Abolition of Foreign Investment Act would kill local businesses: opposition members

Some opposition members have heavily criticized the government bill proposing to abolish the Foreign Investment Act in today’s session of the People’s Majlis, stating that such a movie would open new doors for corruption and would kill local businesses.

The government proposed the abolition of Foreign Investment Act as part of its comprehensive economic reform agenda.

Debating on the proposition, Dr. Abdullah Mausoom, MP for Kela Constituency and member of main opposition Divehi Rayyithunge Party (DRP) said that the day was a sad one to have seen such a preposterous proposition as abolition of a law that had long protected Maldivian economy and the country’s economic independence. “The Act has always been especially beneficial to the Maldivian traders and the economy”, said Mausoom.

Dr. Mausoom said that the Act as it is at present obliged foreign investors to bring into the country an acceptable capital and do their businesses in a manner trusted by banks in the country. He said that the government, by abolishing the Act, was trying to convert the Maldives into the money-laundering machine of the world. He also said that the government’s proposition would enable fake companies and black market dealers to do their dirty businesses in the country, leading to loss of confidence on the part of genuine foreign investors.

Ibrahim Muttalib, another opposition member and MP for Fares Maathoda Constituency, said that the government’s agenda was to achieve some hidden purposes that contradict with national interests. Ahmed Nihan Hussain Manik, one of the most prominent members of main opposition DRP said that the government’s policy had been designed to enable them to sell national wealth to foreign parties in return for private benefits. He too said that abolition of the Foreign Investment Act would open the gate for a flood of unreliable foreign investors who would drive local businesses into bankruptcy.

When Nihan spoke, Alhan Fahmy, President of ruling Maldivian Democratic Party (MDP), shouted, ran at Nihan and at the Secretariat and broke Majlis order repeatedly as did his colleague and Interim Leader of MDP Moosa “Reeko” Manik. However, the Speaker did not take any actions against their repeated disregard of the Secretariat’s request to maintain order on the floor.

The bill to abolish Foreign Investment Act was introduced into the floor on behalf of the government by Alhan Fahmy. In his speech of introduction, he said that the reason why the government proposed to abolish the Act was that it was unsuitable for modern global economic system. He also said that the only way to sustainable economic development was to abolish the Act and open the economy for unhindered foreign investment.