The Government has made important amendments to the policy on giving priority to certain businesses and sectors in public procurement and gazetted the changes.
The main objective of these reforms is to increase the participation of the micro, small and medium enterprise (MSME)s registered in the Maldives in state procurement transactions, and increase opportunities and facilitate the sustainable development capacity of such enterprises.
Under the revised rule, if bidders for procurements worth less than USD 323,255 include MSMEs, the contract must be awarded to the highest scoring MSME bidders in that category. This change will expand the role of MSMEs in government procurement and facilitate the growth of such businesses.
In addition, new rules have been prescribed for construction projects. While construction projects worth less than USD 32,425 are now reserved for contractors included in Grade 7 of the National Contractors Registry, projects valued between USD 32,425 and USD 648,508 are reserved for Grade 4, 5, 6 and 7 contractors. This is an important step to increase the opportunities available to small and medium contractors.
Recently, President Dr Mohamed Muizzu met with local businesses, and assured the businesses, especially MSMEs, that he would address the issued faced by the businesses. The President approved reforming the procurement system in the light of this discussion.
The Ministry of Finance expects the newly gazetted reforms to increase the share of MSMEs in the state procurement system and increase the participation of all stakeholders in the economy. This policy will also enhance the capacity of the Maldives’ private sector and open up new opportunities for small businesses across the country.
This change is an important part of the government's efforts to empower the Maldives’ private enterprises and ensure equal access to public projects. They underline the recognition of SMEs as the main driver of the country's economic growth and job creation.