Saeed claps back at MDP’s criticism on rising costs with prices of goods

Economic Minister Mohamed Saeed has strongly criticized the opposition Maldivian Democratic Party (MDP) following its announcement of a protest over the rising cost of living and other socio-economic challenges facing the public.

The protest, scheduled for August 12th, was announced by MDP Chairperson and former President Mohamed Nasheed during a meeting of the party's National Council. The opposition said the demonstration is intended to highlight the increasing prices of essential goods and the growing financial burden on citizens.

In a video message released on Monday night, Saeed dismissed the planned protest, stating that August 12 and 13 are dates that consistently "trigger" the opposition. He also criticized the MDP for overlooking the impact of global conflicts on commodity prices, arguing that international events have a direct influence on the cost of essential goods. In his message, Saeed compared prices in the Maldives with those in several other countries.

The minister specifically compared petrol and diesel prices in the Maldives with those in Singapore, India, and Dubai. He also addressed the prices of baby formula, beef, and reef fish.

"The person who tweeted about the price of baby formula claimed it costs MVR 855. I have here a tin of baby formula, though I am unsure which specific brand they are referring to. We checked with MHA [a major local distributor], and a 300g tin of Lactogen is currently available in the market for MVR 130," Saeed said, providing a counter-example.

Minister Saeed further stated that while a litre of petrol currently costs MVR 16.01 in the Maldives, the equivalent price is MVR 40.09 in Singapore, MVR 14.07 in Dubai, and MVR 18.08 in India.

He alleged that the MDP's primary objective is to "deceive" the public for political gain. He said the current administration is working to stabilize and strengthen the economy, while accusing the opposition of refusing to acknowledge those efforts.

Earlier on Monday, MDP’s Chairperson Mohamed Nasheed announced on X, formerly Twitter, that the protest will begin at 16:30pm. on August 12th near the Social Centre. Alongside the announcement, he shared a list purporting to show the current market prices of various goods.

Speaking at a party gathering last Wednesday, Nasheed said the country is facing a severe shortage of US dollars and that the prices of essential goods have increased beyond what many citizens can afford. He attributed the situation to the government's failure to secure foreign assistance or financing in US dollars.

The Asian Development Bank (ADB), in a report released on the 9th of this month, projected that the Maldives' economy will grow by just 1.0 percent this year, a sharp decline from the 6.3 percent growth recorded last year. The report also forecasts inflation to reach 5.0 percent.

The ADB report further noted that the Maldives, as an import-dependent economy, remains highly vulnerable to increases in global fuel, transportation, and food prices, particularly those linked to ongoing conflicts in the Middle East.