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Tradian - The Future of Maldivian Trade Unveiled

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Sep 8, 2024

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Tradian - The Future of Maldivian Trade Unveiled

Tradian - The Future of Maldivian Trade Unveiled

Tradian is a centralised digital platform designed to streamline international trade by enabling trade and transport parties to submit standard information and documents through a single entry point. 

This system represents a significant leap towards modernising international trade processes and procedures in the Maldives.

Following the unveiling of Tradian by the Vice President of the Maldives, Uz. Hussain Mohamed Latheef, we are now counting down the days until the first phase of the system is made available to the public. 

The unveiling event took place at Hotel Jen on September 3, 2024. So let's delve into the details of this historic event, where the future of trade in the Maldives was unveiled to all attendees.

Unlocking Trade

Following the opening of the event with the recitation of the Holy Quran by a Tradenet staff, the attendees were treated to a short video we produced in-house. 

This video, dubbed ‘Unlocking Trade’, was a short documentary that depicted the existing bottlenecks and speed bumps that hinder international trade and transport in the Maldives. 

We interviewed several representatives from the cross-border regulatory authorities (CBRAs) active within the Maldives such as Maldives Customs Service, Maldives Ports Limited, and the Ministry of Transport and Civil Aviation. 

Trade bottlenecks and issues are not solely a concern for the government. This is why we also spoke with key trade stakeholders from the citizen side, including representatives from freight forwarding companies and shipping agents.

The video was warmly received by the attendees, who responded with applause reflecting their extensive experience with the issues highlighted in the video.

Opening Remarks

After the video, our Managing Director, Ms. Saeeda Umar, delivered her opening remarks.

The Road to Tradian

The Managing Director began her remarks by stating that the MNSW project was one that has been very close to her professional career so far. She elaborated that has been working to address the administrative bottlenecks and issues in the trade sector for the past 8 years. 

She then elaborated that the journey to create a digital platform for trade began in 2016, with the funding from the Asian Development Bank (ADB) being received in 2019. However, this progress was interrupted for a time until it resumed in September last year with a new turnkey vendor, CrimsonLogic. The pace of the project has been accelerating since then.

Ms. Umar went on to state that the goal of the project was to work with the entire network of cross-border regulatory authorities that deal in international trade, along with trade stakeholders working in the private sector of the Maldives to develop a win-win digitalisation solution for all parties involved. She added that progress of this project could not have been achieved without the active participation and support from the aforementioned groups and thanked them. 

Additionally, the Managing Director highlighted that the assistance from the ADB has been instrumental on this journey as well. She went on to say that the aid they have provided to improve trade facilitation in the Maldives is something we must greatly appreciate. They are the most significant donor in this arena in the Maldives.

Ms. Umar also said that Tradian is one of the many significant efforts being made by the government to facilitate trade in the Maldives. The Tradian system brings many processes from different government agencies into one accessible system. This system exists to remove existing barriers to trade that have existed in the Maldives for a long time.

The Managing Director proudly announced that the Tradian system will become available to the public on 1st November, 2024. She also added that this timeframe is to ensure that all trade stakeholders from the government and the private sector will be made aware of the system and become familiarised with it through training.

A Revolutionary Change

Ms. Umar then went on to state that the Tradian platform is bringing revolutionary changes to how trade is done in the Maldives. This platform is a very important component of achieving the digital government that the administration is working towards.

The Maldivian government is already working hard to establish a digital government where its services can be offered digitally on one platform. The oneGov platform is one such endeavour that targets public services. And now, Tradian, with its focus on trade facilitation through offering a diverse array of services through an integrated platform, has become part of this effort. 

She also said that the Tradian platform is meant to address two of the biggest hurdles that plague traders in the Maldives; the loss of time and money.

An Investment for the Future

Ms. Umar then spoke on the investment the government is making in the oneGov and Tradian platforms. She stated that by the end of this year, the government would have invested around MVR 300 million.

She stated that for this investment to be worthwhile and for a meaningful digital government to be established, there are legal reforms that need to be pushed forward. She added that for these platforms to be a good long term investment, there needs to be a legal framework that deals with digitalisation and digital governance. She went on to request the Parliament and the Cabinet to help establish the necessary legal framework for these systems to function well.

The Managing Director specifically highlighted the need for data protection laws in the Maldives to assure the citizens using both oneGov and Tradian that their personal data is safe and well-protected. She expressed her confidence that the government will work to create the necessary legal framework in the near future.

Expression of Gratitude

Following this, Ms. Umar then took some time to thank the various parties that worked with us at Tradenet Maldives on this challenging but important journey. 

The Managing Director expressed her heartfelt gratitude to the members of the ADB for their role in funding the development of Tradian. She also highlighted the other work they’ve done to facilitate trade in the Maldives. 

She then thanked CrimsonLogic, the Singapore-based turnkey vendor who worked closely with our team to develop Tradian. She highlighted their work introducing the single window concept to the world, adding that their work has brought innumerable benefits to the global trading community in streamlining their services. 

She also thanked the CrimsonLogic team for the fact that this transformative system has been developed and implemented in a relatively short period of time. When the project was first tendered, it was anticipated that the project would take 30 months. However, current estimates show that the project will be delivered in about 50% of the anticipated time. The full scope of the project will be rolled out by the first quarter of next year. 

Ms. Umar reflected on this week last year when discussions were being held about the future of this project due to lack of implementation at the time. She then applauded the fact that one year later, we were celebrating the collective achievements of all the agencies involved. She commended all the participating agencies for their dedication, time, and commitment being given to transform the Maldivian trade landscape.

The Managing Director then stated that the event today was nothing short of a manifestation of the collective will of all of the government agencies and the private sector to bring transformative change in the trade arena. She stated that she was very proud of the wisdom exercised last year at the project review meeting to make the collective decision last year to give the project one final go.

Ms. Umar then took some time to specifically thank the Permanent Secretary of the Ministry of Economic Development and Trade, Mr. Yusuf Riza for his efforts to bring the different trade-related government agencies onboard to develop Tradian. She also highlighted the Maldives Customs Service for their excellent support and dedication to this project. She then highlighted the ports authority, the trade community, and the various government agencies that were extremely outstanding in their support.

She ended her remarks by thanking the Vice President of the Maldives, Uz. Hussain Mohamed Latheef for honouring us as the Chief Guest of the event and being the one to unveil the Tradian system to the public.

The Minister’s Insight

After our Managing Director's welcoming remarks, Mr. Mohamed Saeed, the Minister of Economic Development and Trade, delivered his address.

In his speech, he highlighted the following major points:

  • Development of the port: The launch of the Tradian system highlights the need for the port to be developed as well as this is how true efficiency will be achieved. As is, there are many obstacles and issues faced when attempting to clear cargo from the ports, which has had a knock on effect of impacting various developmental projects in the country. This is why the President of the Maldives, Dr. Mohamed Muizzu has made finding a solution to issues faced by the ports a high priority.

  • The work done to develop Tradian: The work done to develop Tradian began in 2016 but was interrupted in 2019 due to unforeseen circumstances. However, today’s unveiling marks a monumental milestone in its development. The journey towards full system rollout in 2025 is anticipated to proceed at a swift pace. The opening of a new air cargo terminal by His Excellency, the President, Dr. Mohamed Muizzu is also a key component of this trade facilitation and development. By the time the full process of developing and launching Tradian is done, many of the issues that can be flagged by a Doing Business Index audit of the Maldives, its ports, and the 19 agencies involved will be addressed.

  • The Foreign Investment Act: The Foreign Investment Act, which was drafted first in 1979, will be ratified. This will bring many conveniences and opportunities to foreign investors looking to invest in the Maldives. By the time the work is done to establish the legal framework needed and for the Tradian system to be fully deployed, the Maldives will have become a nation that can be legally forward-thinking and economically competitive in the region and beyond.

  • eWallets and eCommerce: The Minister commended the work done by His Excellency, the President, Dr. Mohamed Muizzu to develop and strengthen the digital infrastructure of the Maldives and bring forth the legal reforms needed to bring integrated payment models to the Maldives. He also highlighted the work being done to bring the most prominent eWallets and eCommerce platforms in the world to the Maldives. He noted that previously, such prominent eCommerce platforms did not wish to engage with the Maldivian market, citing our small size, lack of digital infrastructure, and lack of a legal framework dealing with digitalisation as justification. However, the work done by the current administration has resulted in meetings and discussions with representatives from some notable global eCommerce platforms. The Minister stated that it was not a matter of ‘if’ but ‘when’ and ‘how’ these platforms would be integrated in the Maldives.

  • Lack of avenues for creative artists: Research showed that there are over 400 creative artists active in the Maldives who produce art in highly curated spaces at home using professional tools and skills. However, despite their excellent output, there is no way to bring their work to the global market due to the Maldives being excluded from global eCommerce and financial platforms. Even YouTube Premium and Google Pay do not recognise the Maldives as a valid region. 

  • An integrated payment system: To address the aforementioned issue, the government is working with our closest neighbouring countries such as India to develop an integrated payment system. The goal is to allow for seamless transactions between both nations. The Minister also stated that free trade with China and Turkey is already a reality and work is being done to achieve the same with India. He added that His Excellency, the President, Dr. Mohamed Muizzu has enabled fisheries related products to be exported to Turkey with 0% tax.

  • The role of the government in trade: The Minister concluded by stating that these are the kinds of things the government can do to facilitate trade. He added that there are items on His Excellency, Dr. Mohamed Muizzu’s manifesto that directly targets local traders and economic growth. Work is being done at a steady pace to make these promises a reality. 

The Unveiling of Tradian

The next item on the agenda was the official unveiling of the Tradian system.

Tradian Revealed

The Minister of Economic Development and Trade respectfully asked the Vice President of the Maldives, Uz. Hussain Mohamed Latheef to unveil the Tradian platform.

When the Vice President unveiled the system, a brief video began playing. This video revealed the Tradian logo and its name publicly for the first time since its inception. 

Previously, the system had been referred to as the Maldives National Single Window (MNSW) system, but following this unveiling, we now refer to the system by its true name; Tradian.

A Metaphorical Approach

Following the unveiling, Tradenet’s Brand Architect, Mr. Shinaz Saeed, delivered a speech. In his speech, Shinaz used a metaphor to detail the import process. He likened it to going to a party.

Shinaz went over the various steps of the import process from vessel declaration to discharging the cargo using this example of a party. He likened the different CBRAs needed to be contacted to hosts of the party that need to be informed when you plan to attend. He also likened the goods declaration process to letting the hosts know what kind of gift you’d be bringing to the party.

This metaphor was used to highlight just how complicated the steps for the import process can be, along with how many different parties were involved. 

This exploration of the metaphorical party scenario culminated in Shinaz showing the attendees just how much of an impact Tradian would have on the complicated web of services and applications that make up the import process. He elucidated on just how much more straightforward and efficient the process will become once trade stakeholders can apply for their services through a single entry point.

The ADB’s Present and Future Plans

The Asian Development Bank (ADB) has been a crucial contributor to the development and rollout of Tradian. They have been a key stakeholder since the system's inception.

As such, they were also given the opportunity to share their perspective and experiences from their journey with us toward the development of Tradian.

The representative from the ADB that spoke at the event was the Regional Head, Regional Cooperation and Integration, and Country Director for the Maldives, Mr.Thiam Hee Ng, also known as Mr. Bernard. 

In his speech, he stated that the ADB and the Maldivian government have worked closely since 2017 to develop a national single window system for the Maldives, adding that this is just one of many projects they’ve worked on together. 

Mr. Bernard then highlighted the following points:

  • The value of trade facilitation: The ADB values trade facilitation because it stimulates trade flows and complements efforts to liberalise trade. Digitalisation efforts in the trade sector have the biggest benefit for countries that already have trade facilitation measures.

  • A new plan for digitalisation: ADB is having discussions with the Maldivian government to support a new project plan for digitalisation in 2025. This project aims to further enhance Customs clearance procedures, increase institutional capacity, and increase innovative information and communications technologies for the Customs and the administration.

  • Their next country partnership strategy: The ADB is preparing for their next country partnership strategy with the Maldivian government, starting from 2025 and going all the way until 2029. The ADB will continue their support to the Maldives in the area of industry and trade as part of their country partnership strategy. This support will be further broadened to include private sector development and SME finance.

  • Developing local human capital: The ADB is also supporting knowledge sharing and capacity building for project implementation agencies to help develop local human capital. At the moment, they are working with the Ministry of Finance to develop an institutional approach to delivering capacity building programmes in a sustainable manner. 

  • The next stage of national single window implementation: The next stage of national single window implementation has already begun. He also added that we needed to finalise the legal framework for the national single window system, requesting the government to carry on with their commitment to fully implement the system. 

CrimsonLogic’s Insight

Another key partner in the development of Tradian is CrimsonLogic, a turnkey vendor based in Singapore. CrimsonLogic has been with us since the signing of a contract with them last year.

Therefore, we were pleased to offer a platform for the Senior Director of CrimsonLogic, Mr. Lim Chee Book to speak at the event. 

The Story of CrimsonLogic

In his speech, Mr. Lim reflected on the origins of CrimsonLogic. He stated that the story of CrimsonLogic is an integral part of the Singapore story. He elaborated that they were conceptualised during Singapore’s first economic recession in 1986. Those difficult times accelerated the Singaporean government’s efforts to enhance trade facilitation and digitalisation.

CrimsonLogic was officially established in 1988. They went on to successfully build and operate the world’s first national single window system. The company remains committed to their core mission of corporate sector digitalisation, 36 years after their establishment.

Today, with a diverse workforce of 1200 staff from 36 nations, CrimsonLogic has implemented digital transformation projects in more than 40 countries around the world. The company went on to expand their portfolio to include Customs systems, port solutions, maritime single window, etc in some of the world’s busiest ports and free trade zones.

The CrimsonLogic Approach

Mr. Lim went on to elaborate that CrimsonLogic’s approach goes beyond merely deploying IT solutions. They incorporate international standards from organisations such as the World Customs Organisation (WCO), the United Nations Centre for Trade Facilitation and Electronic Business, International Maritime Organisation (IMO). These standards help countries adopt best practices and streamline international trade more effectively. 

He then highlighted how the data they share not only allows agencies within the same country to share information, but can help establish the country as being capable of performing government to government level data exchange via regional single window systems. This will improve global connectivity and boost the economic competitiveness of the country. 

CrimsonLogic remains as a quiet enabler working diligently behind the scenes with government agencies in their digitisation efforts. They leverage their extensive experience gained over the 36 years across countries of diverse economic status and digital capabilities to facilitate the crucial steps towards digital modernisation.

Their Digitalisation Journey

Mr. Lim then spoke about the journey working with Tradenet and the Maldivian government to digitalise trade in the country. 

It has been almost a year since the contract was signed. In the action-packed year that has passed, CrimsonLogic has worked with several government agencies with close collaborations to ensure timely implementations. During this time, different agencies had to align and integrate their systems, processes, and data sharing processes.

Mr. Lim thanked the Tradenet team for their diligence towards working with all the relevant stakeholders to drive the project forward. He added that without the commitment of the team, their 36 years of experience would mean nothing. 

He also personally thanked Permanent Secretary Yusuf Riza from the Ministry of Economic Development and Trade for his support and proactiveness in ensuring that all the government stakeholders are aligned for this project.

Mr. Lim concluded his speech by stating that though the platform has been revealed, the next couple of months will be equally, if not more challenging as we embark on the next phase of the project work. We plan to bring more government agencies onboard to serve the local trade community better on the Tradian platform.

The Commissioner General of Customs’ Remarks

The Maldives Customs Service (MCS) is one of the most important CBRAs in the country. 

The agency worked closely with us throughout the development of Tradian, offering valuable insights into existing trade bottlenecks and actively participating in the User Acceptance Testing phase of the system.

The Commissioner General of MCS, Ms. Fathimath Dhiyana, spoke at the event. She began by stating that today was a very historic day for the international trade sector of the Maldives.

The Commissioner General then spoke on the role of the Maldives Customs Service on the journey to the Tradian system, along with highlighting some of its benefits:

The Customs’ Road to Tradian

The business process analysis required to implement a national single window system was conducted with assistance from Maldives Customs Service and other CBRAs, along with the Ministry of Economic Development and Trade. The purpose of this analysis was to study the import process of the Maldives and to determine what targets need to be achieved through a single window system for trade.

Maldives Customs Service is one of the key agencies involved in trade. As such, they have taken active part in and provided extensive support for the development of the national single window system of the Maldives; Tradian. Customs will continue to support the ongoing development and implementation of the project.

The single window system has been successfully implemented in both developed and developing countries in the world. When looking at the World Trade Organisation’s (WTO) Status of Implementation Commitment of the Trade Facilitation Agreement, 56% of nations in the organisation have developed their own single window systems. The Maldives aims to join this around 2025.

Benefits of the System

The system connects all the relevant CBRAs in the Maldives and makes it possible for trade stakeholders to obtain all necessary licences, permits, and other documents from the same platform. This approach aims to bring an end to the days of applying for the services of each CBRA separately. 

This system will also speed up the processing and cargo clearing process within Customs. This will significantly save both time and money for traders, streamlining their processes and reducing operational costs. 

The Impressions Lounge

The event concluded with a lunch and networking session for all attendees. At the same time, we hosted an attendee engagement component called the Impressions Lounge.

We set up a camera in front of a backdrop, inviting attendees to express their views on the newly unveiled system and its potential implications. The Impressions Lounge provided attendees with an opportunity to share their thoughts and opinions on Tradian and its anticipated impact on the Maldives trade sector.

The lounge was well-received by attendees, many of whom took the opportunity to share their thoughts on Tradian.

Opinions varied from surprise and delight to anticipation of the significant changes that Tradian is expected to bring to international trade in the Maldives. 

Overall, the Impressions Lounge was well-received by attendees, allowing us to capture thoughts, opinions, and reactions from many prominent government figures and key stakeholders in the trade sector.

The unveiling event of Tradian was a resounding success. The attendees responded positively to the new system and were eager to discuss their impressions at the Impressions Lounge.

With the system now revealed, we intend to share more details about it on the newly launched Tradian social media channels. Follow us on Facebook, Twitter, Instagram, and Tiktok for our latest updates.

The digital transformation of trade has begun!

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