Corporate Maldives | Issue 2 - April 2020 by Orca Media Group

April 2020 Coporatemaldives.com

Managing Director Akhmeem Abdul Razzaq Chief Executive Officer Dr. Hussain Sunny Umar Creative Director Nashaath Director Ibrahim Areef Director Mohamed Khoorsheed Manager Ahmed Nasir Assistant Manager Fathimath Maisaan Photography - DYNAMYST Moonis Design Direction - CREATIVE TUNA Zaya Ahmed Moothi Hamdhoon W. Asthu Shahindha Razan Fathmath Zuhura Ismail Marketing Ali Sageef Ibrahim Hawwa Sana Rashad Mariyam Inaya Ubedhullah Copyright c 2019 Orca Media Group. All rights reserved throughout the world. Reproduction in any manner is prohibited. Opinions expressed in the articles are of the authors and do not necessarily reflect those of the editor or publishers. While the editors do their utmost to verify information published they do not accept responsibility for its absolute accuracy. Materials in this publication may not be reproduced, whether in part or in whole, without the consent of Orca Media Group.

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Foreword Welcome to the second issue of the Corporate Maldives Print Edition. Launched in 2016 by Orca Media Group, Corporate Maldives is the most read English-based business news portal which is dedicated entirely to the business community of Maldives. The print edition of Corporate Maldives will cover special reports on different segments of the business community along with expert insights and opinions. This issue has a collection of stories on banking, trade, aviation, health and technology which are all must-reads. Our cover story is on the passed Government budget for 2020. It will highlight upon the key areas of expected growth, how the budget was allocated and what is the expected outcome of the leading income generating areas; tourism and fisheries. Corporate Maldives organises the “GOLD 100 GALA” annually which is the gathering of all leading business in Maldives & celebrates their contribution to the economy. We will be hosting the second edition of the “Business Expo” by Corporate Maldives —the premier business networking and trade show in Maldives. Business Expo will attract over 3,000 professionals and 150 business exhibitors, which is focused on targeted learning, networking, building valuable new business relationships & finding partners that help business owners to take their business to the next level.

Thank you.

Content

Economic Review

Goverment

Tourism

Fisheries & Agriculture

Education

People

Banking & Finance

Mira

Sports

Aviation

Food

Fashion & Beauty

Health

Technology

Real Estate

75 Events

Economic Review

Corporate Maldives | Issue 2

Economic Review Quarterly Economic Bulletins compiled and released by the Research Division (RD) of Maldives Monetary Authority has revealed significant economic developments in various aspects during the year 2019.

The number of resorts in operation increased to 149 resorts during Q3-2019 from 128 resorts in Q3-2018.

Most recent indicators during Q3-2019 reflects that the signiďŹ cant increase in GDP is due to the strong economic activity led by the massive growth in the tourism industry (4%) where tourist arrivals increased by 10% and tourist bed nights increased by 8% which recorded an annual growth rate of 17.8% in Q2-2019

The Gross Domestic Product (GDP) of the Maldives has increased to 9.4% in Q2-2019 while the growth rate was 4.7% during Q1-2019. Most recent indicators during Q3-2019 reflects that the significant increase in GDP is due to the strong economic activity led by the massive growth in the tourism industry (4%) where tourist arrivals increased by 10% and tourist bed nights increased by 8% which recorded an annual growth rate of 17.8% in Q2-2019. Positive developments were also seen in the wholesale and retail trade (2%) valued at US$366.1 million in Q3-2019 compared to US$ 358.7 million in Q3-2018 along with the fisheries sector while the increased commercial bank credit led to the increased performance in the construction industry during Q3-2019. In addition, the transportation and communication sector grew by 11.3% while the education sector had a remarkable development of 16.9% in Q2-2019. P Growt h GD

2016

2017

2018

20162019

2019

The development in the industry is reflective from the tourism receipts, which are estimated at US$613.9 million during Q3-2019. The number of resorts in operation increased to 149 resorts during Q3-2019 from 128 resorts in Q3-2018. The increased air connectivity and flight movements from major airlines to the Maldives along with strong domestic demand led to a further development in the industry of a remarkable 20% during Q3-2019 reflecting an increase of over 1000 flight movements compared to Q3-2018. The significant growth was led by the increased arrivals from Europe, Asia and Pacific region having 41% and 48% along with Italy (25%), Russia (21%) and Germany (9%). The growth in the tourism sector is also contributed by the increased arrivals from emerging markets such as Saudi Arabia, US and Pakistan during Q3-2019. The operational bed capacity for the quarter has also increased by 5,991 beds totalling to 47,880 beds which reflects a 14% increase in annual terms. However, the average occupancy rate of the industry fell to 54% in Q3-2019 compared to 57% during Q3-2018 where the average occupancy rate of resorts also decreased to 66% in Q3-2019 from 70% in Q3-2019. The government revenue declined in annual terms during Q3-2019 along with the decline in non-tax revenue and decrease in capital receipts. Moreover, the total expenditure rose in annual terms including write-offs, salaries and wages while the capital expenditure declined by the fall in public sector spending and investment

Corporate Maldives | Issue 2

The Gross International reserves (GIR) have also declined being valued at US$530.8 million by Q3-2019 which is a 6% fall compared to the corresponding quarter of 2018 while it is a massive 22% fall compared to Q2-2019.

The inflation rate of the Maldives has improved where it was 1.33% during Q2-2019 which has declined to -0.04% in Q3-2019.

Economic Review

2016

2017

programme projects. The Gross International reserves (GIR) have also declined being valued at US$530.8 million by Q3-2019 which is a 6% fall compared to the corresponding quarter of 2018 while it is a massive 22% fall compared to Q2-2019. The fall in GIR is mainly driven by the decrease in commercial bankâ&#x20AC;&#x2122;s foreign currency deposits held at the Maldives Monetary Authority. The inflation rate of the Maldives has improved where it was 1.33% during Q2-2019 which has declined to -0.04% in Q3-2019. The main decline in food prices are reflective from the declined prices of vegetables (12.2%), fish products (21%), audio and video recording equipment (20.8%) and domestic air transport (10.3%). The deflationary pressure is also seen from the fall in the prices of household appliances,clothing and furnishing.

2018

2019

During Q3-2019, the monetary developments of Maldives remained unchanged at 7% contributed by the rise in transferable deposit base and other deposits in the banking system led by the growth in those deposits denominated in foreign currency by private sector and public non-financial corporations. Besides, total merchandise exports has decreased in annual terms during Q3-2019 compared to the corresponding quarter in 2018 which was contributed by the fall in re-exports as well as domestic exports while the imports also declined from construction related items, medical, surgical supplies, machineries, parts and mechanical appliances.

Economic Review

Corporate Maldives | Issue 2

Government Budget 2020

A government budget is an annual financial statement which outlines the estimated government expenditure and expected government receipts or revenues for the forthcoming fiscal year.In national finance, the period covered by a budget is usually a year, known as a financial or fiscal year, which may or may not correspond with the calendar year. In the Maldives, Ministry of Finance is the government authority to set and forecast the budget for the forthcoming fiscal year. Finance Ministry has proposed a record MVR 37.5 billion state budget for the year 2020. The 2020 budgeted MVR 37.5 billion as expenditure for next year, the estimated revenue is at MVR 29.92 billion leaving a budget deficit of MVR 5.7 billion.

The 2020 budget will mainly focus on recurrent expenditures which account for MVR 2.2 billion from the budget. While MVR 5 billion has been set for capital expenditure, MVR 10.2 billion has been allocated for PSIP. Unlike previous years, the 2020 State Budget was compiled to complement aims set out in the SAP which was publicized by the government in October. The plan includes pledges made under the manifesto of the current administration.

Economic Review

e & E x pen

d re

Re v

i tu

Corporate Maldives | Issue 2

MVR. 29,922 million It is estimated that the government would receive MVR 29.9 billion as revenue and grants in 2020, of which tax revenue constitutes the major item. Government revenue is classified under three main headings â&#x20AC;&#x201C; tax revenue, non-tax revenue and grants.

p end i t ur e

MVR. 35,600 million The estimated budget for 2020 is MVR 37.5 billion, of which total expenditure is 35.6 billion. Total expenditure is calculated by deducting loan repayments and contribution to international financial institutions. Government expenditure is made up of two main components; recurrent expenditure (expenditure incurred for the day-to-day running of the government and providing public services) and capital expenditure (expenditure on infrastructure projects and capital items such as machinery). DeďŹ ci t

MVR. 5,678 million The estimated budget balance for 2020 is a deficit of MVR 5.7 billion. The primary balance for this period is a deficit of MVR 3.8 billion. This deficit is financed through various financial instruments and by borrowings. The overall budget balance is the difference between total revenues and grants, and expenditures. There will be a budget deficit if the total expenditures are higher than the total revenues and grants. The primary budget balance is the overall balance after deducting loan servicing costs.

Budget Details Economic Affairs

MVR 7,912 Million

General Public Services and Recreation, Culture and Religion

MVR 7,737 Million

Education

MVR 4,412 Million

Health

MVR 4,108 Million

Social Protection

MVR 3,991 Million

Housing and Community Amenities

MVR 3,111 Million

Defence, and Public Order and Safety

MVR 2,943 Million

Environmental Protection

MVR 1,798 Million

Economic Review

Corporate Maldives | Issue 2

Health The 2020 budget includes a total of MVR 4,107.8 million for the provision and expansion of healthcare services. From this budget, MVR 3,523.2 million is allocated for hospital services while MVR 584.7 million is allocated for general health services. Social Protection Expenditures on this function aim to promote equality within the society. From the budget allocated for this sector, MVR 1,371.6 million is allocated for sickness and disability, MVR 1,320.0 million for old age, and MVR 1,299.1 million for other expenditure for social protection.

Economic Affairs

Housing and Community Amenities

According to the ministry of finance, the biggest portion of the budget for 2020 is allocated for economic affairs. The 2020 Budget includes a total of MVR 7,912.4 million on economic affairs. Most of the expenditure in this sector (MVR 4,096.7 million) is allocated to economic, social and labour affairs.

MVR 3,110.7 million is allocated for housing and community amenities in the 2020 budget. Among this, the majority of expenditure (MVR 2,891.1 million) are on housing and community development.

General Public Services and Recreation, Culture and Religion

Defence, and Public Order and Safety

According to the ministry of finance, the second highest amount in the 2020 budget is allocated for General Public Services and Recreation, Culture and Religion. The 2020 budget allocates MVR 3,168.8 million on the provision of general public services. A total of MVR 2,998.2 million is allocated for executive and legislative organs, financial and fiscal affairs, and external affairs. MVR 822.8 million is allocated for recreation, culture and religion in budget 2020. MVR 446.8 million is allocated towards recreation and sporting services while MVR 316.8 million is allocated to religious and other community services. A total of MVR 3,727.4 million is allocated in the 2020 budget for debt services and amortisation. Of this, MVR 1,883.7 million is allocated for public debt transactions and MVR 1,843.7 million is allocated for interest payment and debt servicing.

Education The education sector is the one of the key areas the government is focused on its budget for 2020. Therefore, it has allocated MVR 4,411.6 million for the education sector. Among that MVR 1,140.8 million is allocated for tertiary education while the remaining MVR 3,270.8 million is allocated for education, not elsewhere classified.

The 2020 budget allocates MVR 9,942.5 million for public order and safety. The majority of the expenditures are on border control and public safety. This constitutes a total budget of MVR 1,808.2 million The 2020 budget allocates a total of MVR 1,493.8 million on defence related expenditures. The majority of this is spent on military defence with a total of MVR 1,333.0 million.

Environmental Protection The 2020 budget allocates a total of MVR 1,798.0 million on environmental protection. Expenditure on this function includes waste management, waste water management, pollution abatement protection of biodiversity and landscape, among others. The largest component, among this, is the waste water management for which MVR 1,059.1 million is allocated for in the 2020 budget.

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Government

Corporate Maldives | Issue 2

Government and Blue Prosperity Coalition Launch Scientiﬁc Expeditions to Explore Maldives’ Ocean

The Government of the Maldives, in partnership with the Blue Prosperity Coalition, has launched the first of several ground-breaking scientific expeditions to explore the country’s diverse marine habitats from shallow to deep water. The data collected will inform policymakers on ways to sustainably manage fisheries and improve ocean health across the archipelago. These expeditions are part of a larger partnership between the Government of the Maldives and the Blue Prosperity Coalition with the goal of sustainably utilising and protecting ocean resources. “71% of Maldivians rely on the ocean for their primary source of income. It’s imperative that we protect the health of our oceans now and for the future. By studying our ocean from shallow reefs to deep waters we are taking a step forward towards effectively understanding and managing our ocean resources,” said President Ibrahim Mohamed Solih. The first expedition, led by the Waitt Institute, the Sandin Lab from Scripps Institution of Oceanography, members of the Ministry of Fisheries, and scientists from the Maldives Marine Research Institute, will survey the health of coral reef habitats and fish populations across the Northern and Southern atolls. The 26-day expedition will consist of scuba diving surveys, collection of water quality samples, and the use of remote cameras to better understand the composition and health of nearshore marine habitats.

Corporate Maldives | Issue 2

“I am grateful for this opportunity to work with the Government to better understand the unique ocean ecosystem of the Maldives. Surveying the many reefs across the entire Maldives’ archipelago will help us understand the bigger picture of ocean health and prioritize the areas that need to be protected,” Andrew Estep Science Manager of the Waitt Institute.

Shafiya Naeem, Head of Maldives Marine Research Institute, commented, “From fisheries to tourism to our way of life, the ocean is a key part of each Maldivian. We are excited that this expedition will build upon existing research being done by the government to explore the sustainable use of the ocean.” In addition to enriching our understanding of the Maldives’ ocean resources, this research will assist policymakers in several regards, including marine spatial planning efforts to designate ocean zones to be used for specific activities, devising ways of preserving important fish stocks, and; helping to implement sustainable tourism practices that can improve ocean livelihoods and economies without compromising ocean health. “I am grateful for this opportunity to work with the Government to better understand the unique ocean ecosystem of the Maldives. Surveying the many reefs across the entire Maldives’ archipelago will help us understand the bigger picture of ocean health and prioritize the areas that need to be protected,” said Andrew Estep, Science Manager of the Waitt Institute. The Government of the Maldives and the Blue Prosperity Coalition signed a Memorandum of Understanding (MoU) during the 74th United Nations General Assembly meeting in New York City in September 2019, formalizing a five-year programme that will involve local ministries, non-governmental organizations, and marine experts from both the Maldives and abroad. The Blue Prosperity Coalition is a global network of ocean experts working to advance ocean protection and grow Blue Economies. Members include the Waitt Institute, National Geographic Pristine Seas, Nekton, and Scripps Institution of Oceanography. Through a close partnership, the Maldives’ Government and Blue Prosperity Coalition aims to sustainably grow ocean economies and ensure a thriving marine environment for future generations.

Economic Review

Government

Corporate Maldives | Issue 2

Ministry of Economic Development brings changes to expatriate workers quota policy

Women contribute to 50% of the economic advancement in the country– Minister Fayyaz

Ministry of Economic Development announced that they have brought changes to the policy followed in issuing quota to bring in expatriate workers to the Maldives.

Minister of Economic Development, Fayyaz Ismail has said the economic growth constitutes of women’s participation and that it accounts for 50% of the economic advancement in the country.

According to an announcement issued by the Economic Ministry, employers seeking to bring in expatriate workers are required to submit a ‘project agreement form’ requesting for quota. This form will ask for information required to ensure that a project has indeed been assigned to the party seeking the quota. The form must either be notarized by a public notary or registered at the Civil Court. Under the amended policy, employers can request for a quota starting from 1st January 2020, the submission of the project agreement copy will complete the application, said the ministry. The project agreement form will be available through the ministry’s website (employment.trade.gov.mv) and through the Expats online system.

The Minister made this remark at the two-day councilors conference held at Marina at the Crossroads Maldives, “Viavathi Raaje” from 15th-16th December 2019. Minister Fayyaz said the societal mindset on discouraging women on leading corporate or political positions in the economy needs to be changed in order to develop and expand the economy of Maldives. “Without the contribution of working women, we will face great difficulties to advance the economy and tackle potential growth. Under the President Ibrahim Solih’s administration, we will witness 33% of council seats occupied by women as a move to increase female inclusivity,” Minister Fayyaz said. One of the main breakthroughs at the conference was the president ratifying the eighth amendment to the Decentralization Act, which grants councils legal and fiscal autonomy to develop their respective constituencies.

Corporate Maldives | Issue 2

Monthly Fees exempted from running businesses in the Maldives â&#x20AC;&#x201C; Economic Ministry

Goverment

CORPORATE MALDIVES

The Ministry of Economic Development has stated that businesses run in the Maldives will no longer need to pay the fee for trade permits. After taking to effect the changes made to the law of registering businesses last Sunday the ministry highlighted that for businesses running with imported goods, cafeâ&#x20AC;&#x2122;s, restaurants and canteens will no longer be required to produce permits to run their businesses. z The ministry also stated that under the changes made to this law, Sole trader, company, partnerships, and corporative societies once registered will no longer require any further permits to run their businesses. Under the new changes, the institutions that collected the monthly fees such as the Economic ministry, local councils, city councils, and MIRA have stopped doing so officially. Before the changes were made businesses in the city were charged a monthly fee of 200/- MVR and local island businesses were charged 50/- MVR.

2021

Goverment

Corporate Maldives | Issue 2

First Permanent Schengen Visa Application Centre Opens in Maleâ&#x20AC;&#x2122;

A Permanent VFS Visa Application Centre has opened in Male, which provides visa facilitation services to Maldivians who wish to travel to Germany and the Czech Republic. The Centre was inaugurated by the Minister of Foreign Affairs, Abdulla Shahid, Ambassador of the Federal Republic of Germany, JĂśrn Rohde and Ambassador of the Czech Republic, Milan Hovorka. Speaking at the opening ceremony, Minister Shahid thanked the Government of Germany and especially Ambassador Rohde for taking the initiative to establish the Visa Centre in the Maldives. The Minister also thanked the Government of the Czech Republic for their support towards the initiative, which the Minister noted, reflected the growing ties of friendship and cooperation between the countries. Both Ambassador Rohde and Ambassador Hovorka also expressed confidence that this initiative would further strengthen the increased tourism and trade between the Maldives and their respective countries. The VFS Centre would initially cater to those traveling to Germany and the Czech Republic as the main destination. Minister Shahid,

however, expressed confidence that more European countries would follow Germany and the Czech Republic and join with VFS in the close future. The establishment of the VFS Centre in the Maldives aims to bring an end to the time-consuming and costly process for Maldivians applying for a Schengen visa through embassies based in Colombo or New Delhi. Such Visa facilitation services are part of the Governmentâ&#x20AC;&#x2122;s broader objectives in providing quality consular services for Maldivians. The Maldives has signed visa waiver agreements with the United Arab Emirates, Russia, Morocco, and Thailand last year, and expanded its visa arrangements with the neighboring countries of India and Sri Lanka.

PERIODICAL International Travel Trade Publication of Maldives

Tourism

Corporate Maldives | Issue 2

Tourism be

2019

582

583

579

577

580

578

by typ

566

567

OCT

NOV

Number of establishments (registered) Number of establishments (in operation)

bed cap

by typ

2019

Here are the statistical overview of guesthouses of 2020 :

ci e,

SEP

OCT

9,457

9,467

99.9%

9,429

9,439

99.9%

9,405

9,415

99.9%

9,303

9,313

99.9%

AUG

Tourism industry in Maldives ďŹ rst started in 1972 with just two resorts in Kaafu atoll, and now it has expanded into one of the largest industries in Maldives economy with more than 100 resorts located in both the south and north side of the country. Maldives tourism industry is not just limited to resorts, it includes guesthouses, hotels, and safari vessels. Tourism industry has contributed 20.2% to nominal GDP in 2018.

SEP

tablish

AUG

r of tour

Here are the statistical overview of guesthouses of 2020 :

NOV

Number of establishments (registered) Number of establishments (in operation)

Tourism

Corporate Maldives | Issue 2

MITDC â&#x20AC;&#x201C; New Vision

Maldives Integrated Tourism Development Corporation (MITDC), focusing more towards developing auxiliary facilities for guest houses within local islands.

Maldives is considered to be one of the most luxurious travel destinations in the world. The huge tourism industry built over the years by the resorts operating in this beautiful island nation has set high standards, which every traveler looks forward to when they book their holiday in the Maldives. With the introduction of the guest house industry in 2008, the country has been able to reach out to a broader target market who have been eagerly waiting for an affordable Maldives Experience. The growing Local Tourism Industry has proven to be promising, however, there are some obstacles such as the lack of auxiliary services that provide support for the successful operation of a tourist guest house in a remote rural island. Facilities like, watersports activities, spas and a variety of F&B outlets are essential for the growth and sustainability of the industry. To address this issue, new directions have been set by the Maldives Integrated Tourism Development Corporation (MITDC), focusing more towards developing auxiliary facilities for guest houses within local islands.

Corporate Maldives | Issue 2

Mr. Mohamed Raaidh; The new Managing Director of the 100% government owned company (MITDC) has stated that the primary goal of the company is to provide and promote the development of auxiliary facilities such as watersports & dive centers in remote islands that wish to promote local tourism. He added that, regardless of not making millions in profit, MITDC is ready to provide these services to the Local Tourism sector of the Maldives. Mr. Raaidh addresses the fact that there are some islands nearby Maleâ&#x20AC;&#x2122; even housing just a handful of guest houses owned by local residents who wish to expand and grow their businesses. However, they are unable to do so due to the limited number of facilities available on the island to support the operations of small guest houses. For instance, in Hoarafushi, it is reported that the island has only one operational guest house but they are unable to attract guests at maximum potential due to the fact that there are no other facilities such as water sports, diving facility or a good F&B outlet on the island to provide support for the business. This also contributes to the fact that other residents of the island are hesitant to join the industry. MITDC believes that providing such auxiliary services is essential to create a sustainable environment which would facilitate the growth of local tourism in islands at a fast pace. Some islands have many guest houses and none of the other support services. Hence, the companyâ&#x20AC;&#x2122;s interests are towards establishing facilities that provide such services MITDCâ&#x20AC;&#x2122;s current vision is to establish said facilities on local Islands adding that MITDC will not be operating these developments but will only be carrying out the role of a developer. Discussions between MITDC and the Guest House Association of Maldives have been carried out to exchange views about the matter. It was agreed upon by both parties that primary auxiliary facilities developed by the government would greatly assist local entrepreneurs to grow and expand local tourism in their islands. Such assistance by the government would also be generously appreciated by local communities as well Based on the current statistics from the Ministry of Tourism, There are more than 500 operational guest houses situated all across the Maldives. However, most islands that house guest houses lack the auxiliary services that go hand in hand with operating a lucrative guest house business. .

Tourism

Corporate Maldives | Issue 2

Why TTM?

The ulterior motive behind TTM Maldives is to enable PR exposure thus create an exquisite image for the Maldives and keep the resorts, hotels, airlines and other key stakeholders of the tourism industry acquainted TTM, it attracts a lot of Top Travel Media including journalists and editors exclusively from top 10 travel and tourism media publications thus guaranteeing worldwide exposure.

Travel Trade Maldives (TTM) is the leading travel trade business resource for tourism industry developments in Maldives. The TTM portfolio of products include: Maldives Leading Travel Trade Show along with TTM Travel Summit and TTM Awards & Gala, bi-monthly print periodical, travel channel TTM+ and the online news portal www.traveltrademaldives.com Staged annually in Maldives, TTM Maldives is the Maldives leading international travel trade show for the travel trade community of Maldives. More than 1000 hoteliers, suppliers, related industries and travel professionals from Maldives and abroad visit TTM every year to network, negotiate and discover the latest industry opinion and trends in Maldives. The fourth edition of the TTM will be held on 9th to 11th June 2020. The ulterior motive behind TTM Maldives is to enable PR exposure thus create an exquisite image for the Maldives and keep the resorts, hotels, airlines and other key stakeholders of the tourism industry acquainted with the arrival of top 30 target markets and opportunities present for the Maldives, subsequently create an influx of tourists to the Maldives. Over 200 Travel Trade Professionals in top 30 markets for the Maldives aims to act as a portal for the prestigious Travel Professionals. Due to the impeccable image of TTM, it attracts a lot of Top Travel Media including journalists and editors exclusively from top 10 travel and tourism media publications thus guaranteeing worldwide exposure. There are 3 main components of TTM as a whole, Firstly TTM Travel Summit aimed to act as a platform whereby stakeholders of the industry would meet in one place to discuss the future of Tourism in the Maldives Professionals regarding the market trends,

analysis and the basic overview of the Maldivian tourism industry as a whole. Secondly, TTM Pre-Scheduled Meetings will see over 3000 pre-scheduled meetings between exhibitors and trade visitors. Over $1 billion worth of contracts will be discussed. This would have standardized booths for all the exhibitors and welcomes the top resorts of Maldives. Lastly, TTM Awards & Gala is dedicated to tourism industry professionals who work around the clock to ensure that Maldives is the leading tourism destination in the world. The official magazine of TTM - Best of Maldives, published in English, is freely distributed at the event & other international travel trade shows. This magazine includes exhibitor profiles and important information regarding the Maldives as a tourism destination. TTM Periodical is the international travel trade periodical of the Maldives covering travel and tourism news which is distributed across the globe to travel trade professionals. The recently launched, TTM+ is an online travel channel and content marketing studio within Travel Trade Maldives to create engaging, insightful content and experiences for brands looking to connect with the global travel industry by connecting them through the Travel Trade Maldives ecosystem of travel industry influencers and decision makers. Traveltrademaldives.com is the online news portal for the tourism industry developments in Maldives.

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Fisheries & Agriculture

Corporate Maldives | Issue 2

Fisheries Ministry Stats 2019 RSW loan – MVR 32,666,500 allocated for loans (50+ loans)

Fisheries & Agriculture Maldives fisheries sector has contributed around 4.5% to the nominal GDP in 2018 and has been one of the biggest sectors contributing to the national GDP. After facing falling revenues in three consecutive years, the fisheries sector has been rising steadily since 2017, and also has enjoyed a rise of 11% in 2017. Currently the fisheries industry is led by Horizon Fisheries, Ensis Fisheries, and MIFCO. The Ministry of Fisheries and Agriculture has the responsibility of ensuring efficient management of fisheries and agriculture resources under Maldivian law. Fisheries and agriculture ministry has to conduct research and to provide basic framework needed for efficient allocation of resources necessary for the development of the sector.

MVR 3,084,000 from 2019 budget MVR 29,582,500 to be allocated (for 50 loans) Masveriyaa Card with BML 1500+ ﬁshermen Diesel duty exemption 151 vessels registered 9 suppliers signed agreement with Ministry Submissions for diesel exemption through the app 338,989 liters (MVR 145,765.27) * Not processed yet Ice plant capacity Ministry budget Gn fuvahmulah (25 tonne) ADh. Mahibadhoo (25 tonne) India assistance K. Gaafaru (25 tonne) – MVR 4 mm R.Madduvari - (25 tonne) - MVR 4 mm 100 tonns in total

Corporate Maldives | Issue 2

Vessel Locating Device Program (VLD) Device is free for all licensed vessels, Device set on 15 vessels Device is worth MVR 30,000 Diamond Back Squid equipment loan Loan given to 8 applicants Trainings Diamond Back Squid training for 81 youth Fish Camp for Students 2 Fish Camps conducted; 42 students trained Applications Launched Keyolhu App used in prov

Fisheries & Agriculture

Agriculture In addition, the ministry has further executed some works in agriculture. Agriculture contributed around 1.1 percent of the total nominal GDP in 2018.. The diagram portrays some of the work done in the agriculture sector.

Corporate Maldives | Issue 2

M- GAP M-GAP training provided for 68 farmers (in 22 islands) Certification process started in 3 more islands Other trainings 514 farmers from 17 islands trained Field Officer training program for 6 participants from 6 islands in India for 6 months, in Association with MU Manik Foundation 2 participants in Agriculture internship program in HAC (6 months) 3 scholarships announced bachelor’s degree in Agriculture field Plant pest control and surveillance Emergency pest and disease program conducted in 30 islands Animal surveillance program Program conducted in 3 atolls – (Total 7 islands)

Corporate Maldives | Issue 2

Veterinary Service provided 1221 times Dhanduveri Nafaa loan MVR 14,000,000 allocated for this program 2 loans worth 2,075,000 given so far Import duty exemption on agricultural inputs Duty exempted for 191 products 21 importers of agricultural inputs have registered in ministry Support to school breakfast program 12975 tissues cultured Cavendish banana plants and 8525 fertilizer bags will be provided to 10 islands Hydroponics Systems installed and training provided for 10 households Other Projects Developed Agriculture Online System under the National Single Window Project, all agriculture related permit/applications can be done online (Not launched ofďŹ cially)

Fisheries & Agriculture

Corporate Maldives | Issue 2

Agritourism development in the Maldives What is agritourism? As a subset of two large sectors, agritourism allows for innovations within both agriculture and tourism sector by pooling resources and benefits to create profitable and diverse businesses. In many countries it exists as side enterprises within fully realized agribusinesses and tourism ventures. Agritourism has had a long history since the times when people have been migrating to cities. It has started out as refuge activities for urban populace for spending time in rural areas as a get-away from busy city life. Since the 1800s established businesses have sprouted around the main defining activities that were carried out at farm lands such as horseback riding and hunting for leisure. Subsequently, agritourism activities were adopted later around 1960s as part of rural development programs targeting poverty alleviation, agricultural and tourism diversification. Agritourism is becoming an increasingly popular industry throughout the world. Popular destinations offer unique experiences ranging from picking your own fresh fruit at an orchard and trying your hand at feeding poultry to making your own dish at the farm. There are tons of unique activities waiting to be explored.

How is it relevant to Maldives?

As an addition to the well-developed service industry, agritourism could provide a boost and a means to add value to the food production and tourism sector.

In many ways the Maldives is ripe for agritourism investments. The already established, rich tourism industry with nearly 2 million visitors as tourists the number of potential customers with interest to receive agritourism related products and services must be significant. As an addition to the well-developed service industry, agritourism could provide a boost and a means to add value to the food production and tourism sector. Apart from that, with the gradual improvement of national income and education standards, locals purchasing power on leisure and healthy lifestyle has increased as well. Additionally, the agriculture sector is in need of diversified activities that offer employment for locals and in-turn help reduce the dependency on expatriate labour. Moreover, this could support the existing government initiative to move the agricultural sector towards climate-smart or agroecological direction. In promoting cleaner environments, natural heritage and local lifestyles, this endeavour would also aid in the broader, climate change adaptation stance taken up by the government. Especially, in residential islands, farming is already being carried out in close proximity to local guest houses, providing ideal conditions for strengthening and creating win-win opportunities.

Corporate Maldives | Issue 2

Fisheries & Agriculture

What are our options?

Where to begin?

In its full extent, agritourism could provide existing producers an opportunity to generate additional income and an avenue for direct marketing to consumers. It can also enhance the local tourism industry by increasing the volume of visitors to an area and extend the length of their stay. For island communities, it also provides the potential to increase their local tax bases and new employment opportunities. Additionally, it provides educational opportunities to the public, helps to preserve agricultural lands, and allows islands to develop business enterprises. Specifically, activities can be targeted to connect with important public festivities such as Eid Holidays where visitors are bound to congregate to try local delicacies and experience local culture. In summary, the core of the agritourism activities involves attracting visitors for recreation, entertainment and/or education. In this respect, the following are the main activities that could be carried out at the three main settings in the Maldives.

Few agricultural islands such as Kaashidhoo and Thoddoo have already been merging their farm resources with local tourism activities. These islands are a great starting point as it can utilize the value of its rich farming heritage. However, individual farms and local guest house operators have limited resources; thus single entity-based start-ups can be difficult to promote. Research shows that enterprises that combine natural value of the location, feeling of peace, unique cultural experiences and events, eco-friendly products under a high service standard has a better success rate. Therefore, whole island level or atoll level initiations under a common theme or brand can have a better chance of success. Most importantly, social and economic cohesion and collaborations at the local level are the key supporting factors necessary for success in agritourism development.

Local agricultural lands or local tourism in inhabited islands: Harvest festivals, cooking and food tasting festivals, local delicacy preparation events, and scheduled fruit tree planting activities, hands-on toddy tapping.

Commercial agricultural islands: in-land fishery activities, poultry and livestock feeding events, overnight stays, educational activities, mazes from edible plants and shrubs, farm weddings, and contract-based farm stays.

Resort islands: Farm designs as murals, tour visits to off-site farmers' markets, non-profit agricultural tours, on farm harvesting and cooking, exhibits for local breeds of poultry and local plant varietal displays.

What are the challenges? In order to open up agritourism activities, existing farmers and local community perception towards integrated, valued added, and service-oriented businesses must be enhanced. Currently, farmers and home-gardeners may lack the willingness to share resources, the ingenuity and appetite required for engaging tourists and visitors. While agritourism may create potential new revenue streams, it also presents potentially new legal avenues for farmers, landowners and tour operators. In order to achieve this, associating policy and regulations must be in place. This includes streamlined policies and regulations with regard to animal welfare, farm and property security, personal insurance for visitors and invitees on the property, etc. Apart from that, producers must be adept at marketing, product development, obtaining government support, education and training, and partnership and communication

Gasith Mohamed Bio: Mr Gasith Mohamed has been involved in agriculture, forestry and horticulture related activities in the Maldives for the last 11 years. Gasith has received agriculture and related sectoral education from India, Australia and Sweden. Gasith is one of the prominent national experts in sustainable agriculture. He currently specializes in Agroecology and works as a consultant for Agriconsulting Maldives.

Education

Corporate Maldives | Issue 2

Key Factors influencing the Education system in Maldives Technology has made signiﬁcant advancements in the past decade across a multitude of industries making it hard for us to keep track of such progress. The dynamic of Education and how it is delivered is being heavily inﬂuenced by the rise of advancements in technology or is it? It is high time we rethink how current practices are approached.

Students will begin to interact remotely. Classrooms look practically identical compared to 30 years ago, why? Public schools are one of the few institutions in modern times that have not seen any radical change influenced by technology. This is not about computers or tablets in classrooms but the lack of proper utilization of technology to make the work more easier and efficient.

The success of technology in education will still rely on skilled teachers. Educational change will principally be influenced by people, not technology. The human factor in education will always be important. Instead of finding ways to put more tablets in kids hands, education tech will find new ways to supplement the best learning possible.

We will think differently about the diploma and degree. The massive growth in population with student debt coupled with the pressure to keep tuition costs low for tuition-dependent universities and colleges will force an innovation drive with how such programs are offered. Traditional education is very top-down, heavy handed-sit down and read, be quiet, don’t ask questions so there is a lot of room for innovation.

Students will have a voice. Students are ultimately the end of the day an educational institution’s customers. Apart from just studying, classrooms and lessons, educational institutions need to focus on other areas of students such as wellness like stress-free zones and the nutritional value of food & beverage offered. This will become a new focus in ways we have not seen before .

People

Corporate Maldives | Issue 2

How did you get started?

Mohamed Waseem Ismail Managing Director of Ensis Fisheries

Ensis Fisheries is a company founded by Mr. Mohamed Waseem Ismail with a focus on ﬁsheries and export-related works. We sat down with him to gain an insight into his journey and how Ensis Fisheries was established.

I came to Male’ at a very young age hoping to get a better education than what was available at my island, but I had to stop halfway through as my parents were unable to afford it and I had to start working while I was just 17 years old. My first job was at Cyprea Pvt Ltd as an Accounts Clerk. While working there I got the chance to move to a resort operation handled by the same company and served in multiple posts. I was able to get on the job training related to tourism and development, which was helpful for me. I worked at Cyprea for 19 years and during the last 10 years, I was the Resort Manager at Kanifinolhu. It was while I was working there that Cyprea decided to lease the island to Club Med. That was the moment I decided that maybe it was time for me to venture and do something new of my own. The company itself is one of the best and the people there are very kind-hearted and helpful and I did get many job offers and other opportunities which I could have taken when I decided to leave. However, I had made up my mind to do something on my own and there was no turning back from that.

What is the story behind Ensis? In 1997, I started Ensis Pvt Ltd with three partners, who are still currently with us. Back then, we used to market souvenir items where we brought in an embroidery machine and produced embroidery items such as caps, t-shirts and even did logo designing. Then I tried to create our own, another business together with other groups of partners and established Gate Pvt Ltd, which mainly focused on construction and decoration materials. I also made a company called the ‘Creations Group’ which didn’t really work out. While working on Gate Pvt Ltd, I got the chance to enter the fisheries industry. We got this opportunity due to a prominent

Corporate Maldives | Issue 2

People

local company backing down from a venture deal with a Japanese company that had brought in barges and fishing boats to expand the business. The company was looking for another party who might be interested in. We took up the offer to be their agent and through this contract, we were able to take a step forth into the fisheries industry.

that time as Skipjack tuna world market rates were high. We were able to purchase 1kg of fish for just MVR 35 from Huvadhoo Atoll. Fish products were created and we sold these directly to the European market. With Maldives being certified by MSC Fisheries Standard for Skipjack Tuna fishery, rates increased for a short time period before pummeling down to a low rate.

We registered the company the same day we began our new venture. As it was a newly established company we didn’t have many employees. Work would begin at 5:30 am in the morning with the weighing of fish, exporting it and doing the same routine over and over again each day. Within a month, we were able to make some profit and start hiring new employees. That’s how we got into the fisheries export industry.

We analyzed every market we have penetrated and identified that tuna cannery was an area we hadn’t pursued yet. We first tested the market producing cans in neighboring Asian countries, including Thailand and Vietnam which yielded great results.

Back then MIFCO was the only organization that exported fish products to European countries and we exported the fish caught by our fishermen directly to Japan. Here we got the idea that maybe we can also venture into the European market. We created an EU setup in the barge as a processing factory for Europe. We didn’t have any contacts from the European market and this was the next goal we wanted to achieve.

What are the other areas Ensis has ventured into? In 2004, we visited a Fair held in Brussels and made many contacts. It was a bit easier to pitch the idea since Maldivian fisheries products can be seen here and there in the city due to MIFCO’s operation. At the Fair, we met a French party to whom we exported 500kg of fish every week. In 2006, the Japanese company we partnered with decided to stop doing business with Maldives. Luckily, we had a steady foothold in the European market by then, having learned how the market is structured and had enough contacts to move forward. The matter was discussed with the partners and we came to the conclusion that it was time to establish our own factory. We did get a lot of opportunities to construct the factory in Himmafushi or Huraa but our decision to construct at Hulhumale’ was made after careful consideration. Our objective was to have the factory at a place that provides a way for easy logistics and has potential growth. We procured a lot from Hulhumale’ Phase One and successfully began our operations in 2007. I would say this is where business actually started booming as Ensis has secured 50% of the export market in the past 8 years. Even with the market changes that occurred within the year, we have been able to export 40%-46%. We then tried to penetrate the wholesale market of Skipjack Tuna to other countries. Unfortunately, back then it was allocated to specific parties and it was a difficult market to enter. When the first MDP administration came to power, we were able to make a mark and begin exporting 1-2 tons of fish. Luck was in our favor at

Similarly, we also have a bakery line under Ensis which was initially launched in Hulhumale’. The concept behind the Ensis bakery is to produce products using fish and to pave the way to create more of our own products. Our main aim is to reduce fish wastage and come up with ways that it can be utilized to create better products with it. We use fish waste such as fish bones and head to make rihaakuru, more popularly known as Enzi Rihaakuru. To keep up with our goal, we also use the waste from Rihaakuru production to make products such as fertilizers to ensure there is zero wastage. To reduce the wastage of cannery production, we are planning to build a fish meal plant next to the cannery plant to produce animal feed.

How seamless was the shift from tourism to the ﬁsheries sector and what challenges did you face? I think the main difficulty I faced during the shift was lack of experience and knowledge. People were not allowed to visit the factories and to see how the work is done. Hence, it was a bit difficult to have a clear idea of the process involved. To overcome this I traveled to other countries and checked the facilities there to have a better understanding of how it works. Even when we made a mobile factory on the barge, we had no clue whether it was structured correctly. All our factories have been constructed this way after much reviewing and researching other facilities abroad.

What was the most challenging day of your life in Ensis? I think the most challenging time at Ensis was during the construction of the factory when we faced some serious issues. In the lease agreement for the lot in Hulhumale’ Phase One, it says that within a year after construction is completed, electricity, water and sewerage services would be provided. Near completion of the factory construction, we were told that the services would not be arranged on time as agreed since they didn’t have the capacity to provide the services. It was a very shocking day for me as this was a huge investment

Corporate Maldives | Issue 2

People

Stay resilient and steadfast in your goalsâ&#x20AC;&#x201D;Shafa, Founder of Island Apothecary

Aminath Shafana, founder of Island Apothecary gave an insight into how she built her brand during the first Maldives Women Entrepreneurs Summit 2019 panel discussion at the Corporate Maldives Business Expo. Wellness Entrepreneur & skincare formulator, Shafana or more commonly known as Shafa has been the beating heart of Island Apothecary since itâ&#x20AC;&#x2122;s inception in 2016. From humble beginnings, Shafa began formulating organic skincare in her little kitchen almost a decade ago. Her perseverance and unconditionally believing in a dream helped create a truly natural artisan skincare and wellness brand born out of the Maldives, raised by nature and spiritually rooted in Mother Earth. During the panel discussion, Shafa said that she created the diverse collection of skincare products from salves to body scrubs and hair nourishers using traditional Maldivian and her own recipes.

Shafa noted that despite the major difficulties she faced while establishing her lab, she is proud that she was resilient enough to go forth and create something from her passion. She intends to expand the product line to international networks and she advised young entrepreneurs to stay steadfast in their goals and experiment with what they are passionate about and that it can lead to a start of a good business plan or startup. Maldives Women Entrepreneursâ&#x20AC;&#x2122; Summit offers an exciting new platform, intended to empower women, women-led organizations and SMEs. The summit brings together proficient women entrepreneurs providing them with a zone to interact, network and share their thoughts including access to capital, finding the perfect mentor, understanding the regulatory and legal landscape and much more.

Legal

from our side and it would prove to be a huge loss for us if we stopped. After much negotiations, we were given part of the adjoining land to establish and construct our own engine house, water plant and sewage system. This turned out to be a very good thing as it allowed us to lower our expenses as the plants were managed and operated by the company. The state later did establish sewage systems in Hulhumale’ but they sell only 1 tonne of water to each party. Our minimum requirement is 200 tonnes of water. Even with the introduction of the new engine plant in Hulhumale’, STELCO doesn’t have the capacity to provide enough energy/electricity to the whole of Hulhumale’. The current consumption of Ensis is 1.6 MW.

What is Ensis’ most notable success? I would say that our most notable success was creating something from nothing and being able to establish a successful venture that is one of the market leaders in the fish exporting business. Aside from that, I consider receiving the Government’s ‘Fisheries Honorary’ Award to be a huge success. We are also operating a safari under the Ensis brand as well as two real estate projects. Ensis is also one of the major shareholders of Dhivehi Insurance and has a company established in Frankfurt Germany to facilitate the distribution process in Europe.

What is your advice for young entrepreneurs stepping into the industry? First, try to learn and gather an understanding of an idea that you are passionate about before trying to establish it. Once you have it together, keep moving forward till you make it and be resilient about it. You won’t notice much difference in the first phase of any business, but in due time with the stride, you are going with, you can expect to produce good results that can further motivate you. You have to be very committed.

How do you keep a strong partnership in business? Honesty is the key. Everyone has a different mindset when it comes to how they want to run a business, but I think the main key aspect here is to learn how to work together and accepting ideas from each individual to see how we can work and apply it in business. Some ideas would be good while others might have a negative impact. It’s all about having a good communication system and having the trust among the partners that whatever decision made will be in union and good for the business.

Corporate Maldives | Issue 2

People

Empowering Women in Local Islands of Addu City – MAJOIE MAJOIE Maldives is a natural and sustainable luxury skincare brand, handmade in the Maldives (in Feydhoo island) to empower and support women in the local islands of Addu city. For generations the women of the Maldives have made beauty products from the most bountiful fruits of their island paradise. Now MAJOIE brings the wisdom of Maldivian women to the world with our unique ingredient Maldives coconut oil exclusively harvested and handmade by women in our local community. Their mission is to generate positive changes and provide sustainable income for Maldivian women in locals islands and give them opportunity to work from their home. A work with dignity not charity. MAJOIE is proud to be the first company in Maldives to be a member of the Nest Artisan Guild. This collaboration will help us bring more expertise and opportunities for our local artisans women in Addu city through our “Beyond sustainable” project in collaboration with Southern Community Empowerment Association of the Maldives, the project aims to create job opportunities and support Maldivian women in the local islands of Addu city including Meedhoo, Hulhudhoo, Fuvhamulah, Maradhoo Feydhoo and Hithaadhoo. ‘A work with dignity not charity’, the project will help train Maldivian women to make coconut oil-based products such as soaps and candles for them to earn a sustainable living close to their home and be financially independent. MAJOIE is contributing to the United Nations Sustainable Development Goals for 2030, to empower women and achieve gender equality in the Maldives.

Corporate Maldives | Issue 2

US Embassy Colombo’s Political and Economic Specialist, Shaufa Saeed receives FSN Award Political and economic specialist at Embassy Colombo, Shaufa Saeed has received Bureau of South and Central Asian Affairs (SCA) “Foreign Service National of the Year” award for her “outstanding contributions to the United States government’s efforts to strengthen the U.S.-Maldives bilateral relationship.” Listed among seven other FSN award winners, the individuals are recognized for their overwhelming dedication to their respective Missions. Not only do the winners possess the knowledge and skills to succeed, but their resilience, innovation, engagement, and bravery also pushes them into a category all their own. SCA released a statement congratulating Shaufa upon receiving the award and highlighted on her outstanding reporting and language skills which has assisted to strengthen the US-Maldives relationship. “In the last year, Saeed’s ‘aggressive political and economic reporting tempo, and peerless support to almost a dozen high-level visits has helped capitalize on a new Maldivian administration.’ As one of the very few Dhivehi speakers in the U.S. government, Saeed is able to ‘quickly summarize speeches, press conferences, policy documents, and social media’ giving senior leadership an invaluable insight into the Maldives’ political environment. Her ‘exemplary day-to-day diplomacy, trip coordinator, and reporting’ allows the U.S. and the Maldives to ‘capitalize on this dynamic new phase of the bilateral relationship,’” State Magazine reveals.

Corporate Maldives | Issue 2

Banking & Finance

How has insurance taken a steady stance in the economy?

Overview of the Insurance Industry By: Ahmed Adam, ACCA, Chartered Accountant, Dip CII

In general, Insurance companies help to stabilize the economy, especially during times of a financial crisis. However, the insurance industry in Maldives has a minimal impact in contributing to the GDP. Some of the conventional banking products such as bank guarantee are now more frequent in insurance companies rather than in banks. Today insurance has become a vital part of the financial sector. Insurance drives economic growth by expediting the recovery of claimants. Insurance claims payments benefit a large group of people in public in addition to those directly affected by the loss. Government aid does not necessarily adequately compensate those who suffer a loss; hence insurance plays an essential role in stabilizing the economy. In insurance, instead of having money set aside in anticipation of a financial disaster, it is used in other ways. In this perception, insurance stimulates the economyâ&#x20AC;&#x2122;s savings and investment function, and businesses and consumers can have a higher level of consumption and plan more confidently which particularly, has a positive impact on SMEs in Maldives. Insurance companies have large funds available for investments. By supporting governments through buying T-Bills and Bonds, insurance companies help to lower borrowing costs that allow for greater investments, and bolster job creation and economic growth.

What are the changes we can expect? And what is the future of this industry?

Chief Financial Officer - Dhivehi Insurance

The insurance industry of Maldives consists of 5 insurance companies, 8 insurance brokers and 41 insurance Agents. As of year end 2018, the total industry GWP (sales) was more than MVR 883 million. This is approximately 75% increase over the last 5 years. The insurance business is lucrative, the awareness for the insurance is growing with more frequent catastrophic events and accidents. The fierce competition has forced the reduction in price and offering better coverage by various means. The market needs solutions for credit risks, cyber risks, environmental risk etc. Key players in the sector are currently analyzing the need of the customers to offer them insurance solutions for these risks. Dhivehi insurance is one of an innovative insurance company who has already introduced insurance for some of the exceptional risks targeted to SME market. Regulatory framework needs to be more stringent and regulations need to facilitate insurance companies in maintaining the discipline in the market. Large chunk of premiums is placed in the offshore market without the involvement of a local insurance company which has been a challenge to be well regulated.

The intense competition and market saturation have led the companies to be more innovative in terms of new products and technology. The properties in Maldives are the major business for insurance companies and are shared among the players in the market. This high-end market does not solely look for the price but more for the value as well. Insurance companies will engage more in upselling and offering attractive coverage to add value to these customers. In future, I see implementation of more technology in all the insurance companies in Maldives in providing service to the SME market and individual customers. Client service model will be more effective in providing much faster and reliable service and the access to reach the product will be very convenient. The reduction in the paperwork and administration will spare more time and resource to engage in new product developments, building client relations and investments. I see more companies will focus on building the investment reserve and to have a well-managed investments portfolio which will be an incalculable competitive edge throughout the business in the insurance cycle.

Banking & Finance

Corporate Maldives | Issue 2

Legal Risks for Businesses: Basic Legal Issues Every Entrepreneur Must Know

Law is the skeleton of every entrepreneurship. Every form of entrepreneurship, from its birth to its death and thereafter, has a non-severable link with the law. Laws establishes guidelines for what companies can and cannot do, as well as certain things they must do. Law is a broad discipline with several ďŹ elds that serves important functions in business. The risk of non-compliance with law may result in businesses being sued, ďŹ ned, or even facing criminal liabilities. It is therefore important to be in compliance with the law in all aspects of your business. Here are four legal issues to get you started:

1- Choose the right form of business. Is your business set up as a partnership, LLC, sole proprietorship, or limited partnership? If you haven't given this issue much thought, now is the time. It'll make doing your future taxes a lot easier. Itâ&#x20AC;&#x2122;s also important to understand tax laws so you can try to avoid audits and hefty fees. The key is to figure out which structure gives your business the most advantages to help you achieve your organizational and personal financial goals.

2- Employment laws In early days, entrepreneurs tend to have more informal and a more casual relationship with employees. However, Maldivians law requires businesses to have a defined and written agreement with employees, identifying the scope of work required. Without clear agreements regarding rights, and responsibilities, the employer-employee relationship may easily break down and lead to a dispute that could have easily been avoided.

Corporate Maldives | Issue 2

Banking & Finance

3- Intellectual property rights & Trade mark protection Usually, companies don't think about protecting their trade secrets until an issue arises. Protect what's important to your business, whether it's intellectual property or other IP like trade secrets. Maldives has no legislation in terms of Intellectual Property Rights. To circumvent this, there is sufficient trademark protection that has been offered by way of acquiring public recognition through cautionary notices. The protection of intellectual property can be sought by the publication of cautionary notices in newspapers and journals which have wide circulation in the markets. These cautionary notices are a warning to third parties against the use of such marks which may result in an infringement and to not continue with such use. Regardless of absence of IP rights legislation, common law can be applied to intellectual property to disputes to resolve issues.

4- Clear written terms of purchase and sale When your business is small, you may tend to skip formal terms of purchase and sale. However, as your business grows there is much to lose by not having formal terms. It doesnâ&#x20AC;&#x2122;t have to be complicated- even a simple agreement and corresponding invoices can keep you secured. You should also be vary of terms imprinted in invoices you receive, or else you may end up paying hefty penalties. Itâ&#x20AC;&#x2122;s important to note that your silence regarding heavy penalty provisions in invoices can in some instances be implied as acceptance of such provisions.

leading video news network of maldives

While it is very common for small businesses to not have any processes regarding who can issue a PO or request services from a vendor, the absence of such processes can place the business at risk for fraud, self-dealing and embezzlement as the company grows. To protect your company, it is important to have a definite process and written agreements in place with vendors and consultants. These are a few simple steps you can take to ensure that your business is protected. Disputes and litigation in court are bad for business as it takes away valuable time and resources from your business. To be successful in your business venture, it is important to know your rights and responsibilities as well as that of your staff and employees. After all, compliance with the law is good for business. If nothing else, you will save having to pay hefty fees to pesky lawyers!

Banking & Finance

BML introduces convenient Multi-Channel Payment Solutions with mPOS and Merchant Portal Bank of Maldives has introduced a new mobile Point-of-Sale (mPOS) payment solution that will allow retailers to transform smartphones into payment terminals to accept electronic payments. The new mPOS App can accept debit, credit and prepaid card payments, and a range of digital wallets from customers anytime, anywhere. This solution offers the benefit of a simple, safe and secure payment experience for merchants. Along with mPOS, also introduced was BML Merchant Portal, a service that can be accessed through desktops and allows merchants to send payment links, check transaction status and generate simplified reports. With the new payment solutions, customers can pay just by scanning the QR Code at retailers, or pay for goods from anywhere by clicking on the payment link which merchants send through message, online messaging apps or email.

Corporate Maldives | Issue 2

5 reasons why Western Union Online App is for you Island Financial Services in association with Western Union recently launched the Western Union Mobile application for online money transfers. Western Union (WU) is an American worldwide financial services and communications company that offers products such as person-to-person money transfer, money orders, business payments, and commercial services. WU app intends to facilitate people working in resorts and distant islands by providing a convenient platform that has a user-friendly interface. Here are the five reasons why Western Union online application is the service you need to use: 1. Largest industrialized financial services and communications business in the market

Commenting on the launch of these electronic payment solutions, CEO and Managing Director of BML Tim Sawyer said, “In this digital age, the introduction of these new and innovative platforms will facilitate simpler and smarter electronic payments on the go. We are confident that they will be beneficial to our merchants, and consequently to their customers across the country. We are very excited that the technology will not only enhance the payment experience for consumers, but will also pave the way towards a cashless society.”

2. Available for download on Google Play and App Store for free

The Bank’s Point-of-Sale network accepts all contactless payments including cards and digital wallets. Visitors to the Maldives will now be able to pay from Ali Pay, Google Pay and Apple Pay wallets.

Farhath Abdul Latheef, the Manager of Villa Travels said, “Through the app, with the touch of a button, customers can transfer money from wherever they are without having to travel all the way to Male’ to make the transfer.”

Bank of Maldives was the first to introduce internet and mobile banking, self-service banking and contactless payments for the first time in the country. The Bank also continues to improve customer experience with innovative technological solutions and supports individuals, businesses and communities with the ‘Aharenge Bank’ investment program.

3. The application provides a simple service where customers don’t have to wait in queues for a long time. 4. Customers can easily and quickly check the Western Union fees and exchange rates through the app 5. Track money transfer status online and save receiver’s details for easy resend

Corporate Maldives | Issue 2

Mira

The expansion of tax system in Maldives within a decade

Maldives has achieved and witnessed rapid growth in the last decade. Maldives Monetary Authority has revealed that in 2020 the Maldives GDP will have a growth of up to 7.5%.

rails, airports and industrial parks. Key sectors are state-owned, including telecommunications, banking and insurance, and power distribution.

According to MMA, the GDP in 2020 will accelerate by 1.8% compared to the previous year. This growth is driven by government investment in infrastructure, as well as sustained progress in tourism, fishing and shipping sector.

To gather a better understanding of the current tax system along with the implications of the new act, Corporate Maldives sat down with the Commissioner General of Taxation, Mr. Fathuhulla Jameel, who gave us a short overview of the current economy.

The state is heavily engaged in the economy. Ongoing infrastructure projects include power production and distribution, roads,

Mira

Corporate Maldives | Issue 2

What is the current ecosystem of tax like compared to the past here in the Maldives?

What are the signiﬁcant challenges faced by MIRA and how the commissioner plans on tackling these challenges.

Prior to 2010, the government was heavily dependent on resort lease rent, import tariff and dividends from SOEs to generate revenue. The other contributors were Tourism Bed Tax and Bank Profit Tax. The formation of the independent institution, Maldives Inland Revenue Authority (MIRA), in 2010 was followed by the introduction of Tourism GST, Business Profit Tax and then General GST. This was in 2010 and 2011.

Being appointed as the Commissioner General just a few weeks ahead of the ratification of a new tax bill comes with its own set of challenges. In addition to the transitory changes MIRA was (and still is) undergoing, the entire team had to start the planning process of implementing a new tax, in parallel.

Since the time BPT was introduced, discussions have been on-going about the need to introduce a full-fledged Income Tax system in the Maldives. With the ratification of the Income Tax bill into Law, finally, a comprehensive and well-rounded tax system has been introduced in the Maldives. This new Act moves the taxation of different income sources under a single Act, and for the first time, decrees the taxation of remuneration.

The Second Amendment to the Tax Administration Act on 12 September 2019 included provisions which required MIRA to make a decision related to objections and audits within 60 and 120 days of the submission of the objection or audit, respectively. I was appointed as the Commissioner General on 31 October 2019. This was little over 1.5 months after the Second amendment, leaving essentially less than two weeks for us to complete a large number of objections and audits. This was a big task to take from almost the first day I joined MIRA.

While we are approaching a decade since the first tax system was introduced in the Maldives, relatively, this is still considered a young tax system. However, we have been around long enough for there to be a shift in business culture and habits. Prior to 2010, before a modern tax system was implemented, how Maldivians did business was very different. It was largely a cash economy, with people not separating their business and personal income and expenses. Nor was there any proper form record-keeping done by most people. Of course, the larger businesses did so but the majority of those undertaking business engaged in a largely informal format of business. Following the introduction of the tax system, taxpayers were mandated with the responsibility to undertake proper records, to declare their income as per laws and regulations, and to pay taxes if liable. At the same time, in the past, it could be said that there was a single-direction dialogue between the tax administration and taxpayers. Tax laws were decided on by policy makers, the tax authority administered those laws and taxpayers fulfilled their obligations by following the instructions or advice of the tax authority.

One of the biggest challenges to MIRA was the fact that, with the ratification of the Income Tax Bill into Law on 17th December 2019, we had effectively two weeks before taxation under the Income Tax Act commenced on 1 January 2020. In the span of these two weeks, we had to prepare the draft regulation to the Act, circulate it for comments, amend it where required and publish it on the Maldives Gazette. At the same time, changes required to forms, IT systems, and established policies had to be brought in too. Before taking on the monumental task of educating taxpayers on the new Income Tax Act, MIRA’s staff themselves needed to be educated. Reflecting back those two weeks now, it was a fortnight full of deadlines and pressure, but we managed to do all that was required. As I, and some of the key staff of MIRA, had been involved in the implementation process of previous taxes so were aware of how daunting a task we were facing. As such, we commenced preparations from my first day at work itself – with forming committees, research groups and assigning tasks.

What we see now is that the tax ecosystem has expanded beyond just the tax authority and taxpayers. There are multiple stakeholders within the tax ecosystem, and the traditional arms-length approach to dealing with stakeholders is also shifting – and the dialogue is no longer one-direction. The shift towards increased stakeholder collaboration (whether it be other government agencies, auditors, tax agents, tax consultants) has resulted in increased efficiency and effectiveness of the tax system. Feedback and comments from stakeholders before rolling out new policies, and bringing changes to how things are done has resulted in healthy discussions on lessening compliance burden on taxpayers and managing administrative costs for MIRA. While not all concerns of all parties can be addressed at all times, major concerns shared by the majority of stakeholders can be addressed in this manner. Such communication can result in enhanced taxpayer services and reduced operational costs for MIRA.

The Income Tax Act introduced the entirely new concept of taxation on remuneration and brought in changes to existing taxes that had significant implications for taxpayers. It imposed new obligations on existing taxpayers, and brought in new taxpayers into the tax net – resulting in the need for MIRA to conduct extensive education programs. While it would have been ideal to start these efforts before 1 January 2020, the time limitation made it impossible to do so. The challenges ahead lie is reaching out to all taxpayers and educating them properly on their tax obligations. The geographic spread of Maldives makes it difficult for us to reach each and every taxpayer, but we will also be extending our awareness efforts to the atolls. We are also planning to use modern means of information dissemination such as social media, and other content sharing platforms to get information across to taxpayers in a timely and convenient manner. We also put significant effort to engage the media in our education efforts. I am thankful to all the media channels and platforms for their continuous support on this front.

Going forward as well, it is our intention to further develop on this model of tax administration whereby we involve all relevant parties in the tax ecosystem, and use the feedback and ideas we get to improve our efficacy.

The first regulation pursuant to the Income Tax Act was published on 31 December 2019. Even with the significant time limitation, we opened the opportunity for taxpayers and the general public to comment on the regulation and took them into consideration.

Corporate Maldives | Issue 2

Mira

However, there are still some additional areas that need to be addressed under the said regulation. We established committees specifically for this purpose, and have also set up research teams to carry out extensive research to endeavor to incorporate international standards and best practices in the provisions of the regulation. One of the other challenges we are currently facing is the change required to MIRA’s systems to cater for the change in taxation parameters. While bringing the change in itself is not a massive challenge, the time limitation makes it difficult to determine the best changes to incorporate to facilitate the changes to the tax system. We are intending to engage the services of international experts with extensive experience in this area to further advise our team on this front. With the new Income Tax Act, we now have a well-rounded and full-fledged tax system in the Maldives. While majority of the taxpayers are largely compliant, there will also be a small proportion who attempt to evade and avoid paying taxes. Oftentimes this is through complicated and sophisticated business structures and transactions that cannot be easily identified. To tackle the issue of such attempts, it is my intention to develop staff capacity and capability at MIRA – whether it be in areas such as transfer pricing, risk analysis or investigation and intelligence. Over the coming periods, there will be a focus on further development of human resources to empower them to deal with such issues head-on. In addition, the advancement in technology has resulted in new emerging trends in business and new forms of business undertakings. The digital economy, for example, is one area that tax administrations find challenging in taxing. As tax administrations continue to hold dialogue and research on the best approach to deal with emerging trends, it is our intention to participate in this dialogue and implement best practices of tax administration here in Maldives. MIRA’s board, senior management and all staff are working tirelessly day and night for the implementation of the new Income Tax Act. It would be amiss of me at this juncture to not point out the hard work and dedication put in by the staff of MIRA. If not for their competence and hard work, these huge tasks could not have been completed as they were. We will continue to work with the same perseverance to fulfill our mandate.

How the future looks like for MIRA and it's team? The last few weeks of 2019 were extremely challenging for MIRA as a whole, and the upcoming periods will continue to be so as we work towards fulfilling our mandate. Having worked at MIRA as a Director General before, and now having returned as the Commissioner General, I am well aware of the competence and dedication of the team at MIRA. While the coming days will also be busy as we make policies on the implementation of the Income Tax Act, work towards increasing the efficiency of our audits, as we work to develop our risk management framework and expend effort to adhere to international standards of taxation, I have no doubt in my mind about the capability of my team to deliver on expectations. One of our key priorities for the upcoming year is the establishment of a comprehensive Compliance Risk

Management Framework. Under this framework, we intend to introduce a broader risk-based compliance strategy, which would eventually expand the tax net through voluntary compliance. We are designing the framework to span across all four areas of compliance risk – registration, filing, payment and reporting. The establishment of this framework will make MIRA’s compliance efforts further efficient, and also facilitate voluntary compliance of taxpayers. It is my opinion that MIRA’s future largely depends on how taxpayers and the general public perceives MIRA and its people. As we (MIRA, the taxpayers and the public) move onto a new tax regime under the Income Tax Act, my whole team and I will do everything possible, within the boundaries of the laws and regulations, to make it easy for the taxpayers to fulfil their obligations. We remain ready to facilitate and support taxpayers in doing so. However, we will also engage with taxpayers via tax audits and in other procedures in ensuring that the taxpayers are fulfilling their tax obligations and paying the correct amount of tax. For taxpayers who are purposely evading taxes or decide not to comply, MIRA will remain steadfast in fulfilling our mandate and not hesitate to take the actions stated in the respective laws to ensure that the system functions smoothly. As hard as MIRA’s team works, it would not be possible for us to do what we need to do without the support and assistance of many of our stakeholders – whether it is the general public, taxpayers, or other government agencies, among many. We hope that over the coming years, we will continue to receive the support of our stakeholders in fulfilling our duty as the tax authority. For our part, we will continue to work hard while ensuring that we act fairly and equitably, and that we maintain our integrity, professionalism and transparency.

Sports

Corporate Maldives | Issue 2

Sports Tourism in the Maldives

There are various ways to define sports tourism. According to Sports Facility Advisory, USA, sports tourism is any traveling done to participate in a sporting event including just being a spectator. According to another resource Tourism Review, sports tourism is a specific travel outside of the usual environment for either passive or active involvement in a competitive sport where sport is the prime motivational reason for travel. Hence, we at Corporate Maldives would like to conclude that sports tourism is any traveling made to either take part in sport or to be a spectator of it, outside of your usual environment. In reference to the National Laboratory of Tourism and e-commerce in University of Illinois at Urbana-Champaign, there are generally three types of tourism recognized in the industry namely Sports Event Tourism, Active Sports Tourism and Nostalgia Sports Tourism. Sports Event Tourism includes traveling to see large-scale sporting events such as FIFA, Olympics and etc. Active Sports Tourism includes those who travel to participate in sports such as golf, surfing kayaking and many more which is available in a certain area. Nostalgia Sports Tourism is when you travel to a certain place to see sports-related attractions. Examples of this include Womenâ&#x20AC;&#x2122;s College

Basketball Hall of Fame, Yankee Stadium and Madison Square Garden in the US. All around the world, different countries offer various types of sports tourism. If we look at Malaysia, we can see that they offer scuba diving, different types of martial arts and golf and such due to the nature of the country. However, if you look at UAE, a country covered with sand dunes and deserts, they offer sports such as horse racing, camel racing and quad biking on the sandy hills. Tourism minister Mr. Ali Waheed has stated that he intends on bringing Sports Tourism to the Maldives. He further explained that a master plan will be made to describe the current plans to elevate the level of the tourism industry, expand it and to sustain Maldivesâ&#x20AC;&#x2122; position as the Earthly Paradise and a luxury destination. Though the Minister has said this, sports tourism currently exists in the Maldives on some scale. For instance, the surfing competition named Maldives Open 2014 held at and hosted by Adaaran Select Hudhuranfushi Resort. Four Seasons Kuda Huraa also holds a surfing championship named Four Seasons

Corporate Maldives | Issue 2

Maldives Surfing Champions Trophy where several professional surfers from all over the world take part. Red Bull Maldives also opened a skate park in Hulhumale on the 5th of May 2018 with a budget of 8 million rufiyaa. After contacting multiple figures in the tourism and sports industry in the Maldives, we discovered that many believe that sports tourism has the potential to thrive in the Maldives as well. Mr. Hussain Javaz from FAM says that sports tourism is an excellent idea for the Maldives and that they had sent a proposal to the previous government regarding this. Mr. Ali Umar, sports commissioner of Maldives also believes that the idea is exceptional and will greatly benefit the tourism industry and that it is perfectly feasible in the country. Another contact who wishes to stay anonymous said that if sports tourism is well promoted in the Maldives then there will be a great boost to the economy and that the Maldives will be elevated to a new level. Dr. Hussain Sunny Umar from Maldives Getaways informed us that they had a conversation with FAM about the Maldives taking part in the Indian Super League as resorts would get sponsored which means that it would promote the tourism industry and eventually the sports industry. Mr. Nabeel from Small Islands believes in the potential of different sports helping sports tourism progress in the Maldives. However, he believes that the statement itself is big and he says that it is important to identify which sport is realistic in the Maldives in order to allow the sports tourism industry to flourish. Maldives has been gradually becoming more and more popular in the international market as a favorite destination of many tourists regardless of age and gender. If sports tourism is correctly instated in the Maldives, it is only believable that it will receive even more love and support from all around the world and will advance the position of the country in more markets and industries.

Goverment

Aviation

Corporate Maldives | Issue 2

Evolution of Airline activities in the Maldives.

For most of the small island states, depending on tourism to drive their economies are typical. However, to roll it and the rest, one has to depend on network and connectivity, and no one can do the job better than airlines. Since the first commercial flight to the Maldives in 1962, airline operations in the Maldives have grown significantly over the years. In the 1960s, with just a few charter carriers, Maldives was only linked to Sri Lanka, India and few destinations in Europe via Middle East. Rolling forward to 2019, the country is now connected to 40 destinations in 23 countries. Maldives receives regular air services from 35 schedule and charter carriers. Today, the Maldives has 32 air service agreements in its jar and another 16 MOUs signed with different states across the world. Maldives has witnessed over 57,000 flight movements in the first 11 months of 2019 along with over 4.8 million passengers travelling on those movements. An industry which represents approximately 5% of the country’s GDP with tremendous potentials and opportunities, cannot be neglected and desperately needs more love and pampering from the respected authorities. With the opening of the Hulhule International Airport (Velana International Airport) in 1960, under the visionary leadership of the back then president of the Maldives, Mr. Ibrahim Nasir, launched the first international airline of the Maldives in 1974 as “Air Maldives”. The carrier was a key catalyst in the early days of the Maldives tourism growth. Air Maldives’s metals flew to 11 international routes before it found its fate in insolvency in the year 2000 due to financial difficulties. With the Air Maldives

bankruptcy, the government took countermeasures with another establishment named “Island Aviation Services” in 1998. The airline had a fleet of Donier 228 aircraft before it acquired the Bombardier Dash series. In the year 2009, the airline was rebranded as “Maldivian” and was honored with the National carrier status. Maldivian launched international flights in 2012 using a fleet of two Airbus narrow bodies. Right after Trans Maldivian Airways (TMA) was acquired by Blackstone group, Maldivian also entered into seaplane operation in 2013. As the national airline, it operates to all the domestic airports in the country and has announced plans to enter into the wide body game using Airbus A330. Maldivian dominates the domestic market with a comfortable 46% of the market share. It carried over 957,000 passengers on over 40,000 flight movements in 2018 as per the figures released by the Maldives Civil Aviation Authority. In the initial days of the tourism in the Maldives, passenger transfers by air to the island resorts were carried using helicopters. Hummingbird Helicopter Pvt. Ltd was established in 1989 and it gave a glimpse of the alternative resort transfer solution to the hotel operators in the Maldives compared to the poorly laid sea transport network back then. However, the operation lived short after a devastating crash in 1994. Established in 1993, Maldivian Air Taxi (MAT) was the one who championed seaplane (Float) operation using Canada’s De’ Havilland manufactured Twin Otters. It has a proven track record

Corporate Maldives | Issue 2

of being the friendliest aircraft in the Maldivian skies. Hummingbird Helicopters rebranded in 2000 as Trans Maldivian Airways (TMA) also acquired a fleet of Twin Otters to turnaround their struggling operation. TMA introduced domestic wheel based operation in the year 2007 using ATR aircraft. TMA took the industry by surprise when they announced the suspension of the wheel based operation in 2009. Together, MAT and TMA made the biggest seaplane operation in the world. The real twist in seaplane operation took off in 2013, when American based equity fund, “Blackstone” bought the majority stake of both TMA and MAT. Blackstone consolidated the operation and a seaplane monopoly was restored in the Maldives for a fortnight. The brand, Maldivian Air Taxi was abandoned. Blackstone sold their share in TMA in 2017 to US based equity firm, Bian Capital. TMA holds approximately a decent 40% of the total resort transfer market in the Maldives with an annual passenger number of over 800,000 on 87,000 flight movements as per the figures released from Maldives Civil Aviation Authority. One that made the most prominent headlines in the past decade was the launch of the Mega Maldives Airlines. An international carrier which emphasized holiday charters and schedule operation in Asia. Mega’s main operation was out of mainland China and Hong Kong. It also operated to India, Sri Lanka, Malaysia and carried pilgrim charter traffic between Saudi Arabia and Maldives. At its peak, mega operated 5 aircraft in its fleet, a mix of both wide body and narrow body aircraft all from Boeing. Mega Maldives held a market share of 45% of total Chinese inbound traffic to the Maldives in its heydays. Before it filed for bankruptcy in the second quarter of 2017, the carrier had plans to introduce flights to South Africa and Europe. Villa Air entered into the market in 2011 as the first privately owned sole domestic wheel based operator under the brand “Flyme”. Under the visionary leadership of the Villa group founder and renowned business tycoon, Mr. Gasim Ibrahim, the group also developed the county’s first privately owned airport in 2011. The airline expanded rigorously in its initial days before scaling back the operation due to political instabilities in 2015. Villa Air currently operates a mix fleet of 4 ATR to 2 domestic destinations. Villa Air has also announced the interest in entering into the competitive seaplane market in the Maldives. Flyme currently holds 16% of the market share. The airline carried over 333,000 passengers and had a flight movement over 7700 in 2018. The youngest player, Manta Air was introduced in the first quarter of 2018. The airline which is owned by the famous business group, Universal enterprises operates 3 ATR 72-600s and currently flies to three domestic destinations. The airline has also stepped into the competitive seaplane market in November 2019.

A pie on the international airlines and the market Maldives welcomed 1.5 million tourists in the first eleven months of 2019. With over 46,000 active beds at the end of October 2019 and with an average stay of 6.3 nights, bed capacity grew 12% compared to last year’s same period - figures released by the tourism ministry. However, the hotel’s occupancy rate in the Maldives has averaged at 61.6 percent throughout 2019. In late 2018, the tourism minister briefed that 144 hotel projects are ongoing in the island nation. However, on the other hand the tourist arrivals to the Maldives have rested approximately at 7% in the past 5 years. This clearly indicates that Maldives have a bigger challenge to deal with. The solution for this challenge can be found through the international airlines.

Aviation

Maldives is already a well-served market by multiple foreign carriers. All the big hub & spoke legacy airlines in Asia and the Middle East have their route networks expanded into the Maldives. Singapore Airlines, Cathay Pacific, Qatar Airways, Etihad, Emirates have multiple daily frequencies to the Maldives and provide hassle free one-stop connections from around the world. Some of the early international carriers who served to the Maldives are still seen in today’s operating environment. Renowned German charter carrier - Condor, Dubai’s flag carrier Emirates, Sri Lanka’s national carrier - Sri Lankan airlines (Air Ceylon) are few examples. Emirates began its services to the Maldives in 1987 with just a weekly frequency. Today, Emirates is the de-facto national carrier of the Maldives with 5 daily frequencies using all wide body aircraft. Emirates leads the market by carrying the highest number of passengers to and from the Maldives with over 718,000 passengers in 2018 alone. Maldives found a total of 8 airlines in defunct conditions in its history, mainly through insolvencies and mergers & acquisitions waves. Given the size of the market (especially domestic), regulatory hurdles, inadequate infrastructure and lack of professionals in the airline industry, carriers were and are consistently set on roller-coaster rides in the past three decades. Some of the challenges have been addressed at national level and sadly only few solutions are being exercised. For example, the government of the Maldives initiated a series of domestic airport developments to tackle the isolation issues in the very rural areas of the country which also came with social and economic benefits. However, the question of running it all on economic and environmental sustainability remains. The Aviation industry in the Maldives, desperately is in need to overcome all the aforementioned challenges to develop the networks and connect the Maldives further with the rest of the world and liberalize its bilaterals. Source: Maldives Civil Aviation Authority Source: Maldives Tourism Ministry

About the writer Rishan is an undergraduate from University of Kuala Lumpur with a Bachelor of Aviation Management (Hons). He was the Route Revenue Analyst at Mega Maldives Airlines. He also served as an Assistant Manager of Network Planning & Revenue for Villa Air. Rishan, regularly teaches aviation and other subjects in local institutes. He is currently a postgraduate student in Master of Science in Aviation at RMIT Australia.

Product and Services

Corporate Maldives | Issue 2

Company Overview: Hawks

Over the past 12 years, The Hawks have continued to evolve, identifying market developments and adapting to local and international changes in the fuel market. 2019 was a year of shaping the foundation for The Hawks and has made significant progress on the transformation of organization to a well-established company in the South Asian region.

The fuel terminal built under strict safety and security regulations with a total of 30-million-liter diesel and petrol strengthens the operations of the company and supports the corporate aim to become an international organization. The terminal facilities consist of 6 segregated storage tanks and a jetty with a total of 5 docking stations.

The Hawks pvt. ltd. has witnessed an impressive growth in the recent year with increases in the number of professional services, supply vessels and employees. In 2019, the data shows 12 corporate services, with a total of 32 vessels and more than 400 employees. This growth has coincided with the increased demand for fuel and related services in the Maldives.

With the representation of the company at regional and international events such as ITB Berlin, South Asian Travel Awards, Business Expo and Marine Expo, The Hawks has increased its brand awareness on the market. Moving forward with the business success, The Hawks continues to support the local community and thereby pursue sustained growth and higher corporate value. The company was a reliable partner of organizations such as the Global Youth Peace Ambassador Training Program initiated by the Regional Alliance for fostering the youth, the Muassasa Cup 2019 as well as the Cleaning Quest with several events across the country.

The transformation of The Hawks was initiated in 2018 based on their aim on becoming a global fuel supplier to enable regional stakeholders to benefit from the fuel delivery. With this in mind, The Hawks had chosen to focus on enhancing business operations on Thilafushi island and on the sea in the year 2019. The year started with a total of 12 owned vessels operating from the northernmost to the southernmost of the country, with a total capacity of more than 6 million liters. Hawks Javaahiru, Hawks Asrafee, Hawks Laalu and Hawks Heeraa have managed to form one powerful team and increased the number of the fuel vessels up to 16 with a total capacity of more than 14 million liters and therefore doubled the fuel capacity in only 12 months of business.

Corporate Maldives | Issue 2

Product and Services

Most well-trusted motor oil for Cummins engines is Valvoline – Cummins - lubricant

According to Cummins, the world’s largest corporation that designs, manufactures, and distributes engines, filtration, and power generation products — Valvoline is the most well-trusted lubricant for Cummins engines. “We know that when it comes to performance and investment of your engine and motor oil, everything matters—from the advanced hardware components found in the Cummins X15 engine, to the innovative formulation found in Valvoline Premium Blue. It’s not just one or the other.” Statement by Roger England, Cummins R&D Director of Fuels, Lubricants, and Materials on the Cummins website. Established in 1866, Valvoline is the world’s oldest manufacturer and distributor of Valvoline-brand automotive oil, additives, and lubricants. As of 2016, it is the second largest oil change service provider in the United States with 10% market share and 1,050 locations.

According to a market research done by Orca Media Group on engine brand and motor oils used by resorts in the Maldives, the survey indicates that over 85% of the properties use the Valvoline brand lubricants for its generators and that an average 200-400 litres in volume are used on a monthly basis. “Together, we’ve integrated our products in a way that benefits our customer. Making a real impact on the health of their equipment and ultimately, their bottom line. When you can extend oil life without reducing performance, that’s going to add up to incredible savings over the long haul.” Statement by Fran Lockwood, Chief Technology Officer at Valvoline on Valvoline website. Valvoline also has a steady foothold here in Maldives through Sirius Enterprises which is the sole distributor of Valvoline engine and motor oils. With 26 year in the industry, Sirius Enterprise is the leading company in the automobiles and spare parts industry in the Maldives.

Product and Services

Corporate Maldives | Issue 2

MTCC 2019 Highlights

The year 2019 was a distinctive year for Maldives Transport and Contracting Company. The company was awarded over 60 projects, most of them being harbor development and upgrading projects in several areas of the Maldives. MTCC utilized Maldives’ largest dredging ship Mahaajarraafu throughout the year and completed the reclamation project for the construction of an airport at H.A. Hoarafushi. The project was completed in early September with a total of 345,500 sqm being reclaimed. Moreover, after the completion of the northern reclamation project, Mahaajarraafu is currently at K. Maafushi, where reclamation works are ongoing for a project awarded in the third quarter of 2019. Currently there are over 35 ongoing projects. Some major ongoing projects include, Fuvahmulah Ring Road construction, G.Dh. Maavarulu Airport Construction and V. Keyodhoo Harbor phase two development project.

2 projects which were awarded in 2019 were completed within the year. These two projects are; construction of a boiler shed, concrete slab and control room in R. Vandhoo and construction of a waste disposal at F. Feeali. Both the projects were awarded by the Ministry of Environment. MTCC was awarded a total of 6 projects’ Survey and Design component. It includes; designing of H.A. Hoarafushi Hospital, interior renovation of OPD area at Kulhudhuffushi Regional Hospital, designing of Kulhudhuffushi Hospital’s temporary facility, R. Alifushi Hospital designing and R. Ungoofaaru regional hospital extension building designing. These 5 projects were awarded by the Ministry of Health. Apart from this, surveying and designing of R. Angolhitheemu harbor was awarded by the Ministry of National Planning and Infrastructure.

Corporate Maldives | Issue 2

Product and Services

FROM ORCA MEDIA GROUP

STO to Establish National Shipping Line in 2020 State Trading Organisation has stated that work to establish a national shipping line will commence later this year. During the 55th anniversary event, the companyâ&#x20AC;&#x2122;s managing director Mr. Hussain Amru stated that a big part of the countryâ&#x20AC;&#x2122;s imports come through sea freight and having an established national shipping line would lower prices of goods imported and also lower costs for businesses operating in the country dependant on such imports. In the 1970s under the rule of President Ibrahim Nasir, there was a strong national shipping company operating in the Maldives.

CREATE YOUR ONLINE STORE FULL SERVICE WITH DESIGN & DEVELOPMENT

Food

Corporate Maldives | Issue 2

The 24 biggest food trends of the last decade

Breakfast bowls: Granola with fresh fruits became a popular wellness trend.

Activated charcoal turned everything from ice cream to burgers black.

Instagram and other social media platforms have opened the doors for more and more photogenic foods â&#x20AC;&#x201D; and nothing is more photogenic and satisfying to eat than a granola bowl.

Food made with activated charcoal took over the popular rainbow items in the 2010s. Everything from ice-cream to burgers are being made with the ingredient and the trend has made its way to beauty products too.

The avocado craze: millennial fad or the best thing since sliced bread?

Coconut oil â&#x20AC;&#x201D; became a popular alternative to other cooking oils and as a wellness cure.

Avocado has become a synonymous fruit with the 2010s and the millennials â&#x20AC;&#x201D; whether it is mashed on toast, sliced in a salad or blended into a smoothie, avocados are everywhere.

Though coconut oil contains lots of saturated fats, due to its small amounts of antioxidant compounds that may help curb inflammation and is often found in moisturizes and hair-care products.

Corporate Maldives | Issue 2

Food

Latte art took over as coffee culture intensiďŹ ed

Macarons saw an uptick in popularity in 2010s.

Latte art or art made using espresso, steamed milk and frothed milk to create intricate patterns or images took over the social media in the mid-2010s.

The French cookies which have been around for hundreds of years have seen an increase in popularity in the 2010s. The cookies are made using whisked egg whites and sugar to make meringue which is the main ingredient in macarons.

Juice cleanse made a stand as a popular trend in the wellness scene.

Cold brew and iced coffee latte are changing the game scene.

Juice cleanses have taken a spot in the wellness scene offering a healthier alternative and an easy way to add servings of vegetables and fruits to your diet.

Coffee culture has seen a major shift in recent years with todayâ&#x20AC;&#x2122;s consumers having a better appreciation of coffee. While cold brew offers a coffee concentrate that often has more caffeine than your average cup of joe, iced coffee is made of coffee and skimmed milk with sugar and sweetener and offers cold and delicious coffee treat.

Food

Corporate Maldives | Issue 2

Isotonic drinks, the sought after sports drink for hydration.

Sushi: the new culinary favorite in Maldives

Isotonic drinks contain similar concentrations of salt and sugar as is found in the human body. These drinks quickly replace fluids and electrolytes lost through sweating and give a boost of simple carbohydrates.

The term sushi actually refers to foods that use a type of rice seasoned with vinegar and are garnished with raw fish or vegetables. Whether it be for lunch or dinner, itâ&#x20AC;&#x2122;s a dish that is both filling and appealing to people with a wide range of tastes.

The Ramen craze: explosive popularity in the 2010s

High steaks for a ďŹ ne steak experience

Ramen has taken over as one of the worldâ&#x20AC;&#x2122;s most consumed food items. Extremely easy to make at home, it's full of flavor and satisfyingly savory.

Offering a gastronomical experience with its flavorful seasoning and mouthwatering taste, steaks are here to stay; gaining more popularity with Salt Bae taking over the internet on his techniques to prepare and season the meat.

Corporate Maldives | Issue 2

Food

Rolled ice-cream, the ‘it’ thing on social media in early 2010s

Authentic Arabic cuisine for the gastronomical experience

Rolled ice cream originated in Thailand in 2009, but quickly grew in popularity throughout Asia in the early 2010’s thanks to viral videos posted throughout social media. It involves preparing the créme anglaise (liquid ice-cream base) on an insanely cold plate, where it is then flattened, scraped into a thin layer, and then rolled.

Maldives saw an uptick of authentic Arabic cuisine with the opening of multiple restaurants and establishments offering a variety of Arabic food from Middle East, Lebanese and Palestinian.

New flavors of Gelato and ice cream hits the market

New desserts that are here to stay: Kashi keyo ice-cream, kanamadhu cake, Tres Leches and Pavlova

Originating from Italy, the popular frozen dessert, Gelato is generally made with a base of 3.25% milk and sugar while ice-cream made from dairy milk or cream and is flavored with a sweetener, either sugar or an alternative, and any spice, such as cocoa or vanilla.

Desserts are the most awaited course of a meal where you can dine and enjoy numerous confections dishes or fruits. We have seen an uprising of new desserts here in Maldives including the kashi keyo ice-cream at Blood Orange, Tres Leches and Kanamadhu cake at Zeeba’s Deli & Café, and Pavlova at Tea Box.

Food

Corporate Maldives | Issue 2

Eggs benedict — for breakfast and brunch

Mocktail movement inspiring new innovative drinks

On the brunch table, poached eggs topped with hollandaise reign supreme, whether or not the chef decides to pair them with salmon or anything from crab cakes to juicy burger patties. Name the trend, and there’s likely to have been a Benedict version of it at some point.

Maldives has seen a progressive style of making mocktails and establishments coming up with new innovative drinks that leaves an imprint on your mind. The elevated options with nuanced flavor and layers of complexity are garnished with edible flowers and herbs which gives it an appealing look.

Valhomas Spaghetti — sure to give you flashbacks to your childhood

Mexican cuisine coming to tables across the country

Valhomas Spaghetti, is tossed in a fragrant rihaakuru sauce and the flavors are oh-so-classically Maldivian; curry leaves, onion, garlic and two different types of chilies which gives it a fiery aftertaste. The flavors are voracious and are sure to give you flashbacks to your childhood and satisfy your craving for some wholesome food with that classic valhomas taste.

The Mexican Restaurants industry has grown robustly over the five years to 2019, in response to several favorable trends that have increased the consumer base for Mexican cuisine. From Nachos, tacos, quesadilla and churros —are dishes that are here to stay. .

Corporate Maldives | Issue 2

Food

FROM ORCA MEDIA GROUP

Mamak — authentic, bold and traditional flavors of Indian Malay street food Mamak stalls are open-air food establishments particularly found in Southeast Asia, especially Malaysia and Singapore, which serve a type of Indian cuisine unique to the region. Maldives has its own outlet of a Mamak at Hulhumale’, in front of Hulhumale’ hospital

DIGITAL MARKETING AGENCY Pizza revolution with Cajun Crispy Chicken Pizza Cajun food is simple to cook and tastes amazing with its aromatic herbs such as parsley, bay leaf, green onions, dried cayenne pepper, and dried black pepper. Pizza Buona’s Cajun Crispy Chicken Pizza offers a savory and delightful dining experience that is sure to leave you craving for more.

SOCIAL MEDIA MARKETING | LEAD GENERATION & NURTURING | SEARCH MARKETING (SEO) | CONTENT MARKETING | MARKETING AUTOMATION & WEBSITES

Food

Corporate Maldives | Issue 2

Shaadhny - Ginger Bakes

This tres leches is inspired by an extremely popular local drink in Malaysia and Singapore known as “Syrup Bandung”. Bandung is a pink, milky rose syrup drink, made using condensed milk flavored with rose syrup. This cake will make you reminisce about the times you had juice petties during hot afternoons as kids, nostalgic drink that tastes like childhood. It is also served as “Sarubath” among us Maldivians, especially during the months of Ramadan. And that’s exactly what I wanted to recreate in this fusion Syrup Bandung Tres Leches. To bring the subtle rose taste I infused the Bandung and also decorated with dried rose petals for the “oh so pretty effect”. I personally adore rose flavored milk cake, maybe

because I love anything rose. I’ve been experimenting with different flavors of Tres leches the past few months. Personal favorites so far are Chocolate mocha tres leches and Syrup Bandung tres leches. Other flavors include Strawberry tres leches, Chocolate and Orange blossom. I haven’t tasted anything quite as heavenly as them! If you love/like Sarubath/Syrup Bandung, you’ve got to give this a whirl! Also those who tasted it, described this cake as “melt in the mouth goodness”, which is light on the taste buds, and delicious like Ice cream. Such a combo should not be missed! It has also been a hit among everyone. People have been obsessed about the cake and agree that it’s both delicious and beautiful.

Corporate Maldives | Issue 2

Fashion and Beauty

5 reasons why Mykx should be the salon of your choice Renowned makeup and hairstylist Meekail “Myke” Ahmed, one of the few male models turned makeup artist personalities in the beauty industry has introduced a glamorous addition to the Maldives beauty industry with “Mykx Hair and Beauty Salon”. The latest beauty establishment to the scene has sparked people’s curiosity and support as Myke continuously keeps on proving his skills and talents within the close-knit beauty market. Here are the top five reasons why Mykx is the place to go:

1. Great location and comfortable space The salon is located in the suburban extension of the Capital City, in Hulhumale’, Hithigus Magu. While the interior of the salon is designed with a modern twist, it also caters to all age groups and gives off a comfortable and aesthetically pleasing vibe.

2. Quality hair styling and make-up within one place by no other than Myke himself Other than ensuring that the best service is provided for all of the clientele, Myke will showcase his skills at the salon in the field of hairstyling and make-up.

3. Get your makeup done by the TikTok Queen of Maldives In addition to Myke, Fathimath Shazeela or more commonly known as Queen Shazeela—the leading TikTok personality in Maldives will be working in the salon. Specialized in MUA, Shazeela will take on giving you the simple, custom or dark makeover you desire.

4. Stand-alone or monthly treatments from hair treatment to hair coloring Mykx offers a diverse range of treatments for the hair including a stand-alone Olaplex (a bond repairing hair treatment formatted to rebuild disulfide bonds and restart the process of protecting hair from damage), Moroccan treatment, dandruff treatment, hair fall treatment, relaxing treatment and root touch-ups.

5. All in one, dermo-cosmetic laboratory services Mykx offers high prestige facial and body solutions with innovative compositions, exclusive ingredients, exquisite textures and perfumes treatment with Casmara Facial adapted to the clientele in each stage of their life. These include various skin masks and treatments for sensitive to oily skin, anti-wrinkle, skin lightening and skin firming.

Fashion and Beauty

Corporate Maldives | Issue 2

Raidha’s Maldives featured at the Amsterdam Modest Fashion Week

Local brand, Raidha’s Maldives Autumn winter collection has been featured at the Amsterdam Modest Fashion Week on 15 December 2019. Raidha’s Maldives is a Maldivian Fashion label specializing in women’s clothes from ready to wear to party dresses. The collections are a direct reflection of the brand’s founder, Raidha’s design philosophy that poetically combines her appreciation for the traditional and classic with the modern fashion needs of today’s woman of style. Her creations particularly appeal to women who are looking for glamour and sophistication for the most significant moments. Raidha’s Maldives’ Autumn winter collection pays homage to pop culture in the midst of the seventies. The collection incorporates seventies warm and vintage colors in traditional hue along with iconic use of stripes and shades of brown. The fabrics used include Lionel chiffon, leather, vinyl cashmere, corduroy silk polyester, and cotton. Their famous graphics and embroidery were used to complete this collection. The designs were complemented with the essence of the European seventies inspired silhouette and styling.

@NADA

SALON

Fashion and Beauty

Corporate Maldives | Issue 2

Celebrities worldwide love the newly debuted Sculpsure treatment at Nada Salon and Aesthetic Studio The stars in Hollywood and Bollywood have a new favorite treatment for their looks. More and more celebrities swear by SculpSure-laser liposuction. And don’t be surprised if you hear your favorite celebrity rave about their love for SculpSure because:

SculpSure is highly effective As one of the most sophisticated forms of nonsurgical laser lipolysis available, SculpSure uses targeted wavelengths of light energy to permanently eliminate unwanted areas of diet-and-exercise-resistant fat. When placed on your skin over unwanted bulges, the system’s four flat applicators deliver fat-melting energy directly into the targeted adipose (fat) cells, without impacting your skin or other nearby cells. In a single 25-minute session, SculpSure can prompt the complete elimination of up to 24% of subcutaneous fat cells in a specific treatment area. Most people achieve optimal fat reduction and body-sculpting results after a series of customized, well-timed treatments designed to maximize the laser’s fat-burning effects. SculpSure yields such outstanding results that over 90% of people who’ve had the treatment say they’d do it again in a heartbeat.

SculpSure is completely noninvasive Another reason SculpSure body sculpting is so popular is that it gives you a way to get rid of fat without having to resort to surgery. Before the arrival of laser lipolysis, anyone who wanted to spot reduce and sculpt their body this way had to undergo traditional liposuction, a surgical procedure that requires sedation, incisions, and substantial recovery time. Liposuction surgery usually takes at least 90 minutes to complete, comes with a notable risk of discomfort and infection, and requires several days of planned downtime for proper healing. It’s not unusual for liposuction patients to experience

Corporate Maldives | Issue 2

varying degrees of swelling and bruising that lasts for days or even weeks following surgery. SculpSure, on the other hand, is 100% noninvasive, meaning it doesn’t involve incisions or require anesthesia of any kind. But what, exactly, does this mean for you? It means you can expect a comfortable, ultra-short treatment time — each pain-free session is 25 minutes or less — and absolutely no post-procedure downtime. In fact, many of our patients schedule their SculpSure sessions over their lunch breaks because they can jump right back into their normal routine immediately afterward.

SculpSure is remarkably easy SculpSure body sculpting is FDA-cleared to permanently reduce persistent fat in the most common trouble spots, including the abdomen and flanks (love handles), back, inner and outer thighs, and under the chin. After the laser has successfully damaged the integrity of the targeted fat cells, your lymphatic system begins to systematically — and permanently — flush them from your body. Because this natural flushing process takes a few weeks, you can expect to see a noticeably tighter, slimmer body within 4-6 weeks of your first SculpSure session, and continued improvement with each successive session. Celebrities are known for their near-perfect bodies, but they don’t get that way by magic. And Nada Salon is doing their part to educate themselves and their clients with dedicated thorough research to bring the world’s best and most innovative aesthetic treatments those who’d opt for treatments like these.

Fashion and Beauty

Health

Corporate Maldives | Issue 2

Lost sleep cannot be recovered impact of sleep on productivity: A Maldivian Case Study All of this can have several implications on the productivity of employees, as the speed and quality of work done is inversely proportional to the amount of sleep deprivation experienced by a person. However, this is not the only negative impact experienced within the workplace. Reduced alertness due to lack of sleep can even be dangerous in physically demanding jobs like construction work or professions that involve the lives and livelihoods of many people, such as healthcare. Additionally, weakened immune systems make it easier for infections to be transmitted around the workplace, affecting not just the sleep-deprived individual but those around them. There are a number of factors that contribute to sleep deprivation. One is ineffective time management, as work or other activities cut into time that would usually be spent sleeping. Another factor is caffeine intake, particularly during evening hours. Caffeine has a half-life of 5-7 hours — the amount of time taken to reduce its concentration in the body by half. Even if its half-life is reached by bedtime, there will be enough caffeine remaining in the body to disrupt sleep for the remainder of the night. Blue-light based LEDs, including screens and modern energy-saving light bulbs — all of which are essential to most working individuals in the Maldives — can also delay sleep onset. As blue light prevents the rise of melatonin in the hours following sunset, it can make it harder to fall asleep. Corporate Maldives has recently conducted a 30-day sleep research in a typical private company in the Maldives with an employee base of 15. The aim was to track the average sleep and wake times, as well as the duration of sleep for employees. Results revealed that most slept for about 6 to 7 hours, with some reaching 8 or more, others 4 or less. One notable observation was that many individuals, having slept less than 8 hours throughout the week, attempted to recover sleep during weekends. Unfortunately, the practice of sleeping in during weekends has no scientific basis, according to Matthew Walker — a scientist and professor of neuroscience specializing in the impact of sleep on health and disease, and famously known for his book Why We Sleep. According to Walker, it is impossible to reverse the damage caused by losing a night of sleep or even a few hours.

Chronic loss of sleep can lead to: 1. weakened immune systems 2. increased risk of conditions like cancer and Alzheimer’s reduced fertility 3. greater vulnerability to mental health issues 4. poor emotional regulation and decision-making

Finally, most employees adhere to a 9-5 workday — an achievable feat for early bird chronotypes, or those who are naturally geared to be more alert earlier in the day. Unfortunately, the 9-5 workday can reduce the sleep quantity of night owl chronotypes, as they tend to fall asleep later than early birds. This leaves them chronically exhausted due to long-term sleep deprivation, which causes them to underperform at work, as they are usually too tired to reach their full potential. However, there are interventions that can minimize risks to individuals and improve their mood and productivity. Some personal measures include establishing regular sleep and wake times (even on weekends); providing oneself a sleep opportunity of more than eight hours; using night mode on screens, and mood lighting during the evening to reduce blue light exposure; and reducing caffeine intake later in the day. At an organizational level, employers may introduce flexible work hours that account for the natural chronotypes of each employee. Thus, ensuring the well-being of employees by allowing them to get adequate sleep is important — not only for its own sake but also because it will improve productivity and enthusiasm in the workplace. While there are many factors that lead to inadequate sleep, it is important to regulate those within one’s control.

Corporate Maldives | Issue 2

Health

Why a Corporate Yoga Program is Important in the Modern Work Environment

By Irushaada A. Sattar (Founder of Iru Studio)

Workplace stress and pressure is unavoidable in most corporate jobs, and a healthy lifestyle remains low on the priority list for most executives as they climb higher up the corporate ladder. World Health Organization (WHO) defines health as a state of physical, mental and social well-being in which disease and infirmity is absent; and considers a healthy work environment as one in which there is not only an absence of harmful conditions but an abundance of health-promoting one. After long hours of sitting and performing under intense pressure on tight deadlines, it is no surprise that most office workers end up with chronic back pain, depression and burnout â&#x20AC;&#x201C; and in serious cases it leads to hypertension, obesity, heart disease and diabetes. For most corporate workers, there is little time for recreational, health & fitness related activities, maybe due to time constraints or simply because of physical and mental exhaustion. According to a study by the University of Southern Denmark and University of Sydney in 2016, on countering the effects of prolonged sitting, just by minimizing sitting hours by 71 minutes during an 8 hours work day showed a reduction of 0.61 percentage points in body fat percentage in workers. In this fast changing work environment, companies are now looking into workplace wellness programs to increase staff performance and boost productivity; and the ancient healing techniques of yoga has made its way into the corporate world. Yoga is a physical activity that uses breathing and relaxation

techniques to enhance mindfulness and mind-body awareness; and it can be effective for dealing with many chronic health conditions such as cardiovascular disease, diabetes, anxiety/stress, migraines and chronic back pain. A 2012 British study in Occupational Medicine journal showed that workplace yoga intervention reduced perceived stress and back pain and improved psychological well-being of the participants. Another research published in July 2015 in Industrial Psychiatry indicated that mindfulness and self-control through yoga could help workers regulate their emotions, and a research in June 2017 published in Annals of Internal Medicine, suggested that yoga could be as effective as physical therapy for low back pain. Modern research is finally catching up to the age old practice of yoga, and the result is self-evident. A corporate yoga program should use physical movements to strengthen muscles as well as release tension in neck, shoulders and spine; and the use of breathing and mindfulness techniques, can help to reduce stress and improve productivity through mental clarity and improving focus. While a regular yoga practice can reap benefits faster, a simple 60 minutes class a week can be a good starting point. Yoga is one of those practices that can be customized to any practitioner, so any body and any age can practice yoga, in any style. Whether itâ&#x20AC;&#x2122;s a faster paced vinyasa style class to get the heart rate up or a gentler Hatha-based practice to slow down and breathe, thereâ&#x20AC;&#x2122;s a style for everyone!

Technology

Corporate Maldives | Issue 2

Technology unlocking new opportunities in Maldives

Maldives is an island nation well-known for its coral reefs and tropical islands, with a remotely distributed population. Maldives is mostly famous as a tourist attraction throughout the world with a very small print on the map. Consisting a population of less than 400,000; located just below Sri Lanka and India. Among the South Asian Countries, technology in The Maldives has started booming at a fast pace. Top multinational tech companies have taken special interest in South Asia as they have built their headquarters in this region as opportunities arise. Notable mentioned are Schneider Electric, IBM, Microsoft and Apple being among them. We live in a region obsessed with technology; where technology is advancing at a fast pace. Maldives has a strong focus on technology as an individual industry and its involvement in other industries which as lead to the growth economically as new businesses arise. Maldives being a with limited natural resources, we are highly dependent on tourism and fisheries industry, other industries have been struggling to develop at the same pace. Although, in the past decade, availability to technology has made it possible for new businesses to emerge into the market and quickly turning into one of Asiaâ&#x20AC;&#x2122;s economic success stories.

In the past decade, availability of smartphones and various apps along with it has brought major changes to the lifestyle of everyone. Maldivians are known to be very tech savvy people who are highly reliant on smartphones and high density among them is known to carry the latest models compared to its neighboring countries. However, Applications such as Uber Eats, Amazon, Lyft and other applications which have been digitizing human needs have been unavailable in Maldives. However, Maldivians have found some workarounds, we have been finding replacements for these applications throughout the past decade. Some noteworthy mentions which Maldivianâ&#x20AC;&#x2122;s have self-developed include; Foodies, alternative for Uber Eats, local food delivery application which allows ordering food over the smartphone from any restaurant registered with them. In the past, unless the food business provided their own delivery, small to medium businesses had no way of delivering their products to its consumers. AvasRide, alternative for Lyft, a local ride hailing company which offers services such as hailing, ride sharing and motorcycle ride hailing over smartphone. Which allowed affordable local travel options and new employment opportunities for the community.

Corporate Maldives | Issue 2

Technology

Redbox, an alternative for USPS, which allowed local door-to-door delivery throughout Maldives on a short duration. It negated a huge hassle which was carried out by individuals to deliver their items back and forth. This platform also allowed businesses operated in social media platforms and other ecommerce platforms to deliver their products locally, hassle free with real time package tracking both for client and sellers. Eatolls.com as a supplement for Maps. Maldives being a small island nation, was not as established on most world maps properly, aside from locating few landmarks. Eatolls.com allowed locals to search addresses including Homes, offices, landmarks, etc. throughout Maldives and is known as the fastest growing address search engine in the Maldives. Additionally, they have started to provide their API for other businesses which will enable other applications to use this service. Apart from finding replacement for unavailable apps for Maldives, we have been sourcing and developing applications, such as the Payer app which is a perfect one-stop payment solution for Maldivian to pay their bills, buy gift cards, book tickets, appointments, etc. Eat.mv, the Online Grocery Supermarket of Maldives, which changed how people did their daily grocery shopping, instead of going through the hassle of passing busy roads to reach the shops and waiting in long queues, people are able to sit at home and order their daily needed groceries online. Additionally, government institutes and large enterprises have been heavily investing in the development of the technology industry. They have made applications which allows us Maldivians to apply for their services remotely. Notable mentions include applications such as; Maldives Inland Revenue Authority which introduced MiraPay which allows tax payments to me made online from anywhere in the country, Initially it was a huge hassle for us to go through the tax payment, by physically walking into the MIRA for payments, it was a greater hassle for islanders as in some locations people had to travel to reach a payment location. BML Mobile Banking and BML MobilePay introduced by Bank of Maldives which revolutionized payment methods, and introduced Maldivian to the cashless lifestyle. Local businesses allowed new safer ways for individual businessmen to trade between without physical cash exchange also allowed them to minimize the risk of having petty cash on hand. Transportal introduced by the Ministry of Transport and Civil Aviation of Maldives which allowed Maldivians to apply for general DMV services online remotely and acquire information related to their services online. State Electric Company Limited and Maldives Water and Sewerage Company both have introduced their own application for Maldivians to keep track of utility bills and also pay their bills. With all these new developments in Maldives being carried out and everything being available throughout the country, all these opportunities were driven by younger citizens of the Maldivian community. With a community of more than 90% literacy in Maldives, implementing these technologies is not hard for Maldivian nationals.

Aside from lifestyle developments, security has been developing with technological advancements for the past years. With biometrics and CCTV available for consumers at affordable rates has allowed us Maldivians to feel much safer. Security solutions is one of the main sectors in IT in Maldives, with new individuals around Maldives acting as system integrators has been implementing the latest technological security solutions throughout Maldives. Companies such as Linkserve have been promoting system integrators throughout the years by investing in them and giving partnership benefits. The Education Sector has been developing at a fast rate in the Maldives, with the introduction of remote online classrooms in learning management systems. Villa College and Mandhu College are among education institutes who have adopted remote education methods. As Maldives is an island nation, resources are not equally distributed, education is one of those resources, in the past, to get a proper education and degree, people had to travel out of their home island to the capital therefore paying huge sums for their expenditure over the course duration. But with the development of telecommunication, almost 95% of Maldives is able to access the internet through technologies such as WiMax, AirFiber or Submarine Cables. With global technological developments on the rise, more room for technological solutions implementations has increased. A nation mainly involved with the development of tourism sector, Maldivians youngsters have been adopting an entrepreneurial mindset and have been finding new solutions, opportunities and business ventures even with the limited resources and implementing these solutions into the nation has been easier with the increased technological literacy. Maldivian government has been putting efforts into standardizing and opening new opportunities into these developments and allowing fair and secure implementations to the Maldivians. Government developing cities such as Hulhumaleâ&#x20AC;&#x2122; as a smart city with fiber networking, City Wi-Fi and Smart Traffic Management Systems; individuals will find more ways to grow themselves into a tech savvy nation.

Real Estate

Corporate Maldives | Issue 2

An exclusive Interview with the Managing Director of Lanka Tiles group Could you tell us a bit about the journey of Lanka Tiles and the presence it has had in Maldives? Lanka Tiles is a company that started 40 years ago. First we started manufacturing wall tiles and then thereafter we started manufacturing floor tiles. In the last 40 years, we have spread across many countries in the world, searching for export markets, which we have been successful in. Actually, during those 40 years, on and off, we had been exporting to the Maldives. We dealt with many buyers and finally in 1999, we met Jaufar. At that time, his company was Jausa Traders and Jausa Contracting, we signed with Jaufar and his team to have a better footprint in Maldives. Hence, we started a showroom with him and diversified his product range. Along with that , we also diversified our products, where we went into tile grout, tile mortar and floor tiles. This entire product range is being marketed through JAAH, now through the island of Maldives.

How would you describe your partnership with Mr. Jaufar and JAAH? Actually, it is an excellent partnership. We met back in 1999, that was exactly 20 years ago and we started small. Our relationship was very good and it was based on friendship, trust and honesty. And we never had any problems. In my view, if we signed an agreement and if we have to read that agreement again, there is a problem. But the agreement that we signed with Jaufar, we never read again. And after 20 years, weâ&#x20AC;&#x2122;re dealing with each other in the same spirit. So, it is an excellent relationship, we are more than happy to be partners in business.

My name is Mahendra Jayasekera, I am the Managing Director of Lanka Tiles group. I am a chartered accountant by profession and I also have a degree in business administration from a University in Sri Lanka. I have been running the Lanka Tiles group now for 22 years.

Most of our customers have been with us for a long time where some of them are from the lines of second generation. Similarly, I have a few customers whom we are dealing with the third generation. I am happy to say that most of our clients or customers are loyal and we have been able to provide them the quality service that has further strengthened our relationship in the long run.

What do you consider as the challenges faced by Lanka Tiles here in Maldives? Maldives has become a very competitive market since we started business. 20 years ago, the market was not so competitive and it was easier to do business. But now, it is more difficult to do business as there are many players. There are many suppliers as well as many buyers. Hence, people are always on the lookout for better prices or better products, so you have to keep your pace up with the demand. This was the biggest challenge faced by us. Also, to overcome the challenge, we had to do a lot of work. Sometimes, when you work together to meet those challenges, it can lead to relationships straining. However, we were able to

Corporate Maldives | Issue 2

Technology

overcome all of these challenges with a very strong partnership and good understanding. Those are the two main challenges.

Where do you see Lanka Tiles and JAAH in the future? We want to expand our footprint here in Maldives through JAAH as we are also diversifying our business in Sri Lanka, going into many areas. So, we want to partner with JAAH to market all the products produced by us in Sri Lanka to Maldives. I mean, that is our plan. We want to do something big with the opportunities we have here as there are lots of developments here, mainly; real estate developments. We are more than happy to say that Jaufar’s group, JAAH is also expanding and moving towards areas such as construction, real estate and development. When the population increases and tourism grows in the country, you need more infrastructure. This means, more constructions which leads to more business for us. So, that is what we want to do; we want to do bigger things here in Maldives through this partnership.

BUSINESS EXPO

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Events

Corporate Maldives | Issue 2

Maldives Prestigious Business Awards “GOLD 100 GALA” to be held on 25th February 2020

The fourth edition of Maldives prestigious awards “GOLD 100 GALA” will be held at Dharubaaruge on 25th February 2020. At the GALA function, the GOLD 100 companies will be presented with an award and the GOLD 100 magazine will be unveiled. GOLD 100 GALA is an invitation-only networking event bringing together top executives of Maldivian business community. “GOLD 100” is a list of leading 100 business entities in the Maldives, published by Corporate Maldives at the end of every year. The selection criterion for this award ensures that the selection process is transparent and unbiased so as to reflect that the entities on the list are indeed the Maldives’ “Gold 100”. Corporate Maldives also presents the Lifetime Achievement Award to recognize visionary business leaders who have made significant contributions to the Maldivian business community as well as the overall community in general. The recipients of the Lifetime Achievement Award 2020 will be announced during the Corporate Maldives GOLD 100 GALA. The winners of the Lifetime Achievement Award in 2019 were Mr. Abdulla Ali, Chairman of AAA & Trading Company and Mr. Qasim Ibrahim, Founder and Chairman of Villa Shipping and Trading. The GOLD 100 award is the only one of it’s kind and is presented to only 100 companies selected from a list of approximately 13,000 companies.