Committee passes amendment to SEZ Act

The Committee of the Whole House of the Parliament today passed the bill submitted by the government to amend the Special Economic Zones (SEZ) Act, a change that would allow for the establishment of residential townships within SEZs.

The bill, submitted by Baarah MP Ibrahim Shujau on behalf of the government, was sent to the Committee of the Whole House for review after its preliminary debate. The Committee of the Whole House, which includes all parliament members, is typically where major decisions are finalized.

The bill was passed by the Committee of the Whole House with 55 votes out of the 64 members who participated in the vote.

The main point of contention during the committee debate revolved around seeking input from relevant stakeholders. South Galolhu MDP MP Meekail Ahmed Naseem proposed meeting with the Maldives Association for Tourism Industries (MATI) to gather the tourism industry's perspective on the bill. He also proposed meeting with the Minister of Finance to clarify information regarding the bill's impact on the state budget.

"When we pass a bill of this magnitude, we must know the budget implications. We must know, precisely, the forecast amount that the state stands to lose, and the forecast benefits," Meekail stated.

He also proposed postponing the work on the bill until February of next year to allow for these consultations.

PNC Parliamentary Group Leader and Inguraidhoo MP Ibrahim Falah opposed this proposal, accusing MDP members of attempting to delay the bill's work. He countered with a proposal to conclude the bill's committee stage immediately.

Following this, the Committee voted and passed the bill without further debate.

The most significant change proposed in the bill involves altering the types of areas that can be designated as SEZs. Currently, Article 20 of the SEZ Act restricts the establishment of Special Economic Zones to industrial areas. Shujau’s bill proposes adding a new numbered category to this article, allowing for the designation of "Sustainable Townships."

As outlined in the bill, areas established as Sustainable Townships would permit the development of integrated tourism and conducting real estate business. Furthermore, the bill specifies that these zones, featuring both types of facilities, would be managed under a single management authority.