On Thursday, the Minister of Homeland Security and Technology, Ali Ihusan, announced that the Maldivian government had reached a new agreement with Malaysia’s Bestinet Sdn Bhd to develop a system for managing expatriate workers to avert a substantial compensation payout.
Ihusan revealed that the initial agreement with Bestinet was made in 2015 during the former administration of President Abdulla Yameen. However, with the country’s decision in 2019 to suspend the recruitment of workers from Bangladesh, the 15-year contract remained unimplemented, leading to legal discussions and the potential of a significant compensation payout of USD 13.7 million, plus additional claims for business losses over the remaining contract period.
“Bestinet presented the Maldives with two options,” explained Ihusan. “The first was to pay USD 13.7 million immediately, with further payments to cover estimated losses over the 15-year term. The second option was to contract Bestinet to implement a foreign worker placement system and related services in the Maldives.”
After careful consideration, the government decided it would be more prudent to avoid a significant financial outlay by entering into a new agreement with Bestinet to develop the expatriate processing system.
Ihusan also highlighted the financial benefits of the new system, stating that it could double the revenue the state earns from expatriate workers. “Where the state previously received MVR 685 million, we estimate that with this new system, the revenue could increase to around MVR 927 million,” he stated.
The Minister noted that the system is expected to be operational by February next year.
