MDP urges Maldives to follow suit as Iran war triggers austerity measures worldwide

The main opposition Maldivian Democratic Party (MDP) urged the Maldivian government to implement urgent austerity measures on Wednesday, as a disruption in oil and gas supply caused by the United States-Israel war on Iran and an escalating Middle East conflict prompts countries much larger than the Maldives to introduce sweeping austerity and fuel conservation measures.

Ongoing attacks in the Middle East and disruptions to maritime traffic in the Strait of Hormuz – a vital waterway for traded oil – has placed the global economy under threat.

Multiple countries, including neighboring nations, have implemented austerity and fuel conservation measures including closing schools and salary cuts for top government officials.

But the Maldives, which relies on imports for all its oil needs, has yet to announce any austerity measures.

In a press conference on Wednesday, Hussain Amr Mohamed Rashad, the former managing director of State Trading Organization (STO), said that countries much larger than the Maldives have implemented emergency measures and are explaining the stark reality of the situation to the people.

He said that Bangladesh has implemented fuel conservation measures, while Sri Lanka has slashed the air fare for its national airline, SriLankan, in a bid to boost tourist arrivals to the country.

He said that countries with strong economies such as India, Malaysia, and Japan have also implemented austerity measures and are taking precautions.

Amr stressed that the Maldives, which is almost completely reliant on tourism, is particularly vulnerable.

“Therefore, it is crucial that we implement urgent measures,” he said.

Amr said that the MDP administration had taken immediate measures when it faced its own global crisis – the Covid-19 pandemic – from the moment the first cases were discovered in China.

Amr said that as a result of these measures, the Maldives managed to secure the medical equipment it needs within two months, preventing crises like other countries had faced.

“Therefore, there are measures we can still take to be similarly prepared, boost our economy, and prevent misfortune from befalling our people. This is what they need to do,” he said.

Amr said that the Maldives, while not powerful enough to stop a war, can explain the reality of the situation to the people, so that they can take precautions.