2027 budget proposes SME startup fund for young entrepreneurs

The Government plans to introduce an SME startup fund in 2027 to support young entrepreneurs, alongside an increase in the GST registration threshold from MVR 1 million to MVR 1.5 million.

Mohamed Hilmy

29 October 2026, 13:51

The Government plans to establish a startup fund for small and medium enterprises in 2027 as part of efforts to support young Maldivians in starting and growing businesses.

Minister of Finance and Public Enterprises Hassan Zareer announced the initiative while presenting the proposed 2027 state budget to the People’s Majlis.

Zareer said the fund is intended to help create a generation of young entrepreneurs who generate employment rather than depend solely on finding jobs.

He described SMEs as a key part of the economy and said greater support would be provided to help small businesses grow and expand their contribution to economic activity.

The Government is also moving to reduce compliance burdens on smaller businesses.

From 1 January 2027, the annual revenue threshold requiring businesses to register for Goods and Services Tax is expected to increase from MVR 1 million to MVR 1.5 million.

Zareer said the change is intended to ease the tax compliance burden on small and medium enterprises and provide greater room for businesses to grow.

The startup fund and changes to the GST registration threshold form part of the Government’s wider effort to encourage entrepreneurship and expand opportunities for young Maldivians.

2027 budget proposes SME startup fund for young entrepreneurs

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