Economy collapsed because projects were initiated beyond state's financial capacity: MP Shamheed
MP Shamheed highlighted that 95 percent of the Maldives' foreign debt was incurred to develop the Greater Male' Area, noting that executing massive projects beyond the state's fiscal capacity has negatively impacted the economy. He argued that since the capital's real estate market was built using public funds, the concept of permanent residential addresses should be abolished to ensure equal opportunities for all citizens. Furthermore, Shamheed asserted that prioritizing large-scale projects in the Male' region has led to the suspension of rural development initiatives and contributed to the rising value of the US dollar.
Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumalé constituency, delivers a speech during a parliamentary sitting. | People's Majlis
Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumalé constituency, has stated that the Maldivian economy plummeted due to the initiation of projects beyond the country's fiscal capacity.
During the debate on the proposed amendment to the Citizenship Act, introduced by MDP Member for North Galolhu Mohamed Ibrahim, MP Shamheed stated that Malé was developed into its current state using the collective funds of all Maldivian citizens.
MP Shamheed stated that while the Maldives' foreign debt has climbed to $4 billion, approximately 95 percent of that amount was spent on the development of the Greater Male' region. He further noted that these funds were utilized to expand the real estate market.
Referring to the nation's economy, MP Shamheed stated that the land allocation under the previous MDP administration and the current government’s Ras Malé reclamation project reflect the present economic reality. He further noted that the dollar exchange rate has surged to 21 Rufiyaa and regional development projects have come to a standstill as a direct consequence of initiating projects beyond the capacity of the state treasury.
Everything concentrated in Malé was built using the funds of all Maldivian citizens. It was with this money that we expanded the real estate sector here and drove up property values. The market value was inflated through the collective wealth of the entire population. This was how spending was managed in the past. However, the decision by the MDP government—the administration to which I belonged—to once again grant land specifically to Malé residents, combined with the current administration's ongoing Fushidhiggaru reclamation project, symbolizes the root cause of our current economic downfall. In reality, our economic situation is directly linked to these actions.Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumalé constituency.
MP Shamheed stated that, given the current state of the nation, the concept of a permanent address must now be abolished. He further emphasized that all Maldivian citizens should be treated and measured by the same standard.
