President Mohamed Muizzu’s Republic Day remarks revealed more than a simple observation about misconduct in the public sector. They revealed a worldview. Speaking at the Youth Centre, he argued that corruption is “mostly” carried out by lower and middle level employees, those who have the chance to participate in it. Top officials, he conceded, commit such acts too, but the emphasis was clear.

To understand why these comments matter, it helps to consider how corruption actually works. Around the world, the patterns are familiar. In South Korea, major corruption scandals have involved presidents, conglomerate chairmen, and senior political aides making decisions that shape entire economies. In Brazil, the sprawling Lava Jato investigation exposed a network of political executives and corporate leaders who diverted public funds on a massive scale. In Indonesia, the Corruption Eradication Commission has repeatedly focused on governors, ministers, and members of parliament because these officials control budgets, procurement, and policy decisions worth millions.

In each of these countries, investigations into petty corruption at the lower levels exist. But the most damaging forms of corruption are almost always driven by access to power, not proximity to paperwork.

This is why the President’s framing is troubling. Lower and middle level employees do not design megaprojects, negotiate foreign financing, authorise land allocations, award multi million dollar contracts or set national priorities. They are functionaries within systems built above them. When corruption occurs on a meaningful scale, it requires authority. It requires influence. It requires decisions that only the upper tiers of the state can make.

The Maldives is no exception. The largest scandals in the country’s history have involved individuals at the helm of public institutions, not clerks at the bottom of them. The structures that enable corruption are shaped by those with the most reach, not those who simply follow orders. To suggest otherwise turns the logic of accountability upside down.

There is another risk in the President’s approach. When leaders publicly shift blame downwards, they create a culture where the least powerful are treated as the source of the problem, while those with the most responsibility are allowed to remain in the background. It builds an environment where institutional weaknesses go unaddressed because the analysis begins in the wrong place. The public is left with the impression that the system is fundamentally sound and that only its lowest participants are failing it.

What the Maldives needs is the opposite. A serious national conversation about corruption requires clear recognition that systems reflect the behaviour of their leaders. Countries that have made progress, from Georgia’s sweeping public sector reforms to Singapore’s disciplined approach to governance, did so by starting at the top. Leadership set the tone, enforced standards, and allowed transparency to operate without fear or favour.

To single out the lower and middle ranks is to avoid confronting the more difficult truth. Corruption is not an issue of who has the smallest salary or the least power. It is an issue of who controls decisions, who benefits from them, and who is protected from scrutiny. Real change begins at the highest levels, not the lowest.

About MVR 1 billion owed to the state remains unrecovered because it is tied up in lengthy court proceedings, Commissioner General of Taxation Hassan Zareer told parliament’s budget review committee. He said it can take up to a decade for a single case to move from the Tax Appeal Tribunal to the Supreme Court, leaving substantial amounts inaccessible for years.

According to Zareer, the Maldives Inland Revenue Authority is currently managing around 200 tax cases with only five lawyers. He noted that MIRA previously had the option of bringing in external experts to represent the authority in court, but current regulations no longer permit that. This, he said, has made it difficult to recruit and retain skilled legal professionals.

“If you work for MIRA, you can’t do any other legal work,” he said, adding that tribunal rules require a master’s degree in taxation for anyone wishing to handle tax cases abroad, including in the EU.

Zareer also raised concerns about the qualifications of those adjudicating tax disputes. In other jurisdictions, he said, judges hearing tax cases are required to have specialised training, while no similar requirement exists in the Maldives. This lack of expertise affects MIRA’s ability to pursue cases effectively, he said, noting that tax is a distinct legal field that demands technical understanding.

MIRA currently collects around 85 percent of total state revenue. As of September last year, the authority recorded MVR 13 billion in outstanding dues, with the largest share linked to unpaid resort rent amounting to about MVR 5 billion. Zareer said prolonged delays in the judicial process continue to hinder the state’s ability to recover these funds.

The Maldives Monetary Authority has urged the government to implement upcoming salary increases in phases, warning that raising wages across all sectors at once could place added strain on the budget and the foreign exchange market.

Speaking before the Parliament’s Budget Committee, Governor Ahmed Munnawar said the most significant challenge for next year will be managing the cost of the pay harmonisation initiative. He noted that the government is preparing for a sizeable rise in the wage bill, with recurrent expenditure expected to increase by roughly MVR 3 billion if salaries are adjusted simultaneously.

Munnawar said a staggered approach would reduce pressure on state finances and help maintain stability in the foreign exchange market. He explained that access to international loans has been difficult in recent years, and reserves have not reached the level MMA considers adequate to manage fluctuations. With the country relying on foreign currency received through the Foreign Exchange Act, taxes and state revenue, he cautioned that sudden increases in spending could disrupt the balance next year.

MMA Research Executive Mariyam Rashfa told the committee that raising salaries at the same time would create inflationary pressure and negatively affect the MVR exchange rate. She reiterated that the risks would be more manageable if adjustments were spread out over time.

The government has allocated MVR 1.7 billion in the 2026 budget for salary revisions, covering civil servants and employees of independent institutions. State employees are expected to reach 54,000 next year, an increase of 7,000 compared with this year, with salaries projected to account for 30 percent of the total budget.

MMA also recommended reforms to subsidies, Aasandha and medical welfare to reduce recurrent expenditure, noting that 99 percent of state revenue is currently spent on recurrent costs. Without efficiency gains in state-owned companies, the central bank warned that subsidy bills may continue to grow, adding further pressure on the budget.

The Finance Ministry has announced measures to support the transition, including capping overtime payments at 10 percent of base salary and allowing more flexible working arrangements where appropriate. President Dr Mohamed Muizzu has said the Pay Commission will continue engaging with government offices to address concerns related to the ongoing pay harmonisation process.

The Maldives held its first national tax forum on Saturday, bringing together experts and policymakers to discuss how the country can build a stronger and more efficient tax system.

Organised by the Institute of Chartered Accountants of Maldives and the Maldives Inland Revenue Authority, the Maldives Tax Forum 2025 focused on the theme “Shaping a Smarter Tax Future.” The event convened tax professionals, lawyers and accountants to examine challenges in tax administration, ranging from payment difficulties to international compliance requirements.

A recurring concern was the complexity foreign nationals face when navigating the Maldivian tax system. Participants noted that clearer guidance and more streamlined procedures would support better compliance and reduce obstacles for those working or investing in the Maldives.

Speakers also highlighted MIRA’s ongoing move towards greater digitalisation. Efforts to automate tax administration were presented as a pathway to improving efficiency, strengthening transparency and reducing administrative gaps.

Foreign Minister Dr Abdulla Khaleel, addressing the forum, said the reliability of a country’s tax system has strategic value on the international stage. “Investors, development banks and governments look at how a country generates and maintains its own revenue, and a modern reliable tax system is the strongest calling card a country can carry in any international transaction.”

The forum served as a platform for open dialogue among regulators, professionals and policymakers, marking an important step in shaping a more responsive and inclusive tax environment in the Maldives.

President Dr Mohamed Muizzu has said that the government has gathered biometric data from more than 191,700 foreigners residing in the Maldives, outlining the latest update in the administration’s efforts to address the long-standing issue of undocumented migrants.

Speaking at the ruling People’s National Congress rally held on Friday night, the President said resolving the matter remains a core priority and acknowledged that previous administrations had also struggled to find a lasting solution. He stated that when the current government took office, there were no clear statistics on the actual number of foreign workers living in the country, but that ongoing biometric registration efforts have now produced updated figures.

According to the President, authorities have taken ten fingerprints from 191,723 foreigners, enabling the government to identify where individuals live and maintain a more organised database. He added that the deadline for submitting biometric details expires today and noted that those who fail to register will face deportation if found in operations set to begin immediately afterwards.

The President also referenced the number of deportations carried out over the past two years, stating that 9,021 foreigners have been removed from the country. He said this includes undocumented migrants, individuals who had committed offences and those who opted not to undergo regularisation. He compared this with the previous administration’s figures, saying deportations under the current government are higher.

The ongoing biometric exercise is part of wider efforts announced by the government to improve monitoring, data management and enforcement concerning foreign workers and undocumented migrants.

Island Aviation Services Ltd. (IASL) has signed an agreement to commence the Maafaru International Airport Terminal Building Extension Project, marking a new phase of development for the airport following the completion of recent runway and infrastructure upgrades.

The contract has been awarded to Hunan No.6 Engineering Co., Ltd as the main contractor, with Gedor Consulting Private Limited serving as the consultant. Scheduled for completion within ten months, the project will introduce a two-storey terminal extension that will significantly expand the airport’s existing footprint.

The new terminal will include an enlarged arrival hall, a dedicated CIP lounge, and upgraded first-floor facilities featuring a passenger lounge and additional office spaces. Once completed, the expansion is expected to increase passenger-handling capacity and enhance Maafaru’s role as a key international gateway to the northern Maldives.

This project follows the completion of a major runway extension earlier this year, which lengthened the runway to 2,850 metres, allowing the airport to accommodate wide-body aircraft. The expanded aircraft parking area has also strengthened the airport’s ability to handle both business jets and scheduled commercial operations.

Together, these developments reinforce Maafaru International Airport’s position as a strategic aviation hub serving the northern atolls, while supporting regional connectivity and sustainable tourism growth. Since its opening in 2019, the airport has become an important contributor to the local economy, providing employment opportunities and improving access for travellers and businesses alike.

The terminal expansion aligns with IASL’s broader strategy to enhance airport infrastructure and operational capacity across its network. It also supports the Government of Maldives’ national vision to expand connectivity, improve service standards, and promote long-term growth in the aviation and tourism sectors.

The Ministry of Finance and Planning has announced a new round of Treasury Bill (T-bill) issuances worth a total of MVR 2.95 billion under series TB-2025-022, inviting investors to subscribe to the short-term government securities.

The sale date is set for 16 November 2025, with settlement scheduled for 17 November 2025. The four T-bill tranches on offer carry maturities ranging from 28 to 364 days, with interest rates between 3.50% and 4.60%.

According to the Ministry, the details of the offer are as follows:

• 28-day T-bill: MVR 1.01 billion at 3.50%, maturing on 15 December 2025.
• 98-day T-bill: MVR 50 million at 3.87%, maturing on 23 February 2026.
• 182-day T-bill: MVR 989.8 million at 4.23%, maturing on 18 May 2026.
• 364-day T-bill: MVR 907.2 million at 4.60%, maturing on 16 November 2026.

Subscriptions must be made using the official form and submitted to the Ministry of Finance and Planning between 8:30 a.m. and 11:00 a.m. on the sale date. Full payment is required on the settlement date to complete the transaction.

Treasury Bills form an integral part of the government’s short-term borrowing strategy, enabling it to manage cash flow and finance immediate fiscal needs. The instruments also provide a secure investment option for banks, state-owned enterprises, and institutional investors seeking low-risk returns.

President Dr Mohamed Muizzu has ratified the First Amendment to the Special Economic Zone (SEZ) Act (Act No. 24/2014), introducing new provisions to support the development of sustainable townships within designated SEZs.

The amendment bill was passed by the 20th People’s Majlis during its 16th sitting of the third session of 2025, held on 5 November.

The revised Act outlines the framework for designating SEZs as sustainable townships, setting out the principles and conditions required for their establishment. According to the amendment, a sustainable township must involve a minimum investment of USD 500 million and include either an integrated tourism development or a large-scale real estate development. Integrated tourism projects are required to feature a range of luxury tourism services, while large-scale real estate developments must additionally include luxury residential facilities.

The amendment also introduces new sustainability standards for infrastructure within such zones. It mandates that energy production and waste management systems must be self-sufficient, with at least 60 per cent of the zone’s operational energy needs generated from renewable sources.

In addition, the amendment specifies a range of special concessions and incentives for developers and investors involved in sustainable township projects, aimed at promoting large-scale, environmentally responsible investment in the Maldives.

Following ratification, the First Amendment to the Special Economic Zone Act has been published in the Government Gazette and is now in effect.