidal currents, and FCDO warned Middle East disruptions could affect Maldives-bound flights via connections. Sports & Culture: Tree Top Hospital continued as medical partner for the Maldives Half Marathon; Saanthi received a National Award posthumously, and Kashima Shakir was conferred the Order of Dhiyamigili Dynasty. Politics 2028: Abdulla Shahid launched his MDP primary bid in Addu, as the opposition ticket race heats up.

Development Watch: President Dr Mohamed Muizzu says 2027 will be a “landmark year” as most infrastructure projects are expected to be completed, including modern council offices for around 100 islands by mid-2027, with some work continuing into 2028. Port & Trade: Maldives Ports Limited is consulting lorry drivers and clearing agents ahead of relocating the Malé Commercial Harbour to Thilafushi, aiming for faster cargo clearance at the new multi-purpose port. Dollar Pressure: The Maldives Monetary Authority sold more USD in July than it received, as tourism-season inflows weakened and demand rose for travel, medical and Umrah needs; MMA increased dollar supply to banks by 51% for three weeks and Parliament is considering Foreign Currency Act amendments. Cargo Link: Raya Airways has started scheduled cargo flights to Velana International Airport, launching a direct Penang–Malé freight route twice weekly. Tourism Safety: The UK Foreign Office updated travel advice for Maldives visitors, warning about strong tidal currents and urging people to check safe swimming areas with resort staff. Politics: Former foreign minister Abdulla Shahid has launched his bid for the MDP opposition ticket for the 2028 presidential race, starting with a campaign push in Addu. Health: IGMH welcomed Dr Hammad Adam, the first Maldivian consultant sub-specialist in colorectal surgery, to expand local access to complex treatment.