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Press Release
9th Government: Commitment to Structural Reforms and Enhancing the Rule of Law for Sustainable Economic Growth
Since assuming office, the 9th Constitutional Government, led by Prime Minister Kay Rala Xanana Gusmão, has been dedicated to governance grounded in transparency, accountability, and sound public management. Its goal is to guide the country through a process of structural transformation following years of economic stagnation and declining public investment. The Executive has prioritised restoring the principles of good governance, addressing irregularities inherited from earlier administrations, and rebuilding the financial and administrative management systems that had been compromised.
With a vision centred on institutional consolidation and the strengthening of democratic rule of law, the Government has promoted reforms across all key sectors of national development. These reforms aim to enhance public institutions, reinforce state finances and justice, modernise public administration, revitalise public investment, and restore citizens’ trust in state institutions. The government’s actions have resulted in a policy of correction, reconstruction, and planning, focused on delivering concrete, sustainable results.
A comprehensive reform of public administration is underway, which, alongside the audits conducted, aims to enhance integrity, efficiency, meritocracy, and accountability, ensuring that the State serves citizens with proximity and transparency. At the same time, the Executive has been promoting the modernisation of infrastructure through strategic road rehabilitation projects, the expansion of the electricity grid, and improvements in water supply and drainage conditions, in line with an administrative decentralisation plan that seeks to strengthen the autonomy and management capacity of municipalities. These actions form part of a vision for balanced development that strives to unite the territory and create opportunities across all regions of the country.
On the economic front, the Government is working to diversify and revitalise the productive sector, with initiatives aimed at attracting foreign investment and developing the domestic private sector to reduce reliance on oil and strengthen the private sector’s role in the economy. The promotion of domestic and foreign investment, integration into regional markets, and preparation for full ASEAN membership mark a new phase of economic modernisation and strategic integration of Timor-Leste into regional and global arenas.
Investment in human capital and social welfare has also remained a priority. The government has been working to improve education quality by strengthening teacher skills and recruitment systems, revising curricula, and upgrading school infrastructure. In the health sector, measures have been introduced to expand access to public services and enhance social protection for vulnerable families. These initiatives, along with the recognition of national liberation fighters and the promotion of gender equality, reflect the belief that sustainable development can only be achieved through social justice and inclusion.
With the same determination that drives major structural reforms, the Government has demonstrated courage and speed in responding to emerging challenges, acting decisively whenever the integrity of democratic rule of law demands it. This stance reflects responsible governance, which tackles problems with transparency and resolve, ensuring that public interest and legality take precedence over all other interests. The strengthening of institutions, administrative discipline, and respect for the law are essential pillars of this approach, aiming to protect the state and reinforce citizens’ trust in their institutions. Integrity, understood as a moral principle and a tool for effectiveness, also underpins the Government’s credibility with international partners and the trust of the Timorese people in their institutions.
The results of this effort are already evident. Ongoing structural reforms, the revival of public investment, and the restoration of international confidence have led to a return to economic growth, as recognised by international financial institutions. This progress reflects the impact of leadership that combines experience, strategic vision, and commitment to the national interest.
Recently, the International Monetary Fund highlighted “the remarkable progress achieved since independence” and welcomed “Timor-Leste’s efforts towards greater regional and global economic integration through accession to the World Trade Organization and future membership of ASEAN—initiatives that will boost growth and reinforce the Government’s reform agenda.” The IMF also praised “the progress made in the financial sector reforms promoted by the Government (…) whose implementation will favour the development of the private sector.”
The 9th Government has shown that it is possible to govern with integrity, addressing past issues and tackling present challenges to prepare for the future. It does so with courage and determination through policies that combine strict management of public resources with the ambition to create a modern, prosperous, and morally upright nation.
As the Prime Minister himself stated in his presentation of the Government Programme, this is a shared responsibility of an entire “qualified and experienced Executive, which wants to restore the rules of good governance, transparency, efficiency, and effectiveness, so that we can ALL aspire to the Timor-Leste we dreamed of during the difficult years of struggle.”
In his inauguration speech, Kay Rala Xanana Gusmão stated that government practice would be “guided by the principles of good governance, inclusion, and the principle that everyone must obey the law,” also recognising, in the presentation of the Government Programme, that “the road ahead is full of challenges. Challenges that we must face responsibly. This is a programme that requires a great deal of determination, perseverance, and honesty, because sometimes it is easier to start over than to correct processes and systems, vices, and ingrained habits. But only in this way can we get back on the right path to progress.
On the eve of full ASEAN membership, Timor-Leste presents itself as a stable country in transition, with institutions strengthening and the Government leading development responsibly and consistently. Under Kay Rala Xanana Gusmão’s leadership, the country is on the path to progress once more, reaffirming the values that underpinned its independence: dignity, courage, and a commitment to truth and the common good. END