Former Foreign Minister and MDP President Abdullah Shahid has said that the government's decision to set up a logistics company to enter the sector will cause huge losses to private businesses and further impoverish the people.
In a post on X, Shahid said the government's decision to establish a logistics company is completely against the principles of free trade and will not be accepted in any country in the world.
Shahid pointed out that the real role of the government is not to compete with businesses. Instead, the government should encourage small and medium enterprises and facilitate their development. A government's direct competition with small and medium enterprises would destroy the very nature of market competition and undermine economic rules, he said.
The decision will cause serious damage to those working in the logistics sector, Shahid said. He said the project would cause financial hardship to many families who earn income from the project, stopping the income of the local families and further impoverishing the lives of the people.
ސަރުކާރުން ލޮޖިސްޓިކްސް ކުންފުންޏެއް އުފައްދައިގެން މަސައްކަތް ކުރަން ނިންމުމަކީ ކަންބޮޑުވާންޖެހޭ ކަމެއް. މިފަދަ ނިންމުމަކީ މިނިވަން ވިޔަފާރީގެ އުސޫލުތަކާ މުޅިން ޚިލާފު، ދުނިޔޭގެ އެއްވެސް ޤައުމެއްގައި ޤަބޫލުކުރާނެ ކަމެއް ނޫން.ސަރުކާރުގެ ދައުރަކީ ވިޔަފާރިއާ ވާދަކުރުމެއް ނޫން.…
— Abdulla Shahid (@abdulla_shahid) February 7, 2026
In addition, Shahid explained the other ways in which this will have an adverse impact on the entire economy. They include:
Reduced private sector investments.
Loss of job opportunities.
The country's economic slowdown.
Loss of confidence in the business sector.
Therefore, Shahid has called on the government to change its decision to establish a commercial logistics company to protect the people and maintain economic stability.
Maldives Ports Limited (MPL) has introduced a company called Maldives National Logistics.
The company said the main objective of the service is to provide basic commodities and sugarcane to warehouses in different parts of the country.
In addition, all stages of freight, warehousing, and delivery of goods are connected in a single view, reducing logistics costs and facilitating convenience for businesses and the public.