The Maldivian government, led by Minister of Homeland Security and Technology Ali Ihusaan, announced plans to maintain a cap on expatriate workers while introducing amendments to the Employment Act for more flexibility in determining the maximum number of expatriates allowed.
Currently, the Employment Act limits the number of expatriates from any single country to 100,000. If exceeded, it mandates a reduction. The proposed amendments aim to regulate the number of expatriates and their work fields based on Cabinet advice and local labor market impacts.
Minister Ihusaan highlighted the need for foreign labor due to significant projects like the reclamation of RasMale’, Gulhi Falhu, Thilafushi, Uthuru Thila Falhu, and the new terminal at Velana International Airport (VIA), as well as new resort constructions. He noted the lack of local workers to meet these demands, necessitating expatriate labor.
“The government aims to ensure all foreign workers are within the legal framework and adjust their numbers based on demand, whether it be 100,000, 110,000, or 120,000 expatriates,” Ihusaan stated, addressing the issue of undocumented workers and unauthorized employment.
Previously, the government stopped the influx of Bangladeshi workers after their numbers exceeded the cap, opting for workers from India instead. This decision has been reversed, allowing Bangladeshi workers to enter again.
The amendments seek to balance the economic benefits of foreign labor with the need for a legal and manageable expatriate workforce, especially considering ongoing and upcoming development projects. These changes will likely shape the future dynamics of the Maldivian labor market.
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