State-owned enterprises (SOEs) across the Maldives have been instructed to implement a new wave of stringent cost-reduction measures, as authorities move to cushion the economic impact of the ongoing instability in the Middle East.
In a circular issued on Thursday, the Privatization and Corporatization Board (PCB) announced that government-linked companies must take further steps to curb spending, building on earlier directives issued at the end of March. Officials said the expanded measures are necessary as global conditions continue to put pressure on national finances.
The PCB’s latest instructions focus heavily on reducing workforce-related expenses. SOEs have been told to take decisive action to limit spending on salaries and benefits, while also strictly managing total payroll costs. Promotions across all entities have been halted, and recruitment—even for approved positions—has been suspended unless deemed essential for critical operations.
In a bid to tighten operational efficiency, companies have also been directed to eliminate unnecessary overtime. Work schedules must now be structured so that tasks are completed within standard working hours, with exceptions permitted only in cases vital to service delivery.
Spending controls extend beyond staffing. The PCB has ordered all SOEs to limit expenditures strictly to essential activities tied to their core legal responsibilities. Non-essential events, ceremonies, and functions are to be canceled, while overseas travel has been largely suspended. Where travel is unavoidable, organizations must ensure costs are kept to a minimum, and employees are encouraged to shift to virtual meetings wherever possible.
Training programmes abroad have also been put on hold, with companies instructed to adopt online alternatives. Additionally, employees are being encouraged to use ferry services for official travel in areas where such options are available, as part of broader efforts to cut transportation costs.
The circular also promotes longer-term efficiency measures, including the increased use of renewable energy systems in operations where infrastructure permits.
PCB emphasized that SOEs must carefully assess how the Middle East conflict could affect both the economy and the public, ensuring that cost-cutting efforts do not place undue financial strain on citizens.
Similar austerity measures are now being adopted across other government institutions, including reduced working hours and tighter controls on overtime, reflecting a coordinated national response to external economic pressures.
