Excellencies, Ladies and Gentlemen,
The Maldives is a Small Island Developing State. And like all SIDS, the Maldives faces vulnerabilities that are beyond its control.
These vulnerabilities make development difficult, and it is particularly challenging for local businesses, especially Micro, Small and Medium Enterprises.
But adversity often breeds innovation.
Our MSMEs have shown remarkable resilience and innovation in the face of growing and evolving challenges. Limited access to finance, high operational costs, dependence on imports, and geographic dispersion are just among a few.
President Dr Mohamed Muizzu has declared a bold target to achieve the status of a developed country for the Maldives by 2040. This requires transformative actions across sectors, including the digital economy and economic development.
A key driver of this transformation will be MSMEs.
Over 90% of all registered businesses in the Maldives are MSMEs. They form the backbone of our economy. They are the engines of employment, innovation and community resilience.
Particularly in our outer islands, MSMEs are essential to local development, serving as the key drivers of livelihood and social unity.
In recognition of the important contributions that MSMEs can make to the development of the country, we are focusing on 3 key areas:
First, innovation.
MSMEs are already laying the path towards innovation.
The Creative Economy Strategic Action Plan will provide opportunities for further expansion through funding opportunities, provision of collaborative workspaces, and facilitating the entry into wider markets.
The Government will build, encourage, and sustain innovators, artists, content creators, and entrepreneurs through skills, knowledge, training, financing, and legal frameworks.
The goal is not only to sustain and stabilize our small businesses, but to position them for long-term resilience.
Second, inclusion.
MSMEs can contribute immensely to social cohesion.
This is why special attention is being given by the Government to women and youth-led enterprises and overlooked island communities.
The Government has recently opened applications for the second phase of the Fashaa Madhadhu Loan – a specialised financing initiative designed to support women entrepreneurs. 6.4 million US dollars has been allocated for this initiative, and 25% of the funds are reserved for women with disabilities.
With this scheme, we have witnessed inspiring transformations on the ground.
Third, infrastructure.
Our geography often creates logistical challenges, including access to banking facilities and business know-how.
This is why we are encouraging banks to open banking facilities across as many islands as possible.
We are enhancing transportation networks across the country – expanding inter-island ferry networks and air connections.
Strengthening digital infrastructure is a key focus of the administration. With the launch of Maldives 2.0, we are looking to digitalise government services, drive economic growth, and deliver inclusive public services across our islands.
Excellencies, Ladies and Gentlemen,
Empowering MSMEs is not simply about economics, it is about dignity, opportunity and resilience for our people.
It is about creating a future where enterprises are not defined by their limitations, but by their potential.
We require global collaboration, international support, including financial support, and knowledge-sharing mechanisms tailored to island contexts that will support the development of MSMEs in SIDS.
Applying and adapting such models across SIDS will require global collaboration, concessional and blended finance, and knowledge-sharing mechanisms tailored to island contexts.
The Maldives stands ready to share, listen and work together.
I thank you.