Maldives Pension Administration Office (MPAO) board member Ahmed Saruvash Adam has resigned following the approval of a controversial transaction involving the sale of a government bond to the Maldives Monetary Authority (MMA).

The decision, approved by the MPAO board last week, allows the sale of a government bond in the secondary market through the central bank. The transaction, valued at approximately MVR 2.4 to 2.5 billion, has drawn public criticism amid concerns that it could be equivalent to printing money.

Saruvash, who represented the private sector on the MPAO board, announced his resignation on Wednesday via a post on X. In his statement, he said he chose to step down to uphold the principles of prudence, integrity, and institutional independence, citing serious legal, fiduciary, and economic concerns over the board’s decision.

According to information shared in his resignation letter, three of the five board members voted in favour of the transaction, while two opposed it. MPAO Chairperson Ahmed Inaz reportedly did not participate in the vote. Saruvash noted that the Pension Office acted as an intermediary in the arrangement, with the Finance Ministry requesting the sale of Treasury Bills to the MMA in order to meet budgetary needs.

He argued that the deal effectively channels funds from the central bank to the government through the pension fund, warning that it could increase the supply of Maldivian Rufiyaa or require converting US dollars from state reserves. He also raised concerns about the lack of transparency and the absence of a formal legal review before proceeding with the decision.

Saruvash previously served as Chief Financial Budget Executive at the Ministry of Finance and as Chairperson of the Maldives Inland Revenue Authority (MIRA). He resigned from the Finance Ministry earlier this year.

The Finance Ministry has defended the transaction, describing it as a secure investment arrangement between the MMA and the pension fund, rather than monetary expansion. A senior official said the arrangement would allow the government to meet its financial obligations while also creating new investment opportunities for the pension fund.

The controversy comes as the government prepares to pay MVR 2.3 billion to private businesses and contractors over the next 10 days, part of an effort to clear overdue payments. Some opposition figures and economic experts have linked the bond sale to this plan, arguing that it amounts to indirect money printing and could exacerbate inflationary pressures.

President Dr Mohamed Muizzu has maintained that the payouts will not involve printing money, reiterating his administration’s commitment to fiscal discipline.

Fenaka has dispatched two new 1.8 MW Cummins generators to Addu City to alleviate recurring power outages affecting the area. A 1.6 MW unit is also scheduled to be sent, complementing the current deployment.

The company is actively procuring an additional genset to ensure an uninterrupted electricity supply to the city. Fenaka confirmed that efforts are ongoing to implement a long-term, sustainable solution to Addu City’s power challenges.

Residents of Addu City have frequently reported power disruptions and called for decisive measures to improve reliability. Fenaka’s latest deployment is part of its commitment to enhancing service continuity and addressing the city’s energy needs.

The government has proposed a major amendment to the Special Economic Zone (SEZ) Act aimed at attracting large-scale foreign investment and facilitating the creation of Sustainable Townships across the Maldives.

The amendment, presented to Parliament by Baarah MP Ibrahim Shujau on behalf of the government, received its first reading on Monday. It marks the first proposed revision to the SEZ Act since its introduction in 2014.

Under the proposed changes, Sustainable Townships are defined as large-scale real estate or integrated tourism developments that are centrally managed and designed with sustainable infrastructure to reduce environmental impact. These developments are required to include residential facilities, essential services, and public utilities within the zone.

To qualify for establishing a Sustainable Township, investors must commit a minimum investment of USD 500 million. Projects must feature integrated tourism or large-scale real estate developments offering a range of residential and luxury services, along with either an international standard hospitality training centre or a healthcare facility.

The proposed legislation also sets sustainability standards, requiring at least 60 percent of operational energy to come from renewable sources, self-sufficiency in energy generation and waste management, and the inclusion of sustainable or co-agriculture facilities to support local food production. Developers would also need to ensure that housing, education, healthcare, and recreational facilities are provided through environmentally sustainable infrastructure.

To encourage investment, the amendment includes fiscal incentives. Developers will benefit from a tiered income tax regime, starting with a five percent rate for the first 10 years, increasing to 10 percent for the following 10 years, and reverting to the standard rate under the Income Tax Act thereafter. Additionally, investors would be exempted from import duty on capital goods used for development within the zones.

The bill stipulates that implementing regulations must be published in the government Gazette within six months of enactment. The amendments will come into force immediately after parliamentary approval, presidential ratification, and publication, setting the stage for the establishment of new investment-driven Sustainable Townships in the country.

The government will disburse MVR 2.3 billion to private businesses and award several development projects to private construction companies within the next 10 days, according to President Dr Mohamed Muizzu.

The payments are intended to settle outstanding bills carried over from the previous administration and are expected to inject liquidity into the economy, with particular benefits for small and medium-sized enterprises (SMEs).

The President outlined that upcoming projects would include schools, health centres, mosques, and sports facilities, which will be contracted to private firms. The government views this as a way to revitalise the construction sector, which has seen stagnation in recent years.

The announcement follows increased public discussion surrounding a recent bond transaction between the Pension Office and the Maldives Monetary Authority (MMA). Opposition figures have questioned whether the transaction, involving the sale of a government bond on the secondary market, could be equivalent to monetary expansion. However, the administration has maintained that the measure does not amount to printing money and is part of its broader fiscal management strategy to settle arrears owed to contractors and suppliers.

The Ministry of Finance has yet to release formal details of the transaction, though officials cited by local media indicated that proceeds would be directed toward clearing pending payments.

The government’s renewed focus on involving private companies in infrastructure development comes amid concerns that many major projects have been channelled through state-owned enterprises (SOEs) in recent years. Several SOEs have faced criticism for operating outside their original mandates, prompting calls for greater private sector participation.

Despite a capital expenditure budget of MVR 12.6 billion for this year, only MVR 3.5 billion has been spent to date, according to official figures, suggesting a significant gap between planned and actual project implementation.

The State Trading Organization (STO) has announced new measures to expand the availability of essential food items across the Maldives, with particular emphasis on improving access for island communities.

The initiative follows the recent inclusion of 23 additional products in STO’s essential food list. These comprise 10 fruits, 10 vegetables, and three other key items. While the new products are currently available at the STO People’s Choice Supermarket in Malé, the company is establishing new supply chains to enable nationwide distribution.

As part of this effort, STO is preparing to open a new retail outlet in Malé dedicated to supplying fruits and vegetables to the atolls. The outlet, located near Maldives Ports Limited (MPL) on Boduthakurufaanu Magu, where STO’s Makita showroom currently stands, will act as a supply hub. STO has stated that it will offer direct delivery services from this outlet to cargo boats and the harbour area, aiming to simplify logistics for island retailers and residents.

In addition to this new facility, STO plans to utilise its existing infrastructure in the atolls, which includes four distribution centres and 12 retail outlets across different islands.

The company has also announced plans to open a permanent store in Hulhumalé that will stock these essential items. Currently, residents in Hulhumalé only have access to temporary STO fruit and vegetable stalls during Ramadan. The new store, expected to open before next Ramadan, is intended to provide consistent access to these goods for the growing population of the urban island.

President Dr Mohamed Muizzu has announced that the development of L. Kadhdhoo Airport is scheduled to be completed within three years. The statement was made during a meeting with residents of L. Fonadhoo on Monday evening as part of his visit to the inhabited islands of Laamu Atoll.

During the event, several agreements related to infrastructure development in Fonadhoo were formalised, including contracts for a land reclamation and coastal protection project. The Maldives Airports Company Limited (MACL) also formally assumed responsibility for the development and operation of Kadhdhoo Airport.

According to details shared at the meeting, the airport project will involve reclaiming 114 hectares of land for a 2,800-metre runway and an additional 30 hectares to expand Fonadhoo Island, totalling 144 hectares of reclaimed area. The reclamation work is expected to be completed within a year, with the overall project scheduled for completion within 36 months. The President noted that the Maldives National Defence Force (MNDF) facility in the area would remain in place.

The meeting also included the signing of several other development agreements for Fonadhoo, such as the establishment of a Maldives National University (MNU) campus and MNU Language School, the development of a government office complex, a harbour project, a new sports complex, and the third phase of road construction.

The proposed MNU Language School is expected to offer foreign language programmes designed to improve employment prospects in the tourism sector. The sports complex will include seating for 1,200 spectators and facilities for multiple indoor sports, in line with the standards of the Maldives Centre for Social Education (MCSE) in Malé.

Regarding housing, the President said work is underway to contract the construction of the first 100 housing units out of a pledged total of 500 units for Fonadhoo. He also mentioned plans for a 50-bed hospital funded by the Saudi Fund for Development.

In addition, the Maldives Ports Limited (MPL) is in the process of selecting a contractor for a transhipment harbour that will provide bunkering services.

The President stated that the Government remains focused on supporting economic recovery and plans to meet outstanding payment obligations without monetary expansion. He also said upcoming infrastructure projects would be awarded to private companies, which is expected to contribute to employment and economic activity.

President Dr Mohamed Muizzu has begun a three-day visit to the inhabited islands of Hadhdhunmathi (Laamu Atoll), where he is scheduled to meet with local councils, Women’s Development Committees (WDCs), and residents.

The visit includes stops at eleven islands: Isdhoo, Kalaidhoo, Dhan’bidhoo, Maabaidhoo, Mundoo, Gan, Maavah, Fonadhoo, Maamendhoo, Hithadhoo, and Kunahandhoo. Discussions are expected to focus on local infrastructure needs, community welfare, and ongoing development projects.

According to the President’s Office, the trip is part of a broader effort to maintain regular contact with atoll, island, and city councils. The President will hear directly from communities about their priorities and challenges, with the aim of identifying areas where government support may be needed.

Cabinet Ministers and senior officials from various government institutions are accompanying the President on the visit.

The Ministry of Economic Development and Trade introduced a Transition Arrangement for existing foreign investments affected by the newly restricted and closed sectors under the revised Foreign Investment framework.

According to the Ministry, the transitional framework, introduced with the revised framework for investing, aims to support investors impacted by the policy changes, allowing them sufficient time to restructure operations and align with the new entry requirements endorsed by the Cabinet.

The Annex II published by the Ministry outlines the applicable transition periods for existing investments in restricted and closed sectors. It also highlights that the proposed durations and scope were developed following extensive consultations with the Business Council—a body comprising private sector representatives across key industries—as well as with investors and legal experts representing foreign stakeholders.

The Ministry stated that the arrangements are in line with international best practices, ensuring policy credibility while facilitating a smooth transition for affected businesses.

Transition periods will vary based on the sector, project type, and investment scale.

• A one-year transition period will be granted to businesses in General, Cargo, and Passenger Sales Agency, Accounting and Auditing, Service-based businesses, and Wholesale and Retail Trade.
  
• Sectors involving substantial investments, such as sea transport, domestic logistics, and capital-intensive projects, will be granted three to seven years.
  
• Existing residential real estate projects will follow transition timelines as outlined in their respective project agreements.
  

Investors seeking to benefit from the transition period must submit an application via fiu@trade.gov.mv. Applications will undergo a preliminary assessment by the Foreign Investment Unit (FIU), followed by a review by the Transition Committee. The Ministry will then issue a decision specifying the approved continuation period, with investors given the right to appeal for re-evaluation.

Farmers are the backbone of the nation during times of crisis, Minister for Cities, Local Government and Public Works Adam Shareef Umar has said.

Speaking at the opening ceremony of the Fehi Dhirun Expo held on 18 October to mark National Farmers’ Day, World Food Day and World Animal Day, Minister Shareef reflected on the vital role of farmers throughout history. He recalled that during World War II, food shortages affected many countries, but Maldivians were able to sustain themselves thanks to the nation’s rich marine resources and the relentless work of farmers across the islands.

“In this country, it is the farmers who provide the public with the greatest reassurance during times of difficulty. Their work must be recognised and valued,” the Minister said, acknowledging their continued contribution to national resilience.

He further noted that while the Maldives has evolved over the years, challenges such as land shortages persist. However, he highlighted that many farmers across the country continue to maintain productive farms through the use of modern technology.

At the same event, Minister of Agriculture and Animal Welfare Dr Maryam Mariya announced that a dedicated application for farmers, the ‘Dhanduveriyaa’ app, will be launched later this year. She stated that ensuring safe and affordable food for all should remain a national and international priority, noting that the agricultural industry is expanding and plays an increasingly important role in the country’s economy.

Dr Mariya revealed that more than 7,000 farmers are currently active in the Maldives, with women comprising over half of the workforce. She said this growing participation contributes significantly to women’s economic empowerment.

She also underlined the importance of prioritising environmental sustainability and human wellbeing in agricultural practices, pointing to the Maldives Food Agricultural Practice Certification System as the national framework ensuring the safety, quality and sustainability of local produce.

The Minister added that the government is continuing efforts to attract investors to agricultural islands, implement projects that promote island farming, and develop digital tools to collect and analyse agricultural data. She said the beta version of a new mobile application is now being tested and will be made publicly available to farmers later this year.

Dr Mariya commended President Dr Mohamed Muizzu’s leadership in ensuring that every island is equipped with land and resources to promote self-sustenance. She reaffirmed the government’s commitment to supporting this goal through targeted agricultural initiatives.