Negative policies on businesses will affect people, Yameen says

Former President Abdulla Yameen said on Thursday that government policies negatively affecting businesses and business owners will have wider implications for the Maldivian economy and its people.

Speaking at a meeting held at the Progressive National Front (PNF) office, Yameen commented on a recent regulation requiring tourism businesses to deposit and exchange their foreign exchange earnings in banks. He claimed such policies were disrespectful to business owners and lacked consideration of key economic factors.

Yameen argued that the government has not adopted a policy to stabilise the dollar exchange rate and has overlooked critical aspects in formulating the regulation. He emphasised that resorts have consistently contributed to the state in foreign currency, noting that many businesses rely on dollar-denominated loans for their operations and investments.

"The resorts pay their taxes in dollars and are servicing loans in the same currency. These loans were often taken to fund investments in the tourism sector. If additional financing is needed for expansion, it will also require payments in dollars," Yameen explained.

He further highlighted the role of resorts in job creation and economic development.

"These businesses generate employment for many young people. If resorts are forced to cease operations due to these policies, can the government provide jobs for all those affected?" Yameen questioned, adding that the development of new resorts is essential for increasing employment opportunities.

President Mohamed Muizzu on Thursday addressed the issue on social media platform X, defending the regulation as being in the public interest. This followed feedback from resort owners, including Champa Mohamed Moosa, who expressed concerns about the challenges in managing dollar reserves under the new policy.