State's fiscal policy dampens investor confidence: Fayyaz

Former Minister of Economic Development Fayyaz Ismail on Sunday criticized the current administration's fiscal policies.

He said the incumbent government's fiscal policies were dampening the confidence of foreign investors and lenders.

He expressed concern in a statement on X following the government's decision to revise the Corporate Governance Regulation allowing the appointment of political officials to financial institutions and insurance providers.

The former minister said that this unprecedented change was avoided by all the previous governments to maintain the financial sector's integrity.

He criticized the current administration's decision has pushed back years of progress in the sector.

The current government's policies center around secrecy and the refusal to disclose the state's financial records to the public, Fayyaz added.

"This will negatively impact the confidence of both domestic and foreign lenders," Fayyaz said in his post.

He further opined that governments should be transparent to build robust economies and possess the capacity to acknowledge criticism directed at faulty policies.

Besides Fayyaz, former Finance Minister Ibrahim Ameer had expressed his concerns regarding the government's decision as well.

With the amendment to the regulation, political officials, with the exception of cabinet ministers, heads of independent institutions, and leaders of political parties, can be appointed to the boards of financial institutions and insurance providers.

Recently, the hierarchy of the Maldives Monetary Authority (MMA) was revised to introduce five managing director roles.

MMA announced last Thursday the opportunity to apply for these new designations, while this change too has been criticized by several politicians.