Yameen says govt should retain majority role in fisheries sector
He said it was not yet clear which areas of the sector could be opened to foreign investors.
Former President Abdulla Yameen on Sunday said the government should remain the largest shareholder in the fisheries sector, citing its importance to livelihoods and national interests.
Yameen made the remarks at a People’s National Front (PNF) meeting, responding to a question from a fisherman on whether his administration would seek foreign investment to develop the fisheries industry.
He said it was not yet clear which areas of the sector could be opened to foreign investors, but added that foreign participation could be considered where it benefits the government and the country.
Yameen said the government should invest directly in fisheries and retain a controlling role. He said the Maldives Industrial Fisheries Company (MIFCO) is a state-owned enterprise and that he does not support policies that place it in competition with private or foreign operators.
He said allowing foreign investors to dominate activities such as canning could result in local operators losing access to the full value chain. He also said reliance on external investors carries risks if projects are halted, leaving the government responsible for reviving operations.
Yameen said fisheries is one of the main economic sectors in the Maldives and is built on local participation. He said the sector is closely linked to livelihoods in island communities.
He said that under earlier arrangements, fish purchases were handled by MIFCO, which created a sense of state responsibility. He said later policy changes, including zoning and allowing private buyers, reduced the government’s role.
He said that even where private companies operate, issues arise when fish must still be sold to MIFCO, which he described as a policy failure that weakened government oversight of the sector.
Yameen said MIFCO had faced financial losses in recent years, similar to other state-owned companies, and said the company’s ability to plan and invest had been affected.
He also criticised MIFCO’s recent decision to purchase fish above one kilogram at a minimum price of MVR 16. He said fish is sold abroad in foreign currency and that the depreciation of the rufiyaa has reduced the real value of the price paid to fishermen.
He said that compared with earlier exchange rates, the current price equates to a lower value in real terms. He noted that in 2016, fish was purchased at MVR 20 per kilogram when the exchange rate was lower, and said maintaining a price of MVR 16 amid currency depreciation does not reflect market conditions.
