Regulation to be amended to prioritize SMEs in tenders for govt. projects

Finance Ministry, on Wednesday night, announced the government’s decision to amend regulations to pave the way for the prioritization of registered Small and Medium Enterprises (SMEs) operating in the Maldives in tenders for government projects.

The decision comes following many concerns raised by SMEs during a meeting held with President Dr. Mohamed Muizzu on December 17^th.

In this regard, SMEs highlighted difficulties in meeting tax obligations due to unpaid government dues dating back to the previous administration, and sought relief in tax payments. They also noted difficulties in procuring US dollars and government projects.

In an announcement on Wednesday night, Finance Ministry said efforts have begun to introduce concessions for SMEs within the government procurement system, including the allocation of publicly announced tenders below a specified value exclusively for small and medium-sized enterprises.

The Ministry added that it was in discussion with the relevant government authorities to amend the necessary laws and regulations required to implement this change.

Finance Ministry detailed that it was also undertaking efforts to reform the government’s procurement system in order to eliminate obstructions faced by SMEs in participating in government tenders, ease present procurement processes and increase competitiveness among SMEs.

The Ministry also revealed that it in discussion with Maldives Inland Revenue Authority (MIRA) and state-owned enterprises (SOEs) regarding the settlement of government dues owed to SMEs, by offsetting them against tax payments owed to the state by those businesses: something which the Ministry said has been allocated high prioritization.

In addition to these measures, Finance Ministry said it is exploring ways to reduce fees paid by SMEs SOEs for various services and to convert fees currently paid in US dollars to Maldivian Rufiyaa.

In this regard, the Ministry emphasized that it was in discussions with SOEs and relevant authorities to implement these changes at the earliest. The Ministry added that these measures will effectively address difficulties faced by SMEs in the payment of taxes and other payments owed to state.

Notably, President Dr. Mohamed Muizzu has designated the next two years, starting 2026, for the implementation of special measures for advancing SMEs.

The government has begun the implementation of special measures following concerns raised by SMEs during the December 17^th meeting, including the introduction of 24-hour goods clearance services at Velana International Airport (VIA).