Quarterly business survey of Maldives Monetary Authority (MMA) has shown the construction sector of the country is expected to improve in the last quarter.
Activity in the construction sector is expected to improve slightly during the last quarter when compared with the third quarter as indicated by the net balances of 17% and 2% for the volume of construction activity and the volume of orders to be received, respectively, according to the report.
However, the report stated the majority of the respondents anticipate no change in both the volume of construction activity and volume of orders to be received. The majority of the respondents expect employment levels to increase during the next quarter, but the prices charged on average to remain unchanged during the next quarter.
Consequently, 64% of the employees expect wages and other labour costs to increase, while the remaining respondents expect such costs to remain unchanged. The majority of the respondents also expect prices of inputs to remain unchanged, while 33% expect increases.
On the investment side, 47% of the respondents expect capital expenditure to increase, while 42% anticipate no change, recording a net balance of 36%. Regarding the financial situation, despite a net balance of 11%, 67% of the respondents expect no change.
However, 36% of the respondents anticipate their access to credit to worsen, while 60% of the respondents expect no change during the fourth quarter. Factors limiting business growth respondents in the construction sector highlighted access to credit and cost of finance as the most significant factors limiting their business growth.
Additionally, cost of raw materials, shortage of skilled labour, delays in payment, competition within their own sector and regulatory framework were also emphasised as important factors that limit business growth.