Maldives Cancels Multi-Island Office Deal with Malaysian Firm, Looks to Local Talent

The Maldivian government has officially terminated its agreement with Malaysia’s Hextar Global for the construction of council office buildings across 55 islands. The decision comes just five months after the deal was signed, with the Ministry of Local Government now seeking new contractors to take over the project.

Contract Ends After Disagreements Over Modifications

In a statement shared on social media platform X, State Minister for Local Government Adam Shareef Umar revealed that the contract was cancelled after Hextar Global failed to agree to project modifications requested by island councils.

The initial agreement, signed on January 20, was structured as a contractor-finance deal, meaning Hextar was to fund the project up front. However, Minister Shareef clarified that the contract’s termination involved no financial penalties or compensation owed to the company.

The deal was formalized earlier this year with the Ministry’s Permanent Secretary Dr. Fathimath Muna and Hextar Maldives Managing Director Ali Shareef signing on behalf of their respective parties.

New Proposals Under Review

Following the cancellation, Minister Shareef confirmed that the Ministry has already received new proposals from other companies. These are currently under review, with a particular focus on awarding the contract to a Maldivian contractor.

“Our goal is to ensure this important project benefits local talent and resources,” the Minister noted, underscoring the government's intent to prioritize domestic companies in future infrastructure development.

Initially, the Ministry had projected that construction would begin in April. However, with no visible progress by the deadline, doubts had begun to emerge about the feasibility of the schedule. Had the project started on time, the Ministry had expected the council buildings to be completed within two and a half years.

This development highlights the ongoing challenges the government faces in coordinating large-scale public infrastructure across multiple islands. Still, officials remain optimistic that the project can be successfully relaunched under new leadership and tighter oversight.