The government has officially published significant amendments to the policy governing preferential treatment for specific parties and sectors within state procurement in the Government Gazette.
The primary objective of these amendments is to increase the participation of registered Micro, Small, and Medium Enterprises (MSMEs) in state procurement transactions. These changes aim to broaden opportunities and foster the sustainable growth and development of such businesses in the Maldives.
Under the revised policy, for procurements valued below MVR 5 million, priority must be given to MSMEs. If MSMEs participate in the bidding process, the project must be awarded to the highest-scoring party within that category. This change is expected to expand the role of MSMEs in state procurement and facilitate their progress.
Furthermore, new regulations have been established for projects within the construction sector. Construction projects valued below MVR 500,000 are now exclusively reserved for contractors in Grade 7 of the National Contractors Registry. Additionally, projects valued between MVR 500,000 and MVR 10 million are designated for contractors in Grades 4, 5, 6, and 7 of the registry. This is a crucial step toward increasing opportunities for small and medium-scale contractors.
Recently, President Dr. Mohamed Muizzu met with members of the business community, assuring them that the concerns of MSMEs would be addressed. Following those discussions, the President signaled that reforms would be introduced to the procurement system.
The Ministry of Finance anticipates that the amendments gazetted today will enhance the share of MSMEs within the state procurement system and increase overall participation in the Maldivian economy. This policy is also expected to strengthen the capacity of local industries and open new avenues for small businesses across the country.
These changes represent a vital component of the government’s efforts to empower local businesses and ensure that state projects offer equitable opportunities for all. It further underscores the recognition of MSMEs as a fundamental pillar for the nation’s economic growth and job creation.
