Finance Minister Ibrahim Ameer, on Wednesday, stated that Maldives’ Gross Domestic Product (GDP), if not for the COVID-19 pandemic, would have been at MVR 140 billion by the end of this year.

Speaking at a campaign rally of President Ibrahim Mohamed Solih held at Ameer’s birth island, GDh. Gadhdhoo last night, the minister said Maldives’ economy was improving at a high speed ahead of the pandemic.

He detailed that only USD 162 million was in the state’s usable reserve when the current administration took office in 2018, which was raised USD 316 million in just two years.

Nevertheless, Ameer stressed that the nation’s GDP dropped by 33 percent due to the pandemic, citing the Maldivian economy would have been at much better levels by the end of this year, if the pandemic had not taken place.

Ameer forecasted the following numbers with respect to the economy by the end of this term, if not for the pandemic.

GDP – MVR 140 billion
Usable reserve – USD 500 million
Tourist arrivals – Three million per year
Nevertheless, Ameer said the Maldivian economy was in a better condition compared to before, even with the difficulties faced due to the pandemic.

“Even with the pandemic, the usable reserve stood at approximately USD 177 million when we concluded 2020 amid the pandemic; an increase from the USD 162 million it stood at by the end of 2018,” he said.

The minister stressed that the government had incurred huge expenses during the pandemic to provide income support, frontline allowance and financial assistance to small and medium enterprises.

He added that the government undertook these tasks while faring through the biggest low the Maldives and the world’s economy have ever experienced.

Minister Ameer said the government, despite a multitude of difficulties, carried out a great number of infrastructure development projects – which would aid in doubling the economy in the next term.

Statistics show that Maldives’ usable reserve stood at USD 594 million at the end of last month. USD 238 million has been deducted from the reserve between last year’s December and July.

Maldives’ GDP improved by 13 percent last year, while so far this year, it has been at 9 percent.

Source(s): sun.mv

Bank of Maldives (BML) has posted a net profit after tax of over MVR 550 million for the second quarter of the year.

The national bank’s Q2 financial results, released on Monday, shows the bank generated a revenue of MVR 1.06 billion.

The bank generated an operating profit of MVR 678 million – up 15 percent compared to Q2 2022.

BML posted a net profit after tax of MVR 552 million – up 55 percent compared to last year.

The bank attributed the increase to solid performances across all core business lines.

Despite the higher profits, the bank noted that capital adequacy and liquidity ratios are significantly higher than regulatory requirements.

During Q2, BML introduced its digital banking assistant, “Aaya”, as part of its commitment to enhance customer experience; introduced Two Factor Authentication (2FA) for internet and mobile banking logins, and a self-service ‘Kill Switch’ to disable access to internet banking and cards in emergencies.

BML’s CEO and Managing Director Karl Stumke said he was pleased with the results.

“We are pleased with the positive first half results which gives us the financial platform to continue to invest in the communities we serve. We will work hard to continue the positive momentum throughout the rest of the year,” he said.

In May, BML partnered with American Express to launch the year-long destination campaign ‘Experience Maldives’ offering unique, authentic experiences for American Express Card members.

The bank also opened new Self-Service Banking ATM centers in Maafaru and Miladhoo.

Q2 also saw the bank hold its Annual General Meeting, during which shareholders approved a total dividend payout of MVR 215 million, with MVR 40 per share.

BML boats a nationwide network of 38 branches across all 20 atolls, 87 self-service banking centers, 143 ATMs, over 200 agents, and a full suite of digital banking services.

BML states it remains committed to supporting individuals, businesses and communities across Maldives.

Source(s): sun.mv

In addition to the lack of transparency in market regulations, lower-than-expected market demand, inadequate infrastructure development, low labor skills, and poor business environment have all contributed to the exodus of foreign companies from India.

BEIJING, July 23 (Xinhua) — Recently, a string of prominent multinational corporations including electronics maker Foxconn Group and communications products supplier Wistron group, are withdrawing from the Indian market.

These companies are on a long list of multinational enterprises that were forced to exit, scale down, or consider pulling out of the Indian market over the years.

This trend brings sharp focus on the challenges foreign firms are facing in India, despite the country’s seemingly vast and promising consumer market. The perception of India as a potentially lucrative destination appears to conceal significant risks for foreign investors.

GRAVEYARD FOR FOREIGN COMPANIES

Despite having a large consumer population and a fast-growing economy, India is increasingly known as a hazardous “graveyard for foreign companies.” In the World Bank’s Global Doing Business report, India, which is expected by some to become the “new factory of the world,” was ranked as one of the worst countries in the world to start a business.

“Ease of doing business … there are very few countries we can compete with, obviously from the bottom. Probably, this is the worst country to do business in. That is a very frank statement I want to make,” Pankaj Mohindroo, chairman of the mobile industry body Indian Cellular & Electronics Association, once criticized the business climate in India.

Over the decades, wooed by the seemingly booming market, plenty of multinational companies have tried to jump on the bandwagon of exploring investment options in India, but few have proceeded any further.

In recent years, the Indian government has doubled down on blackmailing foreign companies with trumped-up charges. Google, Amazon, Nokia, and Samsung have all suffered billions of outrageous fines, while others including Xiaomi, OPPO, Vivo, Intel, and Wistron have also hit snags in the Indian market.

According to data from the Indian government, from 2014 to 2021, nearly 2,800 foreign companies registered in India closed their operations, accounting for about one-sixth of the total number of multinational companies in the country.

Through means like imposing huge fines, freezing deposits, and confiscating assets, the Indian government has habitually snatched the business gains of foreign enterprises. “You can earn money here; you can spend money here, but you can never take what you have earned here back home,” some investors in the country have lamented.

HARSH BUSINESS ENVIRONMENT

While some of the outgoing companies have either cited poor competitive positions against domestic companies or their global business strategies beyond India as reasons to quit the Indian market, many foreign investors have had long-running conflicts with the Indian law enforcement and tax authorities.

It has become commonplace for foreign companies in India to face hefty fines for an already long and still growing list of violations that often ignite controversy in the business community.

According to PwC India’s former leader on infrastructure Manish Agarwal, although foreign direct investment is still coming to India, strategic investors have stayed away.

“India needs to ensure proper project preparation timelines for public-private projects, provide balanced risk-sharing guidelines, and contracts should be enforced properly,” Agarwal told the Financial Express.

In addition to the lack of transparency in market regulations, lower-than-expected market demand, inadequate infrastructure development, low labor skills, and poor business environment have all contributed to the exodus of foreign companies from India.

Frequent electricity outages and water supply disruptions have made operations in India extra costly.

Even worse, half of the South Asian nation’s youth are leaving school without the necessary skills to find decent jobs in the coming decades, the United Nations International Children’s Emergency Fund has warned.

“This scenario must change if India wishes to make the most out of the changed world economic model and offers companies a diversified supply chain for raw materials, a market that they can rely on, and also certain tax benefits that will encourage their commercial interests to reap long term benefits from trading within the boundaries of India,” India’s leading online legal services provider Vakilsearch said in a recent report

Source(s): Xinhua