Governor Baly: St. Maarten must continue building a modern, professional government

GREAT BAY--St. Maarten must continue strengthening its institutions, modernizing public administration and building a professional government capable of meeting the responsibilities of an autonomous country, His Excellency Governor Ajamu Baly said Tuesday at the opening of the 2026-2027 Parliamentary Year.

Delivering government’s policy address before Parliament, Baly outlined a broad agenda covering fiscal reform, digital transformation, healthcare, education, justice, housing, infrastructure, climate resilience and economic diversification. He said strengthening government remains a multi-year effort requiring greater cooperation across ministries, with Parliament and within the Kingdom.

The proposed budget also provides for Cg 221.2 million in capital investments, Cg 5.2 million in loans and authorization for up to Cg 52.9 million in financing for capital investments.

According to the Governor, the figures reflect government’s intention to maintain fiscal balance while creating room for investments in national development and priorities affecting residents.

The economic outlook presented to Parliament showed continued growth, supported primarily by tourism. Air arrivals during the first half of 2026 reached 566,722, an increase of 21.4% compared with the corresponding period in 2025, while cruise arrivals approached one million, representing growth of 13.9%.

For 2027, real economic growth is projected at approximately 2.2%, inflation at approximately 2.1%, while the debt-to-GDP ratio is expected to remain between 32% and 33%.

Governor Baly said the figures provide grounds for cautious optimism, but also underline the need for continued fiscal discipline, stronger institutions and reforms aimed at improving government’s ability to deliver services.

A major part of the government agenda for the coming parliamentary year will focus on strengthening the public administration. Government intends to stabilize shared services across the civil service, particularly personnel and organization, legal affairs, information technology and facility services, while addressing staffing shortages and administrative backlogs.

Government also plans to introduce an electronic human resources management system based on Microsoft Dynamics 365, incorporating artificial intelligence tools to improve data-driven operations, replace fragmented paper-based processes and establish a central source of personnel information.

The administration also intends to work with Parliament’s Digital Transformation and AI Workgroup, which was established earlier this year.

Within the Ministry of Finance, government will continue modernizing the tax administration, strengthening policy-based budgeting and quarterly budget reporting, expanding the government-wide enterprise resource planning system and improving internal auditing, procurement, payment processes and financial reporting.

Tax reform will focus on simplifying administration, broadening the tax base where appropriate, improving fairness and compliance and maintaining alignment with international standards.

Tourism will remain the main economic driver, with government placing additional emphasis on year-round visitor growth. The recent introduction of nonstop Southwest Airlines services from Orlando and Baltimore/Washington was highlighted as an expansion of access to important United States markets.

Government also plans to pursue diversification through the blue, green and orange economies, agriculture, livestock, fisheries, maritime services, technology and other emerging industries.

Micro, small and medium-sized enterprises, which the policy address said account for approximately 95% of local economic activity, will remain a focus through improved access to financing, knowledge and entrepreneurship support.

Consumer protection efforts will continue, including monitoring and enforcement of maximum prices. The regulated basket of essential goods has been expanded to 72 items.

Justice, Crime and Border Security

Government reported declines across several major crime indicators, with homicides down 19%, armed robberies down 15%, traffic accidents down 11% and emergency calls down 5.5%.

Authorities also recorded the seizure of approximately 650 kilograms of illegal narcotics.

Youth crime, however, remains a concern. Government intends to pursue a coordinated approach involving Justice, Education, Public Health, Social Development, Labor, families and community organizations, with emphasis on prevention, early intervention, victim support and addressing underlying social factors.

The construction of the new detention facility, which began in January 2026, was also highlighted as a major development. The project represents an investment of approximately Cg 52 million and is intended to increase detention capacity and improve compliance with international human rights and safety standards.

Border management will also be modernized through the Foreigners Management System, implementation of ASYCUDA World by Customs and an 18-month biosecurity initiative.

Legislation expected during the parliamentary year includes reforms related to attorneys, civil-law notaries, bailiffs, administrative fees and the Code of Criminal Procedure.

Education, Youth, Culture and Sport

Government will continue reforms aimed at improving educational quality, curriculum development, accreditation, data management, early childhood development and connections between vocational education and the needs of the labor market.

The administration also intends to develop a policy framework governing the responsible use of artificial intelligence in public and subsidized schools.

Other education-related legislation will address supervision, higher education funding, accreditation bodies and the licensing of education professionals.

Youth policy will focus on implementation of an integrated youth policy framework, child safeguarding, positive parenting, mental well-being, healthy lifestyles and increased youth participation.

Government also plans to continue supporting cultural heritage and creative practitioners, including the phased transformation of the Belvedere Plantation into a cultural and heritage park.

In sport, attention will be placed on athlete development, facilities, child safeguarding, healthy lifestyles and continued preparations for a multifunctional indoor facility.

Waste, Housing, Roads and Climate Resilience

Government identified waste management as one of the major environmental priorities for the new parliamentary year.

The extension of the Emergency Debris Management Project through 2033 is expected to support the closure and rehabilitation of the landfill in accordance with international environmental, health and safety standards.

Government and Trust Fund partners have also agreed on the legal basis for the establishment of a Waste Authority with responsibility for solid waste and wastewater.

A comprehensive Waste Management Ordinance is expected to be presented to Parliament covering solid waste, wastewater management, regulatory structures and related environmental responsibilities.

Climate resilience initiatives will continue through the Climate Impact Atlas, locally developed climate scenarios through 2100, the National Climate Change Adaptation Framework, flood mitigation projects and planning for ecologically sensitive areas and countrywide zoning.

Infrastructure priorities include stabilizing sewer pumping stations, improving drainage and water management planning, conducting island-wide road assessments and developing road-quality standards in preparation for a proposed Road Fund.

Government said the National Housing Policy has also been completed and presented, establishing a framework for affordable and social housing as well as opportunities for middle-income households.

Plans to address traffic congestion will also continue, including cooperation with authorities on the northern side of the island.

Healthcare, Mental Health and Social Protection

Government will continue reforms aimed at improving the accessibility, quality and financial sustainability of healthcare.

Among the planned legislative initiatives is the Sustainable Affordable Access Health Act, which provides for a phased approach toward implementation of General Health Insurance.

Other proposed legislation will cover public health, registration of healthcare professionals, mental health and forensic care, medicines, the Inspectorate of Public Health, minimum wage and an unemployment benefit scheme.

The National Mental Health Strategic Plan 2025-2035 has been approved and implementation is underway. Government also intends to continue work toward modern mental health legislation, a community-based mental healthcare model, a dedicated mental health facility, expanded counseling through community help desks and stronger after-hours primary healthcare services.

Social protection efforts will include further development of the Social Registry, improved coordination of social services and programs supporting seniors, vulnerable households, volunteers, community councils and women.

Government will also continue preparations related to financial assistance, disability benefits and implementation of St. Maarten’s action plan arising from the “No Mas, No More” conference addressing domestic violence and child abuse.

Within the labor sector, government said wage indexation has been implemented, the Labor Tripartite Committee has been reactivated and preparatory work has begun on an unemployment benefit scheme.

Institutional Reform and Regional Cooperation

Governor Baly stressed that strengthening government remains a multi-year undertaking requiring cooperation between ministries, Parliament, Kingdom partners, regional institutions, the World Bank, European Union, private sector and civil society.

The Country Package and Trust Fund will continue supporting public-sector modernization, education reform, public finance, healthcare infrastructure and institutional development.

St. Maarten is also expected to host the upcoming Kingdom Summit, providing an opportunity for renewed discussion on the future of the Kingdom, St. Maarten’s position within it and greater structural cooperation between the four countries and their parliaments.

The policy agenda also includes legislative frameworks for the St. Maarten Gambling Authority, establishment of an Economic Regulatory Authority, an independent Statistics Department, an Agriculture, Livestock and Fisheries Agency, a Competition Authority, consumer protection legislation, public transportation and an Innovation and Investment Promotion Agency.

Closing the address, Governor Baly said the country is continuing the work of building a modern and professional government capable of meeting the responsibilities of an autonomous country within the Kingdom.

He called for effective cooperation between government and Parliament as the administration brings its legislative agenda forward during the 2026-2027 parliamentary year.

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