Tag: maldives news

Ali Fahmy Ahmed wins MDP Feydhoo by-election primary

Ali Fahmy Ahmed, of Aafahi in Feydhoo, has won the opposition Maldivian Democratic Party’s (MDP) primary to contest for a vacant seat on the Addu City Council.

Fahmy won the primary with 208 votes while his closest contender, Ibrahim Khaleel, received 141 votes. Five candidates contested in the primary held on Friday (August 8 ) and voting took place both in the capital Malé as well as the Feydhoo ward of Addu City.

A total of 628 ballots were cast, according to the results announced by the party yesterday.

The primary comes after Addu City councillor for the Feydhoo constituency, Abdulla Aswan, died of a heart attack on July 8.

The Elections Commission has since announced that a by-election for the vacant seat would take place on September 20. A by-election has also been scheduled for the same day for a vacant seat on the Noonu Velidhoo island council.

In January, MDP candidates won all six seats in the Addu City Council as well as a majority in the Velidhoo council.

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Dharubaaruge reopens after renovation

The Ministry of Housing and Infrastructure reopened the Dharubaaruge convention centre in Malé on Thursday (August 7) following renovation and repair work.

Housing Minister Dr Mohamed Muiz told the press at an opening ceremony that the project had cost MVR5 million (US$324,254).

Muiz explained that extensive repair work was needed for the convention centre as the roof leaked when it rained, the stairs were dilapidated, and the walls were crumbling.

In addition to repair work and a new paint job, Muiz said glass panels, wall fabrics, and carpets have been replaced.

The ministry has also decided to make changes to rental prices for leasing Dharubaaruge halls for private functions, Muiz continued, while food and drink would not be allowed in the Rannabadheyri, Hiriya, and Hakura halls.

In May, following a long-running dispute over jurisdiction and ownership, the housing ministry took over Dharubaaruge from the Malé City Council, with police deployed to change locks.

The convention centre was constructed ahead of the SAARC summit held in Maldives in 1990.

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Medical camp for heart diseases underway in Malé

Health Minister Dr Mariyam Shakeela inaugurated a three-day medical camp offering free treatment for heart diseases in the capital Malé on Saturday (August 9).

The medical camp with Dr Vivek Gupta, a specialist from the Asiri Surgical Hospital in Sri Lanka, is taking place at the Dhamana Veshi urban primary health centre in the Thalassemia centre on Majeedhee Magu.

The camp was jointly organised by government-run Dhamana Veshi and the Corona Sunrise International Pvt Ltd security firm.

Speaking at an opening ceremony, Dr Shakeela reportedly said that treatment of heart diseases was a “major challenge” facing the Maldives.

Two patients selected at the camp would be offered free treatment at the Asiri Surgical Hospital funded by Sunrise Corona, she added.

The health minister noted that the Maldives has the highest incidence of fatalities from non-contagious diseases in the South Asia region.

According to the health ministry, a survey conducted by the World Health Organisation from 2004 to 2012 found that 47 percent of Maldivians were overweight and 18.8 percent were smokers.

The most common heart diseases in the Maldives include blood pressure, diabetes, stroke, ischemic heart disease, and myocardial infarction or heart attacks.

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Man arrested in Thinadhoo for child sex abuse

Police arrested a 29-year-old man from the island of Thinadhoo in Gaaf Dhaal atoll on Thursday night (August 7) for alleged child sex abuse.

Police said the suspect was taken into custody with an arrest warrant obtained after receiving information from a member of the public.

Preliminary investigations have revealed that the man had repeatedly molested the minor, police said, noting that the suspect had a criminal record.

Police did not reveal any further details of the case.

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Chamber of commerce vice president slams economic development minister

Vice President of the Maldives National Chamber of Commerce and Industry (MNCCI) Ismail Asif has severely criticised Economic Development Minister Mohamed Saeed, questioning his “sincerity” and “competence”.

Asif told the press on Thursday (August 7) that Saeed lacked “vision,” discriminated among local businesses, and had not been able to attract foreign investment.

The relationship between the ministry and the chamber of commerce has deteriorated during Saeed’s tenure, Asif reportedly claimed.

Saeed has not provided necessary information regarding a loan scheme for small and medium-sized enterprises (SMEs), Asif added.

He went on to accuse the minister of “corruption” in appointing businessmen of his choosing to business-related committees formed by the ministry.

Declaring the chamber of commerce’s backing for the government’s flagship special economic zone (SEZ) bill, Asif, however, questioned Saeed’s ability to implement the legislation when it is signed into law.

He added that Saeed had not consulted local businessmen before the bill was drafted and submitted to parliament.

However, Asif praised the government for proposing the SEZ bill early in its five-year term and expressed support for its provisions, arguing that it would expand the domestic economy and spur growth.

If income generated from the SEZs was evenly distributed among the populace, Asif said it would benefit the public and raise standards of living.

He also dismissed criticism that SEZs could be used for money laundering and criminal enterprises, suggesting that it was not directly linked to the establishment of such zones and advised control measures.

Parliament’s economic affairs committee is currently reviewing the SEZ legislation and has set itself a deadline of October 10 to complete the assessment and possibly make revisions.

However, MP Abdulla Khaleel – chair of the committee – told newspaper Haveeru today that he expects the review process to be completed this month, after which the bill would be sent to the People’s Majlis floor for a vote.

Parliament breaks for a one-month recess at the end of August.

As the bill was a high priority for the government, the Progressive Party of Maldives MP for Faafu Nilandhoo said the committee has decided to hold two meetings for every day when there is a parliament sitting.

He stressed that stakeholders would be consulted and technical expertise would be sought.

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Environment minister inaugurates coastal protection project in Raa Maduvvari

Environment Minister Thoriq Ibrahim inaugurated a coastal protection project on the island of Maduvvari in Raa atoll on Thursday (August 7).

“Under this project a total length of 890 meters of coastal area will be protected in R.Maduvvari,” the ministry explained in a statement.

“This project is contracted to MTCC for MVR33 million from government budget. The government is taking measures of coastal protection in several islands throughout Maldives with the government budget and donor agencies.”

According to the environment ministry, island council members, senior officials from the Maldives Transport and Contracting Company (MTCC), and Maduvvari MP Mohamed Ameeth participated in the inauguration ceremony.

In his speech, Thoriq noted that 90 percent of islands in the Maldives was affected by coastal erosion and expressed hope that the successful implementation of the project in Maduvarri would mitigate the impact of erosion.

In July, Vaavu Fulidhoo and Lhaviyani Kurendhoo faced increased coastal erosion caused by ‘Udha’ swell waves during the south-west monsoon season.

Fulidhoo faced the loss of the island’s football stadium while the local graveyard on Kurendhoo was just 15 feet from the encroaching waves.

An official from the Kurendhoo island council told Minivan News at the time that a now- stalled harbour project of the island includes a 309-meter rock revetment, the construction of a 207 meter concrete quay-wall, and a 582 meter rock armour breakwater.

The MVR40 million (US$2.5 million) project was handed over to MTCC in March 2013 and was expected to be completed within a year.

The Environment Protection Agency’s (EPA) Senior Environment Analyst Rifath Naeem meanwhile explained that harbour construction was very likely to be an underlying reason for the increasing number of islands with chronic beach erosion.

Harbour construction could interfere with the natural movement of sand, Naeem said, which forms and sustains islands.

“Sometimes construction of harbours or other development activity could throw off the balance in this system. When the complex dynamics and equilibrium of sand movement are affected by such activity, it could increase accretion or erosion of beaches. What’s happening to the beach of one island could affect that of another island in that same reef,” he said.

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MMA reports increased business activity in second quarter

All sectors of the domestic economy with the exception of the tourism industry reported increased business activity in the second quarter (Q2) of 2014, according to the Maldives Monetary Authority’s (MMA) Quarterly Business Survey.

“With regard to the current level of employment, businesses across all sectors, except for those in the tourism sector, indicated an increase in Q2-2014 compared to Q1-2014,” the report observed.

“Looking ahead, all sectors anticipate an increase in employment in Q3-2014, reflecting the optimism shown by majority of businesses towards improved activity levels in this quarter.”

While businesses in the construction sector reported an increase in prices, the report noted that businesses in the wholesale and retail trade, manufacturing and tourism reported a fall in prices.

“As for business costs, businesses across all sectors experienced an increase in all labour related costs and other input costs in Q2-2014 when compared to Q1-2014, while they expect a further increase in costs in Q3-2014 as well.”

In the construction industry, the survey found that factors which limit growth opportunities included “delays in payment by clients and cost of raw materials.”

“Other significant factors include limited access to bank credit and foreign exchange, high cost of labour and finance; and shortage of materials,” the report noted.

The quarterly survey is conducted by the central bank for a “quick assessment of current business trends and expected future economy activity” by questioning senior managers “on the direction of change in various business variables such as sales, output, prices, exports, capacity utilisation and employment”.

“Survey forms were sent out to 135 large enterprises in four main sectors of the economy which are construction; manufacturing; tourism; wholesale and retail trade. A total of 65 enterprises responded to the survey which represents an overall response rate of 48 percent,” the report explained.

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Tourist arrivals increase 9 percent in June

Tourist arrivals increased 9 percent in June compared to the same period last year, reaching 83,347 guests, says the Maldives Monetary Authority’s (MMA) monthly economic review.

“However, this is a decline of 9 percent when compared to the previous month,” read the economic review for June.

“The annual increase in arrivals was contributed by the increase in the number of arrivals from both Asia and Europe. In June 2014, total bednights rose by 9 percent in annual terms while the average duration of stay remained unchanged at 5.6 days compared to June 2013.”

The occupancy rate meanwhile increased to 59 percent from 55 percent in June 2013.

Cash flow

The central bank also revealed that government securities – treasury bills and bonds – rose 18 percent in June compared to the same period last year, which was “contributed by the increase in the amount of T-bills issued by the government to manage its growing cash flow requirements.”

The monthly review noted that “the outstanding stock of T-bills held by commercial banks at the end of June 2014 increased both annually and monthly, whereas T-bills held by non-banks increased only annually.”

Finance Minister Abdulla Jihad had expressed concern last week with shortfalls in projected revenue posing difficulties “in managing the budget deficit” and affecting the government’s ability pay to civil servants.

“We try to make regular salary payments even if we have to take loans in order to do so,” he said, adding that the ministry was “trying to make the salary payments through any means possible.”

The MMA had previously warned that shortfalls in revenue and overruns in expenditure could jeopardise the country’s debt sustainability.

In May, MMA Governor Dr Azeema Adam called for “bold decisions” to ensure macroeconomic stability by reducing expenditure – “especially the untargeted subsidies” – and increasing revenue.

Fisheries, inflation and reserves

“During June 2014, both the volume and earnings from fish exports increased compared to June 2013,” the monthly review revealed.

“As such, the volume of fish exports increased by 33 percent, while the earnings on fish exports rose by 6 percent during this period. The increase in the volume and earnings of fish exports was contributed mainly by the increase in export of frozen yellowfin tuna.”

The rate of inflation in the capital Malé meanwhile “accelerated slightly to 3.5 percent in June 2014 from 3.3 percent in May 2014,” which was “largely contributed by the acceleration in the growth of food prices, especially fish prices.”

In monthly terms, however, the rate of inflation “fell marginally” in June, “largely due to the fall in prices charged for furnishing, household equipment and maintenance, which off set the increase in fish prices during the review month.”

With imports increasing 19 percent while exports declined by 22 percent, the MMA revealed that the trade deficit widened by 27 percent in May compared to the same period in 2013.

Gross international reserves meanwhile “rose in both monthly and annual terms by 12 percent and 39 percent, respectively, and reached US$477.6 million at the end of June 2014.”

“This mainly reflects the temporary increase in foreign currency transfers by the commercial banks in the review period. As for reserves in terms of months of imports, it also increased in both monthly and annual terms and reached 3.1 months during the review month,” the report explained.

Quarterly business survey

The MMA’s Quarterly Business Survey for the second quarter of 2014 meanwhile noted that a majority of respondents from the tourism sector “indicated a decrease in total revenue, resort bookings and average room rates” during the current off-peak season.

While 10 percent of respondents indicated a decline in hiring and 83 percent reported no change, a majority reported “a decline in their financial situation” during the quarter.

“In analysing the factors which limit growth opportunities for businesses in the tourism sector, most businesses noted competition within the sector, issues with the regulatory framework, shortage of skilled labour and the high cost of finance as the most significant factors,” the survey found.

However, respondents expected revenue and average room rates to increase in the third quarter – “reflecting seasonal variations” – while most respondents expected “business costs such as labour and other input prices to increase in the next quarter”.

More respondents planned to increase capital investments than those who expected a decline, the survey found.

In July, the Ministry of Tourism revealed that tourist arrivals had reached half a million at the end of May, which was an 11.9 percent increase compared to the same period last year.

Moreover, the MMA revealed in its quarterly economic bulletin that tourism receipts in the first three months of the year increased by 10 percent compared to the first quarter of 2013, reaching US$801.1 million.

The bulletin noted that the 10 percent annual increase in arrivals was “entirely driven by the significant increase (24 percent) in arrivals from the Chinese market.”

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Bank of Maldives operating profits up 65 percent

The Bank of Maldives (BML) has announced that operating profit in the second quarter of 2014 increased 65 percent from the previous quarter, reaching MVR353 million (US$23 million).

“The Bank continues to move in the right direction. We are steadily building a sustainable financial base to support our strategic pillars of financial inclusion, customer service and support for business,” CEO and Managing Director Andrew Healy was quoted as saying in a press release.

“Since announcing these strategic priorities at its AGM in May, the bank has made a number of positive changes including the introduction of free cash withdrawals at ATMs and free transfers from one branch to another,” the press release continued.

“It has also recommenced issuing Visa Debit cards for rufiyaa accounts. Furthermore, the bank has started a programme to bring banking services to all inhabited islands across the country.”

“As part of its strategy, Bank of Maldives is also heavily investing in state-of-the-art technology and went live with T24, one of the world’s most advanced Branch Banking Systems on last Sunday, 3rd August 2014.”
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