Procurement rules to be amended to prioritize SMEs in government tenders

Ministry of Finance has announced plans to amend state procurement rules to give greater priority to small and medium enterprises (SMEs) when government projects are opened for bidding.

The move follows concerns raised by business owners during a meeting with President Dr Mohamed Muizzu earlier this month, where SME representatives said smaller firms were losing out because they had to compete with large companies for government tenders.

In a statement, the finance ministry said a range of measures were being introduced to support registered SMEs. Under the proposed changes, government tenders below a specified value threshold will be reserved exclusively for small and medium-sized enterprises.

The ministry said it is consulting with relevant government agencies and making amendments to laws, regulations and procedures to implement the changes.

It added that the state procurement system is also being restructured to remove barriers faced by SMEs, simplify procurement processes and create a more competitive environment.

The ministry said special priority would also be given to SMEs to settle outstanding tax obligations, in coordination with the Maldives Inland Revenue Authority (MIRA) and state-owned enterprises. It said it was working with relevant agencies to reduce fees and service charges for SMEs and to implement the reforms as soon as possible.

According to the ministry, the cabinet has designated the next two years as a period focused on strengthening small and medium-sized enterprises, with steps already under way to address issues raised by business owners in meetings with the president.