Minister of Homeland Security and Technology Ali Ihsan has said that the closure of illegal businesses operated by foreigners is beginning to benefit local-owned businesses. The minister said 47 businesses have been shut down over the past two weeks as part of government efforts to curb illegal commercial activities carried out by foreigners.
He said the issue stems largely from gaps in existing laws, despite information being available from multiple sources. A task force comprising the Ministry of Economic Development and Trade, Ministry of Health, Ministry of Homeland Security and Technology, and enforcement agencies operating under these ministries began work late last month to address the issue.
Speaking on a programme aired on PSM News, Minister Ali Ihsan said foreigners were operating businesses behind the scenes in ways that undermine local small and medium enterprises. He said that while such businesses are often registered in the name of a Maldivian national, they are run by foreigners, with all income flowing to them. The minister said funds generated through these businesses are being converted into foreign currency and transferred out of the country.
He confirmed that 47 businesses have been closed in the past two weeks and said police investigations are now underway.
Minister Ali Ihsan said these illegal practices have resulted in foreign currency being taken out of the country and urged citizens to refrain from facilitating such arrangements, instead encouraging them to establish and operate their own businesses.
He said the impact of government enforcement efforts is now becoming visible, noting an increase in the number of businesses previously operated by foreigners being identified and shut down.
“One of the feedback we are receiving is that the closure of street shops and hotels has gradually increased sales for local cafés. Cafés are now doing better. This is the change we want to bring,” the minister said.
The minister added that the government aims to halt illegal trade conducted by foreigners and establish a permanent solution to the issue of undocumented foreign residents. He also said efforts are underway to close unregistered spas operating in the city.
Foreigners have been given until April next year to regularise their status in accordance with the law.