AGP Executive Report

Tax Policy: Parliament greenlit a bill to double withholding tax on payments to foreign contractors from 5% to 10%, with the government arguing it will create a “level playing field” for Maldivian firms; the bill now goes to the Whole House Committee after a 64-1 vote. Parliament Disruption: A power outage cut off electricity to Majlis chambers, forcing Monday’s sitting to suspend while MPs debated the Pearl Residency Program. Public Finance Relief: The Maldives secured a USD 50m ADB loan under an energy security emergency project to help cover rising fuel costs for electricity, water, transport of essentials, and waste management. Judiciary Appointment: Adam Shameem was appointed Chief Judicial Administrator of the Department of Judicial Administration following a Judicial Service Commission selection process. Housing & Land: The Housing Ministry says 55% of Rasmalé reclamation is complete (556.54 hectares reclaimed), as the project continues amid opposition criticism. Foreign Contractors & Tourism Taxes: Alongside withholding tax changes, government proposals also target GST on inbound tourism services supplied by foreign operators and offshore booking platforms. Humanitarian Finance: Maldives Red Crescent unveiled plans for The Crescent Tower, a 14-storey Hulhumalé commercial development to fund humanitarian programmes. Search & Rescue: MNDF said chances of finding three missing men from the Friend 4 sinking are “slim,” though a US aircraft sweep found no new leads. International Diplomacy: A Maldivian foreign affairs minister met Qatar’s Maldives ambassador to review cooperation.

Energy & Finance: The Maldives secured a USD 50m ADB loan for energy security, aimed at easing fiscal pressure from higher global fuel prices and covering diesel needs for electricity, water, transport of food/medical supplies, and waste management. Judiciary: Adam Shameem was appointed Chief Judicial Administrator after a JSC selection process, taking over from Amjad Mustafa. Housing Progress: The Housing Ministry says 55% of Rasmalé reclamation is complete, with 556.54 hectares reclaimed—amid ongoing opposition criticism of delays. Foreign Exchange Pressure: Official reserves fell to USD 638.03m by end-July, down from USD 1.33b in March, as large external repayments were made and banks struggled to meet dollar demand at official rates. Tourism Policy: MPs debated amendments to levy GST on offshore booking platforms and foreign tour operators, with Mohamed Abbas warning tourism shouldn’t be “milked dry” as occupancy reportedly drops sharply. Diplomacy & Markets: A high-level tourism mission led by Minister Mohamed Ameen heads to Russia to boost air connectivity and tourism cooperation. Digital Economy: Visit Maldives will host the inaugural Digital Ownership Summit in December, focused on tokenised real-world assets for tourism and investment.

Parliament Oversight: The Majlis Public Accounts Committee met in a closed session with Maldives Monetary Authority officials to discuss MMA monetary measures, after a ruling-party MP pushed for secrecy. FX Pressure: Official reserves fell to USD 638.03m by end-July, down from USD 1.33bn in March, as April debt repayments and an India currency swap settlement drained reserves. Dollar Debate: A political commentary argues blame games won’t cut the black-market dollar, citing a gap between the official MVR 15.42 and market levels above MVR 21. Tourism Tax Fight: MPs debated a bill to levy GST on offshore booking platforms and foreign tour operators, with warnings that treating tourism like a “cash cow” could hurt an already struggling sector. Judiciary Appointment: Adam Shameem was appointed Chief Judicial Administrator, taking over the top administrative role at the Department of Judicial Administration. Diplomatic Moves: Jameela Ali Khalid was nominated as Maldives’ new high commissioner to the UK. Search Update: A US Navy P-8A aircraft was spotted flying over the search zone for three missing crew/rescue personnel after the Friend 4 capsized. Tech & Digital Economy: Visit Maldives will host the inaugural Digital Ownership Summit on tokenised assets, while Synetecs launched a major Thaana AI pricing upgrade.

GST Push on Tourism: The government has submitted a bill to impose GST on services supplied to the Maldives by foreign booking platforms and tour operators, aiming to apply the “destination principle” and target offshore providers once MIRA sets simplified arrangements, with an estimated MVR 1.6bn in annual revenue. Maldives-India Ties: President Muizzu and PM Modi exchanged Independence Day messages, with Muizzu reaffirming priority for strengthening the Maldives–India partnership and Modi thanking Maldives for its warm wishes. National Day Heritage Launch: Muizzu inaugurated “Vaahaka Vau” in Utheemu, a walk-through heritage park telling Boduthakurufaanu’s independence struggle, as part of heritage-based income efforts. Revenue Update: MIRA reported state revenue of MVR 22.7bn for Jan–Jul, up 8.73%, driven by TGST and rising dollar collections amid FX pressure. Fire in Malé: A seventh-floor apartment fire in H. Fahivai was extinguished quickly; a responding police officer was injured but not seriously. Youth & Space: A Maldivian girl was selected for Mission ShakthiSAT, a global satellite-building programme for girls. Tourism Event Partners: Visit Maldives named STO Energy and Jalboot as energy and transportation partners for the World Travel Awards 2026.

National Day & Islam Safeguards: President Muizzu says the government will submit new legislative changes to ensure no laws contradict Islam, aiming to create a stronger system to check compliance. India Partnership: Muizzu also sent letters to India’s President and PM on Independence Day, thanking India for development support and pledging deeper strategic ties. Opposition Politics: Former Foreign Minister Abdulla Shahid resigned as MDP leader and launched his 2028 presidential primary campaign in Addu, arguing for a “major economic reset” and constitutional reforms. Energy Relief: The ADB approved a $50m emergency loan to bolster Maldives energy security amid fuel shortages and West Asia conflict pressures. Port & Trade Logistics: MPL is consulting lorry drivers and clearing agents ahead of the Malé Commercial Harbour move to Thilafushi, and will auction long-unclaimed goods at Malé Commercial Harbour later this month. Development Outlook: Muizzu says 2027 will be a landmark year, with many infrastructure projects expected to complete, including modern council offices. Tourism Safety Alert: UK travel advice was updated for Maldives water safety, warning about strong tidal currents and urging visitors to follow resort guidance. Cargo Connectivity: Raya Airways began scheduled cargo flights between Penang and Velana International Airport, supporting VIA’s role as a regional transshipment hub.

Opposition Politics: Former Foreign Minister Abdulla Shahid resigned as MDP leader and launched his 2028 presidential primary campaign in Addu, promising a constitutional and economic reset. National Day & Governance: President Muizzu urged citizens to put “Nation First” and warned against discord that could harm the country, while also reiterating development progress. Development Delivery: Muizzu said 2027 will be a landmark year as most infrastructure projects near completion, including modern island council buildings and faster transport works. Port & Logistics: MPL met lorry drivers and clearing agents ahead of relocating Malé Commercial Harbour to Thilafushi, aiming for faster cargo clearance under a modern multi-purpose port. Foreign Exchange Debate: Economic Minister Mohamed Saeed pushed back on dollar shortage claims, citing higher official USD disbursements under the current administration. Tourism Policy: Tourism and Civil Aviation Minister Ameen said Visit Maldives Year planning will target new markets and island community opportunities, citing strong visitor intent to return. Regional Ties: Muizzu discussed trade, development and regional security with UAE President Mohamed bin Zayed. Trade & Connectivity: Raya Airways began scheduled cargo flights between Penang and Malé via VIA, supporting VIA’s role as a regional transshipment hub. Public Services: Environment Ministry handed WAMCO 22 pickups to expand waste collection across atoll capitals and urban centers. Judiciary: Five judges were sworn in for civil and criminal courts.

National Day Message: President Dr. Mohamed Muizzu urged citizens to keep “Nation First” at the heart of Maldivian nationalism, warning against discord that could harm sovereignty and identity. Judiciary Appointments: Five judges were sworn in at the Civil and Criminal Courts after Judicial Service Commission selections. Aviation & Infrastructure: Island Aviation reopened the tender for expanding and redeveloping Dharavandhoo Airport’s passenger terminal, with proposals due Sept 10 and an 18-month delivery target. Foreign Relations: Muizzu discussed trade, development and regional security with UAE President Sheikh Mohamed bin Zayed Al Nahyan in a phone call. FX & Economy Politics: MDP leader Mohamed Nasheed said dollar reserves are “empty,” warned of hyperinflation pressures, and criticised the resort 20% revenue conversion plan; meanwhile Minister Mohamed Saeed said official USD transactions and allocations have surged via banks and state support. Tourism Strategy: Tourism and Civil Aviation Minister Mohamed Ameen said arrivals bounced back in July after Middle East disruptions and previewed Visit Maldives Year 2027’s “Islands Are Us” theme. Social Policy: A new platform aims to feed women’s atoll and city concerns into an Annual Women’s Policy Agenda for national decision-making. Public Finance: Subsidy spending has overshot allocations by MVR 335m, while student loan disbursements remain low at 15.7% of the budgeted amount. Public Safety & Tech: Police sought UAE support to further develop the Maldives Cyber Security Operations Center (CSOC).

Judiciary: Five newly appointed judges took their oaths at the Supreme Court—two to the Civil Court and three to the Criminal Court—after Judicial Service Commission selections. Aviation & Infrastructure: Island Aviation has reopened the tender to expand and redevelop the Dharavandhoo Airport passenger terminal, with expressions of interest due Tuesday and full proposals due September 10, aiming for completion within 18 months. Foreign Relations: President Muizzu held phone talks with UAE President Mohamed bin Zayed on trade, development cooperation and regional security; separately, Maldives police sought UAE support to enhance the Cyber Security Operations Center (CSOC). Economy & FX: Opposition leader Mohamed Nasheed urged the government to engage the opposition “without acting big,” warning of empty dollar reserves and rising black-market rates; meanwhile, Minister Mohamed Saeed said official USD transactions and bank allocations have surged, including higher state support for merchants’ foreign exchange needs. Public Finance: Subsidy spending has overshot the annual allocation by MVR 335M, reaching MVR 3.23B as of August 6. Tourism Policy: Tourism Minister Mohamed Ameen said tourism bounced back in July after four months of disruptions, and Visit Maldives Year 2027’s theme “Islands Are Us” was unveiled. Social Policy: A national platform was launched to bring women’s voices into policy-making, feeding into an Annual Women’s Policy Agenda. Employment: Bangladesh urged the Maldives to expand job opportunities for Bangladeshi workers, noting around 100,000 are already employed.

Accountability in Housing Projects: North Galolhu MP Mohamed Ibrahim (Kudu) has demanded answers from HDC over Hulhumalé’s unused mechanical parking systems, arguing the state could have earned over MVR 83 million since 2019 if the 300-capacity slots were operational. Cybersecurity Cooperation: Maldives police asked the UAE for support to further develop and enhance the CSOC, with discussions also focused on training and strengthening cybersecurity capacity. Foreign Exchange Politics: Economic Minister Mohamed Saeed hit back at opposition claims of dollar scarcity ahead of MDP’s protest, while former President Mohamed Nasheed renewed calls to push the black-market USD rate down to MVR 19 in 10 days. FX Law Changes: Parliament approved amendments raising the threshold for mandatory foreign-currency deposits and tightening conversion rules for certain tourism-related categories, sending the bill to the Public Accounts Committee. Public Health Safety: MFDA warned of a counterfeit Opdivo cancer injection batch circulating in the Maldives, urging pharmacies and the public to check batch numbers and stop use of the affected lot. Public Order & Local Governance: Male’ City Council moved to enforce the public smoking ban, and began research on creating a safe commercial fish-processing zone for activities like rihaakuru preparation. Security & Crime: Customs seized 450g of cannabis at Velana International Airport, and police arrested a 19-year-old Bangladeshi national in Male’ over alleged weapon-related violence. Resignation: State minister Dr. Abdulla Fairoosh resigned from the Home Ministry. Diplomacy & Jobs: Bangladesh urged the Maldives to expand employment opportunities for Bangladeshi workers, citing the large existing workforce in the tourism-driven economy.

Foreign Exchange & Protests: Parliament has approved amendments to the Foreign Currency Act, raising the mandatory foreign-currency deposit threshold from USD 15m to USD 25m and tightening how Category-A tourism businesses convert earnings, while the MDP’s leader Mohamed Nasheed demands the black-market USD rate fall to MVR 19 in 10 days and MVR 17 within a month, as Economic Minister Mohamed Saeed accuses the opposition of stoking panic to mobilize demonstrations. Public Health & Safety: MFDA warned of a counterfeit Opdivo cancer injection batch circulating in the Maldives and urged pharmacies and patients to check batch numbers; Male’ City Council also moved to enforce the public smoking ban, citing ongoing smoking in parks and residential public areas. Drugs & Border Control: Customs seized 450g of cannabis at Velana International Airport from an arriving passenger, adding to recent enforcement actions. Tourism & Governance: Male’ City Council began research on creating a safe commercial fish-processing zone for rihaakuru and related cooking; Parliament extended its session by a week to push key bills including land-seizure powers and the Foreign Currency Act changes. Aviation & Trade: MACL inaugurated the Aviation Institute of Maldives, certifying the first 29 graduates; ADB approved a USD 50m emergency loan to support fuel imports for electricity and water amid Middle East-driven price shocks. Business & Services: BML increased dollar allocations for telegraphic transfers after the MMA raised weekly bank allocations; StatePharma signed a distribution deal to strengthen medicine supply, while Visit Maldives partnered with Ooredoo as the digital partner for World Travel Awards 2026.

Parliament & Land: The Majlis extended its session by a week to Aug 20 to push through a contentious land seizure bill that would let the central government take land from local councils, with the Decentralization Committee given a five-day deadline to finish its review. Foreign Currency: Lawmakers moved to expedite amendments to the Foreign Currency Act, dropping the USD 500-per-tourist option for resorts and tightening rules toward requiring 20% of monthly revenue to be exchanged via local banks. Opposition Pressure: MDP leader Mohamed Nasheed demanded the government drive down the parallel USD rate to MVR 19 in 10 days and MVR 17 within a month, as the black-market rate reportedly hit MVR 22. Economy & FX Liquidity: The MMA increased weekly USD supply to banks by 51% to ease import pressures, while the government also rejected claims of an official rate change to MVR 25 as “fake news.” Justice Modernisation: President Muizzu launched PGO 2.0, an AI strategy to speed up criminal prosecution work while keeping charging decisions with prosecutors. Health & Atolls: Health officials said deploying specialists to atolls remains difficult because many prefer Male’, even as internships for 20 Maldivian medical graduates in Sri Lanka were announced. Energy Security: The ADB approved a USD 50m emergency loan to fund fuel imports amid Middle East-driven price shocks. Trade & Tourism: Tuna exports to the UK are up 20% after tariff suspensions, while tourist arrivals in early August reportedly slipped 8%.

Trade & Diplomacy: Economic Minister Mohamed Saeed met US Chargé d’Affaires Dave Williams to discuss expanding Maldives–US trade and investment ties. Health & Human Capital: The Health Ministry signed an MoU with Sri Lanka’s Suwasevana Hospitals to place 20 Maldivian medical graduates in annual clinical internships. Atoll Healthcare Staffing: DG Dr Ahmed Ashraf said specialists still prefer Male’, making it hard to staff atolls, even as local doctor numbers rise. Land & Local Power: MDP leader Mohamed Nasheed and party activists protested Parliament’s “Looting Bill” that would let the Cabinet remove land from council jurisdiction for state projects; a Decentralization Committee set a five-day review deadline. Justice Modernisation: President Muizzu launched PGO 2.0, an AI-driven overhaul for the Prosecutor General’s Office and its Maafini case system, with prosecutors still making decisions. FX & Dollar Policy: MMA raised weekly USD supply by 51% and proposed removing the USD 500-per-tourist option, requiring resorts to convert 20% of monthly dollar revenue to MVR. Fisheries & Compliance: Fisheries Ministry set sea-cucumber export quotas under CITES rules and urged processors to apply via the Keyolhu Portal. Fuel Access for Fishermen: MIFCO will supply fishing vessels fuel on credit, clearing bills within 48 hours of catch. Weather Disruption: Stormy conditions are expected to persist through Friday, with rougher seas and heavy rain/thunderstorms.

Tourism & Finance: The Maldives Monetary Authority has proposed amendments to the Foreign Currency Act, dropping the USD 500-per-tourist exchange option and instead requiring resorts to exchange 20% of monthly revenue in USD to Maldivian banks, with exemptions for short stays and certain categories of visitors. Parliament & Land Powers: The Decentralization Committee has set a five-day deadline to finish reviewing a bill that would expand central government powers to seize land under local council jurisdiction, with ruling MPs pushing for tight timelines. Public Safety & Weather: Stormy conditions are expected to persist through Friday, with heavy rain, thunderstorms, gusty winds and rougher seas; meanwhile Fire and Rescue attended 13 emergencies in greater Malé last week. Crime & Governance: Home Minister Ali Ihusan told Parliament he says a 2024 blaze that destroyed parts of the Green Building Complex was caused by air-conditioning wiring, not arson. Politics: PNC’s Ibrahim Falah says former President Yameen will back President Muizzu in 2028. Environment & Rights: The Ministry of Climate has recognized Soneva Jani as the Maldives’ first resort OECM, while the government begins a sweeping overhaul of disability rights law after 15 years. Waqf & Economy: The Islamic Waqf Fund has collected over MVR 3 million via donation links on MIRA’s website. Maritime Search: Maldives seeks foreign technical assistance to find three missing after the Friend 4 sank, with search coverage now over 7,400 square nautical miles.

Political Stakes: Former President Abdulla Yameen says he would pick President Dr. Mohamed Muizzu over the MDP if forced to choose, even while criticizing the current administration. Disability Rights Overhaul: The Health Ministry has begun rewriting disability rights law after more than 15 years, aiming to clarify government responsibilities and expand access to education, healthcare, and jobs. Maritime Search: Maldives is seeking foreign technical help to find three missing after the Friend 4 sank; search teams have covered over 7,400 square nautical miles, with authorities naming the missing police and MNDF staff and the vessel captain. Health Workforce Pressure: Health Minister Geela Ali told Parliament that 60% of doctors in the Maldives are foreign nationals, while the government plans to grow the local workforce. Local Governance Land Fight: Male’ City Council agreed to hand over the fish market land to the Fisheries Ministry for redevelopment, with conditions to return it after work. Jobs & Skills: NCS launched the “My Career Portal” to connect job seekers, employers, and career advisors under the World Bank-funded SAILS project. Economy & Cash: Government opened subscriptions for over MVR 1.1 billion in Treasury bills to manage short-term cash needs. Environment & Enforcement: Faresmaathoda council warns of “irrevocable damage” from illegal sand and gravel mining, linking it to erosion and flooding risks.

Health & Workforce: Health Minister Geela Ali told Parliament that 60% of doctors working in the Maldives are foreign nationals, with over 3,400 foreigners employed in the sector, while the government says it will gradually expand Maldivian training through local institutions. Public Finance: The government is selling more than MVR 1.1 billion in Treasury bills to manage short-term cash needs, offering four tenors from 28 days to 364 days. Parliament & Accountability: The General Purpose Committee has given Economic Minister Mohamed Saeed one hour to reply to an MDP no-confidence motion, as the opposition cites issues including USD shortages and alleged mismanagement. Local Governance & Land: A bill aimed at strengthening central government powers to seize land from local councils was presented to Parliament, with opposition MPs protesting it as unconstitutional. Environment & Enforcement: The Faresmaathoda local council warned of “irrevocable damage” from illegal sand and gravel mining, linking it to coastal erosion and tidal flooding. Jobs & Skills: The National Career Services launched the “My Career Portal” to connect job seekers, employers and career advisors under the World Bank-funded SAILS project. Regional Diplomacy: President Muizzu reaffirmed Maldives-Singapore ties and said he wants closer cooperation with Singapore’s leadership on peace, stability and sustainable development. Search & Rescue: Maldives seeks international assistance to find three missing men after a supply vessel capsized in the Huvadhoo Sea, with searches covering over 7,400 square nautical miles. Agriculture & Bio-control: Maldives opened a parasitoid rearing center at Hanimaadhoo to protect coconut palms using environmentally friendly pest control, targeting production of over 100,000 parasitoids daily.

Treasury & Finance: The government has opened subscriptions for over MVR 1.1 billion in Treasury bills, offering four maturities from 28 days to 364 days with rates between 3.50% and 4.60%. MDP Protest Plans: The opposition Maldivian Democratic Party says it will hold its next protest on Majeedhee Magu in Malé, arguing it will give the public wider visibility and saying it will share the proposed route with police. Bilateral Diplomacy: President Dr. Mohamed Muizzu reaffirmed Maldives–Singapore ties in messages for Singapore’s National Day, calling for deeper cooperation on trade, investment, education and regional peace. Missing at Sea: Search operations for three men missing after the “Friend 4” supply vessel capsized in the Huvadhoo Sea have covered 7,400+ square nautical miles, with no trace found yet. Agriculture & Rural Support: The government launched the second round of agribusiness matching grants and an Islamic-financing loan scheme for farmers, including machinery support and modern farming facilities in northern atolls. Aviation Oversight Debate: Indian pilots’ calls for an autonomous Civil Aviation Authority are echoed by an aviation expert who argues India should instead make the DGCA fully independent. Environment & Fisheries: A parasitoid rearing center at Hanimaadhoo was opened to protect coconut palms, while Tech4Nature equipment was handed to South Ari marine rangers to strengthen protected-area monitoring. Tourism & Trade Signals: Sea-to-air cargo hit a July record of 633 tons, and foreign flight arrivals fell 4.7% in the first half of the year, reflecting Middle East disruption impacts.