Minister of Economic Development Fayyaz Ismail has stated the current administration has established a conducive business environment for Small and Medium Enterprises (SMEs) operating in the Maldives.
Speaking to PSM News on the occasion of the two-year anniversary of President Ibrahim Mohamed Solih’s administration, Economic Minister Fayyaz stated the main drivers of every economy are SMEs, which provide the backbone of every healthy economy. The economic minister said talk on providing a better environment for SME operations were heard during previous administrations, although no administration had been able to achieve it. He said the first administration to provide a conducive business environment for SMEs is the administration of President Ibrahim Mohamed Solih.
Elaborating on some of the decisions taken by the administration to empower SMEs, the economic minister noted the procurement policies of the state have been changed to ensure the tender of projects under USD 162,000 can only be taken part by SMEs. He also noted the establishment of SME Development Finance Corporation (SDFC) as an SME bank last year, providing over USD 65 million of loans for SMEs.
The minister further stated the government is also providing guidance and consultation to SMEs through the Business Centre Corporation (BCC). He said the opening of BCC centres in the atolls has helped to provide SME guidance and consultation in a sustainable manner.
The economic minister also revealed the government is working on bringing the necessary legislative and regulatory changes to facilitate SME operations. In this regard, he noted the monthly fees have been abolished, while the registration process has also been made more convenient. He said the Bankruptcy Insolvency Act and the Workers’ Occupational Health and Safety Act will also bring much needed changes to the SME business environment.