Government Moves to Reserve Smaller Tenders for SMEs, Ease Payments and Cut Fees

The Ministry of Finance and Planning has begun a series of reforms aimed at expanding opportunities and easing operational challenges for Small and Medium-sized Enterprises (SMEs) in the Maldives, with a key focus on improving their access to the state procurement system.

As part of these efforts, the ministry is working to introduce a mechanism that would designate government tenders below a certain value exclusively for SMEs. Officials say consultations are currently underway with relevant government authorities to implement the proposal, alongside necessary amendments to existing laws, regulations, and procurement procedures.

The initiative forms part of a broader effort to remove long-standing barriers that limit SME participation in public procurement. According to the ministry, work is ongoing to streamline procurement processes and restructure the system in a way that promotes greater competitiveness and fairer access for smaller businesses.

Ensuring timely payments to SMEs has also been identified as a priority area. The ministry is collaborating with the Maldives Inland Revenue Authority (MIRA) and state-owned enterprises (SOEs) to establish a more convenient mechanism for settling outstanding tax liabilities owed by SMEs, with the aim of easing cash flow pressures faced by businesses.

In parallel, discussions are being held with SOEs and other relevant agencies to reduce service fees charged to SMEs. The ministry is also exploring ways to allow certain fees that are currently payable in US dollars to be paid in Maldivian Rufiyaa, a move expected to ease foreign currency constraints and lower operational costs for local businesses.

The Ministry of Finance and Planning said these measures are intended to create a more supportive and inclusive business environment, strengthen SME participation in government procurement, and provide practical solutions for settling outstanding tax obligations, thereby contributing to the sustainable growth of the SME sector in the Maldives.