Former finance minister accuses govt of waging ‘war’ against SMEs

Former Finance Minister Ibrahim Ameer accused the incumbent administration of waging a “war” against small and medium enterprises on Sunday, a day after President Dr. Mohamed Muizzu announced plans to launch a government-owned eyewear service out of the Indhira Gandhi Memorial Hospital (IGMH).

President Muizzu had announced plans to establish a government-run eyewear service during an interview to Public Service Media (PSM) on Saturday - a decision that he said was aimed at combating consumer exploitation by the private sector.

In a post on X on Sunday, Ameer, a senior politician from the main opposition Maldivian Democratic Party (MDP), accused President Muizzu of harassing SMEs.

He said that the incumbent administration’s economic and financial policies have failed.

“It is dangerous having the government come out an declare war on businesses because they lack the capability to provide a solution to the challenges facing the economy,” he said.

Ameer said that the government is holding off billions of Rufiyaa in payments to businesses, leaving them to go bankrupt.

ރައީސުލްޖުމްހޫރިއްޔާ @MMuizzu ނުކުމެ ރާއްޖޭގެ ވިޔަފާރިވެރިންނާ ޖައްސާލުމަކީ ކަންބޮޑުވާންޖެހޭ ކަމެއް. މިއަދު ރާއްޖޭގެ އިގްތިސާދީ/މާލީ ސިޔާސަތު ފެއިލްވެ ފާލުން ނެއްޓި، އިގްތިސާދަށް ދިމާވެފައިވާ ގޮންޖެހުންތަކަށް ހައްލެއް ހޯދައިދިނުމުގެ ގާބިލްކަމެއް މިސަރުކާރުގަ ނެތުމުން، ސަރުކާރުން…

— Ibrahim Ameer ???????? (@iameeru) June 1, 2025

He also expressed concern that businesses were finding it hard to access loans, and regarding the dollar shortage, which is pushing up prices in the black market.

“The government’s actions show they have no intention of addressing these challenges,” he said.

Ameer said that as per 2024’s statistics, the direct contribution by the government to total productivity accounted for 8.6 percent, or MVR 808 billion out of MVR 101 billion.

He stressed that it is the private sector that adds value to 91.4 percent of the national productivity.

“The government entering the small and medium enterprises in the private sector will destroy SMEs,” he said.

Ameer also criticized the government for failing to curb its spending.

“Targeting business owners like this while failing to curb its spending and continuing to exponentially increase political appointments is a huge and deliberate damage inflicted on the economy by the government. This will end productivity in the economy,” he said.

In his interview to PSM, President Muizzu said that his decision to establish a government-owned eyewear service is  designed to prevent private businesses from exploiting consumers and taking advantage of the higher Aasandha limit for eyeglasses – which has been increased from MVR 1,000 to MVR 2,000.

“I will not allow any sector to take advantage of this [higher Aasandha limit]. When the limit is raised from MVR 1,000 to MVR 2,000, they get the chance to sell the same old cheap frames. We will begin this service out of IGMH,” he said.

President Muizzu said that he made the decision at the request of the people, and after making necessary considerations.

“We don’t care how much this upsets private businesses involved in eyewear services,” he said.

President Muizzu said that he wishes to erase unfair and exploitative business practices in the Maldives.