Former Governor of Maldives Monetary Authority (MMA) Dr. Fazeel Najeeb has stated this is not the appropriate time to implement minimum wage and new taxes in Maldives.
In an article written for Maldives Economic Review, the former governor highlighted the deep impact the COVID-19 pandemic will have on the local economy. He also highlighted the measures which need to be taken by the government in order to mitigate the impact, such as easing some of the taxes imposed on businesses and seeking ways to ease the repayment of loans taken by the state. He added this is not the appropriate time to implement minimum wage or new taxes as it will further hinder the economy during a time of crisis.
Fazeel Najeeb also highlighted the importance of reducing state expenditure to recover the economy. In this regard, he suggested the government should take measures such as reducing the daily working hours and reducing the number of state-sponsored travels. He also highlighted the importance of seeking assistance from international financial organisations.
The government has been taking several measures to mitigate the economic impact of COVID-19 on individuals and businesses. As such, the government has decided to defer the repayment of all personal, business, housing and student loans by six months. The government has also introduced financial stimulus packages to help businesses overcome the damages caused by the pandemic.