Major Changes to State Procurement Policy to Prioritize SMEs

The government has announced major revisions to its state procurement policy, aimed at increasing the participation of small and medium-sized enterprises (SMEs) and creating sustainable growth opportunities for registered Micro, Small, and Medium Enterprises (MSMEs).

Under the revised policy, procurement contracts valued at less than MVR 5 million and reserved for SMEs must now be awarded to the highest-scoring bidder within the designated category. This move is expected to significantly enhance the involvement of MSMEs in government projects and promote fair competition.

The updated policy also introduces new guidelines for construction projects. Projects worth less than MVR 500,000 will continue to be assigned to Grade 7 contractors registered with the National Contractors Register. Meanwhile, projects valued between MVR 500,000 and MVR 10 million will be allocated to contractors listed under Grades 4, 5, 6, and 7. This change is seen as a major step toward expanding opportunities for small and medium-sized contractors in the construction sector.

The policy revisions follow recent discussions between Dr. Mohamed Waheed, Dr. Mohamed Muizzu, and local business owners, during which concerns faced by SMEs were raised. The President assured entrepreneurs that their challenges would be addressed and subsequently approved amendments to the procurement system based on the outcomes of these meetings.

According to the Ministry of Finance Maldives, the amendments are expected to increase SME participation in state procurement and strengthen engagement among all economic stakeholders. The ministry stated that the new policy will enhance private sector capacity and generate fresh opportunities for small businesses nationwide.

Officials believe that the revised procurement framework will play a key role in strengthening the local business environment, encouraging entrepreneurship, and supporting inclusive economic growth across the Maldives.