Privatization Board Moves Forward with State-Owned Enterprise Reform

The Privatisation and Corporatisation Board (PCB) of Maldives has announced steps towards restructuring state-owned enterprises (SOEs) operating at a loss, as part of ongoing reform efforts.

Addressing the parliament’s SOE Committee, PCB’s Secretary General Ahmed Yameen outlined that a standard operating procedure (SOP) has been devised to address the financial challenges of unprofitable companies. Yameen informed that relevant agencies have been briefed on these procedures.

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Yameen said that PCB have identified specific actions, including mergers and liquidations, The board has finalised and submitted a list of companies earmarked for dissolution or merger to government agencies, he said

It’s unclear which of the state-owned companies will be restructured during this process,
Yameen further disclosed that PCB is actively formulating policies to regulate SOE operations and implementing a performance monitoring system.

Meanwhile, Finance Minister Dr. Mohamed Shafeeq recently announced plans to complete a comprehensive assessment of all SOEs within two weeks. The findings will be presented to the Economic Council, paving the way for cost-cutting measures.

Dr. Shafeeq emphasised the significant monthly expenditure incurred by the government to sustain SOEs, underscoring the need for decisive action to reduce costs.