Minister of Economic Development Fayyaz Ismail has said that councils should do business in such a way that other trading opportunities are created in the island community.
Ministry of Economic Development has on May 18 published the first amendment to the regulation on establishing local authority companies, which allows local councils to establish companies to carry out government-approved business activities. The new regulation states that local councils can establish wholly or partly owned companies to carry out business activities in their administrative region. The regulation allows local councils to be involved in the operation of airports, hospitals, clinics, and the development of boatyards.
Speaking about councils conducting businesses, Minister Fayyaz said one main reason for enabling councils to do business is to facilitate the development of the island, its community and its economy. The minister said it is not good for councils to interfere in private businesses in the islands, but rather should act as consultants and facilitate and encourage local businesses. He said the involvement of councils in all businesses would have adverse effects on private businesses.
The government is working to empower small and medium enterprises (SMEs) by facilitating and providing opportunities.