Maldives Roundup: Financial agreement with China, reconciliation with India, mpox updates
Reconciliation with India
The Maldives is mending its ties with India following a diplomatic strain caused by mockery from two Maldivian ministers on social media, which reflected anti-India sentiment. Their actions led to their suspension amidst escalating tensions and a decline in Indian tourist numbers, crucial for the Maldives' economy. In August, India's external affairs minister visited the Maldives, initiating a diplomatic thaw that resulted in the resignation of the ministers. This shift signifies President Muizzu's recognition of the necessity for strong relations with India, highlighting the historical and economic ties essential for stability in the Indian Ocean, BTTV reported.
Timber's significance in resorts
Shigeru Ban Architects has unveiled plans for the "Infinite Maldives" resort on a 5-hectare site at Male’ Atoll, featuring 44 overwater and beachfront villas connected by a vast timber bridge. The project will emphasize local materials and sustainable practices, using engineered mass timber products to minimize transportation and energy use. Developed by Crystal Property Group, it aims to blend seamlessly with the natural landscape and is the first resort residence in the Maldives to invite overseas investors. According to Wood Central, the initiative follows recent eco-friendly developments in the region, such as the Fari Islands, which have set benchmarks for sustainability and timber-sourcing practices. Ban is also involved in constructing a mass timber hospital in Ukraine for war-affected individuals.
Mpox updates
The Health Protection Agency (HPA) of the Maldives reports no cases of mPox (formerly monkeypox) in the country, dismissing social media rumours of a positive case in Hulhumale' as false. Despite a global threat from an outbreak in Africa noted by the World Health Organisation (WHO), with cases reported in nearby Asian countries like India, the Maldives received mPox test kits from the WHO reports The Edition. The virus, first identified in humans in 1970, spreads through contact with infected animals and between humans, primarily requiring close physical contact. The WHO has recorded over 14,000 infections and 524 deaths globally in 2024.
Financial agreement with China
The Maldives' hopes of avoiding a debt crisis received a boost on Friday when China agreed to enhance trade and investment, showcasing its support and influence in the Indian Ocean nation. Recently, there have been growing concerns that the financially strained Maldives might become the first country to default on Islamic sovereign debt. However, this week has brought a sudden improvement in sentiment. Reuters adds that the sharp rebound in its only international market bond—a sharia-compliant sukuk issue—was further bolstered on Friday when China's central bank, the People's Bank of China (PBOC), and the Maldivian Ministry of Economic Development and Trade announced a "memorandum of understanding."
Economic connectivity with Vietnam
A seminar focused on enhancing economic connectivity between Vietnam and the Maldives was held in Male on September 10, coinciding with Vietnamese Ambassador Trịnh Thị Tâm's credentials presentation to Maldivian President Mohamed Muizzu. The event aimed to improve understanding of investment opportunities in Vietnam, where current trade is about $15 million, with limited Maldivian investment. Ambassador Tâm emphasized facilitating business connections and proposed delegations for further cooperation as the countries near their 50th diplomatic anniversary. Maldivian Minister Hussain Zamir highlighted potential collaboration in tourism, trade, and construction, while local businesses expressed interest in Vietnamese products and skilled labour. As reported by the Viet Nam News, the Vietnamese embassy showcased handicrafts and discussed prospects with Maldivian ministries on tourism and fisheries cooperation.
