President Dr Mohamed Muizzu has stated that the Government is closely monitoring the fluctuating global oil prices on a daily basis, while exploring measuring to minimise the impact on the public.
He made these remarks today during a press briefing held at the President’s Office.
The President noted that the Government is assessing ways to cushion the effects of oil price fluctuations on citizens, including engaging with private sector stakeholders involved in the oil trade. He emphasised that efforts are underway to manage the national economy in the most effective manner amid ongoing global uncertainties.
He added that the Government is closely observing the impact of international developments on the Maldives, with a Special Cabinet Committee convening weekly to review the situation and provide updates.
President Dr Muizzu highlighted that preparatory work has commenced to explore the establishment of a national oil reserve in the Maldives. He explained that the initiative is being studied as a long-term strategic measure, potentially implemented in three phases across three different regions of the country over a period of one to two years per phase. He described the reserve as a critical national asset, comparable in importance to a sovereign development fund.
The President also underscored that essential food items such as rice, sugar and flour are being maintained at stable stock levels, assuring that there are no shortages. He added that the Government has the capacity to stabilise prices of staple goods if necessary.
Additionally he noted that efforts are ongoing to expand domestic food production and strengthen food security policies. Incentives are being considered to encourage private sector investment in agriculture, including the provision of land and tax concessions.
On the economic front, the President stated that the Maldives’ gross reserves remain above USD 1.2 billion, with usable reserves exceeding USD 300 million. He also confirmed that preparations are on track to meet the upcoming Sukuk payment due on 8 April, with no expected disruptions.
President Dr Muizzu also addressed development projects, noting that ongoing projects are being implemented through a combination of financing models, including foreign assistance, loan facilities and contractor financing, and will proceed without delay. He added that priority will be given to completing ongoing projects within this year’s budget. The President further indicated that fewer new projects will be initiated this year, with priority given to housing, followed by the health sector.
He also announced that, barring unforeseen circumstances, he will meet with the press every Monday from 10:00 a.m. to 11:00 a.m. Today’s press briefing is the second such press engagement held under this arrangement.
