For years, the Maldives has faced an entrenched problem—undocumented migrant workers. An estimated 60,000 labourers, working outside the bounds of legality, have become a significant force in the nation’s economy. The existence of this unregulated workforce has driven unfair competition, enabled exploitation, and evaded the regulations that govern legitimate businesses and employment practices.
Undermining Fair Competition and Employment
In a small economy like the Maldives, undocumented workers often run businesses that bypass regulatory requirements, creating an uneven playing field for local entrepreneurs and businesses that adhere to legal standards. These businesses, ranging from market stalls to service providers, often avoid taxes and regulatory fees that legal enterprises are obligated to pay. This disparity allows undocumented workers to offer services and goods at lower prices, disadvantaging businesses that operate within the legal framework. Such practices not only distort market competition but also lead to significant revenue losses for the government, affecting public services and infrastructure development.
Furthermore, undocumented employment has a ripple effect on local employment opportunities. Jobs that could have been filled by Maldivians are taken up by undocumented workers, often at lower wages and under poorer conditions. This displacement contributes to rising unemployment rates among locals, heightening economic inequalities and social tensions. Legal workers, on the other hand, are entitled to protections and benefits such as minimum wage, social security, and safe working conditions—rights that undocumented workers typically lack, leading to their exploitation by unscrupulous employers.
Exploitation and Human Trafficking
The presence of undocumented workers also feeds into a broader issue of human trafficking and labour exploitation. Many undocumented workers in the Maldives arrive through fraudulent recruitment practices, where they are promised lucrative jobs only to find themselves trapped in exploitative conditions. Deceptive recruitment agents, often in collaboration with employers, confiscate passports and withhold wages, creating conditions of forced labour and debt bondage. Migrant workers, particularly those from Bangladesh and India, frequently endure unsafe living and working conditions without any legal recourse, highlighting significant human rights concerns.
The lack of effective enforcement mechanisms and coordination among various agencies has exacerbated these issues, making it difficult for authorities to identify and prosecute traffickers and abusive employers. Although the Maldives enacted an Anti-Human Trafficking Law in 2013, its enforcement has been minimal, with very few convictions reported. This lack of accountability has allowed exploitative practices to persist, further harming the nation’s reputation on the global stage.
Government Efforts and Shortcomings
Recognising the severity of the issue, the Maldivian government has taken steps to mitigate the impact of undocumented workers. Recently, Controller General of Maldives Immigration Mohamed Shamman Waheed disclosed that the authority has deported more than 3,000 expatriates working and conducting businesses illegally. As of August 25, a total of 3,322 foreigners were deported, reflecting a 64.3% increase compared to the 2,021 deportations recorded between January 1, 2023, and November 16, 2023.
The government has launched “Operation Kurangi,” a nationwide programme aimed at targeting undocumented immigrants through biometric identification and facilitating their deportation in cooperation with relevant embassies. This initiative, launched in July following Cabinet recommendations, aims to resolve the issue of illegal immigrants within three years.
Additionally, joint operations between the Ministry of Homeland Security and Maldives Immigration have resulted in the detention of several immigrants involved in illegal trade and food production activities that fail to meet food security standards. However, the existing detention facility remains inadequate to handle the current speed of deportations, prompting the government to work on expanding its capacity to hold over 200 people at a time.
Critics argue that these efforts are insufficient without a commitment to enforcing existing laws against Maldivians complicit in these practices. Despite the introduction of new rules and policies, many local business owners and intermediaries involved in the recruitment and exploitation of undocumented workers continue to evade justice. If the government were genuinely committed to addressing this issue, it would ensure that these individuals face legal consequences, thus dismantling the networks that facilitate undocumented work and exploitation.
Reflecting on the Roadblocks
The continued presence of undocumented workers in the Maldives presents a multifaceted challenge that affects fair competition, worker exploitation, and local employment. While recent government actions suggest a willingness to tackle these issues, a more comprehensive and transparent approach is needed, one that holds all parties accountable. Addressing this challenge not only protects the rights of workers but also reinforces the rule of law, ensuring sustainable economic development in the Maldives.
By tackling the problem of undocumented workers head-on, the Maldives can pave the way for a more equitable and prosperous future for all its residents.
